Dell Reports Q2 2019 Revenue $23.5 billion, up 1% YoY

Servers and networking revenue decreased 12% to $4.4 billion.

August 29, 2019

3 Min Read

ROUND ROCK, Texas --

News summary 

  • Operating income of $519 million; non-GAAP operating income of $2.7 billion

  • Client Solutions Group posts record revenue and units 

  • VMware revenue up 12% 

  • Record cash flow from operations of $3.3 billion

Full story
Dell Technologies today announced financial results for its fiscal 2020 second quarter ended August 2, 2019. Second quarter revenue was $23.4 billion, up 2 percent, and non-GAAP revenue was $23.5 billion, up 1 percent over the same period last year. Operating income was $519 million1 compared to an operating loss of $13 million last year, and non-GAAP operating income was $2.7 billion compared to $2.1 billion in fiscal 2019. Net income was $4.5 billion or 19.3 percent of revenue, non-GAAP net income was $1.8 billion or 7.5 percent of non-GAAP revenue, and adjusted EBITDA was $3.2 billion or 13.5 percent of non-GAAP revenue. Record cash flow from operations was $3.3 billion. Diluted earnings per share was $4.83 and non-GAAP diluted earnings per share was $2.15.

"We are in the early stages of a technology-led investment cycle. IT spending remains healthy and our business drivers remain strong," said Jeff Clarke, vice chairman, Dell Technologies. "We are innovating and integrating across the Dell Technologies portfolio, from the edge to the core to the cloud, with a diverse business designed to succeed in any macro environment. For example, core Dell orders were up four percent in the quarter excluding China."

Figure 1:

Operating segments summary

Infrastructure Solutions Group revenue for the second quarter was $8.6 billion, a 7 percent decrease year-over-year. Storage revenue was flat at $4.2 billion, while servers and networking decreased 12 percent to $4.4 billion. Operating income was $1.1 billion for the second quarter or 12.2 percent of Infrastructure Solutions Group revenue. 

Key highlights:

  • Launch of the Dell Technologies Cloud, which combines the power of VMware and Dell Technologies to make hybrid cloud environments simpler to deploy and manage with consistent infrastructure, operations, and services 

  • Initial availability of VMware Cloud on Dell EMC, the industry's first fully managed on-premises Data Center-as-a-Service 

  • Strong customer receptivity to the recently launched Unity XT midrange storage solution

Client Solutions Group revenue for the second quarter was $11.7 billion, up 6 percent versus the second quarter of last year. Commercial revenue grew 12 percent to $9.1 billion, and Consumer revenue was down 12 percent to $2.7 billion. Operating income was $982 million for the second quarter or 8.4 percent of Client Solutions Group revenue.

Key highlights:

  • Record revenue and units 

  • Double-digit revenue growth in commercial notebooks, desktops, and workstations 

  • Launch of the new OptiPlex 7070 Ultra, an innovative desktop with the industry's most flexible, zero-footprint desktop design 

  • Launch of Unified Workspace, an integrated solution for end-user computing that simplifies the entire device lifecycle for IT while providing workers with the personalized, frictionless, ready-to-work experience they demand

VMware revenue was $2.5 billion for the second quarter, up 12 percent driven by broad-based strength across a diverse product portfolio. Operating income for the second quarter was $762 million, or 30.9 percent of VMware revenue. 

Dell Technologies (Nasdaq: DELL)

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