Dell Technologies Delivers First Quarter Fiscal 2025 Financial Results

Rhea-AI Summary

Dell Technologies reported a revenue of $22.2 billion for Q1 fiscal 2025, indicating a 6% year-over-year increase. The Infrastructure Solutions Group (ISG) saw significant growth with revenue up 22% to $9.2 billion, driven by a 42% rise in servers and networking revenue. The Client Solutions Group (CSG) reported flat revenue at $12 billion, with commercial client revenue up 3% to $10.2 billion, but a 15% drop in consumer revenue to $1.8 billion.

Diluted earnings per share (EPS) increased by 67% to $1.32, while non-GAAP diluted EPS decreased by 3% to $1.27. Operating income dropped 14% to $920 million, and non-GAAP operating income fell 8% to $1.5 billion. Cash flow from operations was $1 billion, and Dell returned $1.1 billion to shareholders through share buybacks and dividends.

Dell highlighted strong performance in AI and infrastructure solutions, including advancements in AI-optimized servers and new AI PCs. The company ended the quarter with $7.3 billion in cash and investments.

Positive

• Revenue up 6% year-over-year to $22.2 billion.
• ISG revenue up 22% to $9.2 billion.
• Servers and networking revenue hit a record $5.5 billion, up 42%.
• Commercial client revenue increased by 3% to $10.2 billion.
• Diluted EPS grew by 67% to $1.32.
• Dell returned $1.1 billion to shareholders through buybacks and dividends.
• Strong performance in AI-optimized servers and AI PCs.
• Ended the quarter with $7.3 billion in cash and investments.

Negative

• CSG revenue remained flat at $12 billion.
• Consumer revenue fell by 15% to $1.8 billion.
• Operating income decreased by 14% to $920 million.
• Non-GAAP operating income down 8% to $1.5 billion.
• Non-GAAP diluted EPS down 3% to $1.27.
• Cash flow from operations decreased by 41% year-over-year.

Insights

Financial Analyst

From a financial perspective, Dell Technologies' first quarter fiscal 2025 results show revenue growth but mixed signals in profitability. The 6% increase in revenue to $22.2 billion is a positive indicator, particularly driven by robust performance in the Infrastructure Solutions Group (ISG), which saw a 22% increase in revenue to $9.2 billion and a remarkable 42% rise in server and networking revenue. However, the decline in operating income by 14% and a reduction in non-GAAP operating income by 8% signals cost pressures or increased investments impacting profitability. A significant point for investors to note is the diluted earnings per share (EPS) increase by 67% to $1.32 which is promising, but the non-GAAP EPS saw a minor fall by 3% to $1.27, indicating different bases of calculation affecting shareholder value. The company managed $1.0 billion in cash flow from operations, but this represents a 41% decline year over year, which could raise concerns about operational efficiency or increased expenditure. Investors should weigh the positive revenue growth and EPS gains against the backdrop of diminishing operating metrics.

Tech Expert

On the technology front, Dell's continuous innovation in its AI solutions portfolio is noteworthy. The company's record server and networking revenue of $5.5 billion is a testament to its stronghold in the market, bolstered by AI-optimized servers. This sector's 42% revenue growth is significant, reflecting increased demand for AI and traditional servers. The launch of the Dell AI Factory in collaboration with major tech partners like NVIDIA and Microsoft demonstrates Dell's strategic positioning in the AI space. The new PowerEdge XE9680L server, which offers a 33% higher GPU density per node, showcases Dell's commitment to providing cutting-edge solutions. This innovation is critical as enterprises increasingly adopt AI technologies, which can drive further growth in ISG and create new revenue streams. However, the flat performance in storage revenue and the decline in consumer revenue by 15% highlight areas that might require strategic reconsideration or innovation. Overall, Dell's technological advancements in AI place it favorably in a growing market, although balanced by challenges in other segments.

News summary

• First quarter revenue of $22.2 billion, up 6% year over year
• Infrastructure Solutions Group (ISG) revenue of $9.2 billion, up 22% year over year, with record servers and networking revenue of $5.5 billion, up 42%
• Client Solutions Group (CSG) revenue of $12.0 billion, flat year over year, with commercial client revenue at $10.2 billion, up 3%
• Diluted earnings per share of $1.32, up 67% year over year, and non-GAAP diluted earnings per share of $1.27, down 3%

ROUND ROCK, Texas, May 30, 2024 /PRNewswire/ --

Full story

Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 first quarter. Revenue was $22.2 billion, up 6% year over year. Operating income was $920 million and non-GAAP operating income was $1.5 billion, down 14% and 8% year over year, respectively. Cash flow from operations was $1.0 billion. Diluted earnings per share was $1.32, and non-GAAP diluted earnings per share was $1.27, up 67% and down 3% year over year, respectively.

