By Denny Jacob
Dell Technologies reported a double-digit increase in adjusted net income for the fourth quarter as demand for its AI-optimized servers heated up.
The PC-maker on Thursday said its bottom line, adjusted for one-time items, increased 22% for the quarter ended Feb. 2. Its top line declined to $22.32 billion, but came in slightly better than Wall Streets forecasts.
Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, said Chief Operating Officer Jeff Clarke.
The Round Rock, Texas-based companys Infrastructure Solutions segment increased 10% overall from the AI boost, while storage revenue rose 16%.
Dell said orders for its AI-optimized servers came from a wider range of customers and geographies.
Here is how Dell did in the fourth quarter:
— Revenue declined 11% to $22.32 billion from $25.04 billion in the year-ago quarter. Analysts expected $22.17 billion.
— Adjusted net income grew 22% to $1.61 billion from $1.32 billion. Analysts polled by FactSet expected $1.26 billion.
— Adjusted EPS: Stripping out one-time items, adjusted earnings were $2.20 a share. Analysts expected $1.73 a share.
— Dividend: Dell is increasing its annual cash dividend 20% to $1.78 a share.