Dell Delivers a Solid Year and a Down Quarter

The third-largest PC maker delivered predictable financial results for its fiscal fourth quarter and full-year fiscal 2023.

In the quarter ending February 3, the firm posted a net income of $606 million on revenues of $25 billion, the latter of which is an 11 percent decline year-over-year (YOY). And for the full year, Dell posted a net income of $4.9 billion on revenues of $102.3 billion, a record, and a gain of 1 percent YOY.

“In FY23, we accelerated our innovation agenda, drove share gains, and delivered strong profitability in a challenging environment, resulting in record revenue of $102.3 billion,” Dell co-chief operating officer Chuck Whitten said. “The long-term trends are in our favor, as data increases exponentially and we continue to help customers navigate the complexities of hybrid work, multi-cloud, and edge.”

Dell’s Client Solutions Group (CSG) is responsible for its PC business, and it fared poorly in the year but particularly poorly in the fourth quarter. CSG revenues fell 5 percent in the year to $58 billion and 11 percent in the quarter to $13.3 billion. Revenues from commercial PCs were down 17 percent in the quarter but flat for the year, while consumer PC revenues were down 40 percent in the quarter and 20 percent in the year.

Jeff Clarke, Dell’s other co-COO noted that the firm was “focusing on the most profitable segments of the PC market to outperform the industry.” “We are poised to capture growth even as customer spending priorities shift,” he said. In a post-earnings conference call, the company noted that it had experienced a historic 2021 but that “the PC market slowed markedly in June and experienced a sharp decline in calendar Q4.”