Dell Technologies Delivers Second Quarter Fiscal 2025 Financial Results
Dell Technologies (NYSE: DELL) reported strong fiscal Q2 2025 results, with revenue up 9% year-over-year to $25.0 billion. The company's Infrastructure Solutions Group (ISG) achieved record revenue of $11.6 billion, up 38%, driven by an 80% increase in servers and networking revenue to $7.7 billion. Client Solutions Group (CSG) revenue declined 4% to $12.4 billion. Diluted earnings per share rose 86% to $1.17, while non-GAAP diluted EPS increased 9% to $1.89. Dell's AI-optimized server demand reached $3.2 billion, up 23% sequentially, with a backlog of $3.8 billion. The company returned $1 billion to shareholders through share repurchases and dividends.
Dell Technologies (NYSE: DELL) ha riportato risultati solidi per il secondo trimestre fiscale del 2025, con un aumento del fatturato del 9% rispetto all'anno precedente, per un totale di 25,0 miliardi di dollari. Il Gruppo Soluzioni Infrastrutturali (ISG) ha raggiunto un fatturato record di 11,6 miliardi di dollari, in crescita del 38%, trainato da un aumento dell'80% nel fatturato di server e networking che ha toccato 7,7 miliardi di dollari. Il fatturato del Gruppo Soluzioni Clienti (CSG) è diminuito del 4% a 12,4 miliardi di dollari. L'utile per azione diluito è aumentato dell'86% a 1,17 dollari, mentre l'EPS diluito non GAAP è cresciuto del 9% a 1,89 dollari. La domanda di server ottimizzati per l'AI di Dell ha raggiunto 3,2 miliardi di dollari, un aumento del 23% rispetto al trimestre precedente, con un portafoglio ordini di 3,8 miliardi di dollari. L'azienda ha restituito 1 miliardo di dollari agli azionisti attraverso riacquisti di azioni e dividendi.
Dell Technologies (NYSE: DELL) reportó resultados sólidos para el segundo trimestre fiscal de 2025, con un aumento del 9% en los ingresos interanuales, alcanzando 25.0 mil millones de dólares. El Grupo de Soluciones de Infraestructura (ISG) logró un ingreso récord de 11.6 mil millones de dólares, un incremento del 38%, impulsado por un aumento del 80% en los ingresos de servidores y redes, que alcanzaron 7.7 mil millones de dólares. Los ingresos del Grupo de Soluciones para Clientes (CSG) disminuyeron un 4% a 12.4 mil millones de dólares. Las ganancias por acción diluidas subieron un 86% a 1.17 dólares, mientras que las EPS diluidas no GAAP aumentaron un 9% a 1.89 dólares. La demanda de servidores optimizados para IA de Dell alcanzó 3.2 mil millones de dólares, un incremento del 23% respecto al trimestre anterior, con una cartera de pedidos de 3.8 mil millones de dólares. La empresa devolvió 1 mil millones de dólares a los accionistas a través de recompras de acciones y dividendos.
Dell Technologies (NYSE: DELL)는 2025 회계 연도 2분기 연간 매출이 9% 증가하여 250억 달러에 달하는 강력한 실적을 발표했습니다. 회사의 인프라 솔루션 그룹(ISG)은 기록적인 매출 116억 달러를 달성했으며, 이는 38% 증가한 수치로 서버 및 네트워킹 매출이 80% 증가하여 77억 달러에 이릅니다. 클라이언트 솔루션 그룹(CSG)의 매출은 4% 감소하여 124억 달러에 달했습니다. 희석 주당 순이익은 86% 증가하여 1.17 달러에 달했으며, 비GAAP 희석 EPS는 9% 증가하여 1.89 달러에 도달했습니다. Dell의 AI 최적화 서버 수요는 전 분기 대비 23% 증가한 32억 달러에 달했으며, 수주 잔고는 38억 달러에 달합니다. 회사는 주식 매입 및 배당금을 통해 주주에게 10억 달러를 반환했습니다.
