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Dell Technologies — Q4 FY25 Performance Review (company IR deck)
Dell Technologies (DELL) · 50 slides · Filed Oct 27, 2026
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Slide 1 — Performance Review
February 27, 2025 4Q FY25 Performance Review
Slide 2 — Disclosures
Copyright © Dell Inc. All Rights Reserved. 2 Disclosures NON-GAAP FINANCIAL MEASURES This presentation includes information about non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expense, non-GAAP operating income, non- GAAP interest and other, net, non-GAAP income tax, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share - basic and non-GAAP earnings per share - diluted, as well as adjusted EBITDA, free cash flow and adjusted free cash flow (collectively the “non-GAAP financial measures”), which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in Appendix B and Appendix D. SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to future results and events are forward-looking statements and are based on Dell Technologies’ current expectations. In some cases, you can identify these statements by such forward- looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including those discussed in Dell Technologies’ periodic reports filed with the Securities and Exchange Commission. Dell Technologies assumes no obligation to update its forward- looking statements. SPIN-OFF OF VMWARE, INC. On November 1, 2021, Dell Technologies Inc. completed its spin-off of VMware, Inc. In accordance with applicable accounting guidance, the results of VMware, Inc., excluding Dell's resale of VMware, Inc. offerings, have been presented as discontinued operations and therefore excluded from continuing operations for all periods prior to the spin-off. The results of Dell’s resale of VMware, Inc.’s (now known as VMware LLC) standalone offerings are classified within Other Businesses, which does not meet the definition of a reportable segment. The Consolidated Statements of Cash Flows have not been recast to reflect the operating cash flows of VMware, Inc. as discontinued operations. Except as noted, this presentation is consistent with the foregoing accounting guidance. REVISIONS OF PRIOR PERIOD FINANCIAL RESULTS 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 credits resulted from the actions of certain employees that support a limited number of suppliers within the Client Solutions Group segment. 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. A summary of the revision to the impacted financial statement line items in the company’s previously issued consolidated financial statements is shown in Exhibit A, “Revision of Previously Issued Financial Results” to the company’s press release furnished as Exhibit 99.1 to the company’s Form 8-K filed with the SEC on February 27, 2025.
Slide 3 — Overview
Copyright © Dell Inc. All Rights Reserved. 3 1 See supplemental slides in Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures. 2 Per IDC WW Quarterly PC Device Tracker, CY24Q4. Premium Commercial refers to units with ASP > $800 Focused on operational excellence and capital returns • Delivered Revenue of $95.6B, +8% Y/Y and above our long-term framework • Diluted EPS of $6.38, and record non-GAAP diluted EPS1 of $8.14, up 10% Y/Y • Generated cash flow from operations of $4.5B • Returned $3.9B to shareholders • Increased our annual dividend 18% • Board of Directors approved a $10B increase to our share repurchase authorization Delivered significant progress in AI and executing on a robust pipeline • $9.8B FY25 AI Server Shipments • First in the world to ship Nvidia NVL-72 GB200 supported by our XE9712 • Added 5 platforms to our AI-optimized portfolio, including support of Blackwell architectures • Continued to gain traction with Enterprise customers, with over 2,000 unique Enterprise customers since launch • #1 position in Commercial AI PCs worldwide2 FY25 Overview Revenue and non-GAAP EPS growth above our long-term framework
Slide 4 — Overview
Copyright © Dell Inc. All Rights Reserved. 4 1 See supplemental slides in Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures. 2 See footnote 5 on slide 22 for definition of core leverage ratio. Strong execution and improved ISG profitability • Revenue of $23.9B, up 7% Y/Y driven by ISG growth • ISG operating income of 18.1% of revenue, up 480 bps sequentially • Diluted EPS of $2.15, up 30% Y/Y, and non-GAAP diluted EPS1 of $2.68, up 18% Y/Y AI opportunity is robust • Orders demand of $1.7B with $2.1B of shipments • AI backlog of $4.1B exiting Q4 • In February, as our partnerships with xAI and others continue, we booked deals putting our effective AI backlog at roughly $9B as of today • AI optimized server pipeline continued to expand sequentially Strong capital return • Returned $1.1B of capital to shareholders through $755M of share repurchases and $311M in dividends • Generated $0.6B of cash flow from operations • 1.2x core leverage ratio exiting the fiscal year2 Q4 FY25 Overview
Slide 5 — Q4 and FY25 Highlights
Copyright © Dell Inc. All Rights Reserved. 5 Cash Flow from Operations of $0.6B, and Adj. Free Cash Flow of $0.5B Q4 and FY25 Highlights Strong execution above long-term framework with 8% revenue growth and 10% non-GAAP EPS growth1,2 AI Opportunity AI optimized server shipments of $2.1B; pipeline continues to expand sequentially Cash Flow Cash Flow from Operations of $0.6B in Q4, and $4.5B TTM Commercial PC Traditional Server Demand was up double- digits Y/Y and up Y/Y for the fifth consecutive quarter $ in millions, except per share amounts 4Q25 Y/Y FY25 Y/Y Dell Technologies Revenue 23,931 7% 95,567 8% Operating Income 2,159 40% 6,237 15% Diluted EPS 1 $2.15 30% $6.38 39% Non-GAAP Operating Income 2 2,674 22% 8,529 8% Non-GAAP Diluted EPS 1,2 $2.68 18% $8.14 10% Client Solutions Group CSG Revenue 11,881 1% 48,393 -1% Operating Income 631 -19% 2,972 -20% Commercial Revenue 9,996 5% 40,844 3% Consumer Revenue 1,885 -12% 7,549 -17% Infrastructure Solutions Group ISG Revenue 11,352 22% 43,593 29% Operating Income 2,051 44% 5,579 30% Servers & Networking Revenue 6,634 37% 27,136 54% Storage Revenue 4,718 5% 16,457 1% Commercial revenue was up 5% Y/Y 1 See Appendix B for weighted average shares and EPS calculation. 2 See Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures.
