Dell Technologies Delivers Fourth Quarter and Full-Year Fiscal 2025 Financial Results

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Insights

Dell Technologies delivered robust Q4 and FY2025 results, with annual revenue reaching $95.6 billion (up 8%) and record diluted EPS of $6.38 (up 39%). The company's performance highlights a significant business mix shift toward higher-margin infrastructure solutions.

The Infrastructure Solutions Group emerged as Dell's growth engine, with 29% annual revenue growth to $43.6 billion and operating income up 30%. This transformation is largely driven by AI server demand, evidenced by the $9 billion AI server backlog. Server and networking revenue surged 37% in Q4, while storage grew more modestly at 5%.

Meanwhile, the Client Solutions Group faced headwinds with a slight 1% annual revenue decline to $48.4 billion and 20% lower operating income. The divergence between commercial (up 5%) and consumer segments (down 12%) reflects ongoing enterprise prioritization over consumer spending.

Dell's capital return strategy signals management confidence, with an 18% dividend increase and $10 billion share repurchase authorization expansion. This balanced approach supports both shareholder returns and continued investment in AI capabilities.

The FY2026 guidance projects continued momentum, targeting $101-105 billion in revenue (up 8%) and 23% EPS growth. These ambitious targets suggest Dell expects to maintain its AI infrastructure leadership position while potentially seeing PC market stabilization.

The accounting correction related to $348 million in unrecorded supplier credits warrants attention, though deemed immaterial. This reflects on internal controls and governance processes that investors should monitor going forward.

Dell's FY2025 results showcase its successful pivot toward capturing the enterprise AI infrastructure wave, with the $9 billion AI server backlog representing one of the industry's largest order books outside hyperscalers. This positions Dell ahead of traditional competitors like HPE and Lenovo in the enterprise AI server market.

The 37% growth in servers and networking revenue reflects Dell's effective execution in three critical areas: securing GPU allocations despite industry-wide constraints, leveraging its enterprise relationships to position AI solutions, and building software capabilities that simplify AI deployment. The company's deals with xAI and other AI-focused firms demonstrate Dell's ability to win business even against cloud providers' own AI infrastructure offerings.

However, Dell's storage business grew only 5%, underperforming the server segment and suggesting potential challenges in positioning storage solutions for AI workloads, where competitors like Pure Storage and NetApp have developed specialized offerings.

The company's business mix is undergoing a fundamental transformation, with Infrastructure Solutions Group now representing 45.6% of revenue (up from 38.4% in FY2024) and delivering higher margins. This shift explains Dell's ability to grow operating income faster than revenue.

Looking forward, Dell's AI strategy appears three-pronged: serving hyperscalers and AI startups with customized infrastructure, bringing simplified AI solutions to mainstream enterprises, and embedding AI capabilities into client devices. The guidance for FY2026 assumes continued AI infrastructure demand and PC market recovery, though execution risks remain around GPU supply chains and potential enterprise spending constraints.

The accounting issues related to supplier credits, while deemed immaterial, highlight operational challenges in managing Dell's complex global supply chain as the company scales its AI infrastructure business.

02/27/2025 - 04:06 PM

ROUND ROCK, Texas--(BUSINESS WIRE)-- Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 fourth quarter and full year. The company also provides guidance for its fiscal 2026 first quarter and full year.

Full-Year Summary

Full-year revenue of $95.6 billion, up 8% year over year
Full-year operating income of $6.2 billion, up 15% year over year, and non-GAAP operating income of $8.5 billion, up 8%
Record full-year diluted earnings per share of $6.38, up 39% year over year, and record non-GAAP diluted EPS of $8.14, up 10%
Cash flow from operations was $4.5 billion
Announcing a cash dividend increase of 18% and $10 billion increase in share repurchase authorization
FY26 guidance: Full-year revenue growth of 8%, diluted EPS growth of 23% and non-GAAP diluted EPS growth of 14%

Fourth-Quarter Summary

Fourth-quarter revenue of $23.9 billion, up 7% year over year
Fourth-quarter operating income of $2.2 billion, up 40% year over year, and non-GAAP operating income of $2.7 billion, up 22%
Record fourth-quarter diluted EPS of $2.15, up 30% year over year, and record non-GAAP diluted EPS of $2.68, up 18%

“FY25 was a transformative year – we hit $95.6 billion in revenue, grew our core business double digits, unlocked efficiencies, and drove record EPS,” said Yvonne McGill, chief financial officer, Dell Technologies. “We’re raising our annual dividend by 18%, demonstrating our commitment to shareholder return and confidence in our opportunity to grow in FY26.”

“In Q4 we grew our Infrastructure Solutions Group revenue by 22%, and we’re well positioned to capture growth across every segment of our business,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “Our prospects for AI are strong, as we extend AI from the largest cloud service providers, into the enterprise at-scale, and out to the edge with the PC. The deals we’ve booked with xAI and others puts our AI server backlog at roughly $9 billion as of today.”

