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Dell Technologies Announces Second Quarter Fiscal 2023 Financial Results

News summary

  • Record second quarter revenue of $26.4 billion, up 9%, driven by continued growth across client and infrastructure business units

  • Operating income up 25% at $1.3 billion, and non-GAAP operating income up 4% at $2 billion

  • Diluted earnings per share of $0.68 and non-GAAP diluted earnings per share of $1.68

ROUND ROCK, Texas, Aug. 25, 2022 /PRNewswire/ --

Dell Technologies logo (PRNewsfoto/Dell Technologies)
Dell Technologies logo (PRNewsfoto/Dell Technologies)

Full story

Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2023 second quarter. Revenue was a second quarter record of $26.4 billion, up 9%, driven by growth across Client Solutions Group (CSG) and Infrastructure Solutions Group (ISG). Operating income was $1.3 billion, up 25%, representing 4.8% of revenue, and non-GAAP operating income was $2 billion, up 4%, representing 7.4% of revenue. Net income from continuing operations was $506 million and non-GAAP net income was $1.3 billion. Diluted earnings per share was $0.68, and non-GAAP diluted earnings per share was $1.68.

Second Quarter Fiscal 2023 Financial Results

Three Months Ended

Six Months Ended

July 29, 2022

July 30, 2021


July 29, 2022

July 30, 2021


(in millions, except per share amounts and percentages; unaudited)

Total net revenue

$          26,425

$           24,191

9 %

$          52,541

$          46,781

12 %

Operating income

$            1,270

$             1,017

25 %

$            2,820

$            2,004

41 %

Net income from continuing operations

$                506

$                629

(20) %

$            1,575

$            1,288

22 %

Earnings per share - diluted

$               0.68

$               0.80

(15) %

$              2.06

$              1.65

25 %

Non-GAAP net revenue

$          26,425

$          24,199

9 %

$          52,541

$          46,797

12 %

Non-GAAP operating income

$            1,952

$            1,868

4 %

$            4,087

$            3,638

12 %

Non-GAAP net income

$            1,266

$            1,166

9 %

$            2,700

$            2,221

22 %

Non-GAAP earnings per share - diluted

$               1.68

$              1.48

14 %

$              3.52

$              2.83

24 %

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.

Operating segments summary

Client Solutions Group delivered second quarter record revenue of $15.5 billion, up 9% year-over-year. Commercial revenue was $12.1 billion, a 15% increase year-over-year, and Consumer revenue was $3.3 billion, down 9% year-over-year. Focus on the commercial market continues to drive differentiated share results, with share gains in 34 of the last 38 quarters.1 Operating income was $1 billion, or approximately 6.3% of Client Solutions Group revenue.

Key areas of innovation:

  • Precision 7865 Tower delivers on 25 years of commercial workstation innovation, supporting demanding, multi-application workloads.

  • Alienware m15 R5 launches as the most powerful 17-inch AMD Advantage™ gaming laptop.

  • New commercial devices for hybrid work are available, including the Latitude 9330, the world's first laptop with a collaboration touchpad that lets users mute, turn video on/off, screen share and chat.

  • This year's rollout of premium laptops continues with the launch of the XPS 13 and reveal of the versatile XPS 2-in-1.

Infrastructure Solutions Group delivered record second quarter revenue of $9.5 billion, up 12% and its sixth consecutive quarter of year-over-year growth. Storage revenue was $4.3 billion, up 6%, with growth across the portfolio and demand strength in high-end storage and our marquee mid-range product PowerStore, which has now grown every quarter since its launch. Servers and networking revenue was $5.2 billion, up 16% year-over-year. Operating income was $1 billion or approximately 11% of Infrastructure Solutions Group revenue.

Key areas of innovation:

The largest release in PowerStore history and new PowerMaxOS10 software are now available, delivering more than 500 new Dell storage software advancements that help customers drive faster insights, achieve better multicloud data control and increase cyber resiliency.

Dell Technologies ended the quarter with remaining performance obligations of $41 billion, up 2% year-over-year, deferred revenue of $28 billion, and cash and investments of $7.1 billion. Recurring revenue for the second quarter was approximately $5.2 billion, up 8% year-over-year. APEX annual recurring revenue is now over $1 billion, with second quarter orders growth of 78% year-over-year.

Executive Quotes:

  • "We continued to execute well in an increasingly challenging environment with record second quarter revenue of $26.4 billion, up 9%," said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. "We also advanced our long-term strategy – growing the core while innovating for our customers and enabling their opportunities in the data era."

  • "We delivered strong CSG and ISG growth and profitability – with revenue up 12% and 9% respectively – although we observed more cautious customer behavior as the quarter progressed," said Chuck Whitten, co-chief operating officer, Dell Technologies. "Customers continue to prioritize advanced technology solutions to compete and succeed in the years ahead, and we are confident in our long-term opportunities."