Dell Technologies (NYSE: DELL) a annoncé de solides résultats pour le deuxième trimestre fiscal 2025, avec un chiffre d'affaires en hausse de 9 % par rapport à l'année précédente, atteignant 25,0 milliards de dollars. Le Groupe des Solutions d'Infrastructure (ISG) a réalisé un chiffre d'affaires record de 11,6 milliards de dollars, en hausse de 38 %, soutenu par une augmentation de 80 % des revenus provenant des serveurs et du réseau, atteignant 7,7 milliards de dollars. Les revenus du Groupe des Solutions Client (CSG) ont diminué de 4 % pour atteindre 12,4 milliards de dollars. Le bénéfice par action dilué a augmenté de 86 % pour atteindre 1,17 dollar, tandis que l'EPS dilué hors GAAP a augmenté de 9 % pour atteindre 1,89 dollar. La demande de serveurs optimisés pour l'IA de Dell a atteint 3,2 milliards de dollars, soit une augmentation de 23 % par rapport au trimestre précédent, avec un carnet de commandes de 3,8 milliards de dollars. L'entreprise a retourné 1 milliard de dollars à ses actionnaires par le biais de rachats d'actions et de dividendes.
Dell Technologies (NYSE: DELL) hat im zweiten Geschäftsquartal 2025 starke Ergebnisse gemeldet, mit einem Umsatzwachstum von 9% im Vergleich zum Vorjahr auf 25,0 Milliarden Dollar. Die Infrastruktur Solutions Group (ISG) erzielte einen Rekordumsatz von 11,6 Milliarden Dollar, was einem Anstieg von 38% entspricht, unterstützt durch einen Anstieg der Server- und Netzwerkumsätze um 80% auf 7,7 Milliarden Dollar. Der Umsatz der Client Solutions Group (CSG) sank um 4% auf 12,4 Milliarden Dollar. Der verwässerte Gewinn pro Aktie stieg um 86% auf 1,17 Dollar, während der nicht-GAAP verwässerte EPS um 9% auf 1,89 Dollar anstieg. Die Nachfrage nach AI-optimierten Servern von Dell erreichte 3,2 Milliarden Dollar, was einem Anstieg von 23% im Vergleich zum vorherigen Quartal entspricht, mit einem Auftragsbestand von 3,8 Milliarden Dollar. Das Unternehmen gab 1 Milliarde Dollar an die Aktionäre durch Aktienrückkäufe und Dividenden zurück.
- Revenue increased 9% year-over-year to $25.0 billion
- Record ISG revenue of $11.6 billion, up 38% year-over-year
- Servers and networking revenue up 80% to $7.7 billion
- Diluted EPS rose 86% to $1.17
- AI-optimized server demand reached $3.2 billion, up 23% sequentially
- $1 billion returned to shareholders through share repurchases and dividends
- CSG revenue declined 4% year-over-year to $12.4 billion
- Storage revenue down 5% to $4.0 billion
- Consumer revenue decreased 22% to $1.9 billion
- Cash flow from operations decreased 58% to $1.3 billion
Insights
Dell's Q2 FY2025 results demonstrate strong performance, particularly in the Infrastructure Solutions Group (ISG). Revenue increased
However, the Client Solutions Group (CSG) saw a
While cash flow from operations decreased, Dell returned
Dell's Q2 results underscore the company's strategic pivot towards AI-driven solutions. The
However, the
Dell's ability to maintain profitability despite these headwinds is commendable. The company's focus on high-margin AI solutions could drive future growth, but it must navigate the transition carefully to offset potential further declines in its traditional PC business. The
News summary
- Second quarter revenue of