Infrastructure Solutions Group (ISG)

Full-year revenue: $43.6 billion, up 29% year over year
Full-year operating income: $5.6 billion, up 30% year over year
Fourth-quarter revenue: $11.4 billion, up 22% year over year
Fourth-quarter Servers and Networking revenue: $6.6 billion, up 37%, driven by AI and traditional server demand
Fourth-quarter Storage revenue: $4.7 billion, up 5%
Record fourth-quarter operating income: $2.1 billion, up 44% year over year

Client Solutions Group (CSG)

Full-year revenue: $48.4 billion, down 1% year over year
Full-year operating income: $3.0 billion, down 20% year over year
Fourth-quarter revenue: $11.9 billion, up 1% year over year
Fourth-quarter Commercial Client revenue: $10.0 billion, up 5%
Fourth-quarter Consumer revenue: $1.9 billion, down 12%
Fourth-quarter operating income: $631 million, down 19% year over year

Capital Return

Dell Technologies is increasing its annual cash dividend by 18% to an expected $2.10 per common share, with $0.525 per common share for the first quarterly distribution payable on May 2, 2025, to shareholders of record as of April 22, 2025. Additionally, the company’s board of directors approved a $10 billion increase in its share repurchase authorization.

Guidance Summary

Full-year FY26 revenue expected between $101.0 billion and $105.0 billion, up 8% year over year at the midpoint of $103.0 billion
Full-year FY26 GAAP diluted EPS expected to be $7.85, up 23% year over year, and non-GAAP diluted EPS to be $9.30, up 14%
First-quarter FY26 revenue expected between $22.5 billion and $23.5 billion, up 3% year over year at the midpoint of $23.0 billion
First-quarter FY26 GAAP diluted EPS expected to be $1.29, down 6% year over year, and non-GAAP diluted EPS to be $1.65, up 25%

Fourth Quarter and Full-Year Fiscal 2025 Financial Results

	Three Months Ended					Fiscal Year Ended
	January 31, 2025		February 2, 2024		Change	January 31, 2025		February 2, 2024		Change

	(in millions, except per share amounts and percentages; unaudited)
Net revenue	$	23,931	$	22,318	7%	$	95,567	$	88,425	8%
Operating income	$	2,159	$	1,547	40%	$	6,237	$	5,411	15%
Net income	$	1,532	$	1,208	27%	$	4,576	$	3,372	36%
Change in cash from operating activities	$	585	$	1,533	(62)%	$	4,521	$	8,676	(48)%
Earnings per share — diluted	$	2.15	$	1.66	30%	$	6.38	$	4.60	39%

Non-GAAP operating income	$	2,674	$	2,195	22%	$	8,529	$	7,878	8%
Non-GAAP net income	$	1,911	$	1,660	15%	$	5,865	$	5,422	8%
Adjusted free cash flow	$	474	$	1,010	(53)%	$	3,097	$	5,607	(45)%
Non-GAAP earnings per share — diluted	$	2.68	$	2.27	18%	$	8.14	$	7.37	10%

Information about Dell Technologies’ non-GAAP financial measures is provided under “Non-GAAP Financial Measures” below. All comparisons in this press release are year over year unless otherwise noted.

Operating Segments Results

	Three Months Ended							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

	(in millions, except percentages; unaudited)
*Infrastructure Solutions Group (ISG):*
Net revenue:
Servers and networking	$	6,634		$	4,857		37%	$	27,136		$	17,624		54%
Storage		4,718			4,475		5%		16,457			16,261		1%
Total ISG net revenue	$	11,352		$	9,332		22%	$	43,593		$	33,885		29%

Operating Income:
ISG operating income	$	2,051		$	1,428		44%	$	5,579		$	4,286		30%
% of ISG net revenue		18.1	%		15.3	%			12.8	%		12.6	%
% of total reportable segment operating income		76	%		65	%			65	%		54	%

*Client Solutions Group (CSG):*
Net revenue:
Commercial	$	9,996		$	9,563		5%	$	40,844		$	39,814		3%
Consumer		1,885			2,152		(12)%		7,549			9,102		(17)%
Total CSG net revenue	$	11,881		$	11,715		1%	$	48,393		$	48,916		(1)%

Operating Income:
CSG operating income	$	631		$	782		(19)%	$	2,972		$	3,712		(20)%
% of CSG net revenue		5.3	%		6.7	%			6.1	%		7.6	%
% of total reportable segment operating income		24	%		35	%			35	%		46	%

Revised Consolidated Financial Statements and Non-GAAP Financial Measures for Correction of Immaterial Errors

During the fourth quarter of fiscal 2025, Dell Technologies discovered accumulated credits from suppliers that were not recorded or not recorded in the correct period in its previously reported financial results. The company initiated an investigation that indicated that the credits resulted from the actions of certain employees that support a limited number of suppliers, impacting the Client Solutions Group segment and overstating cost of goods sold by approximately $200 million in fiscal 2024 and $148 million in fiscal 2025 for the nine months ended November 1, 2024.

