Dell Technologies Reports Q2 2024 Financial Results: Sequential Revenue Growth Despite Year-Over-Year Decline

Dell Technologies, a global technology leader, has unveiled its financial results for the second quarter of fiscal year 2024. Despite facing challenges in the year-over-year comparison, the company demonstrated significant sequential growth, highlighting the resilience of its business model.
Dell Technologies at MWC 2017In the fiscal Q2 2024, Dell reported revenue of $22.9 billion, representing a 13 percent decline compared to the same period last year. However, the company managed to achieve a noteworthy 10 percent increase in revenue sequentially. Operating income for the quarter reached $1.2 billion, indicating an 8 percent decrease from the previous year.

The Infrastructure Solutions Group, a crucial division for Dell, reported Q2 revenue of $8.5 billion. Although this marked an 11 percent year-over-year decline, the group showcased an impressive 11 percent sequential growth. Storage revenue contributed significantly, reaching $4.2 billion, primarily driven by robust demand for PowerStore, a leading midrange storage array, and PowerFlex, a software-defined storage solution. The latter experienced remarkable success, achieving eight consecutive quarters of growth, with Q2 demand more than doubling compared to the previous year. Servers and networking revenue stood at $4.3 billion, buoyed by increased demand for AI-optimized servers. The group’s operating income reached $1 billion, equivalent to approximately 12.4 percent of the Infrastructure Solutions Group’s revenue.

The Client Solutions Group, another integral part of Dell’s operations, reported Q2 revenue of $12.9 billion. While this figure indicated a 16 percent year-over-year decrease, the group managed an 8 percent sequential increase. Commercial client revenue accounted for $10.6 billion, primarily driven by demand growth in workstations designed to handle complex AI workloads locally. The consumer segment contributed $2.4 billion in revenue. The group’s operating income reached $969 million, equivalent to around 7.5 percent of the Client Solutions Group’s revenue.

Dell closed the quarter with remaining performance obligations totaling $39 billion, recurring revenue amounting to $5.6 billion (an 8 percent year-over-year increase), and deferred revenue reaching $30.3 billion (an 8 percent year-over-year increase). The growth in deferred revenue was primarily attributed to increased service and software maintenance agreements.

Yvonne McGill, Chief Financial Officer of Dell Technologies, emphasized the company’s ability to generate cash in a sequential growth environment. She stated, “Our Q2 performance underscores the power of our model to generate cash in a sequential growth environment. Revenue grew 10 percent sequentially to $22.9 billion, with strong cash flow from operations of $3.2 billion in Q2 and $8.1 billion over the last 12 months. We continue to deliver value to shareholders and have flexibility to increase our return of capital going forward.”

Dell’s Q2 results demonstrate its ability to navigate challenges while maintaining positive momentum through sequential growth. The company’s strategic focus on innovative solutions like PowerStore and PowerFlex, along with a strong presence in the workstation market, positions it well for future success.

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