By Dhirendra Tripathi
Investing.com – Dell stock (NYSE:DELL) rose almost 5% Wednesday as demand for its personal computers, from both consumer and commercial segments, remained strong and the company achieved highest year-over-year PC share gain in its history for third quarter.
Shipments at the company jumped nearly 27%, allowing it to grab a global PC market share of 17.4%, up 3%, according to IDC’s quarterly personal computing device tracker.
Sales in the period ended October 29 rose 21% to top $28 billion, driven by growth in all business units, customer segments and geographies, as well as broad strength across commercial PCs, servers and storage, the company said.
Sales, and adjusted profit per share of $2.37, easily beat estimates, a feat also helped by the release of Windows 11, Microsoft's (NASDAQ:MSFT) new OS.
Times have never been better for PC-makers like Dell and HP (NYSE:HPQ) as the pandemic made some of their devices a must-have in a world that has pivoted to a hybrid model of work-from-home and work-from-office. In September, Dell said annual revenue would increase 3% to 4% through 2026.
Fourth-quarter net revenue at rival HP grew over 9%, to around $17 billion.
As in HP’s case, companies looking to upgrade their systems drove Dell revenue. The client solutions business, home to its hardware devices, rose 35%, to $16.5 billion.
Sales to consumers were up 21%, while PC sales to business and government agencies jumped 40%, to over $12 billion, the highest in company’s history, Dell said.
Revenue from the Infrastructure Solutions Group, which includes most of the company’s technology services, rose 5%, to $8.4 billion.
VMware (NYSE:VMW), now listed since Dell spun off the cloud computing unit last month, posted a 10% rise in revenue during the quarter.