Dell returned $1.1 billion to shareholders through share repurchases and dividends and ended the quarter with $7.3 billion in cash and investments.

"We again demonstrated our ability to execute and deliver strong cash flow, with AI continuing to drive new growth," said Yvonne McGill, chief financial officer, Dell Technologies. "Revenue was up 6% at $22.2 billion, servers and networking revenue was up 42%, and we generated $7.9 billion of cash flow from operations over the last 12 months."

First Quarter Fiscal 2025 Financial Results

	Three Months Ended
	May 3, 2024		May 5, 2023		Change
	(in millions, except per share amounts and percentages; unaudited)
Net revenue	$          22,244		$           20,922		6 %
Operating income	$               920		$             1,069		(14) %
Net income	$               955		$                578		65 %
Change in cash from operating activities	$            1,043		$             1,777		(41) %
Earnings per share - diluted	$              1.32		$               0.79		67 %
Non-GAAP operating income	$            1,474		$             1,598		(8) %
Non-GAAP net income	$               923		$                963		(4) %
Adjusted free cash flow	$               623		$                687		(9) %
Non-GAAP earnings per share - diluted	$              1.27		$               1.31		(3) %

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.

Infrastructure Solutions Group (ISG) delivered first quarter revenue of $9.2 billion, up 22% year over year. Servers and networking revenue was a record $5.5 billion, up 42%, with demand strength across AI and traditional servers. Storage revenue was flat at $3.8 billion. Operating income was $736 million.

Client Solutions Group (CSG) delivered first quarter revenue of $12.0 billion, flat year over year. Commercial client revenue was $10.2 billion, up 3% year over year, and Consumer revenue was $1.8 billion, down 15%. Operating income was $732 million.

"No company is better positioned than Dell to bring AI to the enterprise," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion."

Dell Technologies World

On May 20, Dell expanded the industry's broadest AI solutions portfolio from desktop to data center to cloud with innovations designed to accelerate AI adoption and innovation:

• The Dell AI Factory combines Dell infrastructure, solutions and services optimized for AI workloads with an open ecosystem of partners including NVIDIA, Meta, Microsoft and Hugging Face.
• The Dell AI Factory with NVIDIA includes the new PowerEdge XE9680L server, which offers direct liquid cooling in a 4U form factor and can support 72 NVIDIA Blackwell GPUs in a single rack – 33% more GPU density per node compared to the XE9680.
• Dell PowerStore software updates give customers up to a 66% performance boost, native sync replication for file and block and improved multicloud data mobility capabilities.
• New AI PCs are Copilot+ and powered by Qualcomm Snapdragon® X Elite and Snapdragon® X Plus processors, delivering exceptional battery life and AI performance.

Operating Segments Results

	Three Months Ended
	May 3, 2024		May 5, 2023		Change
	(in millions, except percentages; unaudited)
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking	$         5,466		$       3,837		42 %
Storage	3,761		3,756		— %
Total ISG net revenue	$         9,227		$       7,593		22 %
Operating Income:
ISG operating income	$            736		$          740		(1) %
% of ISG net revenue	8.0 %		9.7 %
% of total reportable segment operating income	50 %		45 %
Client Solutions Group (CSG):
Net revenue:
Commercial	$       10,154		$       9,862		3 %
Consumer	1,813		2,121		(15) %
Total CSG net revenue	$       11,967		$     11,983		— %
Operating Income:
CSG operating income	$            732		$          892		(18) %
% of CSG net revenue	6.1 %		7.4 %
% of total reportable segment operating income	50 %		55 %

Conference call information

As previously announced, the company will hold a conference call to discuss its performance and financial guidance on May 30 at 3:30 p.m. CDT. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to financial guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/news-events/upcoming-events.

For those unable to listen to the live broadcast, the final remarks and presentation with financial guidance will be available following the broadcast, and an archived version will be available at the same location for one year.

About Dell Technologies

Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the AI era.

