Dell Technologies (DELL) and HP Inc (HPQ) might be competitors but with PC sales skyrocketing over the past quarter, they both had enough revenues to go around during Q3 earnings. Dell came out with a 21% revenue increase, reaching $28.4b and a profit of $3.9b for its third quarter. On a similar note, HP posted a 9.3% annual revenue increase, reaching $16.7b. Both beat Wall Street targets.
The firms benefited from surging demand for PCs this quarter, particularly in its enterprise segment. Dell saw business-facing revenues grow by 35% with the highest market share gain ever, whilst HP saw its commercial PCs segment post a 25% YoY revenue increase.
Dell’s CEO has the company’s sights set on growing its data center market share while HP left investors happy as it returned $2b in stock repurchases and dividends to shareholders — who doesn’t love some extra cash?
why it matters
What semiconductor chips shortage? Despite the chips shortage plaguing companies in the electronics and telecommunications sector this past year, it doesn’t seem to have fazed Dell and HP. Their share price rose by 4.8% and 10.1% yesterday at market close.