Dell Revenues Fell 10 Percent in Q3

Dell reported that it earned a net income of $1 billion on revenues of $22.3 billion for the quarter ending November 3, 2023. Revenues at the PC maker were down 10 percent year-over-year (YOY), thanks largely to a continued downturn in commercial PC sales.

“We have proven our ability to generate strong cash flow through profitability and working capital efficiency, including $9.9 billion of cash flow from operations over the last twelve months,” Dell CFO Yvonne McGill said. “Our long-term financial framework and capital allocation plan continue to deliver results, with $1 billion returned to shareholders in the third quarter through share repurchases and dividends.”

Dell’s Client Solutions Group, which includes its PC business, delivered $12.3 billion in revenues in the quarter, down 11 percent YOY. $9.8 billion of those revenues were attributed to commercial (business) customers, while $2.4 billion came from consumers. And while the business was profitable, with an operating income of $925 million, the results were far lower than expected.

Dell’s Infrastructure Solutions Group provided another $8.5 billion in revenue, down 12 percent YOY. $4.7 billion of that came from servers and networking, while another $3.8 billion came from storage. Operating income was $1.1 billion.

“We expect revenue to return to growth next year, above our long-term financial framework,” McGill said during a post-earnings conference call, noting that this growth would start in the February quarter. “The opportunity is a broader IT spending recovery, with large corporate and enterprise customers, particularly in the US.”