The company determined the impacts were not material, individually or in the aggregate, to its previously issued consolidated financial statements for any of the prior quarters or the annual period in which they occurred. However, in accordance with SEC Staff Accounting Bulletin No. 108, the company concluded that correcting the cumulative misstatement in the current period would be material to its results of operations for fiscal 2025. The company has revised its prior period financial statements to correct for the overstatement of cost of goods sold in its Consolidated Statements of Income, net of the related income tax effect, and the corresponding amounts impacting the Consolidated Statements of Financial Position during the fiscal 2024 and fiscal 2025 interim periods and for the fiscal year ended February 2, 2024 as shown on Exhibit A, “Revision of Previously Issued Financial Results.”

Conference call information

As previously announced, the company will hold a conference call to discuss its performance and financial guidance on Feb. 27 at 3:30 p.m. CST. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information 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 additional financial and operating information 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 © 2025 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 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.

Forward-looking statements include, among others, any statements regarding Dell Technologies’ expectations for first-quarter and full-year fiscal 2026 revenue, GAAP diluted earnings per share and non-GAAP diluted earnings per share, and any other statements regarding Dell Technologies’ prospects and its future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations or beliefs underlying any of the foregoing.

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. Consolidated Statements of Income and Related Financial Highlights (in millions, except percentages; unaudited)

	Three Months Ended							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

Net revenue:
Products	$	18,049		$	16,149		12%	$	71,420		$	64,353		11%
Services		5,882			6,169		(5)%		24,147			24,072		—%
Total net revenue		23,931			22,318		7%		95,567			88,425		8%
Cost of net revenue:
Products		14,924			13,337		12%		60,162			53,116		13%
Services		3,329			3,609		(8)%		14,155			14,240		(1)%
Total cost of net revenue		18,253			16,946		8%		74,317			67,356		10%
Gross margin		5,678			5,372		6%		21,250			21,069		1%
Operating expenses:
Selling, general, and administrative		2,746			3,109		(12)%		11,952			12,857		(7)%
Research and development		773			716		8%		3,061			2,801		9%
Total operating expenses		3,519			3,825		(8)%		15,013			15,658		(4)%
Operating income		2,159			1,547		40%		6,237			5,411		15%
Interest and other, net		(187	)		(203	)	8%		(1,189	)		(1,324	)	10%
Income before income taxes		1,972			1,344		47%		5,048			4,087		24%
Income tax expense		440			136		224%		472			715		(34)%
Net income		1,532			1,208		27%		4,576			3,372		36%
Less: Net loss attributable to non-controlling interests		(1	)		(2	)	50%		(16	)		(16	)	—%
Net income attributable to Dell Technologies Inc.	$	1,533		$	1,210		27%	$	4,592		$	3,388		36%

Percentage of Total Net Revenue:
Gross margin		23.7	%		24.1	%			22.2	%		23.8	%
Selling, general, and administrative		11.5	%		13.9	%			12.5	%		14.5	%
Research and development		3.2	%		3.2	%			3.2	%		3.2	%
Operating expenses		14.7	%		17.1	%			15.7	%		17.7	%
Operating income		9.0	%		6.9	%			6.5	%		6.1	%
Income before income taxes		8.2	%		6.0	%			5.3	%		4.6	%
Net income		6.4	%		5.4	%			4.8	%		3.8	%
Income tax rate		22.3	%		10.1	%			9.4	%		17.5	%

Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC. Consolidated Statements of Financial Position (in millions; unaudited)

	January 31, 2025			February 2, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	3,633		$	7,366
Accounts receivable, net of allowance of $63 and $71		10,298			9,343
Short-term financing receivables, net of allowance of $78 and $79		5,304			4,643
Inventories		6,716			3,622
Other current assets		9,610			11,010
Current assets held for sale		668			—
Total current assets		36,229			35,984
Property, plant, and equipment, net		6,336			6,432
Long-term investments		1,496			1,316
Long-term financing receivables, net of allowance of $75 and $91		5,927			5,877
Goodwill		19,120			19,700
Intangible assets, net		4,988			5,701
Other non-current assets		5,650			7,116
Total assets	$	79,746		$	82,126

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	5,204		$	6,982
Accounts payable		20,832			19,226
Accrued and other		6,597			6,828
Short-term deferred revenue		13,673			15,318
Current liabilities held for sale		221			—
Total current liabilities		46,527			48,354
Long-term debt		19,363			19,012
Long-term deferred revenue		12,292			13,827
Other non-current liabilities		2,951			3,065
Total liabilities		81,133			84,258
Stockholders’ equity (deficit):
Common stock and capital in excess of $0.01 par value		9,119			8,926
Treasury stock at cost		(8,502	)		(5,900	)
Accumulated deficit		(1,160	)		(4,453	)
Accumulated other comprehensive loss		(939	)		(800	)
Total Dell Technologies Inc. stockholders’ equity (deficit)		(1,482	)		(2,227	)
Non-controlling interests		95			95
Total stockholders’ equity (deficit)		(1,387	)		(2,132	)
Total liabilities and stockholders’ equity	$	79,746		$	82,126

DELL TECHNOLOGIES INC. Consolidated Statements of Cash Flows (in millions; unaudited)

	Three Months Ended						Fiscal Year Ended
	January 31, 2025			February 2, 2024			January 31, 2025			February 2, 2024

