Dell Technologies recently reported a decline in both revenue and net income for the latest quarter, suggesting that customers remain cautious in their spending habits. Here are the key details:
The tech company's adjusted earnings per share came in at $1.74, compared to $1.68 in the same period last year. Analysts surveyed by FactSet had expected adjusted earnings of $1.14 per share.
Dell posted revenue of $22.93 billion for the quarter, which is a 13% decrease from the $26.43 billion reported in the year-ago period. Analysts had anticipated revenue of $20.86 billion.
Net income for Dell amounted to $455 million, down from $506 million in the same period of the previous year. According to FactSet, analysts had projected net income of $535.1 million.
Key Factors to Note
Dell concluded the quarter with $39 billion in remaining performance obligations. Recurring revenue, an important metric that indicates repeat purchases from customers, reached $5.6 billion, marking an 8% year-over-year increase. Deferred revenue also grew by 8% to $30.3 billion, primarily due to the rise in service and software maintenance agreements.
Commentary from Chief Operating Officer
Commenting on the company's performance, Chief Operating Officer Jeff Clarke stated, "We remain focused on the most profitable segments of the market where we hold a leading position. Our proprietary software-defined storage solution has shown consistent growth for eight consecutive quarters. Our client solutions group business also performed well, with an 8% sequential increase and strong attach rates. Furthermore, AI continues to be a long-term growth driver, as evidenced by sustained demand across our portfolio."