Slide 6 — Consolidated GAAP results
Copyright © Dell Inc. All Rights Reserved. 6 Consolidated GAAP results We are focused on maximizing long-term value creation for all shareholders 1 See Appendix B for weighted average shares and EPS calculation. $ in millions, except per share amounts 4Q24 1Q25 2Q25 3Q25 4Q25 Y/Y Q/Q FY24 FY25 Y/Y Revenue 22,318 22,244 25,026 24,366 23,931 7% -2% 88,425 95,567 8% Gross Margin 5,372 4,851 5,361 5,360 5,678 6% 6% 21,069 21,250 1% Gross Margin as a % of Revenue 24.1% 21.8% 21.4% 22.0% 23.7% 23.8% 22.2% Selling, general, and administrative 3,109 3,123 3,189 2,894 2,746 -12% -5% 12,857 11,952 -7% Research and development 716 763 780 745 773 8% 4% 2,801 3,061 9% Operating Expense 3,825 3,886 3,969 3,639 3,519 -8% -3% 15,658 15,013 -4% Operating Expense as a % of Revenue 17.1% 17.5% 15.8% 15.0% 14.7% 17.7% 15.7% Operating Income 1,547 965 1,392 1,721 2,159 40% 25% 5,411 6,237 15% Operating Income as a % of Revenue 6.9% 4.3% 5.6% 7.1% 9.0% 6.1% 6.5% Interest and Other, Net (203) (373) (353) (276) (187) 8% 32% (1,324) (1,189) 10% Income Tax Expense (Benefit) 136 (400) 157 275 440 224% 60% 715 472 -34% Effective tax rate % 10.1% -67.6% 15.1% 19.0% 22.3% 17.5% 9.4% Net Income 1,208 992 882 1,170 1,532 27% 31% 3,372 4,576 36% Less: Net Loss attributable to non-controlling interests (2) (5) (5) (5) (1) 50% 80% (16) (16) 0% Net Income attributable to Dell Technologies Inc. 1,210 997 887 1,175 1,533 27% 30% 3,388 4,592 36% Earnings Per Share - basic 1 $1.70 $1.41 $1.25 $1.67 $2.19 29% 31% $4.71 $6.51 38% Earnings Per Share - diluted 1 $1.66 $1.37 $1.23 $1.64 $2.15 30% 31% $4.60 $6.38 39%
Slide 7 — Consolidated non-GAAP results1
Copyright © Dell Inc. All Rights Reserved. 7 Consolidated non-GAAP results1 We delivered strong operating results with strength and record profitability in ISG 1 See Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures 2 Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate. 3 See Appendix B for weighted average shares and EPS calculation. 4 The sum of diluted earnings per share for the each of the quarters in Fiscal 2025 does not equal the year-to-date diluted earnings per share due to changes in the weighted average number of shares outstanding, primarily attributable to stock repurchases. $ in millions, except per share amounts 4Q24 1Q25 2Q25 3Q25 4Q25 Y/Y Q/Q FY24 FY25 Y/Y Revenue 22,318 22,244 25,026 24,366 23,931 7% -2% 88,425 95,567 8% Gross Margin 5,524 4,992 5,514 5,490 5,814 5% 6% 21,644 21,810 1% Gross Margin as a % of Revenue 24.8% 22.4% 22.0% 22.5% 24.3% 24.5% 22.8% Selling, general, and administrative 2,709 2,810 2,748 2,599 2,496 -8% -4% 11,295 10,653 -6% Research and development 620 663 682 639 644 4% 1% 2,471 2,628 6% Operating Expense 3,329 3,473 3,430 3,238 3,140 -6% -3% 13,766 13,281 -4% Operating Expense as a % of Revenue 14.9% 15.6% 13.7% 13.3% 13.1% 15.6% 13.9% Operating Income 2,195 1,519 2,084 2,252 2,674 22% 19% 7,878 8,529 8% Operating Income as a % of Revenue 9.8% 6.8% 8.3% 9.2% 11.2% 8.9% 8.9% Interest and Other, Net (294) (349) (362) (321) (344) -17% -7% (1,334) (1,376) -3% Income Tax Expense 2 241 211 310 348 419 74% 20% 1,122 1,288 15% Effective tax rate % 12.7% 18.0% 18.0% 18.0% 18.0% 17.1% 18.0% Net Income 1,660 959 1,412 1,583 1,911 15% 21% 5,422 5,865 8% Less: Net Income (Loss) attributable to non-controlling interests 2 1 — 1 — -100% -100% (3) 2 167% Net Income attributable to Dell Technologies Inc. 1,658 958 1,412 1,582 1,911 15% 21% 5,425 5,863 8% Earnings Per Share - basic 3 $2.34 $1.35 $1.99 $2.25 $2.73 17% 21% $7.53 $8.32 10% Earnings Per Share - diluted 3, 4 $2.27 $1.32 $1.95 $2.21 $2.68 18% 21% $7.37 $8.14 10%
Slide 8 — Business units trending
Copyright © Dell Inc. All Rights Reserved. 8 Business units trending Strong growth as customers continue to invest in their digital futures 1 See Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 Y/Y Q/Q FY24 FY25 Y/Y Dell Technologies Revenue 22,318 22,244 25,026 24,366 23,931 7% -2% 88,425 95,567 8% Operating Income 1,547 965 1,392 1,721 2,159 40% 25% 5,411 6,237 15% Non-GAAP Operating Income 1 2,195 1,519 2,084 2,252 2,674 22% 19% 7,878 8,529 8% CSG + ISG CSG + ISG Revenue 21,047 21,194 24,060 23,499 23,233 10% -1% 82,801 91,986 11% CSG + ISG Operating Income 2,210 1,513 2,101 2,255 2,682 21% 19% 7,998 8,551 7% Client Solutions Group CSG Revenue 11,715 11,967 12,414 12,131 11,881 1% -2% 48,916 48,393 -1% Operating Income 782 777 817 747 631 -19% -16% 3,712 2,972 -20% Commercial Revenue 9,563 10,154 10,556 10,138 9,996 5% -1% 39,814 40,844 3% Consumer Revenue 2,152 1,813 1,858 1,993 1,885 -12% -5% 9,102 7,549 -17% Infrastructure Solutions Group ISG Revenue 9,332 9,227 11,646 11,368 11,352 22% 0% 33,885 43,593 29% Operating Income 1,428 736 1,284 1,508 2,051 44% 36% 4,286 5,579 30% Servers & Networking Revenue 4,857 5,466 7,672 7,364 6,634 37% -10% 17,624 27,136 54% Storage Revenue 4,475 3,761 3,974 4,004 4,718 5% 18% 16,261 16,457 1% Corporate and Other Other Revenue 1,271 1,050 966 867 698 -45% -19% 5,624 3,581 -36% Operating Income (Loss) (15) 6 (17) (3) (8) 47% -167% (120) (22) 82%