Cash flows from operating activities:
Net income	$	1,532		$	1,208		$	4,576		$	3,372
Adjustments to reconcile net income to net cash provided by operating activities:		(947	)		325			(55	)		5,304
Change in cash from operating activities		585			1,533			4,521			8,676
Cash flows from investing activities:
Purchases of investments		(42	)		(29	)		(125	)		(172	)
Maturities and sales of investments		45			76			382			226
Capital expenditures and capitalized software development costs		(735	)		(727	)		(2,652	)		(2,756	)
Acquisition of businesses and assets, net		—			1			—			(126	)
Other		54			10			180			45
Change in cash from investing activities		(678	)		(669	)		(2,215	)		(2,783	)
Cash flows from financing activities:
Proceeds from the issuance of common stock		—			2			1			10
Repurchases of common stock		(734	)		(878	)		(2,588	)		(2,080	)
Repurchases of common stock for employee tax withholdings		(17	)		(18	)		(577	)		(372	)
Payments of dividends and dividend equivalents		(311	)		(261	)		(1,275	)		(1,072	)
Proceeds from debt		645			871			9,258			7,775
Repayments of debt		(976	)		(1,480	)		(10,570	)		(11,246	)
Debt-related costs and other, net		2			(55	)		(64	)		(109	)
Change in cash from financing activities		(1,391	)		(1,819	)		(5,815	)		(7,094	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(101	)		14			(179	)		(186	)
Change in cash, cash equivalents, and restricted cash		(1,585	)		(941	)		(3,688	)		(1,387	)
Cash, cash equivalents, and restricted cash at beginning of the period		5,404			8,448			7,507			8,894
Cash, cash equivalents, and restricted cash at end of the period	$	3,819		$	7,507		$	3,819		$	7,507

DELL TECHNOLOGIES INC. Segment Information (in millions, except percentages; unaudited; continued on next page)

	Three Months Ended							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

*Infrastructure Solutions Group (ISG):*
Net revenue:
Servers and networking	$	6,634		$	4,857		37%	$	27,136		$	17,624		54%
Storage		4,718			4,475		5%		16,457			16,261		1%
Total ISG net revenue	$	11,352		$	9,332		22%	$	43,593		$	33,885		29%

Operating Income:
ISG operating income	$	2,051		$	1,428		44%	$	5,579		$	4,286		30%
% of ISG net revenue		18.1	%		15.3	%			12.8	%		12.6	%
% of total reportable segment operating income		76	%		65	%			65	%		54	%

*Client Solutions Group (CSG):*
Net revenue:
Commercial	$	9,996		$	9,563		5%	$	40,844		$	39,814		3%
Consumer		1,885			2,152		(12)%		7,549			9,102		(17)%
Total CSG net revenue	$	11,881		$	11,715		1%	$	48,393		$	48,916		(1)%

Operating Income:
CSG operating income	$	631		$	782		(19)%	$	2,972		$	3,712		(20)%
% of CSG net revenue		5.3	%		6.7	%			6.1	%		7.6	%
% of total reportable segment operating income		24	%		35	%			35	%		46	%

Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC. Segment Information (in millions; unaudited; continued)

	Three Months Ended						Fiscal Year Ended
	January 31, 2025			February 2, 2024			January 31, 2025			February 2, 2024

Reconciliation to consolidated net revenue:
Reportable segment net revenue	$	23,233		$	21,047		$	91,986		$	82,801
Corporate and other (a)		698			1,271			3,581			5,624
Total consolidated net revenue	$	23,931		$	22,318		$	95,567		$	88,425

Reconciliation to consolidated operating income:
Reportable segment operating income	$	2,682		$	2,210		$	8,551		$	7,998
Corporate and other (a)		(8	)		(15	)		(22	)		(120	)
Amortization of intangibles (b)		(163	)		(210	)		(667	)		(833	)
Stock-based compensation expense (c)		(186	)		(203	)		(785	)		(878	)
Other corporate expenses (d)		(166	)		(235	)		(840	)		(756	)
Total consolidated operating income	$	2,159		$	1,547		$	6,237		$	5,411

_________________
(a)	Corporate and other consists of results of (i) VMware Resale, (ii) Secureworks, and (iii) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively. Additionally, Corporate and other includes other items that are managed at the corporate level and are not allocated to reportable segments.
(b)	Amortization of intangibles includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.
(c)	Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.
(d)	Other corporate expenses includes severance expenses, payroll taxes associated with stock-based compensation, facility action costs, transaction-related expenses, impairment charges, incentive charges related to equity investments, and other costs.