Copyright © 2024 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

Non-GAAP Financial Measures:

This press release presents information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share attributable to Dell Technologies Inc. – diluted, free cash flow, and adjusted free cash flow, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:

Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.

Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: adverse global economic conditions and instability in financial markets; competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; Dell Technologies' execution of its strategy; social and ethical issues relating to the use of new and evolving technologies; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies' ability to successfully execute on strategic initiatives including acquisitions, divestitures or cost savings measures; Dell Technologies' foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies' product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; adverse economic conditions and the effect of additional regulation on Dell Technologies' financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies' infrastructure; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; expectations relating to environmental, social and governance (ESG) considerations; compliance requirements of changing environmental and safety laws, human rights laws, or other laws; the effect of armed hostilities, terrorism, natural disasters, or public health issues; the effect of global climate change and legal, regulatory, or market measures to address climate change; Dell Technologies' dependence on the services of Michael Dell and key employees; Dell Technologies' level of indebtedness; and business and financial factors and legal restrictions affecting continuation of Dell Technologies' quarterly cash dividend policy and dividend rate.

This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies' annual report on Form 10-K for the fiscal year ended February 2, 2024, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties, and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.

 

DELL TECHNOLOGIES INC. Condensed Consolidated Statements of Income and Related Financial Highlights (in millions, except percentages; unaudited)
	Three Months Ended
	May 3, 2024		May 5, 2023		Change
Net revenue:
Products	$    16,127		$    15,036		7 %
Services	6,117		5,886		4 %
Total net revenue	22,244		20,922		6 %
Cost of net revenue:
Products	13,766		12,375		11 %
Services	3,672		3,529		4 %
Total cost of net revenue	17,438		15,904		10 %
Gross margin	4,806		5,018		(4) %
Operating expenses:
Selling, general, and administrative	3,123		3,261		(4) %
Research and development	763		688		11 %
Total operating expenses	3,886		3,949		(2) %
Operating income	920		1,069		(14) %
Interest and other, net	(373)		(364)		(2) %
Income before income taxes	547		705		(22) %
Income tax expense (benefit)	(408)		127		(421) %
Net income	955		578		65 %
Net income attributable to Dell Technologies Inc.	$          960		$          583		65 %
Percentage of Total Net Revenue:
Gross margin	21.6 %		24.0 %
Selling, general, and administrative	14.1 %		15.6 %
Research and development	3.4 %		3.3 %
Operating expenses	17.5 %		18.9 %
Operating income	4.1 %		5.1 %
Income before income taxes	2.5 %		3.4 %
Net income	4.3 %		2.8 %
Income tax rate	(74.6) %		18.0 %
Amounts are based on underlying data and may not visually foot due to rounding.

 

DELL TECHNOLOGIES INC. Condensed Consolidated Statements of Financial Position (in millions; unaudited)
	May 3, 2024		February 2, 2024
ASSETS
Current assets:
Cash and cash equivalents	$                           5,830		$                           7,366
Accounts receivable, net of allowance of $66 and $71	8,563		9,343
Short-term financing receivables, net of allowance of $86 and $79	4,660		4,643
Inventories	4,782		3,622
Other current assets	10,792		10,973
Total current assets	34,627		35,947
Property, plant, and equipment, net	6,237		6,432
Long-term investments	1,293		1,316
Long-term financing receivables, net of allowance of $109 and $91	5,941		5,877
Goodwill	19,640		19,700
Intangible assets, net	5,538		5,701
Other non-current assets	6,914		7,116
Total assets	$                         80,190		$                         82,089
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$                           6,098		$                           6,982
Accounts payable	20,586		19,389
Accrued and other	6,016		6,805
Short-term deferred revenue	15,034		15,318
Total current liabilities	47,734		48,494
Long-term debt	19,382		19,012
Long-term deferred revenue	13,116		13,827
Other non-current liabilities	2,681		3,065
Total liabilities	82,913		84,398
Stockholders' equity (deficit):
Total Dell Technologies Inc. stockholders' equity (deficit)	(2,822)		(2,404)
Non-controlling interests	99		95
Total stockholders' equity (deficit)	(2,723)		(2,309)
Total liabilities and stockholders' equity	$                         80,190		$                         82,089

 

