Dell Inc. (NASDAQ:DELL) shares surged in extended trading on Thursday after the PC-maker reported better-than-expected fourth quarter financial results which signalled the PC market is starting to recover after a slowdown that began in 2022.
The computer-maker's 4Q revenue decreased by 11% year-over-year to $22.3 billion in 4Q, ahead of estimates of $22.1 billion.
Adjusted earnings per share (EPS) were $2.20, up 22% over the year-ago quarter and ahead of estimates of $1.73.
For the full year, it posted EPS of $7.13 on revenue of $88.4 billion, topping estimates of $6.65 and $88.2 billion.
Dell benefitted from rising demand for its AI servers, used for high-performance computing.
“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion," Dell chief operating officer Jeff Clarke said in a statement
The company also announced that it would be increasing its annual cash dividend by 20% to $1.78 per share.
“We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since 1Q fiscal 2023," Dell CFO Yvonne McGill said.
"We're optimistic about fiscal 2025 and are increasing our annual dividend by 20% – a testament to our confidence in the business and ability to generate strong cash flow."
Shares of Dell had added 16.7% at US$110.50 shortly after the release of its earnings report.