$25.0 billion 9% year over year - Record Infrastructure Solutions Group (ISG) revenue of
$11.6 billion , up38% year over year, with record servers and networking revenue of$7.7 billion 80% - Client Solutions Group (CSG) revenue of
$12.4 billion 4% year over year, with commercial client revenue flat at$10.6 billion - Diluted earnings per share of
$1.17 86% year over year, and non-GAAP diluted earnings per share of$1.89 9%
Full story
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 second quarter. Revenue was
"In Q2 our combined ISG and CSG revenue was
Cash flow from operations was
Second Quarter Fiscal 2025 Financial Results
Three Months Ended | Six Months Ended | ||||||||||
August 2, | August 4, | Change | August 2, | August 4, | Change | ||||||
(in millions, except per share amounts and percentages; unaudited) | |||||||||||
Net revenue | $ 25,026 | $ 22,934 | 9 % | $ 47,270 | $ 43,856 | 8 % | |||||
Operating income | $ 1,342 | $ 1,165 | 15 % | $ 2,262 | $ 2,234 | 1 % | |||||
Net income | $ 841 | $ 455 | 85 % | $ 1,796 | $ 1,033 | 74 % | |||||
Change in cash from operating activities | $ 1,340 | $ 3,214 | (58) % | $ 2,383 | $ 4,991 | (52) % | |||||
Earnings per share - diluted | $ 1.17 | $ 0.63 | 86 % | $ 2.49 | $ 1.42 | 75 % | |||||
Non-GAAP operating income | $ 2,034 | $ 1,977 | 3 % | $ 3,508 | $ 3,575 | (2) % | |||||
Non-GAAP net income | $ 1,371 | $ 1,283 | 7 % | $ 2,294 | $ 2,246 | 2 % | |||||
Adjusted free cash flow | $ 1,284 | $ 3,050 | (58) % | $ 1,907 | $ 3,737 | (49) % | |||||
Non-GAAP earnings per share - diluted | $ 1.89 | $ 1.74 | 9 % | $ 3.16 | $ 3.05 | 4 % | |||||
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 record second quarter revenue of
"Our AI momentum accelerated in Q2, and we've seen an increase in the number of enterprise customers buying AI solutions each quarter," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "AI-optimized server demand was
Client Solutions Group (CSG) delivered second quarter revenue of
Operating Segments Results
Three Months Ended | Six Months Ended | ||||||||||
August 2, | August 4, | Change | August 2, | August 4, | Change | ||||||
(in millions, except percentages; unaudited) | |||||||||||
Infrastructure Solutions Group (ISG): | |||||||||||
Net revenue: | |||||||||||
Servers and networking | $ 7,672 | $ 4,274 | 80 % | $ 13,138 | $ 8,111 | 62 % | |||||
Storage | 3,974 | 4,187 | (5) % | 7,735 | 7,943 | (3) % | |||||
Total ISG net revenue | $ 11,646 | $ 8,461 | 38 % | $ 20,873 | $ 16,054 | 30 % | |||||
Operating Income: | |||||||||||
ISG operating income | $ 1,284 | $ 1,049 | 22 % | $ 2,020 | $ 1,789 | 13 % | |||||
% of ISG net revenue | 11.0 % | 12.4 % | 9.7 % | 11.1 % | |||||||
% of total reportable segment operating income | 63 % | 52 % | 57 % | 49 % | |||||||
Client Solutions Group (CSG): | |||||||||||
Net revenue: | |||||||||||
Commercial | $ 10,556 | $ 10,554 | — % | $ 20,710 | $ 20,416 | 1 % | |||||
Consumer | 1,858 | 2,388 | (22) % | 3,671 | 4,509 | (19) % | |||||
Total CSG net revenue | $ 12,414 | $ 12,942 | (4) % | $ 24,381 | $ 24,925 | (2) % | |||||
Operating Income: | |||||||||||
CSG operating income | $ 767 | $ 969 | (21) % | $ 1,499 | $ 1,861 | (19) % | |||||
% of CSG net revenue | 6.2 % | 7.5 % | 6.1 % | 7.5 % | |||||||
