- Dell Technologies (NYSE:DELL) stock lost nearly 20 per cent in early Friday trading even after its Q1 2025 results beat expectations
- The multinational tech company reported 6 per cent year-over-year revenue growth, reaching US$22.24 billion, well above the consensus estimate of US$21.67 billion
- However, the company’s client solutions’ revenue remained flat at US$12 billion, showing no growth compared with the previous year, pointing to stable, but stagnant performance
- Dell Technologies opened trading at US$143.80 per share
Dell Technologies (NYSE:DELL) stock lost nearly 20 per cent in early Friday trading even after its Q1 2025 results beat expectations.
In the first quarter of its fiscal 2025, the multinational tech company revealed a significant revenue increase that surpassed market expectations. The company reported 6 per cent year-over-year revenue growth, reaching US$22.24 billion, well above the consensus estimate of US$21.67 billion.
Dell’s revenue figures were driven by strong performance in its infrastructure solutions, which saw a 22 per cent year-over-year increase in revenue, reaching US$9.2 billion. However, the company’s client solutions’ revenue remained flat at US$12 billion, showing no growth compared with the previous year, pointing to stable, but stagnant performance.
In addition to its revenue performance, Dell also reported adjusted earnings of US$1.27 per share, marginally beating analyst predictions by a cent. Despite these positive results, the absence of forward guidance in the earnings release has been noted as a potential factor contributing to investor uncertainty, which may have influenced the sharp decline in Dell’s stock in after-market and pre-market trading.
“We again demonstrated our ability to execute and deliver strong cash flow, with AI continuing to drive new growth,” Dell Technologies’ chief financial officer, Yvonne McGill, said in a news release. “[S]ervers and networking revenue was up 42 per cent, and we generated US$7.9 billion of cash flow from operations over the past 12 months.”
Dell’s initiatives and broader market trends play an important role in the company’s ongoing evolution. Earlier this month, NVIDIA Corp. (NDAQ:NVDA; NEO:NVDA) highlighted the importance of its partnership with Dell, emphasizing its significance in expanding AI adoption. This collaboration is seen as a positive step towards innovation and growth, potentially positioning Dell as a key player in the AI market.
In its fiscal Q1 2025, Dell returned US$1.1 billion to its shareholders through dividends and share repurchases. Dell concluded the quarter with a robust US$7.3 billion in cash and investments, though it did not provide any future guidance.
Dell Technologies designs, develops, manufactures, markets, sells, and supports a range of comprehensive and integrated solutions, product, and services. The tech company operates through two segments: infrastructure solutions and client solutions.
Dell Technologies (NYSE:DELL) opened trading at US$143.80 per share.
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(Top photo: Dell)