Dell Technologies Inc. Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Dell reported its best second quarter ever, with revenue rising 15% year-over-year to $26.1 billion.
  • EPS reached a record $2.24, up 17% compared to the prior year’s second quarter.
  • Strong demand across commercial PCs, servers, and broader IT infrastructure drove growth despite global supply chain constraints.

Business Unit Performance

Client Solutions Group (CSG)
  • Revenue: $14.3 billion, up 27% year-over-year (a record).
  • Commercial revenue: $10.6 billion, up 32% year-over-year; now over 70% of CSG revenue.
  • Consumer revenue: $3.7 billion, up 17% year-over-year.
  • Operating income: $995 million, up 39% year-over-year (7% of revenue).
  • Dell gained significant market share in commercial PCs (up 120 bps), becoming the top share gainer among major PC vendors.
Infrastructure Solutions Group (ISG)
  • Revenue: $8.4 billion, up 3% year-over-year.
  • Servers and networking: $4.5 billion, up 6% year-over-year (third consecutive quarter of growth).
  • Storage: $4.0 billion, down 1% year-over-year; however, orders grew 2% overall.
  • High-growth storage areas:
    • VxRail hyperconverged infrastructure orders up 34% year-over-year.
    • Midrange storage orders up 17%, driven by PowerStore's rapid adoption.

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Rob Williams: Thanks, Jermiria, and thanks everyone for joining us. With me today are Jeff Clarke, Chuck Whitten, Tom Sweet, and Tyler Johnson. Our press release, financial tables, webdeck, prepared remarks and additional materials are available on our IR website. The guidance section will be covered on today’s call. During this call, unless we otherwise indicate, all references to financial measures refer to non-GAAP financial measures, including non-GAAP revenue, gross margin, operating expenses, operating income, net income, earnings per share, EBITDA, adjusted EBITDA, and adjusted free cash flow. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our webdeck and press release. Also note that all growth percentages refer to year-over-year change unless otherwise specified. Additionally, I’d like to remind you that all statements made during this call that relate to future results and events are forward-looking statements, based on current expectations. Actual results and events could differ materially from those projected due to a number of risks and uncertainties, which are discussed in our webdeck and SEC filings. We assume no obligation to update our forward-looking statements. Now, I’ll turn it over to Jeff. Jeff Clarke: Thanks, Rob. Hi, everyone. Thanks for joining us today. We’ve made it through the first half of the year, and in this incredibly unpredictable environment, we delivered our best second quarter ever. That’

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