% of total reportable segment operating income | 37 % | 48 % | 43 % | 51 % | |||||||
Conference call information
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on August 29 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
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-
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 | Six Months Ended | ||||||||||
August 2, | August 4, | Change | August 2, | August 4, | Change | ||||||
Net revenue: | |||||||||||
Products | 12 % | 10 % | |||||||||
Services | 6,072 | 5,999 | 1 % | 12,189 | 11,885 | 3 % | |||||
Total net revenue | 25,026 | 22,934 | 9 % | 47,270 | 43,856 | 8 % | |||||
Cost of net revenue: | |||||||||||
Products | 16,079 | 14,002 | 15 % | 29,845 | 26,377 | 13 % | |||||
Services | 3,636 | 3,545 | 3 % | 7,308 | 7,074 | 3 % | |||||
Total cost of net revenue | 19,715 | 17,547 | 12 % | 37,153 | 33,451 | 11 % | |||||
Gross margin | 5,311 | 5,387 | (1) % | 10,117 | 10,405 | (3) % | |||||
Operating expenses: | |||||||||||
Selling, general, and administrative | 3,189 | 3,517 | (9) % | 6,312 | 6,778 | (7) % | |||||
Research and development | 780 | 705 | 11 % | 1,543 | 1,393 | 11 % | |||||
Total operating expenses | 3,969 | 4,222 | (6) % | 7,855 | 8,171 | (4) % | |||||
Operating income | 1,342 | 1,165 | 15 % | 2,262 | 2,234 | 1 % | |||||
Interest and other, net | (353) | (451) | 22 % | (726) | (815) | 11 % | |||||
Income before income taxes | 989 | 714 | 39 % | 1,536 | 1,419 | 8 % | |||||
Income tax expense (benefit) | 148 | 259 | (43) % | (260) | 386 | (167) % | |||||
Net income | 841 | 455 | 85 % | 1,796 | 1,033 | 74 % | |||||
Less: Net loss attributable to non-controlling | (5) | (7) | 29 % | (10) | (12) | 17 % | |||||
Net income attributable to Dell Technologies Inc. | $ 846 | $ 462 | 83 % | $ 1,806 | $ 1,045 | 73 % | |||||
Percentage of Total Net Revenue: | |||||||||||
Gross margin | 21.2 % | 23.5 % | 21.4 % | 23.7 % | |||||||
Selling, general, and administrative | 12.7 % | 15.3 % | 13.3 % | 15.4 % | |||||||
Research and development | 3.1 % | 3.1 % | 3.3 % | 3.2 % | |||||||
Operating expenses | 15.8 % | 18.4 % | 16.6 % | 18.6 % | |||||||
Operating income | 5.4 % | 5.1 % | 4.8 % | 5.1 % | |||||||
Income before income taxes | 4.0 % | 3.1 % | 3.2 % | 3.2 % | |||||||
Net income | 3.4 % | 2.0 % | 3.8 % | 2.4 % | |||||||
Income tax rate | 15.0 % | 36.3 % | (16.9) % | 27.2 % | |||||||
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) | |||
August 2, 2024 | February 2, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 4,550 | $ 7,366 | |
Accounts receivable, net of allowance of | 11,391 | 9,343 | |
Short-term financing receivables, net of allowance of | 4,968 | 4,643 | |
Inventories | 5,953 | 3,622 | |
Other current assets | 10,681 | 10,973 | |
Total current assets | 37,543 | 35,947 | |
Property, plant, and equipment, net | 6,300 | 6,432 | |
Long-term investments | 1,302 | 1,316 | |
Long-term financing receivables, net of allowance of | 6,124 | 5,877 | |
Goodwill | 19,654 | 19,700 | |
Intangible assets, net | 5,374 | 5,701 | |
Other non-current assets | 6,390 | 7,116 | |
Total assets | $ 82,687 | $ 82,089 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 6,711 | $ 6,982 | |
Accounts payable | 24,095 | 19,389 | |
