Dell Technologies delivered the best Q3 performance in its history after experiencing a demand surge for personal computers and data centers infrastructure. The company released the report on Tuesday, showing a profit (before certain costs like stock compensation) of $2.015 billion.
That number translates to about $2.37 per share, up 18% from a year ago. Revenue reached $28.4 billion, up 21%.
The earnings were better than expected, as Wall Street had ballparked the earnings at around $2.18 per share on sales of $26.82 billion. Dell Vice Chairman and co-Chief Operating Officer Jeff Clarke said that the company is winning in its core business- positioning itself at the center of customers’ IT and digital goals.
By the numbers
Clarke also said that Dell’s product, global operations, and sales team did very well in their jobs this quarter, as shown by the record number of products shipped and revenue attained.
Most of the company’s revenue comes from its Client Solutions group, which accounts for Dell’s personal computer sales and netted $16.5 billion in Q3, a 35% jump from a year ago. Dell execs said the company saw strong demand for high-end consumer PCs, gaming machines, and commercial PC systems.
In the same Client Solutions segment, commercial revenue reached $12.3 billion (a 40% increase), while consumer revenue hit $4.3 billion (up 21%).
Meanwhile, Dell’s operating income from the Client Solutions group attained $1.1 billion, up 14% from a year ago. Clarke told analysts on a call about how Dell is pairing Windows 11 with Dell Optimizer’s built-in intelligence to deliver personalized and productive experiences for users.
Dell’s other significant segments include the Infrastructure Solutions Group ($8.4 billion in revenue) and VMware. VMware is getting spun off, which will attract interest from those who would like to see how the approach fares.