Slide 9 — Cash flow and capital returns
Copyright © Dell Inc. All Rights Reserved. 9 Cash flow and capital returns We have returned $10.8B, ~106% of our adjusted FCF1 since the beginning of our capital return program Fiscal quarter TTM 1 See supplemental slides in Appendix B for reconciliation of cash flow from operations to FCF. 2 See footnote 5 on slide 22 for definition of core leverage ratio. Repurchased 6.4M shares for $755M in Q4 and 22M shares for ~$2.6B over the past 12 months Paid dividends of $0.445 per share or ~$311M in Q4 Our core leverage ratio2 ended Q4 at 1.2x, below our long-term target Ended the fiscal quarter with $5.2B of cash and investments Share Repurchases Dividends CASH FLOW FROM OPERATIONS -62% Y/Y ADJUSTED FCF -53% Y/Y CAPITAL RETURNS $1.1B 0% Q/Q $0.6B $0.5B 4Q24 1Q25 2Q25 3Q25 4Q25 $0.6B $1.6B $4.5B $5.5B $1.3B $6.1B $1.0B $7.9B $1.5B $8.7B 4Q24 1Q25 2Q25 3Q25 4Q25 $0.5B $0.7B $3.1B $3.6B $1.3B $3.8B $0.6B $5.5B $1.0B $5.6B 4Q24 1Q25 2Q25 3Q25 4Q25 $1.1B $1.1B $1.0B $0.7B $1.1B 1
Slide 10 — Infrastructure Solutions Group
Copyright © Dell Inc. All Rights Reserved. 10 Infrastructure Solutions Group Strong momentum with record Q4 Server and Networking revenue, and strong execution in Storage Amounts are based on underlying data and may not visually foot due to rounding. Record operating income $2.1B with rate up 480 bps sequentially to 18.1% Second consecutive quarter of Storage revenue growth at +5% Y/Y, record PowerStore demand that grew double digits in the quarter AI server pipeline continued to expand sequentially and has grown every quarter since the introduction of the XE9680 Traditional server demand was up Y/Y for the fifth consecutive quarter REVENUE $11.4B +22% Y/Y 0% Q/Q Servers & Networking $4.9B, -2% Y/Y $5.5B, +42% Y/Y $7.7B, +80% Y/Y $7.4B, +58% Y/Y $6.6B, +37% Y/Y Storage $4.5B, -10% Y/Y $3.8B, 0% Y/Y $4.0B, -5% Y/Y $4.0B, +4% Y/Y $4.7B, +5% Y/Y OPERATING INCOME $2.1B +44% Y/Y +36% Q/Q % of ISG revenue Basis points 15.3% 8.0% 11.0% 13.3% 18.1% -30bps Y/Y -170bps Y/Y -140bps Y/Y +70bps Y/Y +280bps Y/Y 4Q24 1Q25 2Q25 3Q25 4Q25 $11.4B $11.4B +22% Y/Y +34% Y/Y $11.6B +38% Y/Y $9.2B +22% Y/Y $9.3B -6% Y/Y 4Q24 1Q25 2Q25 3Q25 4Q25 $2,051M $1,508M +44% Y/Y +41% Y/Y $1,284M +22% Y/Y $736M -1% Y/Y $1,428M -7% Y/Y
Slide 11 — Growing AI TAM paired with #1 positions in servers and storage
Copyright © Dell Inc. All Rights Reserved. 11 25% 23% 39% 55% 34% External Raid Midrange RAID High End RAID Converged HCI 23% 23% 23% 27% 29% 28% 28% 29% 31% 26% 30% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q24 TTM 2 2 3 3 20% 24% 30% 31% 20% 2 Growing AI TAM paired with #1 positions in servers and storage Long-term structural share gains in server, and greater share than next two competitors combined in most storage categories Mainstream server share1 AI HW & services represent a $295B opportunity by 20274 1 IDC Quarterly Server Tracker, 2024Q3, based on CY13 – 3Q24 TTM revenue. Mainstream Server is based on OEM vendor type and includes: Large System, Standard Rack, Tower, and Blade. 2 IDC Quarterly Enterprise Storage Systems Tracker, 2024Q3, based on 3Q24 TTM revenue. Midrange refers to systems with ASP between $25k and $250k and High End refers to systems with ASP > $250k. 3 IDC Quarterly Converged Systems Tracker 2024Q3, based on 3Q24 TTM revenue. 4 IDC Worldwide AI and Generative AI Spending Guide, V1 2025 (Feb). Hardware includes Servers and Storage only. 2023 2025 2027 $94B $215B $295B Hardware Services +33% CAGR TTM storage share vs nearest competitors (IDC Mainstream Server Revenue) Dell Gained ~7pts Share Over the Past 9.75 years1 (IDC External RAID Storage Revenue & IDC Converged Revenue)
Slide 12 — Client Solutions Group
