Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2023 first quarter. Revenue was a first quarter record of $26.1 billion, up 16%, with growth across Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The company generated record first quarter operating income of $1.6 billion, a 57% increase, and record non-GAAP operating income of $2.1 billion, up 21%. Net income from continuing operations was $1.1 billion, up 62%, and non-GAAP net income was $1.4 billion, up 36%, both driven by growth in operating income and lower interest expense due to reduced debt balances. Diluted earnings per share was $1.37, up 63%, and non-GAAP diluted earnings per share was $1.84, up 36%.
Dell Technologies ended the quarter with remaining performance obligations of $42 billion, up 14% year-over-year, deferred revenue of $27.4 billion, and cash and investments of $8.5 billion. Recurring revenue for the first quarter was approximately $5.3 billion, up 15%.
First Quarter Fiscal 2023 Financial Results
| Three Months Ended | |||||
| April 29, 2022 | April 30, 2021 | Change | |||
| (in millions, except per share amounts and percentages; unaudited) | |||||
| Total net revenue | $26,116 | $22,590 | 16% | ||
| Operating income | $1,550 | $987 | 57% | ||
| Net income from continuing operations | $1,069 | $659 | 62% | ||
| Earnings per share – diluted | $1.37 | $0.84 | 63% | ||
| Non-GAAP net revenue | $26,116 | $22,598 | 16% | ||
| Non-GAAP operating income | $2,135 | $1,770 | 21% | ||
| Non-GAAP net income | $1,434 | $1,055 | 36% | ||
| Non-GAAP earnings per share – diluted | $1.84 | $1.35 | 36% | ||
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 first quarter revenue of $9.3 billion, up 16%. Storage revenue was $4.2 billion, up 9%, with demand across the company’s broad storage portfolio. Servers and networking revenue was $5 billion, up 22% year-over-year. Operating income was $1.1 billion or approximately 11.7% of Infrastructure Solutions Group revenue.
Key areas of innovation:
- More than 500 storage software advancements across Dell PowerStore, PowerMax and PowerFlex to help customers deliver faster insights, achieve better multi-cloud data control and increase cyber resiliency.
- APEX Cyber Recovery Services, the first in a series of APEX full stack solutions, offering customers a cloud experience and simplifying recovery from cyberattacks.
- A collaboration with Snowflake will connect on-premises data from Dell’s industry-leading enterprise storage portfolio with the Snowflake Data Cloud.
- Dell Telecom Multi-Cloud Foundation helps communications service providers (CSPs) build and deploy open, cloud-native networks faster with lower cost and complexity.
- Dell Validated Design for Retail Edge helps retailers simplify edge infrastructure and launch new applications for better customer experiences.
Client Solutions Group delivered record first quarter revenue of $15.6 billion, up 17% year-over-year. Performance was driven by continued strength in commercial PCs, with commercial PC revenue of $12 billion, a 22% increase year-over-year. Consumer revenue was $3.6 billion, a 3% increase year-over-year. Operating income was $1.1 billion, or approximately 7.2% of Client Solutions Group revenue.
Key areas of innovation:
- Dell Optimizer software, which is built into commercial PCs, integrates AI for increased privacy, connectivity and collaboration to provide greater intelligence for hybrid work styles.
- Latitude 9330, the world’s first laptop with a collaboration touchpad that lets users mute, turn video on/off, screen share and chat. Also announced the Latitude 5000 series, Dell’s most sustainable laptops yet, featuring the world’s most innovative use of sustainable materials.
- New Precision mobile workstations for creators, engineers and architects – including the Precision 5470, the world’s smallest, thinnest and most powerful 14” mobile workstation. New 16- and 17-inch workstations offer a new form factor for DDR5 memory that enables a thinner chassis design and makes systems more accessible for repairs.
- Asset Recovery Services expansion into 35 new countries across EMEA and APJ, includes new data sanitization offers and simplifies the asset disposal process of PCs, servers, peripherals and accessories.
- New Latitude, Precision and XPS devices now ship with 100% recyclable packaging that is also made from 100% recycled or renewable materials.
Executive Quotes:
We followed a record FY22 with a record first quarter FY23. Revenue was $26.1 billion, up 16%, with growth across our business units,” said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. “We are built to outperform, in a balanced and consistent way across the company, as our customers invest in their digital futures and choose Dell as their trusted partner.”
“Our first quarter – with record Q1 revenue, operating income and diluted EPS – demonstrates the benefits of having a strong, geographically and sector-diverse business covering the edge to the core data center to the cloud,” said Chuck Whitten, co-chief operating officer. “Plus we are positioned to pursue growth wherever it materializes in the IT market, given the predictability, durability and 
flexibility in our business.”
“In our first quarter, we returned $1.75 billion to our shareholders through a combination of share repurchases and dividends,” said Tom Sweet, chief financial officer, Dell Technologies. “We are delivering long-term value by executing our strategy for growth, taking share, generating strong cash flow from operations and executing our capital allocation framework.”