The company's Client Solutions Group, which sells PCs and laptops to consumers and enterprises, declined 1% on an annual basis to $12.1 billion. Despite a 3% annual increase in commercial clients buying PCs for their workforce, sales from PCs to consumers fell 18% on an annual basis. Dell's AI server sales and future orders have boosted demand for its traditional servers, which are less power-hungry and can free up room or power inside data centers for companies investing heavily into AI infrastructure.
Key takeaways:
- Dell Technologies reported quarterly earnings that beat analyst expectations for earnings per share but fell short on overall revenue, causing shares to fall 6% in after-hours trading.
- The company's Infrastructure Solutions Group (ISG) saw a revenue increase of 34%, largely driven by AI sales, with the Servers and Networking subsidiary experiencing a 58% rise in revenue.
- Dell's AI server sales are strong, with the company shipping $2.9 billion in AI servers during the quarter and customers booking $3.6 billion of future AI server orders.
- The company's Client Solutions Group, which sells PCs and laptops, declined 1% on an annual basis to $12.1 billion, with sales from PCs to consumers falling 18% on an annual basis to $2 billion.