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 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 certain of these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and the company’s 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 the company’s 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							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

Net revenue	$	23,931		$	22,318		7%	$	95,567		$	88,425		8%
Non-GAAP gross margin	$	5,814		$	5,524		5%	$	21,810		$	21,644		1%
% of net revenue		24.3	%		24.8	%			22.8	%		24.5	%
Non-GAAP operating expenses	$	3,140		$	3,329		(6)%	$	13,281		$	13,766		(4)%
% of net revenue		13.1	%		14.9	%			13.9	%		15.6	%
Non-GAAP operating income	$	2,674		$	2,195		22%	$	8,529		$	7,878		8%
% of net revenue		11.2	%		9.8	%			8.9	%		8.9	%
Non-GAAP net income	$	1,911		$	1,660		15%	$	5,865		$	5,422		8%
% of net revenue		8.0	%		7.4	%			6.1	%		6.1	%
Non-GAAP earnings per share — diluted	$	2.68		$	2.27		18%	$	8.14		$	7.37		10%

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							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

Gross margin	$	5,678		$	5,372		6%	$	21,250		$	21,069		1%
Non-GAAP adjustments:
Amortization of intangibles		59			84				238			331
Stock-based compensation expense		37			37				152			149
Other corporate expenses		40			31				170			95
Non-GAAP gross margin	$	5,814		$	5,524		5%	$	21,810		$	21,644		1%

Operating expenses	$	3,519		$	3,825		(8)%	$	15,013		$	15,658		(4)%
Non-GAAP adjustments:
Amortization of intangibles		(104	)		(126	)			(429	)		(502	)
Stock-based compensation expense		(149	)		(166	)			(633	)		(729	)
Other corporate expenses		(126	)		(204	)			(670	)		(661	)
Non-GAAP operating expenses	$	3,140		$	3,329		(6)%	$	13,281		$	13,766		(4)%

Operating income	$	2,159		$	1,547		40%	$	6,237		$	5,411		15%
Non-GAAP adjustments:
Amortization of intangibles		163			210				667			833
Stock-based compensation expense		186			203				785			878
Other corporate expenses		166			235				840			756
Non-GAAP operating income	$	2,674		$	2,195		22%	$	8,529		$	7,878		8%

Net income	$	1,532		$	1,208		27%	$	4,576		$	3,372		36%
Non-GAAP adjustments:
Amortization of intangibles		163			210				667			833
Stock-based compensation expense		186			203				785			878
Other corporate expenses		165			227				830			793
Fair value adjustments on equity investments		(156	)		(83	)			(177	)		(47	)
Aggregate adjustment for income taxes (a)		21			(105	)			(816	)		(407	)
Non-GAAP net income	$	1,911		$	1,660		15%	$	5,865		$	5,422		8%

____________________
(a)	Beginning in fiscal 2025, the company’s 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							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

Earnings per share attributable to Dell Technologies Inc. — diluted	$	2.15		$	1.66		30%	$	6.38		$	4.60		39%
Non-GAAP adjustments:
Amortization of intangibles		0.22			0.29				0.93			1.13
Stock-based compensation expense		0.26			0.28				1.09			1.19
Other corporate expenses		0.23			0.31				1.16			1.08
Fair value adjustments on equity investments		(0.22	)		(0.11	)			(0.25	)		(0.06	)
Aggregate adjustment for income taxes (a)		0.04			(0.16	)			(1.15	)		(0.55	)
Total non-GAAP adjustments attributable to non-controlling interests		—			—				(0.02	)		(0.02	)
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	2.68		$	2.27		18%	$	8.14		$	7.37		10%

____________________
(a)	Beginning in fiscal 2025, the company’s 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							Fiscal Year Ended
	January 31, 2025			February 2, 2024			Change	January 31, 2025			February 2, 2024			Change

Cash flow from operations	$	585		$	1,533		(62)%	$	4,521		$	8,676		(48)%
Non-GAAP adjustments:
Capital expenditures and capitalized software development costs, net (a)		(702	)		(727	)			(2,563	)		(2,753	)
Free cash flow	$	(117	)	$	806		(115)%	$	1,958		$	5,923		(67)%

Free cash flow	$	(117	)	$	806		(115)%	$	1,958		$	5,923		(67)%
Non-GAAP adjustments:
Financing receivables (b)		532			136				951			(309	)
Equipment under operating leases (c)		59			68				188			(7	)
Adjusted free cash flow	$	474		$	1,010		(53)%	$	3,097		$	5,607		(45)%

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

DELL TECHNOLOGIES INC. Reconciliation of Non-GAAP Financial Measures in Summary Guidance (unaudited)

	Three Months Ending			Fiscal Year Ending
	May 2, 2025			January 30, 2026

Earnings per share attributable to Dell Technologies Inc. — diluted	$	1.29		$	7.85

Non-GAAP adjustments:
Amortization of intangibles (a)		0.17			0.70
Stock-based compensation		0.26			1.04
Other corporate expenses (b)		—			—
Fair value adjustments on equity investments (c)		—			—
Aggregate adjustment for income taxes (d)		(0.07	)		(0.29	)
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	1.65		$	9.30

____________________
(a)	Amortization of intangibles represents an estimate for acquisitions completed as of January 31, 2025 and does not include estimates for potential acquisitions, if any, during fiscal 2026.
(b)	Consists 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. No estimate is included for severance expense as such expense cannot be reasonably estimated at this time.
(c)	No estimates are included for potential fair value adjustments on strategic investments given the potential volatility of either gains or losses on those equity investments.
(d)	The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments shown above as well as an adjustment for discrete tax items. Beginning in fiscal 2025, the company’s non-GAAP income tax is calculated using a fixed estimated annual tax rate.

