Dell Technologies Inc. Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Performance

  • Q3 revenue was $24.7 billion, down 6% year-over-year, reflecting a softer demand environment across PCs and slowing ISG momentum.
  • Despite revenue pressure, Dell delivered record operating income of $2.4 billion (up 22%) and record diluted EPS of $2.30 (up 39%).
  • Gross margin reached $5.9 billion (up 2%) driven by a mix shift toward ISG, component cost deflation, and lower logistics costs.
  • Operating expenses fell 8% sequentially as Dell continued cost discipline, reducing more than $300 million in quarterly OpEx since Q1.
  • Net income was $1.7 billion, up 30%, supported by improved profitability and lower interest expense.

Infrastructure Solutions Group (ISG)

  • ISG revenue: $9.6 billion, up 12% year-over-year.
  • Servers and networking revenue: $5.2 billion, up 14% — but growth was aided notably by backlog reduction as underlying demand softened more than expected.
  • Storage revenue: $4.4 billion, up 11%, showing more resilient demand with growth across high-end systems, HCI, and PowerStore.
  • ISG operating income hit a record $1.4 billion (14.3% margin), up 390 basis points due to scale, pricing discipline, and lower component costs.
  • Storage backlog remains somewhat elevated; server backlog is now back to normal ranges.

Client Solutions Group (CSG)

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good afternoon, ladies and gentlemen. And welcome to the Fiscal Year 2023 Third Quarter Financial Results Conference Call for Dell Technologies Incorporated. I’d like to inform all participants that this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies Incorporated. Any rebroadcast of this information in whole or part without prior written permission of Dell Technologies is prohibited. Following prepared remarks, we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Rob Williams, Head of Investor Relations. Mr. Williams, you may begin. Rob Williams: Thanks everyone for joining us. With me today are Jeff Clarke, Chuck Whitten, Tom Sweet and Tyler Johnson. Our earnings materials are available on our IR website and I encourage you to review our materials and presentation which includes additional content to complement our discussion this afternoon. Guidance will be covered on today’s call. During this call, unless otherwise indicated, all references to financial measures refer to non-GAAP financial measures, including non-GAAP revenue, gross margin, operating expenses, operating income, net income, and diluted earnings per share. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our webdeck and our press release. Growth percentages refer to year-over-year change unless otherwise specified.

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional