In This Article:
-
Revenue: $23.4 billion, up 5% year-over-year.
-
Earnings Per Share (EPS): $1.55, up 17% year-over-year.
-
Gross Margin: $5.1 billion, or 21.6% of revenue, down 80 basis points.
-
Operating Income: $1.7 billion, up 10%, or 7.1% of revenue.
-
Net Income: $1.1 billion, up 13% year-over-year.
-
Cash Flow from Operations: Record $2.8 billion for Q1.
-
ISG Revenue: $10.3 billion, up 12% year-over-year.
-
CSG Revenue: $12.5 billion, up 5% year-over-year.
-
Commercial Revenue: $11.0 billion, up 9% year-over-year.
-
Consumer Revenue: $1.5 billion, down 19% year-over-year.
-
AI Server Orders: $12.1 billion in Q1, with $1.8 billion shipped.
-
Storage Revenue: $4.0 billion, up 6% year-over-year.
-
Shareholder Returns: $2.4 billion returned, including 22.1 million shares repurchased.
-
Q2 Revenue Guidance: $28.5 billion to $29.5 billion, up 16% at midpoint.
-
Full-Year Revenue Guidance: $101 billion to $103 billion, up 8% at midpoint.
Release Date: May 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
Dell Technologies Inc (NYSE:DELL) reported a 5% increase in revenue, reaching $23.4 billion, driven by growth across all core markets.
-
Earnings per share increased by 17% to $1.55, growing three times faster than revenue.
-
The company experienced unprecedented demand for AI-optimized servers, with $12.1 billion in orders booked in the first quarter.
-
Dell Technologies Inc (NYSE:DELL) achieved record cash generation for the first quarter, with cash flow from operations reaching $2.8 billion.
-
The company is leading in AI innovation, with significant advancements in AI infrastructure and partnerships with key industry players like NVIDIA and Google.
-
Consumer revenue declined by 19%, indicating challenges in the consumer market.
-
Gross margin decreased by 80 basis points due to a competitive pricing environment, particularly in the CSG segment.
-
The demand environment for traditional servers moderated compared to the previous quarter, with a lower mix of higher-margin North American sales.
-
Operating income rate improvements were partially offset by a more competitive environment and geographical mix challenges.
-
The company faces variability in timing and choices around technology, leading to a non-linear nature of demand and associated shipments.
Q: Can you provide insights on the AI server revenue performance and expectations for fiscal '26, given the significant backlog and increased engagement? A: Jeffrey Clarke, Co-Chief Operating Officer, explained that Dell had $12.1 billion in AI server orders in Q1, surpassing all of last year. The backlog is healthy at $14.4 billion, and the five-quarter pipeline continues to grow. Clarke expressed confidence in exceeding the $15 billion target for AI server revenue, emphasizing the complexity and dependencies of customer deployments.