Laptop-maker Dell Technologies (NYSE:DELL) announced record financial results for its fiscal 2022 third quarter, generating record revenue of $28.4 billion, up 21% compared with analysts’ average of $26.82 billion.  

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The company reported adjusted earnings of $2.37 per share and grew 17% from adjusted earnings of $2.03 per share reported in the same quarter last year.

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The profit surge was largely driven by a boost in demand for personal computers and servers by businesses increasingly adopting hybrid work models. As millions of consumers adopt a learn and work from home culture amidst the covid-19 pandemic, the need for better and faster computers is rising.  

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According to International Data Corp, the global PC market has grown for six consecutive quarters. Chief Financial Officer Tom Sweet at Dell said in a statement: “The digital trends are tailwinds for our business, and along with our strategy and financial flexibility, lead us to be optimistic about our long-term growth prospects.”

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KEY HIGHLIGHTS:

          1. Dell achieved the highest year-over-year PC share gain in its history for the third quarter calendar.

          2. Continues Growth in its diverse portfolio by tapping into high-value segments.

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The company has surpassed consensus EPS estimates four times over the last four quarters. Revenue at Dell’s client solutions units rose 35% in the quarter on an operating income of $1.1 billion, while revenue from its infrastructure solutions group was up 5% at $8.4 billion in the quarter.

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The company benefits from having a diverse portfolio of software and hardware revenue streams and, is now trying to tap into high-growth markets such as edge computing, cloud, and telecoms which gained traction since the beginning of the pandemic.

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Net income surged to $3.89 billion in the third quarter ended Oct. 29, from $881 million a year earlier. Non-GAAP net income was $2.0 billion, and adjusted EBITDA was $3.4 billion.  Dell’s new off-cloud computing unit, VMware, posted a 10% rise in revenue during the quarter.

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