Accrued and other | 6,374 | 6,805 | |
Short-term deferred revenue | 14,853 | 15,318 | |
Total current liabilities | 52,033 | 48,494 | |
Long-term debt | 17,811 | 19,012 | |
Long-term deferred revenue | 12,859 | 13,827 | |
Other non-current liabilities | 2,781 | 3,065 | |
Total liabilities | 85,484 | 84,398 | |
Stockholders' equity (deficit): | |||
Total Dell Technologies Inc. stockholders' equity (deficit) | (2,894) | (2,404) | |
Non-controlling interests | 97 | 95 | |
Total stockholders' equity (deficit) | (2,797) | (2,309) | |
Total liabilities and stockholders' equity | $ 82,687 | $ 82,089 | |
DELL TECHNOLOGIES INC. Condensed Consolidated Statements of Cash Flows (in millions; unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
August 2, | August 4, | August 2, | August 4, | ||||
Cash flows from operating activities: | |||||||
Net income | $ 841 | $ 455 | $ 1,796 | $ 1,033 | |||
Adjustments to reconcile net income to net cash provided | 499 | 2,759 | 587 | 3,958 | |||
Change in cash from operating activities | 1,340 | 3,214 | 2,383 | 4,991 | |||
Cash flows from investing activities: | |||||||
Purchases of investments | (25) | (98) | (64) | (113) | |||
Maturities and sales of investments | 97 | 108 | 216 | 127 | |||
Capital expenditures and capitalized software | (682) | (624) | (1,278) | (1,325) | |||
Other | 53 | 9 | 113 | 22 | |||
Change in cash from investing activities | (557) | (605) | (1,013) | (1,289) | |||
Cash flows from financing activities: | |||||||
Proceeds from the issuance of common stock | 1 | 2 | 1 | 4 | |||
Repurchases of common stock | (725) | (260) | (1,425) | (500) | |||
Repurchases of common stock for employee tax | (14) | (6) | (535) | (312) | |||
Payments of dividends and dividend equivalents | (316) | (269) | (652) | (545) | |||
Proceeds from debt | 1,941 | 2,134 | 4,933 | 4,655 | |||
Repayments of debt | (2,917) | (3,384) | (6,394) | (7,082) | |||
Debt-related costs and other, net | (2) | (44) | (37) | (49) | |||
Change in cash from financing activities | (2,032) | (1,827) | (4,109) | (3,829) | |||
Effect of exchange rate changes on cash, cash equivalents, | (42) | (59) | (97) | (117) | |||
Change in cash, cash equivalents, and restricted cash | (1,291) | 723 | (2,836) | (244) | |||
Cash, cash equivalents, and restricted cash at beginning of | 5,962 | 7,927 | 7,507 | 8,894 | |||
Cash, cash equivalents, and restricted cash at end of the | $ 4,671 | $ 8,650 | $ 4,671 | $ 8,650 | |||
DELL TECHNOLOGIES INC. Segment Information (in millions, except percentages; unaudited; continued on next page) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
August 2, | August 4, | Change | August 2, | August 4, | Change | ||||||
Infrastructure Solutions Group (ISG): | |||||||||||
Net revenue: | |||||||||||
Servers and networking | $ 7,672 | $ 4,274 | 80 % | $ 13,138 | $ 8,111 | 62 % | |||||
Storage | 3,974 | 4,187 | (5) % | 7,735 | 7,943 | (3) % | |||||
Total ISG net revenue | $ 11,646 | $ 8,461 | 38 % | $ 20,873 | 30 % | ||||||
Operating Income: | |||||||||||
ISG operating income | $ 1,284 | $ 1,049 | 22 % | $ 2,020 | $ 1,789 | 13 % | |||||
% of ISG net revenue | 11.0 % | 12.4 % | 9.7 % | 11.1 % | |||||||
% of total reportable segment operating income | 63 % | 52 % | 57 % | 49 % | |||||||
