Dell Technologies DELL reported third-quarter fiscal 2020 non-GAAP earnings of $2.03 per share that beat the Zacks Consensus Estimate by 46%. The figure increased 16% year over year.Revenues on a non-GAAP basis inched up 3% year over year to $23.52 billion. Moreover, the figure beat the consensus mark by 7.3%.Product revenues stayed at $17.35 billion. However, services revenues increased 10% year over year to $6.13 billion.Recurring revenues, which includes deferred revenue amortization, utility, and as-a-Service delivered as part of Dell on Demand service, was roughly $6 billion, up 13% year over year.Quarter in DetailInfrastructure Solutions Group (“ISG”) revenues were down 4% year over year to $8.02 billion. Dell Technologies Inc. Price, Consensus and EPS Surprise Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote This year-over-year drop was due to 2% fall in servers and networking revenues that totaled $4.16 billion. Moreover, storage revenues slid 7% year over year to $3.86 billion.Dell witnessed strong demand for VxRail and PowerMax solutions, with double-digit growth in orders for both. PowerEdge server orders were up single digits sequentially.Client Solutions Group (“CSG”) revenues were $12.29 billion, up 8% year over year. The company witnessed continued demand for remote work, learning and gaming solutions.Commercial revenues increased 5% year over year to $8.78 billion. Moreover, consumer revenues were up 14% to $3.50 billion.Based on orders, consumer direct business was up 47% with consumer direct online business up 62% in the reported quarter.In consumer business, Dell witnessed double-digit revenue growth in Latitude and Precision notebooks and triple-digit revenue growth in Commercial Chromebooks. This Zacks Rank #3 (Hold) company also witnessed robust growth in the XPS premium line and gaming systems including Alienware, with strong double-digit revenue growth for both notebooks and desktops. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Markedly, Dell was ranked third by both Gartner and IDC among all PC vendors, trailing Lenovo LNVGY and HP HPQ in their latest third-quarter report. (Read More:PC Sales Continue Benefiting From COVID-19 Pandemic-Led Demand)VMware VMW revenues were $2.89 billion in the reported quarter, up 8% year over year, driven by portfolio strength. Notably, Dell has a majority stake in VMware.Operating DetailsNon-GAAP gross profit remained flat at $7.77 billion. Gross margin contracted 100 basis points (bps) year over year to 33%.Adjusted EBITDA increased 13% year over year to $3.23 billion. Adjusted EBITDA margin expanded 200 bps year over year to 14%.Non-GAAP operating income was $2.73 billion, up 12% from the year-ago quarter. Operating margin expanded 100 bps year over year to 12%.ISG operating income fell 11% year over year to $882 million. However, CSG operating income jumped 36% year over year to $1 billion.VMware’s operating income increased 18% year over year to $837 million.Balance Sheet and Cash FlowAs of Oct 30, 2020, Dell had $11.30 billion in cash and cash equivalents compared with $11.22 billion as of Jul 31, 2020. The company had undrawn revolver capacity of $5.9 billion.Debt was $49.86 billion as of Oct 30, 2020, compared with $54.5 billion as of Jul 31, 2020.Cash flow from operations was $3 billion in the reported quarter, up 64% year over year.OutlookDell expects fourth-quarter revenues to increase in the 3-4% range sequentially. The company expects strong CSG results, with revenues slightly above normal seasonality of 2-3% growth sequentially. ISG revenues are expected to be lower than last year’s 4% sequential growth based on the continued softness in data center spending.Dell plans to reduce core debt by approximately $5.5 billion in fiscal 2021 of which $2.4 billion is expected to pay in the fourth quarter of 2020.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.Click here for the 6 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report VMware, Inc. (VMW): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis Report Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research