May 31, 2024 - $Dell Technologies (DELL.US)$ shares slumped 14.49% to $145.30 in pre-market trading on Friday. The company announced its  financial results for its fiscal 2025 first quarter yesterday after market closure.

Q1 Financial Highlights

• First quarter revenue of $22.2 billion, up 6% year over year.

• Operating income was $920 million and non-GAAP operating income was $1.5 billion, down 14% and 8% year over year, respectively; Non-GAAP net income was $923 million, down 4% year over year.

• Infrastructure Solutions Group (ISG) revenue of $9.2 billion, up 22% year over year, with record servers and networking revenue of $5.5 billion, up 42%, with demand strength across AI and traditional servers. Storage revenue was flat at $3.8 billion. Operating income was $736 million.

• Client Solutions Group (CSG) delivered first quarter revenue of $12.0 billion, flat year over year. Commercial client revenue was $10.2 billion, up 3% year over year, and Consumer revenue was $1.8 billion, down 15%. Operating income was $732 million.Client Solutions Group (CSG) revenue of $12.0 billion, flat year over year, with commercial client revenue at $10.2 billion, up 3%.

• Dell returned $1.1 billion to shareholders through share repurchases and dividends and ended the quarter with $7.3 billion in cash and investments.

• The company reported adjusted earnings of $1.27 per share, beating analyst estimates of $1.26 per share.

"No company is better positioned than Dell to bring AI to the enterprise," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion."