Dell Technologies exceeded analysts’ expectations IN its results for the fourth quarterfueled by demand for AI optimization in its server business that sent the company’s shares up nearly 25% on Friday morning.
The company’s Infrastructure Solutions Group (ISG) reported fourth-quarter revenue of $9.3 billion, up 10% sequentially but down 6% year-over-year. The majority of revenue was made up of server and network revenue, which was “primarily powered by AI-optimized servers.”
“Our powerful growth in AI-optimized servers continues, with orders growing sequentially by nearly 40% and the backlog nearly doubling, ending the fiscal year at $2.9 billion,” said Jeff Clarke, vice president and chief operating officer of Dell in company profit report.
Clarke said Dell is just getting started in artificial intelligence and believes our broad portfolio makes it uniquely positioned to lend a hand customers build GenAI solutions that meet performance, cost and security requirements.
Dell said it is expanding its AI portfolio offerings to customers, including modern enterprise storage with Nvidia’s AI infrastructure and “the broadest offering of commercial laptops and mobile AI workstations” with built-in AI capabilities. Dell also announced that it is expanding its Dell Generative AI portfolio to support more AI-enabled servers.
Overall, Dell’s fourth-quarter revenue was $22.3 billion, down 11% year-over-year. Dell’s revenue for the year was $88.4 billion, also down 14% from fiscal 2023.
“We generated operating cash flow of $8.7 billion this fiscal year, and have returned $7 billion to shareholders since Q1FY23,” said Yvonne McGill, Dell’s chief financial officer. “We are positive about FY25 and are increasing our annual dividend by 20%, demonstrating our confidence in the business and ability to generate powerful cash flow.”