DELL TECHNOLOGIES INC. Condensed Consolidated Statements of Cash Flows (in millions; unaudited)
	Three Months Ended
	May 3, 2024		May 5, 2023
Cash flows from operating activities:
Net income	$                  955		$                  578
Adjustments to reconcile net income to net cash provided by operating activities:	88		1,199
Change in cash from operating activities	1,043		1,777
Cash flows from investing activities:
Purchases of investments	(39)		(15)
Maturities and sales of investments	119		19
Capital expenditures and capitalized software development costs	(596)		(701)
Other	60		13
Change in cash from investing activities	(456)		(684)
Cash flows from financing activities:
Proceeds from the issuance of common stock	—		2
Repurchases of common stock	(700)		(240)
Repurchases of common stock for employee tax withholdings	(521)		(306)
Payments of dividends and dividend equivalents	(336)		(276)
Proceeds from debt	2,992		2,521
Repayments of debt	(3,477)		(3,698)
Debt-related costs and other, net	(35)		(5)
Change in cash from financing activities	(2,077)		(2,002)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(55)		(58)
Change in cash, cash equivalents, and restricted cash	(1,545)		(967)
Cash, cash equivalents, and restricted cash at beginning of the period	7,507		8,894
Cash, cash equivalents, and restricted cash at end of the period	$               5,962		$               7,927

 

DELL TECHNOLOGIES INC. Segment Information (in millions, except percentages; unaudited; continued on next page)
	Three Months Ended
	May 3, 2024		May 5, 2023		Change
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking	$      5,466		$      3,837		42 %
Storage	3,761		3,756		— %
Total ISG net revenue	$      9,227		$      7,593		22 %
Operating Income:
ISG operating income	$         736		$         740		(1) %
% of ISG net revenue	8.0 %		9.7 %
% of total reportable segment operating income	50 %		45 %
Client Solutions Group (CSG):
Net revenue:
Commercial	$   10,154		$      9,862		3 %
Consumer	1,813		2,121		(15) %
Total CSG net revenue	$   11,967		$    11,983		— %
Operating Income:
CSG operating income	$         732		$         892		(18) %
% of CSG net revenue	6.1 %		7.4 %
% of total reportable segment operating income	50 %		55 %
Amounts are based on underlying data and may not visually foot due to rounding.

 

DELL TECHNOLOGIES INC. Segment Information (in millions, except percentages; unaudited; continued)
	Three Months Ended
	May 3, 2024		May 5, 2023
Reconciliation to consolidated net revenue:
Reportable segment net revenue	$              21,194		$              19,576
Other businesses (a)	1,049		1,343
Unallocated transactions (b)	1		3
Total consolidated net revenue	$              22,244		$              20,922
Reconciliation to consolidated operating income:
Reportable segment operating income	$                 1,468		$                 1,632
Other businesses (a)	6		(36)
Unallocated transactions (b)	—		2
Amortization of intangibles (c)	(168)		(203)
Stock-based compensation expense (d)	(210)		(225)
Other corporate expenses (e)	(176)		(101)
Total consolidated operating income	$                    920		$                 1,069

_________________
(a)	Other businesses consists of: 1) Dell's resale of standalone VMware, Inc. products and services, "VMware Resale," 2) Secureworks, and 3) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.
(b)	Unallocated transactions includes other corporate items that are not allocated to Dell Technologies' reportable segments.
(c)	Amortization of intangibles includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.
(d)	Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.
(e)	Other corporate expenses consist primarily of severance expenses, payroll taxes associated with stock-based compensation, facility action costs, transaction-related expenses, impairment charges, and incentive charges related to equity investments.

 

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES

These tables present information about the Company's non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, free cash flow and adjusted free cash flow, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A detailed discussion of Dell Technologies' reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures.

DELL TECHNOLOGIES INC. Selected Financial Measures (in millions, except per share amounts and percentages; unaudited)
	Three Months Ended
	May 3, 2024		May 5, 2023		% Change
Net revenue	$   22,244		$    20,922		6 %
Non-GAAP gross margin	$     4,947		$      5,164		(4) %
% of net revenue	22.2 %		24.7 %
Non-GAAP operating expenses	$      3,473		$      3,566		(3) %
% of net revenue	15.6 %		17.1 %
Non-GAAP operating income	$      1,474		$      1,598		(8) %
% of net revenue	6.6 %		7.6 %
Non-GAAP net income	$         923		$         963		(4) %
% of net revenue	4.1 %		4.6 %
Non-GAAP earnings per share - diluted	$        1.27		$        1.31		(3) %
Amounts are based on underlying data and may not visually foot due to rounding.

