Dell reported record revenue of $26.4 billion in Q2, but growth was slow. The growth drivers were Client Solutions Group (CSG) and Infrastructure Solutions Group (ISG).
Dell’s revenue growth in the second quarter at 9 percent was the slowest in more than one and a half years as the company also took a hit from a surge in the dollar and COVID-19 flare-ups in China – its second-largest market.

The stronger dollar has pressured earnings of technology companies from Microsoft to Apple, and will likely continue to be a headache as the Federal Reserve raises interest rates.

Dell’s Client Solutions Group delivered 9 percent growth in second quarter for a record revenue of $15.5 billion.

Dell’s Consumer revenue declined 9 percent to $3.3 billion. Dell’s commercial business rose 15 percent to $12.1 billion as it gained from businesses placing orders to gear up the hybrid-work era.

Dell’s Infrastructure solutions group, home to the company’s storage business, grew 12 percent to $9.5 billion. Dell’s storage revenue rose 6 percent to $4.3 billion thanks to demand in high-end storage and mid-range product PowerStore, which has now grown every quarter since its launch. Servers and networking revenue increased 16 percent to $5.2 billion.

Industry majors from Intel to Lenovo Group have warned of a slump in the personal computer market after a two-year boom during the pandemic, with research firm Gartner estimating shipments would drop 9.5 percent in 2022.

“There’s caution around future hiring, trade-offs within their IT budgets given the macroeconomic uncertainty, customers reducing the size of orders and buying for only immediate requirements,” Dell co-Chief Operating Officer Chuck Whitten said on a post-earnings call.

Dell Technologies said it expects revenue between $23.8 billion and $25 billion during the third quarter of 2022.