VMware Inc

VMware sustained its strong financial performance in the third quarter of the fiscal year 2022, with revenue of $3.2 billion and non-GAAP earnings per diluted share of $1.72. After going through the spinoff process and now operating as a stand-alone company, the company has better strategic and economic flexibility to carry out their multi-cloud strategy. Their management team has started to collaborate more deeply with all cloud and on-premise infrastructure providers to build a stronger foundation that drives results for VMware’s customers. In the modern app space, the company recently provided application resiliency to the Department of Education for one of America’s largest cities as part of their business continuity project. They also announced their latest Project Arctic, the industry’s first and only cloud-agnostic computing infrastructure, which will bring the power of the cloud to customers running VMware vSphere on-premises. The company’s growth has been slow but sure and given its recent performance, we maintain a ‘Hold’ rating with a revised target price.