Client Solutions Group (CSG): | |||||||||||
Net revenue: | |||||||||||
Commercial | $ 10,556 | $ 10,554 | — % | $ 20,710 | 1 % | ||||||
Consumer | 1,858 | 2,388 | (22) % | 3,671 | 4,509 | (19) % | |||||
Total CSG net revenue | $ 12,414 | $ 12,942 | (4) % | $ 24,381 | (2) % | ||||||
Operating Income: | |||||||||||
CSG operating income | $ 767 | $ 969 | (21) % | $ 1,499 | $ 1,861 | (19) % | |||||
% of CSG net revenue | 6.2 % | 7.5 % | 6.1 % | 7.5 % | |||||||
% of total reportable segment operating income | 37 % | 48 % | 43 % | 51 % | |||||||
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 | Six Months Ended | ||||||
August 2, 2024 | August 4, 2023 | August 2, 2024 | August 4, 2023 | ||||
Reconciliation to consolidated net revenue: | |||||||
Reportable segment net revenue | $ 24,060 | $ 21,403 | $ 45,254 | $ 40,979 | |||
Other businesses (a) | 966 | 1,528 | 2,015 | 2,871 | |||
Unallocated transactions (b) | — | 3 | 1 | 6 | |||
Total consolidated net revenue | $ 25,026 | $ 22,934 | $ 47,270 | $ 43,856 | |||
Reconciliation to consolidated operating income: | |||||||
Reportable segment operating income | $ 2,051 | $ 2,018 | $ 3,519 | $ 3,650 | |||
Other businesses (a) | (17) | (44) | (11) | (80) | |||
Unallocated transactions (b) | — | 3 | — | 5 | |||
Amortization of intangibles (c) | (168) | (213) | (336) | (416) | |||
Stock-based compensation expense (d) | (191) | (223) | (401) | (448) | |||
Other corporate expenses (e) | (333) | (376) | (509) | (477) | |||
Total consolidated operating income | $ 1,342 | $ 1,165 | $ 2,262 | $ 2,234 | |||
_________________ | |
(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. Other corporate expenses included |
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
DELL TECHNOLOGIES INC. Selected Financial Measures (in millions, except per share amounts and percentages; unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
August 2, 2024 | August 4, 2023 | Change | August 2, 2024 | August 4, 2023 | Change | ||||||
Net revenue | $ 25,026 | $ 22,934 | 9 % | $ 47,270 | $ 43,856 | 8 % | |||||
Non-GAAP gross margin | $ 5,464 | $ 5,536 | (1) % | $ 10,411 | $ 10,700 | (3) % | |||||
% of net revenue | 21.8 % | 24.1 % | 22.0 % | 24.4 % | |||||||
Non-GAAP operating expenses | $ 3,430 | $ 3,559 | (4) % | $ 6,903 | $ 7,125 | (3) % | |||||
% of net revenue | 13.7 % | 15.5 % | 14.6 % | 16.2 % | |||||||
Non-GAAP operating income | $ 2,034 | $ 1,977 | 3 % | $ 3,508 | $ 3,575 | (2) % | |||||
% of net revenue | 8.1 % | 8.6 % | 7.4 % | 8.2 % | |||||||
Non-GAAP net income | $ 1,371 | $ 1,283 | 7 % | $ 2,294 | $ 2,246 | 2 % | |||||
% of net revenue | 5.5 % | 5.6 % | 4.9 % | 5.1 % | |||||||
Non-GAAP earnings per share - diluted | $ 1.89 | $ 1.74 | 9 % | $ 3.16 | $ 3.05 | 4 % | |||||
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 | Six Months Ended | ||||||||||
August 2, 2024 | August 4, 2023 | Change | August 2, 2024 | August 4, 2023 | Change | ||||||
Gross margin | $ 5,311 | $ 5,387 | (1) % | $ 10,117 | $ 10,405 | (3) % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 59 | 84 | 119 | 163 | |||||||
Stock-based compensation expense | 38 | 37 | 76 | 75 | |||||||
Other corporate expenses | 56 | 28 | 99 | 57 | |||||||
