VMware beats Q3 earnings targets as revenue climbs 11 percent

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VMware delivered strong third quarter financial results Thursday that beat market expectations.

The virtualization giant reported a net income of $443 million, or $1.07 per share. Non-GAAP earnings were $1.34 per share on revenue of $1.98 billion, up 11 percent year over year.

Wall Street was looking for earnings of $1.27 per share with revenue of $1.96 billion.

VMware, a Dell Technologies portfolio company, said license revenue for the third quarter was $785 million, an increase of 14 percent from the year ago period. Operating cash flows came to $970 million, while free cash flows for the quarter were $911 million.

In a statement, VMware CEO Pat Gelsinger said the company was coming off of a strong VMworld season with a strong portfolio of products and services.

CFO Zane Rowe, added in a statement, “”Our results reflect continued strength across the portfolio and customers’ commitment to VMware as a strategic partner for both on-premises and hybrid-cloud software solutions.”

VMware will issue guidance for the current quarter on its conference call.

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