Copyright © Dell Inc. All Rights Reserved. 12 Client Solutions Group Fourth consecutive quarter of Y/Y demand growth in Commercial 1 Per IDC WW Quarterly PC Device Tracker, CY24Q4. Premium Commercial refers to units with ASP > $800. Amounts are based on underlying data and may not visually foot due to rounding. Fourth consecutive quarter of Y/Y Commercial demand growth Well-positioned for PC refresh with our simplified rebrand, leading GTM engine, and focus on Commercial See strength in SMB, historically a leading indicator of a recovery Dell Technologies has the number one share position in Commercial AI PC1 REVENUE $11.9B +1% Y/Y -2% Q/Q Commercial $9.6B, -11% Y/Y $10.2B, +3% Y/Y $10.6B, 0% Y/Y $10.1B, +3% Y/Y $10.0B, +5% Y/Y Consumer $2.2B, -19% Y/Y $1.8B, -15% Y/Y $1.9B, -22% Y/Y $2.0B, -18% Y/Y $1.9B, -12% Y/Y OPERATING INCOME $631M -19% Y/Y -16% Q/Q % of CSG revenue Basis points 6.2% -180bps Y/Y 5.3% -140bps Y/Y 6.7% +170bps Y/Y 6.5% -150bps Y/Y 6.6% -110bps Y/Y 4Q24 1Q25 2Q25 3Q25 4Q25 $11.9B $12.1B +1% Y/Y -1% Y/Y $12.4B -4% Y/Y $12.0B 0% Y/Y $11.7B -12% Y/Y 4Q24 1Q25 2Q25 3Q25 4Q25 $631M $747M -19% Y/Y -24% Y/Y $817M -18% Y/Y $777M -19% Y/Y $782M +17% Y/Y
Slide 13 — Not all PCs are created equal
Copyright © Dell Inc. All Rights Reserved. 13 1.6x 1.6x 1.6x 1.7x 1.6x 1.7x 1.7x 1.7x 1.7x 1.6x 1.6x 1.6x 1.7x 1.7x 1.8x 1.9x 1.9x 1.9x 1.9x 1.9x FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 $1,235 $650 Not all PCs are created equal Dell focuses on commercial PCs, workstations, high-end consumer, and gaming Our total revenue per unit (TRU) is nearly 2x select competitors 1 Per IDC WW Quarterly PC Device Tracker, CY24Q4 2 Per IDC WW Quarterly PC Device Tracker, CY24Q4. Premium Consumer includes units with ASP > $800; Mainstream Consumer includes units with ASP <= $800. 3 TRU calculated by Dell Technologies by utilizing PC OEMs’ financial public filings and IDC WW Quarterly PC Device Tracker, as of Q3 FY25. 4 Select competitors refers to HP Inc. and Lenovo Ltd. Mainstream Consumer PCs Chrome Premium Consumer PCs Commercial PCs Dell CSG Select Competitors4 Our TRUs are growing at a substantial premium to the market TRU Select Competitors TRU3, 4 Dell CSG TRU3 $1,235 +$250 since Q4 2020 $650 ~+$40 since Q4 2020 PC Unit Mix2 (IDC 2024 Q4 PC Units) >80% of Dell’s Unit Mix ~6 pts of Commercial PC share gain over the past 10 years Dell Commercial PC Unit Share1 (IDC Commercial PC Units) FY21 FY22 FY24 FY23 17% 23% 2014 2024 FY25 Total PC Market DELL IDC
Slide 14 — Guidance
Copyright © Dell Inc. All Rights Reserved. 14 FY261 • Revenue expected to be in the range of $101 and $105 billion with a midpoint of $103 billion and 8% growth – ISG will grow high-teens driven by $15 billion of AI server shipments and continued growth in traditional server and storage – CSG expected to grow low-to-mid single digits, more weighted to the second half of the year – Expect the combination of ISG and CSG to grow 10% at the midpoint • Expect non-GAAP gross margin rate to decline ~100 basis points given the higher mix of AI optimized servers and the current competitive environment • Expect non-GAAP Opex to be down low single digits as our modernization efforts continue • Expect ISG operating income rate to be roughly flat Y/Y with CSG down slightly • Expect non-GAAP I&O to be between $1.4 and $1.5 billion • Expected annual non-GAAP tax rate of 18% • Non-GAAP diluted EPS is expected to be $9.30, plus or minus $0.25, up 14% at the midpoint 1 See supplemental slides in Appendix D for reconciliation of forward-looking non-GAAP measures to their most directly comparable GAAP measures. FY26 Guidance
Slide 15 — Guidance
Copyright © Dell Inc. All Rights Reserved. 15 Q1 FY261 • Revenue expected to be in the range of $22.5 and $23.5 billion with a midpoint of $23 billion and 3% growth – Expect the combination of ISG and CSG to grow 6% at the midpoint – Expect ISG to be up low teens – Expect CSG to be flat • Expect non-GAAP gross margin rate will be lower sequentially given seasonally lower storage mix and higher AI optimized server mix • Expect non-GAAP Opex to be down low single digits • Expect non-GAAP operating income rate to be down sequentially given typical seasonality in ISG with lower storage mix • Diluted share count expected to be approximately 706 to 710 million shares • Non-GAAP diluted EPS expected to be $1.65 plus or minus $0.10, up 25% at the midpoint 1 See supplemental slides in Appendix D for reconciliation of forward-looking non-GAAP measures to their most directly comparable GAAP measures. Q1FY26 Guidance
Slide 16 — Innovation
Innovation
Slide 17 — The PC portfolio for the AI era
