Record full-year revenue of $102.3 billion, up 1%, and fourth quarter revenue of $25 billion, down 11%.
Record full-year operating income of $5.8 billion, up 24%, and record non-GAAP operating income of $8.6 billion, up 11%
Full-year diluted earnings per share at $3.24, and non-GAAP diluted earnings per share at $7.61
Announcing a 12% increase in annual cash dividend to $1.48 per common share
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2023 fourth quarter and full year. Revenue for the year was a record $102.3 billion, up 1% over fiscal year 2022. The company generated record operating income of $5.8 billion, up 24% over the prior year, and record non-GAAP operating income of $8.6 billion, up 11%. For the full year, net income from continuing operations was $2.4 billion and non-GAAP net income was $5.7 billion. Cash flow from operations was $3.6 billion. Full-year diluted earnings per share from continuing operations was $3.24, and non-GAAP diluted earnings per share was $7.61.
Fourth quarter revenue was $25 billion, down 11%. Operating income was $1.2 billion, representing 4.7% of revenue, and non-GAAP operating income was $2.2 billion, representing 8.7% of revenue. Net income from continuing operations for the quarter was $606 million, and non-GAAP net income was $1.3 billion. Cash flow from operations for the quarter was $2.7 billion. Diluted earnings per share from continuing operations was $0.84, and non-GAAP diluted earnings per share was $1.80.
Dell ended the quarter with remaining performance obligations of $40 billion, deferred revenue of $30.3 billion and recurring revenue of approximately $5.6 billion, up 12% year-over-year. Cash and investments were $10.2 billion, and $3.8 billion was returned to shareholders in fiscal year 2023 through share repurchases and dividends. The company will increase its annual cash dividend by 12% to $1.48 per common share, with $0.37 per common share for the first quarterly distribution payable on May 5 to shareholders of record as of April 25.
Fourth Quarter and Full Year Fiscal 2023 Financial Results
Three Months Ended
Fiscal Year Ended
February 3, 2023
January 28, 2022
Change
February 3, 2023
January 28, 2022
Change
(in millions, except per share amounts and percentages; unaudited)
Total net revenue
$ 25,039
$ 27,992
(11)%
$ 102,301
$ 101,197
1%
Operating income
$ 1,189
$ 1,609
(26)%
$ 5,771
$ 4,659
24%
Net income (loss) from continuing operations
$ 606
$ (29)
NM
$ 2,422
$ 4,942
(51)%
Earnings per share - diluted
$ 0.84
$ (0.04)
NM
$ 3.24
$ 6.26
(48)%
Non-GAAP net revenue
$ 25,039
$ 28,000
(11)%
$ 102,301
$ 101,229
1%
Non-GAAP operating income
$ 2,170
$ 2,191
(1)%
$ 8,637
$ 7,785
11%
Non-GAAP net income
$ 1,322
$ 1,390
(5)%
$ 5,727
$ 4,924
16%
Non-GAAP earnings per share - diluted
$ 1.80
$ 1.72
5%
$ 7.61
$ 6.22
22%
Fiscal year 2023 and its fourth quarter had an extra week compared to the prior corresponding periods.
Information about Dell Technologies' use of non-GAAP financial information is provided under 'Non-GAAP Financial Measures' below. All comparisons in this press release are year-over-year unless otherwise noted.
Operating segments summary
Infrastructure Solutions Group delivered record revenue of $38.4 billion for the full year, up 12% versus the prior year, and record operating income of $5 billion, up 35% versus the prior year. Fourth quarter revenue was $9.9 billion, up 7% year-over-year and its eighth consecutive quarter of year-over-year growth. Servers and networking revenue for the fourth quarter was $4.9 billion, up 5%. Storage revenue was a record $5 billion, up 10%. Operating income was a record $1.5 billion, up 40% and approximately 15.6% of Infrastructure Solutions Group revenue.
Client Solutions Group delivered revenue of $58.2 billion for the full year, down 5% versus the prior year, and operating income of $3.8 billion, down 12% versus the prior year. Fourth quarter revenue was $13.4 billion, down 23% year-over-year. Commercial revenue for the fourth quarter was $10.7 billion, down 17%, and Consumer revenue was $2.7 billion, down 40%. Operating income was $671 million, down 42% and approximately 5% of Client Solutions Group revenue.
Key areas of innovation:
Dell expanded its leading server portfolio with new PowerEdge servers, which improve energy and cost efficiency and make systems more intelligent with up to 2.9x greater AI inferencing across data centers, large-scale public clouds, telecom and edge locations.
Dell expanded its technology ecosystem and solutions, including Dell Telecom Infrastructure Blocks for Red Hat, to accelerate theoption of open, cloud-native technologies in the telecommunications industry.
Dell launched offerings for hybrid work, including:
The UltraSharp 6K Monitor with intelligent and secure collaboration, better sharpness and higher contrast as the world's first 6K resolution monitor with IPS black panel technology.
The Dell Premier Collaboration Keyboard, the world's first keyboard certified by Zoom, with dedicated touch controls to easily manage Zoom calls.
Executive Quotes:
'In FY23, we accelerated our innovation agenda, drove share gains and delivered strong profitability in a challenging environment - resulting in record revenue of $102.3 billion, record operating income and record ISG revenue of $38.4 billion,' said Chuck Whitten, co-chief operating officer, Dell Technologies. 'The long-term trends are in our favor, as data increases exponentially and we continue to help customers navigate the complexities of hybrid work, multicloud and edge..'
'Our end-to-end portfolio is a proven competitive advantage in this changing environment,' said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. 'In ISG we had our eighth consecutive quarter of growth in the fourth quarter with revenue of $9.9 billion, record profitability, and record storage revenue of $5 billion. In CSG, we are focusing on the most profitable segments of the PC market to outperform the industry. We are poised to capture growth even as customer spending priorities shift.'
We continue to deliver for our customers and meet our capital return commitments by taking a disciplined approach to managing our business,' said Tom Sweet, chief financial officer, Dell Technologies. 'We returned approximately $3.8 billion of capital to our shareholders in FY23 and are increasing our annual dividend by 12% in FY24, reflecting our confidence in our long-term business model and ability to generate and grow our cash flow over time.'
Dell Technologies World
Join us May 22-25 for Dell Technologies World, the company's flagship event that brings together the latest trends, technology and thought leaders. During the event, customers and partners will explore the connected ecosystem of IT infrastructure, applications, devices and security along with our Dell APEX and multicloud solutions that give customers greater flexibility to scale IT to meet business needs and transform their ideas into the innovations that shape our future. Register here.
Conference call information
As previously announced, the Company will hold a conference call to discuss its performance and financial guidance on March 2, 2023, at 3:30 p.m. CST. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to financial guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet and can be accessed at
https://investors.delltechnologies.com/news-events/upcoming-events
For those unable to listen to the live broadcast, the final remarks and presentation with financial guidance will be available following the broadcast, and an archived version will be available at the same location for one year.
Environmental, Social and Governance (ESG)
Our Environmental, Social and Governance (ESG) efforts focus on driving positive impact for people and our planet while delivering long-term value for our stakeholders. Explore our ESG resources at
https://www.dell.com/en-us/dt/corporate/social-impact/reporting/esg-governance.htm.
About Dell Technologies
Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.
DELL TECHNOLOGIES INC. 