Non-GAAP gross margin | $ 5,464 | $ 5,536 | (1) % | $ 10,411 | $ 10,700 | (3) % | |||||
Operating expenses | $ 3,969 | $ 4,222 | (6) % | $ 7,855 | $ 8,171 | (4) % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | (109) | (129) | (217) | (253) | |||||||
Stock-based compensation expense | (153) | (186) | (325) | (373) | |||||||
Other corporate expenses | (277) | (348) | (410) | (420) | |||||||
Non-GAAP operating expenses | $ 3,430 | $ 3,559 | (4) % | $ 6,903 | $ 7,125 | (3) % | |||||
Operating income | $ 1,342 | $ 1,165 | 15 % | $ 2,262 | $ 2,234 | 1 % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 168 | 213 | 336 | 416 | |||||||
Stock-based compensation expense | 191 | 223 | 401 | 448 | |||||||
Other corporate expenses | 333 | 376 | 509 | 477 | |||||||
Non-GAAP operating income | $ 2,034 | $ 1,977 | 3 % | $ 3,508 | $ 3,575 | (2) % | |||||
Net income | $ 841 | $ 455 | 85 % | $ 1,796 | $ 1,033 | 74 % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 168 | 213 | 336 | 416 | |||||||
Stock-based compensation expense | 191 | 223 | 401 | 448 | |||||||
Other corporate expenses | 329 | 432 | 499 | 530 | |||||||
Fair value adjustments on equity | (5) | 29 | 25 | 44 | |||||||
Aggregate adjustment for income | (153) | (69) | (763) | (225) | |||||||
Non-GAAP net income | $ 1,371 | $ 1,283 | 7 % | $ 2,294 | $ 2,246 | 2 % | |||||
____________________ |
(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 | Six Months Ended | ||||||||||
August 2, | August 4, | Change | August 2, | August 4, | Change | ||||||
Earnings per share attributable to Dell Technologies Inc. — | $ 1.17 | $ 0.63 | 86 % | $ 2.49 | $ 1.42 | 75 % | |||||
Non-GAAP adjustments: | |||||||||||
Amortization of intangibles | 0.23 | 0.29 | 0.46 | 0.56 | |||||||
Stock-based compensation expense | 0.26 | 0.30 | 0.55 | 0.61 | |||||||
Other corporate expenses | 0.46 | 0.58 | 0.69 | 0.72 | |||||||
Fair value adjustments on equity investments | (0.01) | 0.04 | 0.04 | 0.06 | |||||||
Aggregate adjustment for income taxes (a) | (0.21) | (0.09) | (1.05) | (0.31) | |||||||
Total non-GAAP adjustments attributable to non- | (0.01) | (0.01) | (0.02) | (0.01) | |||||||
Non-GAAP earnings per share attributable to Dell | $ 1.89 | $ 1.74 | 9 % | $ 3.16 | $ 3.05 | 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 (in millions, except percentages; unaudited; continued) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
August 2, | August 4, | Change | August 2, | August 4, | Change | ||||||
Cash flow from operations | $ 1,340 | $ 3,214 | (58) % | $ 2,383 | $ 4,991 | (52) % | |||||
Non-GAAP adjustments: | |||||||||||
Capital expenditures and capitalized software | (636) | (624) | (1,222) | (1,322) | |||||||
Free cash flow | $ 704 | $ 2,590 | (73) % | $ 1,161 | $ 3,669 | (68) % | |||||
Free cash flow | $ 704 | $ 2,590 | (73) % | $ 1,161 | $ 3,669 | (68) % | |||||
Non-GAAP adjustments: | |||||||||||
Financing receivables (b) | 487 | 497 | 652 | 130 | |||||||
Equipment under operating leases (c) | 93 | (37) | 94 | (62) | |||||||
Adjusted free cash flow | $ 1,284 | $ 3,050 | (58) % | $ 1,907 | $ 3,737 | (49) % | |||||
____________________ | |
(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
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