Dell's Q2 carried by commercial PC sales boom
Dell Technologies delivered a record second quarter as its PC unit posted sales growth of 27%.
The IT giant reported second quarter net income of $880 million, or $1.05 a share, on revenue of $26.12 billion, up 15% from a year ago. Non-GAAP earnings for the second quarter $2.24 a share.
Wall Street was expecting second quarter revenue of $25.53 billion with non-GAAP earnings of $2.03 a share.
CFO Tom Sweet said the company said it was also seeing growth in its high-growth enterprise gear such as VxRail and PowerStore.
Overall, Dell's Client Solutions Group is powering results. The unit had second quarter operating income of $995 million on sales of $14.3 billion, up 27% from a year ago. Commercial PC revenue surged 32% in the quarter to $10.6 billion and consumer sales of $3.7 billion was up 17% from a year ago.
The company said it saw strong growth in its Latitude and Precision systems. US PC market grows 17% in Q2 2021 as notebook popularity booms
Jeff Clarke, vice chairman of Dell Technologies, said:
We have talked previously about our ability to quickly pivot the business where the demand is strongest and that was evident in these results. The need for better technology connectivity and productivity in the new "do-anything-fromanywhere" economy has driven strong IT spending across multiple industries and customer sizes - from large enterprises to medium businesses to small business and consumers. And we're leaning in to capture our share of the strong IT spending.
Dell also made progress on the infrastructure front as Infrastructure Solutions Group revenue was $8.4 billion, up 3%, with strong demand in multi-cloud gear. Server and networking revenue was up 6% with storage sales down 1%. Operating income for the unit was $970 million.
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VMware second quarter revenue, which is rolled into Dell Technologies, was $3.1 billion, up 8%, with operating income of $849 million.