Dell Technologies, a leading tech company, has announced impressive financial results for the third quarter despite a decline in revenue. The company reported a net income of $1 billion, or $1.36 per share, for the quarter ended November 3rd. This figure marks a significant increase from $241 million, or 33 cents per share, during the same period last year. Adjusted earnings stood at $1.88 per share, surpassing analysts’ estimates of $1.46 per share.
Although revenue experienced a 10% decline, dropping from $24.72 billion to $22.25 billion, experts polled by FactSet had predicted $23 billion in revenue. The decline can be attributed to reductions in both Dell’s infrastructure solutions group, which includes storage, servers, and networking, and its client solutions group, encompassing its commercial and consumer sectors.
However, despite the decrease in overall revenue, Dell reported positive figures in other areas. The company ended the quarter with remaining performance obligations of $39 billion. Recurring revenue also saw a 4% year-over-year increase, totaling $5.6 billion at the end of the period. Additionally, deferred revenue reached $29.1 billion, up 7% from the previous year. Dell attributed this growth to higher software and hardware maintenance agreements.
Chief Operating Officer Jeff Clarke expressed optimism about future prospects, stating, “Our servers and networking business saw a sequential increase of 9%, driven by customer interest in generative AI. As we move into fiscal year 2025, we anticipate further revenue growth due to favorable market conditions.”
