Dell Technologies (NYSE: DELL) excelled the second quarter 2020 estimates. GAAP revenue increased 2% to $23.4 billion, while non-GAAP revenue increased 1% to $23.5 billion in the recently ended quarter. Non-GAAP earnings per share was $2.15.
Analysts had expected the computer technology firm to post earnings of $1.47 per share on revenue of $23.27 billion for the second quarter of 2020. Immediately after the earnings announcement, Dell stock jumped 7% in the extended trading hours.
During the second quarter ended August 2, 2019, Dell’s GAAP net income was $4.51 billion or $4.83 per share. Infrastructure Solutions Group (ISG) revenue decreased 7% to $8.6 billion, while Client Solutions Group (CSG) revenue increased by 6% to $11.7 billion.
Revenue growth in CSG was driven by double-digit growth in commercial notebooks, desktops and workstations. Revenue from other businesses, which include Pivotal, Secureworks, RSA Security, Virtustream, and Boomi, increased 8% year-over-year to $619 million.
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“Operating income, gross margin and deferred revenue are up double digits, our PC business produced record results, and we saw record cash flow,” said CEO Tom Sweet.
Last Thursday, VMware (NYSE: VMW) in which Dell owns approximately 81% stake, reported its second quarter 2020 results. While VMware’s earnings and revenue beat market’s estimates, the stock witnessed a downward trend on its decision to acquire Pivotal Software (NYSE: PVTL) and Carbon Black for a total value of $4.8 billion.
According to Gartner, Dell recorded its sixth consecutive quarter of PC shipment growth in the second quarter of calendar 2019. Dell’s PC shipments increased 2.1% with a market share of 16.9% in 2Q19. According to IDC, Dell Technologies maintained the third position with healthy 3.1% growth during the second quarter.
Dell stock, which ended up 3.25% today at $46.77, had dropped 4% so far in this year and 30% in the last three months.