Dell Technologies handily topped second quarter expectations amid strong demand for remote work and education devices and infrastructure.
The company reported second quarter net income of $1.1 billion, or $1.37 a share, on revenue of $22.7 billion. Non-GAAP earnings were $1.92 a share.
Wall Street was expecting Dell to report fiscal second quarter revenue of $22.52 billion and non-GAAP earnings of $1.40 a share.
Dell Technologies, which includes results from VMware, saw strong demand in government and education sectors. Dell Technologies said that second quarter orders in education were up 24%. ""In Q2, we saw strength in the government sector and in education, with orders up 16 and 24 percent, respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning," said Jeff Clarke, chief operating officer.
HP saw similar demand in notebook sales. HP beats Q3 estimates with big increase in notebook sales
Also in the second quarter:
The quarter was propelled by Dell's client solutions group, which delivered revenue of $11.2 billion and operating income of $715 million. Demand was driven by remote work and education. Notebooks, consumer PCs and gaming systems all saw double-digit revenue growth. Consumer revenue was up 18% and commercial revenue fell 11%.
Simply put, everything went remote in the second quarter:
As for infrastructure, Dell Technologies had second quarter revenue of $8.2 billion with operating income of $973 million. VMware contributed revenue of $2.9 billion and operating income of $984 million in the second quarter. VMware tops Q2 expectations on strong growth in SaaS revenue