Copyright © Dell Inc. All Rights Reserved. 17 The PC portfolio for the AI era Our new, streamlined AI PC portfolio delivers the future of computing today Dell Designed for play, school and work Dell Pro Designed for professional-grade productivity Dell Pro Max Designed for maximum performance Competitive Advantages World’s leading commercial AI PC brand • #1 in commercial AI PCs worldwide1, offering customer choice with the latest silicon innovation from Intel, AMD and Qualcomm • Dell Pro AI Studio, the industry’s most comprehensive AI toolkit leveraging NPU technology, accelerates on-device AI8 Modern designs boast ultimate quality, reliability • Small, light, and quiet PCs, withstanding at least 3X as many hinge cycles and minor drops and bumps7 Most secure, manageable commercial AI PCs10 • Manage entire fleets of Dell Pro devices including PCs, displays, docks and accessories with one holistic device management solution11 Innovations across the whole desk • #1 in PC monitors worldwide2, with world’s first 4K monitors to achieve five-star eye comfort9 certification by TUV • Includes Intel® Core Ultra (Series 2, U SKUs), AMD Ryzen and AMD Threadripper processor options and professional graphics • 30% more performance than predecessor6 to power intensive workloads, from video rendering to AI inferencing to fine-tuning LLMs • Includes Intel® Core Ultra (Series 2, V and U SKUs) and AMD Ryzen processor options • Delivers exceptional battery life, up to 67% more run time than predecessors5 and powerful on- device AI • Includes Intel® Core Ultra (Series 2, V SKUs) processors with AMD and Snapdragon® X processor options • Up to 39% longer battery life3, up to 14% thinner modern profile4 and on- device AI to boost efficiency See supplemental slides in Appendix E, Slide 49 for End Notes with references to all footnotes.
Slide 18 — Dell AI solutions portfolio ... broad, modular, and open ecosystem
Copyright © Dell Inc. All Rights Reserved. 18 Dell AI solutions portfolio ... broad, modular, and open ecosystem Dell offers an AI portfolio from desktop to data center to cloud, a growing ecosystem of partners, and consulting services Broadest AI Solutions Portfolio1 Leading AI Performance Broad Ecosystem Fast time-to-value Best in class TCO3 • Rack-scale solutions that deliver leading AI density, throughput, and energy efficiency using Air cooled & Direct Liquid cooled platforms • 40+ turnkey validated designs tested and optimized for AI use cases ... leveraging a broad ecosystem • Accelerate AI initiatives with consulting and deployment services • Full stack deployment automation & NVIDIA NIMs integration, resulting in an 86% reduction in Time to First Inference • 75% more cost effective inferencing than public cloud4 1 Based on Dell analysis, March 2024. Dell Technologies offers hardware solutions engineered to support AI workloads from PCs to servers for high-performance computing, data storage, cloud native software-defined infrastructure, networking switches, data protection, HCI and services. 2 Leading positions based on IDC WW Quarterly PC Device Tracker, CY24Q3. Includes workstations. 3Total cost of ownership. 4 ESG research commissioned by Dell, “Maximizing AI ROI: Inferencing On-premises With Dell Technologies Can Be 75% More Cost-effective Than Public Cloud,” April, 2024 Compute • Ten AI Optimized Servers: XE9712, XE9685L, XE7745, XE7740, XE9680L, XE9680, XE9640, XE8640, R750XA, R760XA • Customer choice of Silicon Innovation: NVIDIA, AMD, Intel • Air & Direct Liquid Cooled • Most dense, energy efficient compute system & rack scale architecture • PowerScale is built to maximize speed between GPU & AI data platform and is the first storage certified for Nvidia DGX SuperPod with ethernet • Updated F710 with 61TB QLC SSDs (614TB per RU) with support on F910 (732TB per RU) • Support for 200GbE with IB support • New 9.9 software increases streaming write performance by 163% and streaming read performance by over 2x versus the previous generation • Diversity of AI Optimized Networking Solutions: Ethernet, InfiniBand • Partnered with NVIDIA for Ethernet & InfiniBand based NICs, switches and DPUs: Spectrum 4, Quantum x800, CX7, BlueField-3, and Spectrum X • Partnered with Broadcom for integrated networking fabric for Ethernet based portfolio: Tomahawk 5, Thor 2, and SONiC • World’s #1 Commercial AI PC provider with broadest range of AI PCs – Intel Core Ultra with built-in NPU (Copilot+ capable) – Qualcomm Snapdragon ® X with Microsoft Copilot+, which supports 8B+ parameter models including Llama 3. • World’s #1 workstation brand enabling customers to jumpstart AI model development and training Storage Networking PC2
Slide 19 — Broad AI optimized server portfolio & distinct solution advantages