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued on next page)
	Three Months Ended
	May 3, 2024		May 5, 2023		% Change
Gross margin	$         4,806		$         5,018		(4) %
Non-GAAP adjustments:
Amortization of intangibles	60		79
Stock-based compensation expense	38		38
Other corporate expenses	43		29
Non-GAAP gross margin	$         4,947		$         5,164		(4) %
Operating expenses	$         3,886		$         3,949		(2) %
Non-GAAP adjustments:
Amortization of intangibles	(108)		(124)
Stock-based compensation expense	(172)		(187)
Other corporate expenses	(133)		(72)
Non-GAAP operating expenses	$         3,473		$         3,566		(3) %
Operating income	$            920		$         1,069		(14) %
Non-GAAP adjustments:
Amortization of intangibles	168		203
Stock-based compensation expense	210		225
Other corporate expenses	176		101
Non-GAAP operating income	$         1,474		$         1,598		(8) %
Net income	$            955		$            578		65 %
Non-GAAP adjustments:
Amortization of intangibles	168		203
Stock-based compensation expense	210		225
Other corporate expenses	170		98
Fair value adjustments on equity investments	30		15
Aggregate adjustment for income taxes (a)	(610)		(156)
Non-GAAP net income	$            923		$            963		(4) %

____________________
(a)	Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (unaudited; continued)
	Three Months Ended
	May 3, 2024		May 5, 2023		% Change
Earnings per share attributable to Dell Technologies, Inc. — diluted	$           1.32		$           0.79		67 %
Non-GAAP adjustments:
Amortization of intangibles	0.23		0.28
Stock-based compensation expense	0.29		0.30
Other corporate expenses	0.24		0.13
Fair value adjustments on equity investments	0.04		0.02
Aggregate adjustment for income taxes (a)	(0.84)		(0.21)
Total non-GAAP adjustments attributable to non-controlling interests	(0.01)		—
Non-GAAP earnings per share attributable to Dell Technologies, Inc. — diluted	$           1.27		$           1.31		(3) %

____________________
(a)	Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued)
		Three Months Ended
		May 3, 2024		May 5, 2023		% Change
Cash flow from operations		$        1,043		$        1,777		(41) %
Non-GAAP adjustments:
Capital expenditures and capitalized software development costs, net (a)		(586)		(698)
Free cash flow		$            457		$        1,079		(58) %
Free cash flow		$            457		$        1,079		(58) %
Non-GAAP adjustments:
Financing receivables (b)		165		(367)
Equipment under operating leases (c)		1		(25)
Adjusted free cash flow		$            623		$            687		(9) %

____________________
(a)	Capital expenditures and capitalized software development costs is net of proceeds from sales of facilities, land, and other assets.
(b)	Financing receivables represent the operating cash flow impact from the change in DFS financing receivables.
(c)	Equipment under operating leases represents the net change of capital expenditures and depreciation expense for DFS leases and contractually embedded leases identified within flexible consumption arrangements.

 

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SOURCE Dell Technologies

FAQ

What were Dell's Q1 fiscal 2025 earnings?

Dell's Q1 fiscal 2025 earnings per share (EPS) were $1.32, up 67% year-over-year.

How much revenue did Dell generate in Q1 fiscal 2025?

Dell generated $22.2 billion in revenue for Q1 fiscal 2025, a 6% increase year-over-year.

What is Dell's (DELL) Infrastructure Solutions Group revenue for Q1 fiscal 2025?

Dell's ISG revenue for Q1 fiscal 2025 was $9.2 billion, up 22% year-over-year.

How did Dell's Client Solutions Group perform in Q1 fiscal 2025?

Dell's CSG revenue remained flat at $12 billion in Q1 fiscal 2025, with commercial client revenue up 3% and consumer revenue down 15%.

What is Dell's non-GAAP operating income for Q1 fiscal 2025?

Dell's non-GAAP operating income for Q1 fiscal 2025 was $1.5 billion, down 8% year-over-year.

How much did Dell return to shareholders in Q1 fiscal 2025?

Dell returned $1.1 billion to shareholders through share repurchases and dividends in Q1 fiscal 2025.