What happened
Shares of Dell Technologies (DELL 2.98%) climbed 12.9% on Friday after the computer maker reported strong sales and profit growth.
So what
Dell's revenue jumped 16% year over year to $26.1 billion in its fiscal 2023 first quarter, which ended on April 29. The gains were broad-based. Sales in Dell's Infrastructure Solutions Group -- which provides servers, storage, and networking solutions to corporate clients -- grew by 16% to $9.3 billion. Sales in the company's Client Solutions Group, which sells personal computers (PCs), increased 17% to $15.6 billion.
Commercial PC sales were a particularly strong source of growth. Dell's commercial PC revenue leaped 22% to $12 billion, as businesses increased their orders as more of their employees returned to traditional workplaces.
"We are positioned to pursue growth wherever it materializes in the IT [information technology] market, given the predictability, durability, and flexibility in our business," co-chief operating officer Chuck Whitten said in a press release.
Demand for workplace computers is rising as more people return to offices. Image source: Getty Images.
Dell also did an admirable job of managing supply chain disruptions that have plagued the tech industry during the pandemic. The company's cost-control efforts helped its adjusted operating income grow by 21% to $2.1 billion. Its adjusted net income, in turn, soared 36% to $1.4 billion, or $1.84 per share.
That was far above Wall Street's expectations. Analysts had anticipated adjusted earnings per share of only $1.39.
Now what
Dell's strong personal computer sales suggest it's gaining share in the global PC market. Worldwide PC shipments fell 6.8% in the first quarter, according to tech research firm Gartner.
"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," co-chief operating officer Jeff Clarke said.