EXHIBIT A DELL TECHNOLOGIES INC. Revision of Previously Issued Financial Results (in millions, except per share amounts; unaudited; continued on next page)

	Three Months Ended
	May 3, 2024									May 5, 2023
	As Reported¹			Adjustment			As Revised			As Reported¹		Adjustment			As Revised

Condensed Consolidated Statements of Income:
Cost of net revenue — Products	$	13,766		$	(45	)	$	13,721		$	12,375	$	(62	)	$	12,313
Total cost of net revenue	$	17,438		$	(45	)	$	17,393		$	15,904	$	(62	)	$	15,842
Gross margin	$	4,806		$	45		$	4,851		$	5,018	$	62		$	5,080
Operating income	$	920		$	45		$	965		$	1,069	$	62		$	1,131
Income before income taxes	$	547		$	45		$	592		$	705	$	62		$	767
Income tax expense (benefit)	$	(408	)	$	8		$	(400	)	$	127	$	8		$	135
Net income	$	955		$	37		$	992		$	578	$	54		$	632
Net income attributable to Dell Technologies Inc.	$	960		$	37		$	997		$	583	$	54		$	637
Earnings per share attributable to Dell Technologies Inc.
Basic	$	1.36		$	0.05		$	1.41		$	0.81	$	0.07		$	0.88
Diluted	$	1.32		$	0.05		$	1.37		$	0.79	$	0.07		$	0.86
Segment Information:
CSG operating income	$	732		$	45		$	777		$	892	$	62		$	954
Reportable segment operating income	$	1,468		$	45		$	1,513		$	1,632	$	62		$	1,694
Non-GAAP Financial Measures:
Non-GAAP gross margin	$	4,947		$	45		$	4,992		$	5,164	$	62		$	5,226
Non-GAAP operating income	$	1,474		$	45		$	1,519		$	1,598	$	62		$	1,660
Non-GAAP net income	$	923		$	36		$	959		$	963	$	54		$	1,017
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	1.27		$	0.05		$	1.32		$	1.31	$	0.07		$	1.38

____________________
(1)	As reported amounts represent the originally reported amounts in the company’s Quarterly Reports on Form 10-Q for the three months ended May 3, 2024 and May 5, 2023.

DELL TECHNOLOGIES INC. Revision of Previously Issued Financial Results (in millions, except per share amounts; unaudited; continued)

	Three Months Ended
	August 2, 2024							August 4, 2023
	As Reported¹		Adjustment			As Revised		As Reported¹		Adjustment			As Revised

Condensed Consolidated Statements of Income:
Cost of net revenue — Products	$	16,079	$	(50	)	$	16,029	$	14,002	$	(29	)	$	13,973
Total cost of net revenue	$	19,715	$	(50	)	$	19,665	$	17,547	$	(29	)	$	17,518
Gross margin	$	5,311	$	50		$	5,361	$	5,387	$	29		$	5,416
Operating income	$	1,342	$	50		$	1,392	$	1,165	$	29		$	1,194
Income before income taxes	$	989	$	50		$	1,039	$	714	$	29		$	743
Income tax expense	$	148	$	9		$	157	$	259	$	2		$	261
Net income	$	841	$	41		$	882	$	455	$	27		$	482
Net income attributable to Dell Technologies Inc.	$	846	$	41		$	887	$	462	$	27		$	489
Earnings per share attributable to Dell Technologies Inc.
Basic	$	1.19	$	0.06		$	1.25	$	0.64	$	0.03		$	0.67
Diluted	$	1.17	$	0.06		$	1.23	$	0.63	$	0.03		$	0.66
Segment Information:
CSG operating income	$	767	$	50		$	817	$	969	$	29		$	998
Reportable segment operating income	$	2,051	$	50		$	2,101	$	2,018	$	29		$	2,047
Non-GAAP Financial Measures:
Non-GAAP gross margin	$	5,464	$	50		$	5,514	$	5,536	$	29		$	5,565
Non-GAAP operating income	$	2,034	$	50		$	2,084	$	1,977	$	29		$	2,006
Non-GAAP net income	$	1,371	$	41		$	1,412	$	1,283	$	27		$	1,310
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	1.89	$	0.06		$	1.95	$	1.74	$	0.04		$	1.78

____________________
(1)	As reported amounts represent the originally reported amounts in the company’s Quarterly Reports on Form 10-Q for the three months ended August 2, 2024 and August 4, 2023.

