Infrastructure Solutions Group (ISG) delivered record second quarter revenue of $11.6 billion, up 38% year over year. Servers and networking revenue was a record $7.7 billion, up 80%, with demand growth across AI and traditional servers. Storage revenue was $4.0 billion, down 5%. Operating income was $1.3 billion.
"Our AI momentum accelerated in Q2, and we've seen an increase in the number of enterprise customers buying AI solutions each quarter," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "AI-optimized server demand was $3.2 billion, up 23% sequentially, and $5.8 billion year to date. Backlog was $3.8 billion, and our pipeline has grown to several multiples of our backlog."
Client Solutions Group (CSG) delivered second quarter revenue of $12.4 billion, down 4% year over year. Commercial client revenue was flat at $10.6 billion, and Consumer revenue was $1.9 billion, down 22%. Operating income was $767 million.
Operating Segments Results
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Infrastructure Solutions Group (ISG): |
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Net revenue: |
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Servers and networking | $ 7,672 |
| $ 4,274 |
| 80 % |
| $ 13,138 |
| $ 8,111 |
| 62 % |
Storage | 3,974 |
| 4,187 |
| (5) % |
| 7,735 |
| 7,943 |
| (3) % |
Total ISG net revenue | $ 11,646 |
| $ 8,461 |
| 38 % |
| $ 20,873 |
| $ 16,054 |
| 30 % |
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Operating Income: |
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ISG operating income | $ 1,284 |
| $ 1,049 |
| 22 % |
| $ 2,020 |
| $ 1,789 |
| 13 % |
| % of ISG net revenue | 11.0 % |
| 12.4 % |
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| 9.7 % |
| 11.1 % |
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| % of total reportable segment operating income | 63 % |
| 52 % |
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| 57 % |
| 49 % |
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| Client Solutions Group (CSG): |
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| Net revenue: |
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| Commercial | $ 10,556 |
| $ 10,554 |
| — % |
| $ 20,710 |
| $ 20,416 |
| 1 % |
| Consumer | 1,858 |
| 2,388 |
| (22) % |
| 3,671 |
| 4,509 |
| (19) % |
| Total CSG net revenue | $ 12,414 |
| $ 12,942 |
| (4) % |
| $ 24,381 |
| $ 24,925 |
| (2) % |
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| Operating Income: |
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| CSG operating income | $ 767 |
| $ 969 |
| (21) % |
| $ 1,499 |
| $ 1,861 |
| (19) % |
| % of CSG net revenue | 6.2 % |
| 7.5 % |
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| 6.1 % |
| 7.5 % |
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| % of total reportable segment operating income | 37 % |
| 48 % |
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| 43 % |
| 51 % |
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