10-KPeriod: FY2025

Dell Technologies Inc. Annual Report, Year Ended Jan 31, 2025

Filed March 25, 2025For Securities:DELL

Summary

Dell Technologies Inc. reported strong performance in its fiscal year ending January 31, 2025, with total net revenue growing 8% year-over-year to $95.6 billion. This growth was primarily driven by a significant 29% increase in the Infrastructure Solutions Group (ISG), fueled by high demand for AI-optimized servers and continued strength in servers and networking. The Client Solutions Group (CSG) saw a slight 1% revenue decline, influenced by lower average selling prices and a decrease in consumer sales, though commercial revenue saw modest growth. The company emphasized its strategic focus on the data and AI era, highlighting investments in R&D and a robust product portfolio. Despite increased demand for AI solutions, Dell maintained efficient supply chain operations, though it noted a modest increase in input costs. The company also announced an 18% increase in its quarterly dividend to $0.525 per share and has a substantial $11.5 billion authorized under its stock repurchase program, signaling a commitment to returning capital to shareholders. Management remains focused on long-term value creation and navigating a competitive landscape, with expectations of continued ISG growth and modest CSG growth in the upcoming fiscal year.

Financial Highlights

56 data points
Beta

Revenue

$95.57B

22.2% Gross Margin

Net Income

$4.58B

4.8% Net Margin

EPS (Diluted)

$6.38

Total Assets

$79.75B

Cash & Equivalents

$3.63B

Free Cash Flow

$1.87B

Financial Statements
Beta
Revenue$95.57B
Cost of Revenue$74.32B
Gross Profit$21.25B
R&D Expenses$3.06B
SG&A Expenses$11.95B
Operating Expenses$15.01B
Operating Income$6.24B
Net Income$4.58B
EPS (Basic)$6.51
EPS (Diluted)$6.38
Shares Outstanding (Basic)705.00M
Shares Outstanding (Diluted)720.00M

Key Highlights

  • 1Total net revenue increased by 8% to $95.6 billion in FY25, driven by ISG's strong performance.
  • 2Infrastructure Solutions Group (ISG) revenue surged by 29%, largely due to high demand for AI-optimized servers.
  • 3Client Solutions Group (CSG) revenue experienced a slight 1% decline, with commercial revenue showing modest growth.
  • 4The company announced an 18% increase in its quarterly dividend to $0.525 per share, payable from Q1 FY26.
  • 5Dell Technologies has approximately $11.5 billion remaining under its stock repurchase authorization.
  • 6Research and development expenses increased by 9% to $3.1 billion, underscoring the company's commitment to innovation.
  • 7A material weakness in internal controls related to supplier credits was identified, leading to financial statement revisions for the prior year.

Frequently Asked Questions

Dell's revenue growth in FY25 was primarily driven by its Infrastructure Solutions Group (ISG), which saw a significant 29% increase. This surge was largely attributed to strong demand for AI-optimized servers and robust performance in servers and networking offerings.

The Client Solutions Group (CSG) experienced a slight 1% decline in revenue for FY25. While commercial revenue saw a modest increase, this was offset by lower average selling prices and a decrease in consumer sales.

Dell Technologies demonstrated its commitment to returning capital to shareholders by announcing an 18% increase in its quarterly dividend to $0.525 per share, effective from the first quarter of FY26. Additionally, the company has a substantial $11.5 billion remaining under its stock repurchase program.

Yes, Dell Technologies identified a material weakness in its internal control over financial reporting related to non-recurring credits from certain suppliers. This led to a revision of previously issued financial statements for the fiscal year ended February 2, 2024, and interim periods. The company is implementing remediation measures to address this weakness.