Copyright © Dell Inc. All Rights Reserved. 19 Broad AI optimized server portfolio & distinct solution advantages Acceleration-optimized, purpose-built for Artificial Intelligence, Generative AI, and High-Performance Computing • 8 double or 16 single width GPU • 4U, Air cooled AI Optimized Compute Solutions XE9680 XE9640 XE8640 R760XA • 8 GPU, 6U configuration • Air cooled1 • 4 GPU, 2U configuration • Direct liquid cooled • 4 GPU, 4U configuration • Air cooled • 2-4 GPU, 2U configuration • Air cooled • 2-4 GPU, 2U configuration • Air cooled R750XA Competitive Advantages Modular design and customization at scale • Silicon diversity in dense footprints: NVIDIA, AMD, Intel • Diversity of AI fabrics: InfiniBand, Ethernet, Spectrum-X • Engineering expertise that facilitates customer solutions • Continuing our decades-long leadership in liquid cooled systems Solutions that leverage our core business model • Deployment & Support Services in 170+ countries • Dell Financial Services • Dell Consulting Services Intelligent Automation • CloudIQ & iDRAC software for AIOps, system management and firmware auto updates & thermal management • Telemetry Streaming Broadest AI Ecosystem • Dell AI Factory • Dell Validated Designs with NVIDIA, Hugging Face, Meta, Intel, AMD, PyTorch, RedHat, Databricks & Snowflake 1 XE9680 is air cooled with option for a Rear Door Heat Exchanger XE9680L & XE9685L • 8 GPU, 4U configuration • Direct liquid cooled XE9712 • 72 GPU, full rack solution • NVLink Arch, Direct liquid cooled XE7740 & XE7745
Slide 20 — Dell Integrated Rack Scalable Systems
Copyright © Dell Inc. All Rights Reserved. 20 Dell Integrated Rack Scalable Systems The most diverse portfolio for large-scale AI deployment Traditional 19” Rack (IR5000 series) OCP Standards-based 21” Rack (IR7000 series) LIQUID COOLED LIQUID COOLED AIR COOLED XE9680L Intel Processor Up to 96 GPUs XE9685L AMD Processor Up to 96 GPUs XE7740 Intel Processor Up to 160 SW GPUs or 80 DW GPUs XE9680 Intel processor Up to 64 GPUs Delivered by expanded rack scale integration services for Integrated Rack Scalable Systems → XE7745 AMD Processor Up to 160 SW GPUs or 80 DW GPUs Datacenter Assessment + Custom Rack Integration (L11) + One-call Support for Entire Rack Copyright © Dell Inc. All Rights Reserved. 20 Optional Integrated Rack Scale Choice of rack style Choice of thermal management Choice of processor Choice of AI fabric M7725 AMD Processor Dense Compute XE9712 NVIDIA GB200 NVL72 Dense Acceleration TBA NVIDIA GB200 NVL4 Dense Acceleration
Slide 21 — Investment Thesis
Investment Thesis
Slide 22 — Proven track record of performance
Copyright © Dell Inc. All Rights Reserved. 22 Proven track record of performance Consistent, profitable growth with strong cash flow over time and a commitment to capital returns Revenue1,2 Adjusted Free Cash Flow1 Diluted EPS1,2 Non-GAAP Non-GAAP • We continue to structurally gain share in our core markets3 ‒ ~8 pts of mainstream server revenue share over last ten years ‒ ~6 pts of commercial PC unit share gain over last ten years • Diluted EPS has grown at a 10% CAGR over the last 6 fiscal years • We have delivered $27.2B of adjusted FCF over the last 6 fiscal years • We have returned ~106% of adj. FCF to shareholders since initiating our capital return framework in 1Q23 Long-term Performance Core Debt and Other4 Historical Core Leverage5 Core Leverage 1.5x 3.2x 2.5x 1.8x 1 See supplemental slides in Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures. 2 Revenue and non-GAAP diluted earnings per share are presented on a continuing operations basis. 3 Per IDC WW Quarterly Server Tracker 3QCY24, data between 3QCY14 – 3QCY24 TTM. Per IDC PC Units Q4CY24, data between Q4CY14 – Q4CY24 TTM. 4 Core debt + margin loan, mirror note, and other debt, excluding public subsidiary debt and DFS related debt. 5 FY20-FY21 core leverage ratio is presented on a historical basis and calculated as Core debt / ((TTM Dell Tech adj. EBITDA excluding VMW) + (81% of TTM VMW EBITDA) - (TTM DFS adj. EBITDA)). FY22 is recast to be presented on a continuing operations basis and is calculated as Core debt / ((TTM adj. EBITDA) - (TTM DFS adj. EBITDA)). DFS adj. EBITDA calculated as a 4% return on assets comprised of financing receivables and DFS operating lease balance. 4% return on assets is derived from a peer benchmark analysis and is an indicative proxy for DFS EBITDA. Expect revenue to grow at a 3-4% CAGR over time ~$4.5B Avg. annual adj. FCF FY20-FY25 EPS growing faster than revenue Maintained 1.5x core leverage target 1.8x 1.2x
Slide 23 — Copyright © Dell Inc. All Rights Reserved.
