Dell’s Q4 2024 Performance: A Comprehensive Review

Dell’s fourth-quarter 2024 financial results have been released, providing a detailed look at the company’s performance during this period. The report highlights various aspects of Dell’s business, including revenue, profitability, and segment-wise performance.

Revenue Performance

Dell’s revenue for the fourth quarter of 2024 stood at $23.8 billion, representing a decline of 11% year-over-year. This decline can be attributed to the challenging market conditions and intense competition in the technology sector.

Segment Q4 2024 Revenue YoY Change
Infrastructure Solutions Group (ISG) $8.4 billion -10%
Client Solutions Group (CSG) $12.4 billion -12%
VMware $3.4 billion -5%

Profitability

Dell’s profitability for the fourth quarter of 2024 was affected by the decline in revenue. The company’s operating income stood at $1.2 billion, representing a decline of 35% year-over-year. The net income for the quarter was $671 million, down 44% from the same period last year.

Segment-Wise Performance

Infrastructure Solutions Group (ISG)

Dell’s ISG segment includes servers, storage, and networking products. The segment’s revenue declined by 10% year-over-year to $8.4 billion. This decline was primarily due to the decrease in demand for servers and storage products.

Client Solutions Group (CSG)

The CSG segment includes desktops, laptops, and tablets. The segment’s revenue declined by 12% year-over-year to $12.4 billion. This decline was primarily due to the decrease in demand for desktops and laptops.

VMware

Dell’s VMware segment includes virtualization and cloud computing products. The segment’s revenue declined by 5% year-over-year to $3.4 billion. This decline was primarily due to the decrease in demand for virtualization products.

Geographic Performance

Dell’s revenue performance varied across different geographic regions. The Americas region accounted for 55% of the company’s total revenue, followed by Europe, Middle East, and Africa (EMEA) with 31%, and Asia Pacific and Japan (APJ) with 14%.

Product Performance

Dell’s product performance varied across different categories. The company’s server revenue declined by 15% year-over-year, while storage revenue declined by 12%. The networking revenue declined by 10% year-over-year.

Services Performance

Dell’s services revenue declined by 8% year-over-year to $5.5 billion. This decline was primarily due to the decrease in demand for consulting and deployment services.

Outlook

Dell’s management provided guidance for the first quarter of 2025, expecting revenue to be in the range of $22.5 billion to $23.5 billion. The company also expects to generate operating income in the range of $1.1 billion to $1.3 billion.

Conclusion

Dell’s fourth-quarter 2024 financial results reflect the challenging market conditions and intense competition in the technology sector. The company’s revenue and profitability declined year-over-year, primarily due to the decrease in demand for servers, storage, and desktops. However, Dell’s management remains optimistic about the company’s future prospects, driven by the growth in demand for cloud computing, artificial intelligence, and cybersecurity products.

Key Takeaways

  • Dell’s revenue declined by 11% year-over-year to $23.8 billion.
  • The company’s operating income declined by 35% year-over-year to $1.2 billion.
  • The net income declined by 44% year-over-year to $671 million.
  • Dell’s ISG segment revenue declined by 10% year-over-year to $8.4 billion.
  • The CSG segment revenue declined by 12% year-over-year to $12.4 billion.
  • VMware revenue declined by 5% year-over-year to $3.4 billion.

FAQs

Q: What was Dell’s revenue for the fourth quarter of 2024?

A: Dell’s revenue for the fourth quarter of 2024 was $23.8 billion.

Q: What was the decline in Dell’s revenue year-over-year?

A: Dell’s revenue declined by 11% year-over-year.

Q: What was Dell’s operating income for the fourth quarter of 2024?

A: Dell’s operating income for the fourth quarter of 2024 was $1.2 billion.

Q: What was the decline in Dell’s operating income year-over-year?

A: Dell’s operating income declined by 35% year-over-year.

Q: What was Dell’s net income for the fourth quarter of 2024?

A: Dell’s net income for the fourth quarter of 2024 was $671 million.

Q: What was the decline in Dell’s net income year-over-year?

A: Dell’s net income declined by 44% year-over-year.