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Dell Technologies (NYSE: DELL) today announced financial results for its fiscal 2020 second quarter ended August 2, 2019. Second quarter revenue was$23.4 billion, up 2 percent, and non-GAAP revenue was$23.5 billion, up 1 percent over the same period last year. Operating income was$519 million¹compared to an operating loss of$13 million last year, and non-GAAP operating income was$2.7 billion compared to$2.1 billion in fiscal 2019. Net income was$4.5 billion or 19.3 percent of revenue, non-GAAP net income was$1.8 billion or 7.5 percent of non-GAAP revenue, and adjusted EBITDA was$3.2 billion or 13.5 percent of non-GAAP revenue. Record cash flow from operations was$3.3 billion. Diluted earnings per share was$4.83 and non-GAAP diluted earnings per share was$2.15.

"We are in the early stages of a technology-led investment cycle. IT spending remains healthy and our business drivers remain strong," said Jeff Clarke, vice chairman, Dell Technologies. "We are innovating and integrating across the Dell Technologies portfolio, from the edge to the core to the cloud, with a diverse business designed to succeed in any macro environment. For example, core Dell orders were up four percent in the quarter excluding China."

Second Quarter Fiscal 2020 Financial Results

Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. All comparisons in this press release are year-over-year unless otherwise noted.

Dell Technologies ended the quarter with a cash and investments balance of$10 billion. The company repaid approximately$2 billion of gross debt in the quarter and approximately$2.4 billion year-to-date. The company has paid down approximately$17 billion in gross debt over the three years since closing the EMC transaction and is on track to repay approximately$5 billion of gross debt in fiscal 2020.

"This quarter's results are strong thanks to our leading and diverse portfolio and consistent execution. Operating income, gross margin and deferred revenue are up double digits, our PC business produced record results, and we saw record cash flow," said Tom Sweet, chief financial officer, Dell Technologies. "Couple this with our focus on long-term value creation, growing faster than competitors and the industry, growing operating income and EPS faster than revenue, and generating strong cash flow over time. We are well-positioned for the future."

  Operating segments summary

Infrastructure Solutions Grouprevenue for the second quarter was$8.6 billion, a 7 percent decrease year-over-year. Storage revenue was flat at$4.2 billion, while servers and networking decreased 12 percent to$4.4 billion. Operating income was$1.1 billion for the second quarter or 12.2 percent of Infrastructure Solutions Group revenue.

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