Copyright © Dell Inc. All Rights Reserved. 23 Dell Technologies Storage key leadership positions We have #1 positions in all key storage categories All Flash Array RAID #1 Dell maintained the #1 position with 20.5% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q3 Storage Software #1 Dell maintained the #1 position with 10.3% share Per IDC WW Storage Software and Cloud Services Tracker CY24Q3 External RAID Enterprise Storage #1 Dell maintained the #1 position with 24.9% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q3 Purpose-Built Backup Appliance #1 Dell maintained the #1 position with 35.7% share Per IDC WW Quarterly Purpose-Built Backup Appliance Tracker CY24Q3 Midrange RAID Storage #1 High End RAID Storage #1 Converged Systems #1 Dell maintained the #1 position with 44.9% share Per IDC WW Quarterly Converged Systems Tracker CY24Q3 Hyperconverged Systems #1 Dell maintained the #1 position with 32.9% share Per IDC WW Quarterly Converged Systems Tracker CY24Q3 Dell maintained the #1 position with 38.2% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q3 Dell maintained the #1 position with 22.0% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q3 Note: based on revenue.
Slide 24 — Copyright © Dell Inc. All Rights Reserved.
Copyright © Dell Inc. All Rights Reserved. 24 Dell Technologies Server & PC key leadership positions We have #1 positions in servers and the most profitable segments of the PC market x86 Server #1 Dell is the leader with 11.4% unit share and 12.4% revenue share Per IDC WW Quarterly Server Tracker CY24Q3 Mainstream Server #1 Dell is the leader with 25.2% unit share and 31.3% revenue share Per IDC WW Quarterly Server Tracker CY24Q3 PC Monitors #1 Dell maintained the #1 position with 18.4% share Per IDC WW Quarterly Monitor Tracker CY24Q4 Client Business #1 Leading Client Business by revenue Client PC & upsell revenue statistic calculated by Dell Technologies primarily by utilizing other PC OEMs’ financial public filings, as of Q2 FY25 North America Commercial PC #1 Commercial AI PC #1 Dell is the leader with 27.7% share Per IDC WW Quarterly PC Device Tracker, CY24Q4. Includes workstations North America Desktop #1 Dell maintained the #1 position with 32.6% share Per IDC WW Quarterly PC Device Tracker, CY24Q4. Includes workstations PC Workstations #1 Dell maintained the #1 position with 30.5% share Per IDC WW Quarterly PC Device Tracker, CY24Q4. Includes workstations Dell maintained the #1 position with 41.9% share Per IDC WW Quarterly Workstation Tracker CY24Q4 Note: based on units unless otherwise indicated.
Slide 25 — Dell Technologies investment thesis
Copyright © Dell Inc. All Rights Reserved. 25 Dell Technologies investment thesis Leading market positions and a unique operating model generate consistent growth and significant value creation Attractive long-term financial model 3 - 4% Revenue growth 8%+ Diluted EPS growth2 100%+ NI to adj. FCF Conversion2 80%+ Target return of adj. FCF to shareholders2 10%+ Dividend growth rate FY24-FY283 • We are leveraging our strengths to extend our leadership positions and capture new growth opportunities • Unmatched Global Services footprint with team members and service centers supporting customers around the world • Largest Go-To-Market engine with a direct sales force and robust channel program that provides us with great insights and the ability to build deep customer relationships • Industry’s leading Supply Chain that runs at global scale, yet nimble and agile to respond to macro and market fluctuations with built in resilience • Leading end-to-end solutions portfolio, with #1 positions across Client, Peripherals, Server, and Storage1 STRATEGY UNIQUE OPERATING MODEL 1 See slides 23 and 24 for the list of #1 positions and relevant sources. 2 Long-term financial guidance is provided on a non-GAAP basis. The Company cannot reasonably forecast certain items that are included in GAAP results. Refer to the discussion of non-GAAP financial measures at the beginning of the presentation for more information. 3 Subject to ongoing board evaluation and approval.
