Dell Records Double-Digit Revenue Declines in Latest Quarter, Fiscal Year

Dell announced the financial results for its fiscal 2024 fourth quarter and full year, and it experienced double-digit revenue declines in each: 11 percent in the quarter and 14 percent in the year.

Dell earned a net income of $1.2 billion on revenues of $22.3 billion in the quarter ending February 2, 2024, and a net income of $3.2 billion on revenues of $88.4 billion in the fiscal year ending February 2, 2024.

“Our strong AI-optimized server momentum continues, with orders increasing nearly 40 percent sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” Dell vice chairman and chief operating officer Jeff Clarke said, referencing one of the company’s biggest successes this past year. “We’ve just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build generative AI solutions that meet performance, cost, and security requirements.”

Dell’s Client Solutions Group is responsible for its PC and related client hardware sales, and it delivered $11.7 billion in revenues in the quarter, with $9.5 billion attributed to businesses and $2.2 billion coming from consumers. Those numbers all declined by double digits in the quarter (and in the full fiscal year), and while this was the 8th straight quarter of PC market declines, Dell—like HP—believes it will return to growth in the second half of 2024. Dell is “excited about changes coming to the PC in 2024, including AI on the PC and Windows on ARM.”

Dell’s Infrastructure Solutions Group is responsible for its server, networking, and storage product lines. It delivered $9.3 billion in revenues in the quarter, down 6 percent year-over-year (YOY). Dell shipped $800 million of AI-optimized servers in the quarter, and its AI-optimized server backlog nearly doubled quarter-over-quarter to $2.9 billion.

Looking ahead, Dell noted that while “enterprise and large corporate customers are in the early stages of AI adoption, PCs will become more essential as most day-to-day work with AI will be done on the PC and at the edge.” On that note, the firm intends to “introduce the broadest portfolio of AI commercial laptops and mobile workstations designed to bring organizations and employee productivity into the AI era” this year.