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• Dell Technologies reported its financial results for the first quarter today.
• Here's what its CFO Yvonne McGill said in a press release on Thursday.
• Dell stock is now up roughly 100% versus the start of this year (2024).

Dell Technologies Inc (DELL) is trading down in extended hours on Thursday even though it reported marketing-beating revenue for its first quarter.

Why is Dell stock down in after-hours?
 

The multinational earned $955 million that translates to $1.27 per share (adjusted) in its fiscal Q1. Revenue jumped 6.0% on a year-over-year basis to $22.2 billion.

Analysts, in comparison, were at $1.27 a share and $21.71 billion, respectively. Yvonne McGill – the chief financial officer of $DELL said in a press release today:

We again demonstrated our ability to execute and deliver strong cash flow, with AI continuing to drive new growth.

Note that the tech giant reported $578 million in net income or $1.31 per share in the same quarter last year. Dell stock is now up roughly 100% versus the start of 2024.

The New York listed firm recorded $1.0 billion of cash flow from operations for its first financial quarter on Thursday – down from $1.80 billion a year ago.

What else was noteworthy in Dell Q1 earnings report?
 

Dell Technologies saw strength primarily in one of its business segments in Q1.

Revenue from infrastructure solutions came in up 22% on a year-over-year basis while client solutions revenue remained roughly flat versus a year ago. Jeff Clarke – the vice chairman and chief operating officer of $DELL said today:

No company is better positioned than Dell to bring AI to the enterprise. Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion.”

Dell returned $1.10 billion in total to its shareholders in the form of stock buybacks and dividend payments in Q1. Cash and investments stood at $7.3 billion, as per the earnings report.

The multinational tech firm will likely offer future guidance on the earnings call that you can tune into on this link. Ahead of the earnings today, analysts at Bank of America raised their price target on Dell stock to $180 which translates to about a 20% upside from here.

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