Dell Technologies Delivers Q3 Fiscal 2025 Financial Results
ROUND ROCK, Texas, Nov. 26, 2024 -- Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 third quarter. Revenue was $24.4 billion, up 10% year over year. Operating income was $1.7 billion and non-GAAP operating income was $2.2 billion, both up 12% year over year. Diluted earnings per share was $1.58, and non-GAAP diluted earnings per share was $2.15, up 16% and 14% year over year, respectively.
"We continued to build on our AI leadership and momentum, delivering combined ISG and CSG revenue of $23.5 billion, up 13% year over year," said Yvonne McGill, chief financial officer, Dell Technologies. "Our continued focus on profitability resulted in EPS growth that outpaced revenue growth, and we again delivered strong cash performance."
Cash flow from operations was $1.6 billion, and Dell ended the quarter with $6.6 billion in cash and investments.
Third Quarter Fiscal 2025 Financial Results
|
Three Months Ended |
Nine Months Ended |
||||||||||
|
November 1, 2024 |
November 3, 2023 |
Change |
November 1, 2024 |
November 3, 2023 |
Change |
||||||
|
(in millions, except per share amounts and percentages; unaudited) |
|||||||||||
|
Net revenue |
$ 24,366 |
$ 22,251 |
10 % |
$ 71,636 |
$ 66,107 |
8 % |
|||||
|
Operating income |
$ 1,668 |
$ 1,486 |
12 % |
$ 3,930 |
$ 3,720 |
6 % |
|||||
|
Net income |
$ 1,127 |
$ 1,004 |
12 % |
$ 2,923 |
$ 2,037 |
43 % |
|||||
|
Change in cash from operating activities |
$ 1,553 |
$ 2,152 |
(28) % |
$ 3,936 |
$ 7,143 |
(45) % |
|||||
|
Earnings per share - diluted |
$ 1.58 |
$ 1.36 |
16 % |
$ 4.07 |
$ 2.78 |
46 % |
|||||
|
Non-GAAP operating income |
$ 2,199 |
$ 1,964 |
12 % |
$ 5,707 |
$ 5,539 |
3 % |
|||||
|
Non-GAAP net income |
$ 1,540 |
$ 1,389 |
11 % |
$ 3,834 |
$ 3,635 |
5 % |
|||||
|
Adjusted free cash flow |
$ 716 |
$ 860 |
(17) % |
$ 2,623 |
$ 4,597 |
(43) % |
|||||
|
Non-GAAP earnings per share - diluted |
$ 2.15 |
$ 1.88 |
14 % |
$ 5.31 |
$ 4.93 |
8 % |
|||||
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 third-quarter revenue of $11.4 billion, up 34% year over year. Servers and networking revenue was $7.4 billion, up 58%, with demand growth across AI and traditional servers. Storage revenue was $4.0 billion, up 4%. Operating income was $1.5 billion.
"AI is a robust opportunity for us with no signs of slowing down," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across all customer types."
Client Solutions Group (CSG) delivered third quarter revenue of $12.1 billion, down 1% year over year. Commercial client revenue was up 3% at $10.1 billion, and Consumer revenue was $2.0 billion, down 18%. Operating income was $694 million.
Operating Segments Results
|
Three Months Ended |
Nine Months Ended |
||||||||||
|
November 1, 2024 |
November 3, 2023 |
Change |
November 1, 2024 |
November 3, 2023 |
Change |
||||||
|
(in millions, except percentages; unaudited) |
|||||||||||
|
Infrastructure Solutions Group (ISG): |
|||||||||||
|
Net revenue: |
|||||||||||
|
Servers and networking |
$ 7,364 |
$ 4,656 |
58 % |
$ 20,502 |
$ 12,767 |
61 % |
|||||
|
Storage |
4,004 |
3,843 |
4 % |
11,739 |
11,786 |
— % |
|||||
|
Total ISG net revenue |
$ 11,368 |
$ 8,499 |
34 % |
$ 32,241 |
$ 24,553 |
31 % |
|||||
|
Operating Income: |
|||||||||||
|
ISG operating income |
$ 1,508 |
$ 1,069 |
41 % |
$ 3,528 |
$ 2,858 |
23 % |
|||||
|
% of ISG net revenue |
13.3 % |
12.6 % |
10.9 % |
11.6 % |
|||||||
|
% of total reportable segment operating income |
68 % |
54 % |
62 % |
51 % |
|||||||
|
Client Solutions Group (CSG): |
|||||||||||
|
Net revenue: |
|||||||||||
|
Commercial |
$ 10,138 |
$ 9,835 |
3 % |
$ 30,848 |
$ 30,251 |
2 % |
|||||
|
Consumer |
1,993 |
2,441 |
(18) % |
5,664 |
6,950 |
(19) % |
|||||
|
Total CSG net revenue |
$ 12,131 |
$ 12,276 |
(1) % |
$ 36,512 |
$ 37,201 |
(2) % |
|||||
|
Operating Income: |
|||||||||||
|
CSG operating income |
$ 694 |
$ 925 |
(25) % |
$ 2,193 |
$ 2,786 |
(21) % |
|||||
|
% of CSG net revenue |
5.7 % |
7.5 % |
6.0 % |
7.5 % |
|||||||
|
% of total reportable segment operating income |
32 % |
46 % |
38 % |
49 % |
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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.
Source: Dell Technologies
