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Story Highlights
- Third quarter revenue of $24.4 billion, up 10% year over year
- Infrastructure Solutions Group (ISG) revenue of $11.4 billion, up 34% year over year, with servers and networking revenue of $7.4 billion, up 58%
- Client Solutions Group (CSG) revenue of $12.1 billion, down 1% year over year, with commercial client revenue up 3% at $10.1 billion
- Diluted earnings per share of $1.58, up 16% year over year, and non-GAAP diluted earnings per share of $2.15, up 14%
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ROUND ROCK, Texas -November 26, 2024 -
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 third quarter. Revenue was $24.4 billion, up 10% year over year. Operating income was $1.7 billion and non-GAAP operating income was $2.2 billion, both up 12% year over year. Diluted earnings per share was $1.58, and non-GAAP diluted earnings per share was $2.15, up 16% and 14% year over year, respectively.
"We continued to build on our AI leadership and momentum, delivering combined ISG and CSG revenue of $23.5 billion, up 13% year over year," said Yvonne McGill, chief financial officer, Dell Technologies. "Our continued focus on profitability resulted in EPS growth that outpaced revenue growth, and we again delivered strong cash performance."
Cash flow from operations was $1.6 billion, and Dell ended the quarter with $6.6 billion in cash and investments.
Third Quarter Fiscal 2025 Financial Results
Three Months Ended
Nine Months Ended
November 1, 2024
November 3, 2023
Change
November 1, 2024
November 3, 2023
Change
(in millions, except per share amounts and percentages; unaudited)
Net revenue
$ 24,366
$ 22,251
10%
$ 71,636
$ 66,107
8%
Operating income
$ 1,668
$ 1,486
12%
$ 3,930
$ 3,720
6%
Net income
$ 1,127
$ 1,004
12%
$ 2,923
$ 2,037
43%
Change in cash from operating activities
$ 1,553
$ 2,152
(28)%
$ 3,936
$ 7,143
(45)%
Earnings per share - diluted
$ 1.58
$ 1.36
16%
$ 4.07
$ 2.78
46%
Non-GAAP operating income
$ 2,199
$ 1,964
12%
$ 5,707
$ 5,539
3%
Non-GAAP net income
$ 1,540
$ 1,389
11%
$ 3,834
$ 3,635
5%
Adjusted free cash flow
$ 716
$ 860
(17)%
$ 2,623
$ 4,597
(43)%
Non-GAAP earnings per share - diluted
$ 2.15
$ 1.88
14%
$ 5.31
$ 4.93
8%
Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. All comparisons in this press release are year over year unless otherwise noted.
Infrastructure Solutions Group (ISG) delivered record third-quarter revenue of $11.4 billion, up 34% year over year. Servers and networking revenue was $7.4 billion, up 58%, with demand growth across AI and traditional servers. Storage revenue was $4.0 billion, up 4%. Operating income was $1.5 billion.
"AI is a robust opportunity for us with no signs of slowing down," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across all customer types."
Client Solutions Group (CSG) delivered third quarter revenue of $12.1 billion, down 1% year over year. Commercial client revenue was up 3% at $10.1 billion, and Consumer revenue was $2.0 billion, down 18%. Operating income was $694 million.
Operating Segments Results
Three Months Ended
Nine Months Ended
November 1, 2024
November 3, 2023
Change
November 1, 2024
November 3, 2023
Change
(in millions, except percentages; unaudited)
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking
$ 7,364
$ 4,656
58%
$ 20,502
$ 12,767
61%
Storage
4,004
3,843
4%
11,739
11,786
-%
Total ISG net revenue
$ 11,368
$ 8,499
34%
$ 32,241
$ 24,553
31%
Operating Income:
ISG operating income
$ 1,508
$ 1,069
41%
$ 3,528
$ 2,858
23%
% of ISG net revenue
13.3 %
12.6 %
10.9 %
11.6 %
% of total reportable segment operating income
68 %
54 %
62 %
51 %
Client Solutions Group (CSG):
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