Dell’s Q3 Revenues Declined by 10 Percent

Dell has reported a net income of $1 billion on revenues of $22.3 billion for the quarter ending November 3, 2023. Despite this being a 10 percent year-over-year (YOY) decline in revenues, the PC maker remains positive about its future growth.

Dell’s CFO, Yvonne McGill, expressed their confidence in generating strong cash flow through profitability and working capital efficiency, with $9.9 billion of cash flow from operations over the last twelve months. This long-term financial framework and capital allocation plan have proven successful, with $1 billion returned to shareholders in the third quarter through share repurchases and dividends.

The Client Solutions Group, inclusive of its PC business, yielded $12.3 billion in revenues, down 11 percent YOY. Profitability was evident with an operating income of $925 million, albeit not reaching expected levels. Similarly, the Infrastructure Solutions Group provided $8.5 billion in revenue, down 12 percent YOY, with an operating income of $1.1 billion.

McGill stated that revenue is anticipated to rebound and surpass the long-term financial framework next year, particularly beginning in the February quarter. This growth is attributed to a broader IT spending recovery among large corporate and enterprise customers, particularly in the US.

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