Dell Reports Better-Than-Expected Q4 Results Driven By AI Server Demand

Dell Technologies, Inc. DELL reported its fourth-quarter financial results after the bell Thursday and highlighted increasing demand for its AI servers. Here's a look at the highlights.

The Details:

Dell reported quarterly earnings of $2.20 per share which beat the analyst consensus estimate of $1.73 by 27.17%.

Quarterly sales clocked in at $22.3 billion, beating the analyst consensus estimate of $22.16 billion.

Dell highlighted increasing demand for its AI servers and reported servers and networking revenue of $4.9 billion, with sequential growth driven primarily by AI-optimized servers.

“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” said Jeff Clarke, COO of Dell Technologies.

“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 GenAI solutions that meet performance, cost and security requirements,” Clarke said.

The company also announced a 20% increase in annual cash dividend to $1.78 per common share with $0.445 per common share for the first quarterly distribution payable on May 3 to shareholders of record as of April 23.

“We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since Q1 FY23,” said Yvonne McGill, CFO of Dell Technologies.

“We’re optimistic about FY25 and are increasing our annual dividend by 20% – a testament to our confidence in the business and ability to generate strong cash flow,” McGill added.

Related News: Okta Stock Soars On Q4 Results: What’s Going On?

DELL Price Action: According to Benzinga Pro, Dell Technologies shares are trading up 16.2% after-hours at $110.00 at the time of publication.

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