Dell smashes forecasts ahead of return to stock exchange

Vendor sees sales rise across the board as quarterly revenue hits $23bn

Dell has raised its financial outlook for fiscal 2019 after posting a stellar Q2 in which revenues reached $23bn (£17.7bn).

The vendor is now forecasting non-GAAP revenues of between $90.5bn and $92bn for its full fiscal year and non-GAAP operating income of between $8.4bn and $8.8bn.

Revenues surged by 18 per cent in non-GAAP terms to $22.9bn for the quarter, while non-GAAP operating income hit 13 per cent growth to $2.1bn. The firm reported a GAAP operating loss of $13m.

Both operating segments - its Infrastructure Solutions Group and Client Solutions Group - posted double-digit revenue growth, surging by 24 per cent and 13 per cent respectively.

Servers and networking swelled 34 per cent year on year and storage hit 13 per cent sales growth.

VMware meanwhile grew revenues by 11 per cent to $2.2bn and logged $736m in operating income.

Dell claims to have pushed a record number of client units in Q2 and saw triple-digit growth for its VxRail and VxRack lines.

"We are in the early stages of a global, technology-led investment cycle in which every company is becoming a technology company," said Michael Dell in a statement.

"As our results indicate, Dell Technologies is perfectly positioned to grow, gain share, drive innovation and be our customers' best, most trusted partner on the journey to their digital future."

Dell is currently gearing up to return to the stock exchange, which the firm claims will allow it to simplify its capital structure.