VMware's second-quarter profit and revenue beat analysts' estimates on Thursday, helped by strong demand for its cloud-based software services.
The company's services revenue, which accounts for majority of its total revenue, rose about 11 percent to $1.27 billion in the second quarter, in line with estimates.
Last month, Dell Technologies said it would pay $21.7 billion in cash and stock to buy back shares tied to its interest in VMware, returning the computer maker to the stock market without an initial public offering.
VMware's net income rose 58.6 percent to $644 million, or $1.56 per share, in the second quarter ended Aug. 3.
Excluding one-time items, the Palo Alto, California-based company earned $1.54 per share.
Total revenue rose 12.5 percent to $2.17 billion.
Analysts on average had expected a profit of $1.49 per share and revenue of $2.14 billion, according to Thomson Reuters.
The company's shares, which were up more than 23 percent this year, fell nearly 3 percent to $150.4 after the bell.
