Dell Technologies Shares Gain After Q1 Results Beat

Dell Technologies Inc DELL reported first-quarter FY23 revenue growth of 15.6% year-over-year to $26.1 billion, with growth across Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) and beating the consensus of $25.04 billion.

Recurring revenue for Q1 was ~$5.3 billion, up 15% Y/Y.

Infrastructure Solutions' revenue was $9.3 billion (+16% Y/Y), with Storage revenue of $4.2 (+9% Y/Y) and Servers and networking revenue of $5 (+22% Y/Y).

Client Solutions Group revenue increased by 17% Y/Y to $15.6 billion, driven by continued strength in commercial PCs.

Adjusted EPS improved by 36% Y/Y to $1.84, above the consensus of $1.39.

The gross margin contracted by 116 bps to 22.1%. The operating income improved to $2.14 billion (+20.6% Y/Y), and the margin expanded by 35 bps to 8.2%.

Dell ended the quarter with remaining performance obligations of $42 billion (+14% Y/Y), deferred revenue of $27.4 billion, and cash and investments of $8.5 billion.

DELL returned $1.75 billion to shareholders through share repurchases and dividends in Q1.

Price Action: DELL shares are trading higher by 5.17% at $46.20 during the post-market session on Thursday.