Dell Technologies reported better-than-expected sales of personal computers and data center hardware, fueling hopes of a recovery in the market for corporate technology. The company also said demand for products that help businesses use artificial intelligence are a “long-term tailwind.”
Chief Financial Officer Yvonne McGill said the company projects revenue of about $23 billion in the current quarter ending in October, which would top analysts’ average estimate of $21.7 billion. For the full year, Dell raised its sales forecast to $89.5 billion to $91.5 billion, which would be about an 12% decline from a year earlier. Analysts, on average, estimated $86.9 billion, or a 15% drop.
The computer industry has had a difficult year, experiencing a sharp demand slowdown as the pandemic waned. Dell has responded to the changing market by restructuring its sales organization and cutting roughly 6 650 jobs earlier this year. Dell’s co-Chief Operating Officer Chuck Whitten resigned earlier this month.
The results painted a better picture for the PC market than that from HP Inc. on Tuesday. The rival computer maker cut its full-year forecast, saying a demand rebound would take longer than previously expected.