Dell’s results beat estimates of strong PC demand

Dell Technologies beat revenue expectations for the ninth consecutive quarter on Thursday as companies invested heavily in desktop and laptop computers to support hybrid business.

Shares of the PC maker rose 7% after the market closed, also beating expectations for quarterly earnings with a 62% increase and saying revenue growth was driven by continued strength in the PC business.

Dell’s results come at a time when tech companies are grappling with a global chip shortage and supply chain disruptions, exacerbated by the war in Ukraine and new shutdowns in China.

Dell Customer Solutions Group revenue Which houses your hardware units grew 17% in the quarter, and business PC revenue increased 22% to $12 billion

Total revenue rose 16% to $26.12 billion in the first quarter, versus analysts’ average estimate of $25.04 billion, according to Refinitiv data.

Net profit from continuing operations rose to $1.07 billion from $659 million in the previous year.

Excluding non-recurring items, Texas-based Dell earned $1.84 per share, beating estimates of $1.39 per share.

Earlier today, chip maker Broadcom said it would buy VMware in a $61 billion cash and stock deal. The cloud computing company separated from Dell in 2021.

Michael Dell, the company’s founder and CEO for nearly four decades, is the largest investor in VMware with a 40% stake.