  • "Another quarter of record revenue, together with our operating income of $1.3 billion and non-GAAP operating income of $2 billion, affirms our industry strength and competitive position," said Tom Sweet, chief financial officer, Dell Technologies. "We remain focused on what we can control, staying flexible and opportunistic, and delivering revenue and EPS growth with strong free cash flow to our shareholders over time."

Conference call information

As previously announced, the Company will hold a conference call to discuss its performance and financial guidance on Aug. 25, 2022, at 4:30 p.m. CDT. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet can be accessed at

For those unable to listen to the live broadcast, the final remarks and presentation with guidance will be available following the broadcast, and an archived version will be available at the same location for one year.

Customer Highlights Blog

Read our quarterly blog from Bill Scannell, Dell Technologies president of Global Sales & Customer Operations, to learn more about how we are helping customers with their digital transformations:

Environmental, Social and Governance (ESG)

Our Environmental, Social and Governance (ESG) efforts focus on driving positive impact for people and our planet while delivering long-term value for our stakeholders. The FY22 ESG report was published June 30, 2022, and the Company held a conference call to discuss on July 21. ESG resources can be accessed at

About Dell Technologies

Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.

Copyright © 2022 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

Non-GAAP Financial Measures:

This press release presents information about Dell Technologies' non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, and non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:

Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.

Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: risks and uncertainties relating to our spin-off of VMware, Inc., including the potential effects on our business of the transaction; the effects of the COVID-19 pandemic; competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies' foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies' product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; weak economic conditions and the effect of additional regulation on Dell Technologies' financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies' infrastructure; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; compliance requirements of changing environmental and safety laws or other laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; the effect of global climate change and legal, regulatory, or market measures to address climate change; Dell Technologies' dependence on the services of Michael Dell and key employees; Dell Technologies' level of indebtedness; the effect of the transition from LIBOR as a reference rate to calculate interest rates under our variable-rate indebtedness; and business and financial factors and legal restrictions affecting continuation of Dell Technologies' quarterly cash dividend policy and dividend rate.

This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies' annual report on Form 10-K for the fiscal year ended January 28, 2022, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.

1 Based on units, as of Q2 CY2022 IDC data. Data between Q1 CY2013 and Q2 CY2022.


Basis of Presentation

Spin-Off of VMware, Inc. — On November 1, 2021, Dell Technologies Inc. completed its spin-off of VMware, Inc. ("VMware") by means of a special stock dividend (the "VMware Spin-off"). In accordance with applicable accounting guidance, the results of VMware, excluding Dell's resale of VMware offerings, are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for the three and six months ended July 30, 2021.  The Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations.


Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)

Three Months Ended

Six Months Ended

July 29, 2022

July 30, 2021


July 29, 2022

July 30, 2021


Net revenue:


$     20,810

$     18,895

10 %

$  41,274

$  36,382

13 %




6 %



8 %

Total net revenue



9 %



12 %

Cost of net revenue:




13 %



15 %




10 %



12 %

Total cost of net revenue



12 %



15 %

Gross margin



(1) %



5 %

Operating expenses:

Selling, general, and administrative



(6) %



(4) %

Research and development



(10) %



(1) %

Total operating expenses



(6) %



(4) %

Operating income



25 %



41 %

Interest and other, net



(117) %



(68) %

Income before income taxes



(12) %



30 %

Income tax expense



34 %



101 %

Net income from continuing operations



(20) %



22 %

Income from discontinued operations, net of income taxes


(100) %


(100) %

Net income



(43) %



(13) %

Less: Net loss attributable to non-controlling interests



(150) %



(167) %

Less: Net income attributable to non-controlling interests of discontinued operations


(100) %


(100) %

Net income attributable to Dell Technologies Inc.

$           511

$           831

(39) %

$     1,583

$     1,718

(8) %

Percentage of Total Net Revenue:

Gross margin

20.6 %

22.6 %

21.4 %

23.0 %

Selling, general, and administrative

13.4 %

15.5 %

13.5 %

15.9 %

Research and development

2.4 %

2.9 %

2.5 %

2.8 %

Operating expenses

15.8 %

18.4 %

16.0 %

18.7 %

Operating income

4.8 %

4.2 %

5.4 %

4.3 %

Income before income taxes

2.4 %

3.0 %

3.5 %

3.0 %

Net income from continuing operations

1.9 %

2.6 %

3.0 %

2.8 %

Income tax rate

20.3 %

13.2 %

14.8 %

9.6 %

Amounts are based on underlying data and may not visually foot due to rounding.



Consolidated Statements of Financial Position

(in millions; unaudited)

July 29, 2022

January 28, 2022


Current assets:

Cash and cash equivalents

$                           5,507

$                           9,477

Accounts receivable, net