Dell’s US$102.3 Billion Revenue Sets New Record

Dell Technologies Breaks Revenue Record in 2023 Despite Challenges

Dell Technologies, one of the world's leading providers of IT solutions and services, announced its financial results for the fiscal year 2023, which ended on February 3, 2023. The company reported a record revenue of US$102.3 billion, up 1% from the previous fiscal year, and a record operating income of US$5.8 billion, up 24%. The company also increased its annual cash dividend by 12% to US$1.48 per common share.

Dell Technologies' revenue growth was driven by strong performance across its business segments, especially in cloud IT infrastructure, storage systems, and client solutions. The company's cloud IT infrastructure revenue grew 17% year-over-year, reaching US$7.9 billion, and its storage systems revenue grew 10%, reaching US$18.4 billion. The company's client solutions revenue, which includes PCs, laptops, tablets, and peripherals, was US$52.5 billion, up 2% year-over-year.

The company's operating income growth was fueled by improved profitability and cost efficiency, as well as the benefits of its debt reduction and capital structure optimization. The company reduced its total debt by US$5.5 billion in fiscal year 2023 and achieved an investment-grade credit rating from all three major rating agencies. The company also completed the spin-off of its 81% stake in VMware, a leading software company, on December 15, 2022, creating two independent and strategically aligned companies.

Michael Dell, chairman and chief executive officer of Dell Technologies, said in a press release: "We delivered a record year of revenue and profitability, demonstrating the resilience and relevance of our portfolio in a rapidly changing world. We are uniquely positioned to help our customers and partners accelerate their digital transformation and drive innovation at scale."

Jeff Clarke, vice chairman and chief operating officer of Dell Technologies, said in the same press release: "We have a clear and differentiated strategy that is resonating in the market and delivering results. We are investing in the right areas, expanding our capabilities and offerings, and enhancing our customer experience. We are confident in our outlook and excited about the opportunities ahead."

Dell Technologies also provided its guidance for the fiscal year 2024, which started on February 4, 2023. The company expects its revenue to be between US$104 billion and US$107 billion, representing a growth of 2% to 5% year-over-year. The company also expects its operating income to be between US$6.1 billion and US$6.5 billion, representing a growth of 5% to 12% year-over-year. The company's guidance assumes a stable demand environment, a favorable component cost environment, and a continued recovery from the impacts of the COVID-19 pandemic.

Dell Technologies is a global leader in digital transformation, providing innovative solutions and services that empower people and organizations to achieve more. The company's portfolio includes Dell, Dell EMC, Pivotal, RSA, Secureworks, Virtustream, and VMware. Dell Technologies serves customers ranging from individuals and small businesses to large enterprises and public sector organizations in over 180 countries. The company is headquartered in Round Rock, Texas, and employs over 150,000 people worldwide.