DELL TECHNOLOGIES INC. Revision of Previously Issued Financial Results (in millions, except per share amounts; unaudited; continued)

	Three Months Ended
	November 1, 2024							November 3, 2023
	As Reported¹		Adjustment			As Revised		As Reported¹		Adjustment			As Revised

Condensed Consolidated Statements of Income:
Cost of net revenue — Products	$	15,541	$	(53	)	$	15,488	$	13,546	$	(53	)	$	13,493
Total cost of net revenue	$	19,059	$	(53	)	$	19,006	$	17,103	$	(53	)	$	17,050
Gross margin	$	5,307	$	53		$	5,360	$	5,148	$	53		$	5,201
Operating income	$	1,668	$	53		$	1,721	$	1,486	$	53		$	1,539
Income before income taxes	$	1,392	$	53		$	1,445	$	1,180	$	53		$	1,233
Income tax expense	$	265	$	10		$	275	$	176	$	7		$	183
Net income	$	1,127	$	43		$	1,170	$	1,004	$	46		$	1,050
Net income attributable to Dell Technologies Inc.	$	1,132	$	43		$	1,175	$	1,006	$	46		$	1,052
Earnings per share attributable to Dell Technologies Inc.
Basic	$	1.61	$	0.06		$	1.67	$	1.39	$	0.07		$	1.46
Diluted	$	1.58	$	0.06		$	1.64	$	1.36	$	0.06		$	1.42
Segment Information:
CSG operating income	$	694	$	53		$	747	$	925	$	53		$	978
Reportable segment operating income	$	2,202	$	53		$	2,255	$	1,994	$	53		$	2,047
Non-GAAP Financial Measures:
Non-GAAP gross margin	$	5,437	$	53		$	5,490	$	5,276	$	53		$	5,329
Non-GAAP operating income	$	2,199	$	53		$	2,252	$	1,964	$	53		$	2,017
Non-GAAP net income	$	1,540	$	43		$	1,583	$	1,389	$	46		$	1,435
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	2.15	$	0.06		$	2.21	$	1.88	$	0.06		$	1.94

____________________
(1)	As reported amounts represent the originally reported amounts in the company’s Quarterly Reports on Form 10-Q for the three months ended November 1, 2024 and November 3, 2023.

DELL TECHNOLOGIES INC. Revision of Previously Issued Financial Results (in millions, except per share amounts; unaudited; continued)

	Three Months Ended							Fiscal Year Ended
	February 2, 2024							February 2, 2024
	As Reported¹		Adjustment			As Revised		As Reported¹		Adjustment			As Revised

Consolidated Statements of Income:
Cost of net revenue — Products	$	13,393	$	(56	)	$	13,337	$	53,316	$	(200	)	$	53,116
Total cost of net revenue	$	17,002	$	(56	)	$	16,946	$	67,556	$	(200	)	$	67,356
Gross margin	$	5,316	$	56		$	5,372	$	20,869	$	200		$	21,069
Operating income	$	1,491	$	56		$	1,547	$	5,211	$	200		$	5,411
Income before income taxes	$	1,288	$	56		$	1,344	$	3,887	$	200		$	4,087
Income tax expense	$	130	$	6		$	136	$	692	$	23		$	715
Net income	$	1,158	$	50		$	1,208	$	3,195	$	177		$	3,372
Net income attributable to Dell Technologies Inc.	$	1,160	$	50		$	1,210	$	3,211	$	177		$	3,388
Earnings per share attributable to Dell Technologies Inc.
Basic	$	1.63	$	0.07		$	1.70	$	4.46	$	0.25		$	4.71
Diluted	$	1.59	$	0.07		$	1.66	$	4.36	$	0.24		$	4.60
Segment Information:
CSG operating income	$	726	$	56		$	782	$	3,512	$	200		$	3,712
Reportable segment operating income	$	2,154	$	56		$	2,210	$	7,798	$	200		$	7,998
Non-GAAP Financial Measures:
Non-GAAP gross margin	$	5,468	$	56		$	5,524	$	21,444	$	200		$	21,644
Non-GAAP operating income	$	2,139	$	56		$	2,195	$	7,678	$	200		$	7,878
Non-GAAP net income	$	1,610	$	50		$	1,660	$	5,245	$	177		$	5,422
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	2.20	$	0.07		$	2.27	$	7.13	$	0.24		$	7.37
Consolidated Statements of Cash Flows:
Cash flows from operating activities:
Net income	$	1,158	$	50		$	1,208	$	3,195	$	177		$	3,372
Adjustments to reconcile net income to net cash provided by operating activities	$	375	$	(50	)	$	325	$	5,481	$	(177	)	$	5,304

_________________
(1)	As reported amounts represent the originally reported amounts in the company’s press release furnished as Exhibit 99.1 to the company’s Form 8-K filed with the SEC on February 29, 2024, and in the company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2024.

DELL TECHNOLOGIES INC. Revision of Previously Issued Financial Results (in millions; unaudited; continued)

	February 2, 2024
	As Reported¹			Adjustment			As Revised

Consolidated Statements of Financial Position:
Other current assets	$	10,973		$	37		$	11,010
Total current assets	$	35,947		$	37		$	35,984
Total assets	$	82,089		$	37		$	82,126

Accounts payable	$	19,389		$	(163	)	$	19,226
Accrued and other	$	6,805		$	23		$	6,828
Total current liabilities	$	48,494		$	(140	)	$	48,354
Total liabilities	$	84,398		$	(140	)	$	84,258

Accumulated deficit	$	(4,630	)	$	177		$	(4,453	)
Total Dell Technologies Inc. stockholders' equity (deficit)	$	(2,404	)	$	177		$	(2,227	)
Total stockholders' equity (deficit)	$	(2,309	)	$	177		$	(2,132	)
Total liabilities and stockholders' equity	$	82,089		$	37		$	82,126

_________________
(1)	As reported amounts represent the originally reported amounts in the company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2024.

