Dell Is Hoping To Build A Brighter Future With Strategic AI Partnerships
On Thursday, Dell Technologies Inc (NYSE: DELL) surpassed both top and bottom-line analyst expectations with fiscal 2024 fourth-quarter results.
Upon results, Dell shares popped almost 20% as through its ongoing partnerships with AI leaders including Nvidia Corporation (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), AI tech advances enabled Dell to report significant gains.
Fourth fiscal quarter highlights
For the quarter ended on February 2nd, Dell reported revenue dropped 11% YoY to $25.04 billion. But net income increased 89% YoY to $1.16 billion.
Revenue segmentation
Infrastructure Solutions Group (ISG) brought in 9.3 billion to the revenue table and although it was a 6% YoY drop, the figure is a 10% increase from the previous, third, quarter. Servers and networking were the main revenue fuels with $4.9 billion of revenue being driven by AI-optimized servers.
Storage revenue observed a 16% sequential increase as it brought in $4.5 billion.
Client Solutions Group (CSG) observed a 12% YoY drop to $11.7 billion, including $9.6 billion in commercial client revenue that reported a 11% YoY rise and $2.2 billion in consumer revenue that tanked 19% YoY.
Fiscal year highlights
Fiscal year revenue dropped 14% YoY to $88.4 billion, but still topped estimates. Dell made a net income of $7.7 billion, smashing the consensus estimate of $4.9 billion.
Full-year ISG revenue tanked contracted 12% YoY to $33.9 billion. Full-year CSG revenue also contracted 16% YoY to $48.9 billion.
Chief Operating Officer Jeff Clarke spoke of the company’s strong AI-optimized server momentum with orders expanding nearly 40% sequentially and backlog nearly doubling, ending the fiscal year with $2.9 billion.