Dell Technologies is a company that helps people and organizations build their digital future. Above all, it enables them to transform the way they work, play and live. It ensures that it offers the most innovative and broadest portfolio of technologies and services to its customers. The company performed better than expected in Q2/2022.
Dell Technologies delivered its best-ever performance in the second quarter of its fiscal year 2022, which ended in late July. The company's financial results show that its revenue of $26.1 billion is a record. This figure is up by 15% compared to the second quarter of fiscal year 2021.
The company's operating income was $1.4 billion in the second quarter. This is a 21% increase over the same period last year. This resulted in a record non-GAAP operating income up 7% to $2.8 billion.
Net income was $0.9 billion ($1.9 billion on a non-GAAP basis). Adjusted EBITDA from Dell Technologies' operations was $3.3 billion.
Note: Adjusted/diluted EPS was down 23% to $1.05 in the current quarter. Corresponding non-GAAP adjusted/diluted EPS was $2.24, an increase of 17%.
The good results in the quarter were seen in each of the company's business units. They all gained momentum during the period. For example, the VMware business generated 8% growth in revenue to $3.1 billion with operating profit of $849 million. This was driven by a strong and diversified product portfolio.
Dell Technologies recorded $8.4 billion in quarterly revenue in its Infrastructure Solutions division. This division recorded a 3% growth, which allowed it to generate $970 million in operating income. The Customer Solutions division alone generated sales up 27% to $14.3 billion with operating income of $995 million (+39%).
At the end of the second quarter of fiscal 2022, the Group's operating activities generated $1.7 billion of Net Cash Flow. Dell Technologies' cash and investments totaled $13.6 billion for the three months. The company ended the period with approximately $46 billion in remaining performance obligations. This represents an increase of 24%.
Since the beginning of the year, the company has been able to repay $5.5 billion of its debt. It plans to continue with the repayment for the rest of fiscal 2022. It expects to repay at least more than $16.0 billion before the close of the current fiscal year.
The company has been able to create value through its share acquisitions as well as modernization and profitable growth in its core business. At the same time, it is seizing all opportunities for high value-added improvements.