DELL TECHNOLOGIES INC. Revision of Previously Issued Financial Results Reconciliation of Selected Non-GAAP Financial Measures (in millions, except per share amounts; unaudited)

	Three Months Ended
	November 1, 2024			August 2, 2024			May 3, 2024			November 3, 2023			August 4, 2023			May 5, 2023

Gross margin	$	5,360		$	5,361		$	4,851		$	5,201		$	5,416		$	5,080
Non-GAAP adjustments:
Amortization of intangibles		60			59			60			84			84			79
Stock-based compensation expense		39			38			38			37			37			38
Other corporate expenses		31			56			43			7			28			29
Non-GAAP gross margin	$	5,490		$	5,514		$	4,992		$	5,329		$	5,565		$	5,226

Operating income	$	1,721		$	1,392		$	965		$	1,539		$	1,194		$	1,131
Non-GAAP adjustments:
Amortization of intangibles		168			168			168			207			213			203
Stock-based compensation expense		198			191			210			227			223			225
Other corporate expenses		165			333			176			44			376			101
Non-GAAP operating income	$	2,252		$	2,084		$	1,519		$	2,017		$	2,006		$	1,660

Net income	$	1,170		$	882		$	992		$	1,050		$	482		$	632
Non-GAAP adjustments:
Amortization of intangibles		168			168			168			207			213			203
Stock-based compensation expense		198			191			210			227			223			225
Other corporate expenses		166			329			170			36			432			98
Fair value adjustments on equity investments		(46	)		(5	)		30			(8	)		29			15
Aggregate adjustment for income taxes (a)		(73	)		(153	)		(611	)		(77	)		(69	)		(156	)
Non-GAAP net income	$	1,583		$	1,412		$	959		$	1,435		$	1,310		$	1,017

Earnings per share attributable to Dell Technologies Inc. — diluted	$	1.64		$	1.23		$	1.37		$	1.42		$	0.66		$	0.86
Non-GAAP adjustments:
Amortization of intangibles		0.23			0.23			0.23			0.28			0.29			0.28
Stock-based compensation expense		0.28			0.26			0.29			0.31			0.30			0.30
Other corporate expenses		0.23			0.46			0.24			0.04			0.58			0.13
Fair value adjustments on equity investments		(0.06	)		(0.01	)		0.04			(0.01	)		0.04			0.02
Aggregate adjustment for income taxes (a)		(0.10	)		(0.21	)		(0.84	)		(0.10	)		(0.08	)		(0.21	)
Total non-GAAP adjustments attributable to non-controlling interests		(0.01	)		(0.01	)		(0.01	)		—			(0.01	)		—
Non-GAAP earnings per share attributable to Dell Technologies Inc. — diluted	$	2.21		$	1.95		$	1.32		$	1.94		$	1.78		$	1.38

____________________
(a)	Beginning in fiscal 2025, the company’s non-GAAP income tax is calculated using a fixed estimated annual tax rate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227581504/en/

Investors: Investor_Relations@Dell.com

Media: Media.Relations@Dell.com

Source: Dell Technologies

FAQ

What is Dell's (DELL) projected revenue growth for fiscal year 2026?

Dell projects 8% revenue growth for FY26, with expected revenue between $101.0 billion and $105.0 billion.

How much did Dell's (DELL) Infrastructure Solutions Group revenue grow in Q4 FY25?

Dell's ISG revenue grew 22% year over year in Q4, reaching $11.4 billion, with Servers and Networking revenue up 37%.

What is the new dividend amount for Dell (DELL) shareholders?

Dell increased its annual cash dividend by 18% to $2.10 per common share, with quarterly payments of $0.525.

What is Dell's (DELL) current AI server backlog value?

Dell reported an AI server backlog of approximately $9 billion as of the earnings release.

How much did Dell (DELL) increase its share repurchase authorization?

Dell's board approved a $10 billion increase in share repurchase authorization.

Dell Technologies Delivers Fourth Quarter and Full-Year Fiscal 2025 Financial Results

Insights

FAQ

What is Dell's (DELL) projected revenue growth for fiscal year 2026?

How much did Dell's (DELL) Infrastructure Solutions Group revenue grow in Q4 FY25?

What is the new dividend amount for Dell (DELL) shareholders?

What is Dell's (DELL) current AI server backlog value?

How much did Dell (DELL) increase its share repurchase authorization?

NYSE:DELL

DELL Rankings

DELL Latest News

DELL Stock Data

Trending News

Dell Technologies Delivers Fourth Quarter and Full-Year Fiscal 2025 Financial Results

Insights

Financial Analyst positive

Technology Industry Expert positive

FAQ

What is Dell's (DELL) projected revenue growth for fiscal year 2026?

How much did Dell's (DELL) Infrastructure Solutions Group revenue grow in Q4 FY25?

What is the new dividend amount for Dell (DELL) shareholders?

What is Dell's (DELL) current AI server backlog value?

How much did Dell (DELL) increase its share repurchase authorization?

NYSE:DELL

DELL Rankings

DELL Latest News

DELL Stock Data