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/
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