Dell Technologies delivered strong fourth quarter results as demand for PCs and remote work gear continued to surge.
The PC and data center provider reported fourth quarter earnings of $1.34 billion, or $1.57 a share, on revenue of $26.11 billion, up 9% from a year ago. Non-GAAP earnings were $2.70 a share.
Wall Street was looking for fourth quarter non-GAAP earnings of $2.14 a share on revenue of $24.49 billion.
Like HP, Dell continues to capitalize on remote work and education demand. Jeff Clarke, chief operating officer at Dell Technologies, said the company expects IT spending to grow in the mid-single digits in 2021.
For fiscal 2021, Dell reported earnings of $3.5 billion, or $4.22 a share, on revenue of $94.22 billion, up 2% from a year ago. VMware’s strong results also bolstered Dell’s quarter. VMware Q4 results top expectations, no update on CEO search
Dell said recurring revenue was up 8%. A chunk of that recurring revenue is due to as-a-service models.
The company’s PC unit delivered fourth quarter revenue of $13.8 billion, up 17% from a year ago. Commercial and consumer revenue surged. Operating income for the quarter was $1 billion. For the year, Dell’s PC unit delivered revenue of $48.4 billion with operating income of $3.4 billion.
Dell said it shipped 50.3 million PCs during 2020.
Dell’s infrastructure unit deliver more mixed results. Revenue in the fourth quarter was $8.8 billion, flat from a year ago. Storage revenue was down 2% with server and networking sales up 3%. Operating income was $1.2 billion in the fourth quarter. For the year, Dell’s infrastructure unit revenue was $32.6 billion with operating income of $3.8 billion.
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