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Shares of Dell Technologies jumped more than 15% in extended trading Thursday after the company posted fourth quarter results which exceeded analysts’ forecasts and showed strong demand for its AI servers.

Here’s how the company fared:

  • Earnings per share: $2.20 adjusted vs. $1.73 expected from LSEG, formerly Refinitiv
  • Income: $22.32 billion vs $22.16 billion expected by LSEG

Dell’s revenue for the fourth quarter of fiscal 2024 fell 11% from $25.04 billion in the year-ago quarter. The company reported net income of $1.16 billion, up 89% from the $614 million reported in the same period last year.

Chief Financial Officer Yvonne McGill said in a statement that the company was increasing its annual dividend by 20% to $1.78 per share, which she called “evidence of our confidence in the business”.

Dell’s Infrastructure Solutions Group (ISG) reported $9.3 billion in revenue for the quarter, down 6% year over year but up 10% from the third quarter. Server and networking revenue made up the bulk of that, with $4.9 billion in revenue driven by “AI-optimized servers.” Storage revenues totaled $4.5 billion.

The company’s Customer Solutions Group (CSG) reported $11.7 billion in revenue for the quarter, down 12% year over year. That included $9.6 billion in revenue from commercial customers, down 11% from last year’s fourth quarter, and $2.2 billion in consumer revenue, down 19% year-over-year.

“Our strong momentum in AI-optimized servers continues, with orders up nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” COO Jeff Clark said in the release.

For its first quarter, Dell said on its quarterly call with investors that it expects to report revenue between $21 billion and $22 billion.

The company said it was encouraged by the momentum around AI and that it expects to return to growth for fiscal 2025. However, the company noted that the macroeconomic environment is causing some customers to be cautious about infrastructure spending.

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