01—Abstract
Summary
Summary of the 10-K filed March 25, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
This growth was primarily driven by a significant 29%b 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 $0.525c 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.
02—Key points
Key Highlights
- Total net revenue increased by 8% to $95.6 billion in FY25, driven by ISG's strong performance.
- Infrastructure Solutions Group (ISG) revenue surged by 29%, largely due to high demand for AI-optimized servers.
- Client Solutions Group (CSG) revenue experienced a slight 1% decline, with commercial revenue showing modest growth.
- The company announced an 18% increase in its quarterly dividend to $0.525 per share, payable from Q1 FY26.
- Dell Technologies has approximately $11.5 billion remaining under its stock repurchase authorization.
- Research and development expenses increased by 9% to $3.1 billion, underscoring the company's commitment to innovation.
- A material weakness in internal controls related to supplier credits was identified, leading to financial statement revisions for the prior year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Dell Technologies Inc. kept $0.05.
- Revenue$95.57B100.0%
- Cost of revenue−$74.32B77.8%
- Gross profit$21.25B22.2%
- Operating costs−$15.01B15.7%
- Operating income$6.24B6.5%
- Interest, other & tax−$1.66B1.7%
- Net income$4.58B4.8%
Where FY2025 revenue went
$95.57B- Cost of revenue: $74.32B, 78% of revenue
- SG&A: $11.95B, 13% of revenue
- Net income: $4.58B, 4.8% of revenue
- R&D: $3.06B, 3.2% of revenue
- Interest, other & tax: $1.66B, 1.7% of revenue
Kept 4.8% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 25, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $95.57B$88.42B | +8.1% |
| Cost of Revenue | $74.32B$67.36B | +10.3% |
| Gross Profit | $21.25B$21.07B | +0.9% |
| R&D Expenses | $3.06B$2.80B | +9.3% |
| SG&A Expenses | $11.95B$12.86B | −7.0% |
| Operating Expenses | $15.01B$15.66B | −4.1% |
| Operating Income | $6.24B$5.41B | +15.3% |
| Net Income | $4.58B$3.37B | +35.7% |
| EPS (Basic) | $6.51$4.71 | +38.2% |
| EPS (Diluted) | $6.38$4.60 | +38.7% |
| Shares Outstanding (Basic) | 705.00M720.00M | −2.1% |
| Shares Outstanding (Diluted) | 720.00M736.00M | −2.2% |
05—Questions
Frequently Asked Questions
What were the key drivers of Dell's revenue growth in FY25?
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.
How did the Client Solutions Group (CSG) perform in FY25?
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.
What is Dell's stance on returning capital to shareholders?
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.
Were there any significant accounting or control issues reported?
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.
06—Continue