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Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2024 fourth quarter and full year. Fourth quarter revenue was$22.3 billion, down 11% year over year. Operating income was$1.5 billion and non-GAAP operating income was$2.1 billion, up 25% and down 1% year over year, respectively. Cash flow from operations was$1.5 billion. Diluted earnings per share was$1.59, and non-GAAP diluted earnings per share was$2.20, up 89% and 22% year over year, respectively.
Revenue for the year was$88.4 billion, down 14% from fiscal year 2023. Operating income was$5.2 billion and non-GAAP operating income was$7.7 billion, down 10% and 11% year over year, respectively. Cash flow from operations for the full year was$8.7 billion. Full-year diluted earnings per share was$4.36, and non-GAAP diluted earnings per share was$7.13, up 35% and down 6% year over year, respectively.
Cash and investments were$9.0 billion, and Dell reached its core leverage target of 1.5x exiting the fiscal year. Dell is increasing its annual cash dividend by 20% to$1.78 per common share, with$0.445 per common share for the first quarterly distribution payable on May 3 to shareholders of record as of April 23.
"We generated$8.7 billion in cash flow from operations this fiscal year, returning$7 billion to shareholders since Q1 FY23," said Yvonne McGill, chief financial officer, Dell Technologies. "We're optimistic about FY25 and are increasing our annual dividend by 20% -a testament to our confidence in the business and ability to generate strong cash flow."
Fourth Quarter Fiscal 2024 Financial Results
| Three Months Ended |
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| Fiscal Year Ended |
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| February 2, 2024 |
| February 3, 2023 |
| Change |
| February 2, 2024 |
| February 3, 2023 |
| Change |
| (in millions, except per share amounts and percentages; unaudited) | ||||||||||
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Net revenue | $ 22,318 |
| $ 25,039 |
| (11)% |
| $ 88,425 |
| $ 102,301 |
| (14)% |
Operating income | $ 1,491 |
| $ 1,189 |
| 25% |
| $ 5,211 |
| $ 5,771 |
| (10)% |
Net income | $ 1,158 |
| $ 606 |
| 91% |
| $ 3,195 |
| $ 2,422 |
| 32% |
Earnings per share - diluted | $ 1.59 |
| $ 0.84 |
| 89% |
| $ 4.36 |
| $ 3.24 |
| 35% |
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Non-GAAP operating income | $ 2,139 |
| $ 2,170 |
| (1)% |
| $ 7,678 |
| $ 8,637 |
| (11)% |
Non-GAAP net income | $ 1,610 |
| $ 1,322 |
| 22% |
| $ 5,245 |
| $ 5,727 |
| (8)% |
Adjusted free cash flow | $ 1,010 |
| $ 2,267 |
| (55)% |
| $ 5,607 |
| $ 1,533 |
| 266% |
Non-GAAP earnings per share - diluted | $ 2.20 |
| $ 1.80 |
| 22% |
| $ 7.13 |
| $ 7.61 |
| (6)% |
Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. All comparisons in this press release are year-over-year unless otherwise noted.
Infrastructure Solutions Group (ISG)delivered fourth quarter revenue of$9.3 billion, up 10% sequentially and down 6% year over year. Servers and networking revenue was$4.9 billion, with sequential growth driven primarily by AI-optimized servers. Storage revenue was$4.5 billion, up 16% sequentially with demand strength across the portfolio. Operating income was$1.4 billion. Full-year ISG revenue was$33.9 billion, down 12% year over year, and full-year operating income was$4.3 billion, down 15% year over year.
Client Solutions Group (CSG)delivered fourth quarter revenue of$11.7 billion, down 5% sequentially and 12% year over year. Commercial client revenue was$9.6 billion, and Consumer revenue was$2.2 billion. Operating income was$726 million. Full-year CSG revenue was$48.9 billion, down 16% year over year, and full-year operating income was$3.5 billion, down 8% year over year.
"Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at$2.9 billion," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "We've just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements."
Dell continues to expand its portfolio to help customers meet their performance, cost and security requirements across clouds, on premises and at the edge:
Operating Segments Results
| Three Months Ended |
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| Fiscal Year Ended |
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| February 2, 2024 |
| February 3, 2023 |
| Change |
| February 2, 2024 |
| February 3, 2023 |
| Change |
| (in millions, except percentages; unaudited) | ||||||||||
Infrastructure Solutions Group (ISG): |
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Net revenue: |
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Servers and networking | $ 4,857 |
| $ 4,940 |
| (2)% |
| $ 17,624 |
| $ 20,398 |
| (14)% |
Storage | 4,475 |
| 4,965 |
| (10)% |
| 16,261 |
| 17,958 |
| (9)% |
Total ISG net revenue | $ 9,332 |
| $ 9,905 |
| (6)% |
| $ 33,885 |
| $ 38,356 |
| (12)% |
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Operating Income: |
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ISG operating income | $ 1,428 |
| $ 1,543 |
| (7)% |
| $ 4,286 |
| $ 5,045 |
| (15)% |
% of ISG net revenue | 15.3 % |
| 15.6 % |
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| 12.6 % |
| 13.2 % |
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% of total reportable segment operating income | 66 % |
| 70 % |
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| 55 % |
| 57 % |
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Client Solutions Group (CSG): |
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