Dell Stock Slides On Q1 Earnings: 'No Company Is Better Positioned Than Dell To Bring AI To The Enterprise'

Dell Technologies Inc. -6.77% Post

Dell Technologies Inc.





+0.74% Post

Dell Technologies Inc (NYSE:DELL) reported financial results for the first quarter after the market close on Thursday. Here’s a look at the key details from the quarter.

Q1 Earnings: Dell’s fiscal first-quarter revenue increased 6% year-over-year to $22.24 billion, beating the consensus estimate of $21.67 billion, according to Benzinga Pro.

Infrastructure Solutions Group revenue totaled $9.2 billion in the first quarter, up 22% year-over-year. Client Solutions Group revenue came in at $12 billion, flat on a year-over-year basis.

The company reported adjusted earnings of $1.27 per share, beating analyst estimates of $1.26 per share.

Dell noted it returned $1.1 billion to shareholders through share repurchases and dividends in the first quarter. The company ended the quarter with $7.3 billion in cash and investments.

“No company is better positioned than Dell to bring AI to the enterprise,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.

“Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion.”

Dell did not provide forward guidance in its earnings release.

Management will hold a conference call to discuss its quarterly results at 4:30 p.m. ET.

DELL Price Action: Dell shares have more than doubled since the start of the year so expectations were lofty heading into the print. At publication time, Dell shares were down 12.93% at $147.95 in Thursday’s after-hours session, according to Benzinga Pro.

Related Link: EXCLUSIVE: ‘On-Device AI Revolution Is Fundamental,’ Says Qualcomm CFO

Photo: Shutterstock.

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