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5 Dell Earnings Takeaways: PC Cautions, ‘Limiting’ Hiring, Apex

Mark Haranas

From PC demand weakness to Dell Apex’s $1 billion annual run rate, CRN breaks down the five biggest takeaways from Dell Technologies’ second quarter 2023 results.

Dell Q2 Financial Earnings Takeaways

Dell Technologies reported its second fiscal quarter results with highlights including Dell’s Apex as-a-service business hitting the $1 billion threshold and the company seeing a slowdown in demand for its bread-and-butter PC business.

“We saw the weakening [PC] environment. We have instituted a number of cost measures as a result of that, including effectively limiting external hiring,” said Dell’s Chief Financial Officer Tom Sweet, during Dell’s second quarter financial earnings call with media and analysts.

Dell’s stock is currently down 8 percent on Friday, trading at $43.10 per share.

Although the Round Rock, Texas-based infrastructure and PC giant is cautious about customer demand right now, Dell reported solid second quarter 2023 revenue growth.

[Related: Nerdio CRO Sees Boost From VMware, Citrix ‘Chaos’]

Dell Q2 Earnings

Dell generated $26.4 billion in total sales during its second fiscal quarter 2023, representing a 9 percent growth rate year over year.

Both Dell’s Client Solution Group [CSG]—which includes PCs, laptops, notebooks and more—as well as Dell’s Infrastructure Solutions Group [ISG] that consists of storage, server, data protection, networking and hyperconverged infrastructure, witnessed good sales growth.

“We delivered strong CSG and ISG growth and profitability – with revenue up 12 percent and 9 percent respectively – although we observed more cautious customer behavior as the quarter progressed,” said Chuck Whitten, co-chief operating officer at Dell Technologies.

Dell’s client group generated $15.5 billion in revenue in its second quarter, up 9 percent year over year.

The company’s infrastructure group delivered $9.5 billion in sales during the quarter, representing an increase of 12 percent year over year. The quarter marked Dell’s sixth consecutive growth of year over year growth.

Whitten, who became Dell’s co-COO in 2021, said customers continue to prioritize advanced technology solutions to succeed in the years ahead, and “we are confident in our long-term opportunities.”

From PC demand weakness to Dell Apex’s $1 billion annual run rate, here are the five biggest takeaways from Dell Technologies’ financial results from second quarter 2023.

 

 
Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

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