Slide 26 — to long-
Copyright © Dell Inc. All Rights Reserved. 26 Committed to long- term value creation Our strategy, operating model and track record of execution have us well positioned $5.3 $6.5 $5.2 $1.5 $5.6 $3.1 FY20 FY21 FY22 FY23 FY24 FY25 Attractive long-term financial framework 3 - 4% Revenue growth 8%+ Diluted EPS growth1 100%+ NI to adj. FCF Conversion1 80%+ Target return of adj. FCF to shareholders1 10%+ Dividend growth rate FY24-FY285 Gross Margins Cost Share Count + + = EPS Growth $4.5B Avg CSG 2-3% CAGR ISG 6-8% CAGR DELL TECH 3-4% CAGR • Leading end-to-end solutions and broadest portfolio in the industry • Demonstrated structural share gains • Opportunities to capture new growth • Growth & operational excellence driving cash generation … $4.5B avg. over last six years • Averaged over 100% NI to adj. FCF conversion over the past six years3 • Increased mix towards profitable segments … ISG, Commercial PC, Peripherals • Demonstrated cost discipline • Commitment to return over 80% of adjusted FCF to shareholders • Return via share repurchases and dividends • Committed to IG rating and maintaining 1.5x core leverage4 target • Targeted M&A that accelerates our strategy Remaining FCF 80%+ • Target to grow the dividend at 10% or better annually through FY285 • Raised our annual dividend ~18% to $2.10 per share for FY26 Targeted Dividend Payout Operational $1.48 $1.78 $2.10 FY24 FY25 FY26 FY27 FY28 Capital Return 10%+ 1 Long-term financial guidance is provided on a non-GAAP basis. The Company cannot reasonably forecast certain items that are included in GAAP results. Refer to the discussion of non-GAAP financial measures at the beginning of the presentation for more information. 2 See supplemental slides in Appendix B for reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Adjusted free cash flow represents historical adjusted free cash flow excluding VMware where applicable. 3 FY20-FY25. 4 See footnote 5 on slide 22 for definition of core leverage ratio. 5 Subject to ongoing board evaluation and approval. Adjusted Free Cash Flow ($B)2 +20% +18%
Slide 27 — Copyright © Dell Inc. All Rights Reserved.
Copyright © Dell Inc. All Rights Reserved. 27 Leading end-to-end solutions1 Dell Technologies strategy Leverage our strengths to extend our leadership and capture new growth Unique operating model Innovation Culture Customer-centricity #1 Client Business Workstations PC Monitors Server External Storage Storage Software PBBA HCI Industry’s largest GTM engine Broad global technology ecosystem of partners Extensive direct salesforce Modern online and consumption experiences Industry-leading supply chain Resilient, agile, sustainable & global scale Global distribution & logistics centers Automated and AI- driven Unmatched global services Service centers around the world Global footprint of direct services & support AI-driven support and experiences 1 Client PC & upsell revenue statistic calculated by Dell Technologies primarily by utilizing other PC OEMs’ financial public filings, as of Q3 FY25; Workstations (Units) - IDC WW Quarterly Workstation Tracker CY24Q4 using data for 4Q24; PC Monitors (Units) - IDC WW Quarterly Monitor Tracker CY24Q4 using data for 4Q24; Server (Units) - IDC WW Quarterly Server Tracker CY24Q3 using data for 3Q24; External Storage (Revenue) - IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q3 using data for 3Q24; Storage Software – IDC WW Storage Software and Cloud Services Tracker CY24Q3 using data for 3Q24 and includes archiving software, data replication and protection software, software-defined storage controller software, and storage infrastructure and device management software; PBBA – IDC WW Purpose-Built Backup Appliance (PBBA) (Revenue) CY24Q3 using data for 3Q24; Hyperconverged Systems (HCI) (Revenue) - IDC WW Quarterly Converged Systems Tracker CY24Q3 using data for 3Q24.
Slide 28 — Appendix A
Appendix A Debt and DFS summary
Slide 29 — Debt summary
Copyright © Dell Inc. All Rights Reserved. 29 Debt summary $ in billions 1 4Q24 4Q25 Revolver - - Senior Notes 15.6 15.1 Legacy Notes 1.0 1.0 DFS Allocated Debt (1.6) (3.0) Total Core Debt 2 14.9 13.0 Other 0.2 0.1 DFS Debt 9.5 8.7 DFS Allocated Debt 1.6 3.0 Total DFS Related Debt 11.1 11.7 Total Debt, principal amount 26.2 24.8 1 Principal Face Value 2 Core debt represents the total principal amount of our debt, less DFS related debt and other debt. Amounts are based on underlying data and may not visually foot due to rounding
Slide 30 — DFS summary
Copyright © Dell Inc. All Rights Reserved. 30 $ in billions 4Q24 1Q25 2Q25 3Q25 4Q25 Originations 1 2.5 1.9 2.4 1.6 2.5 Y/Y (19)% 1% 5% (11)% — Trailing twelve months 8.4 8.5 8.5 8.3 8.4 Y/Y (13)% (11)% (11)% (8)% — Financing Receivables 2 10.5 10.6 11.1 10.9 11.2 Operating Leases 3 2.2 2.1 2.2 2.2 2.2 Total Managed Assets 4 14.4 14.2 14.8 14.7 15.0 Y/Y (2)% (1)% 1% 6% 4% DFS summary 1 Originations represent the amounts of financing provided by DFS to customers for equipment and related software and services, including third-party originations. 2 Amounts represent financing receivables included on the Dell Technologies Consolidated Statements of Financial Position. 3 Amounts represent net carrying value of equipment for DFS operating leases. 4 Total managed assets consists of financing receivables, syndicated receivables DFS still services, operating leases, and committed contract value for flex on demand. Amounts are based on underlying data and may not visually foot due to rounding
Slide 31 — Appendix B
Appendix B Supplemental non-GAAP measures
Slide 32 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 32 $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP gross margin 5,372 4,851 5,361 5,360 5,678 Amortization of intangibles 84 60 59 60 59 Stock-based compensation 37 38 38 39 37 Other corporate expenses 1 31 43 56 31 40 Total adjustments to gross margin 152 141 153 130 136 Non-GAAP gross margin 5,524 4,992 5,514 5,490 5,814 Non-GAAP GM % of revenue 24.8% 22.4% 22.0% 22.5% 24.3% Supplemental non-GAAP measures Gross margin 1 Consists of severance, facilities action, impairment, and other costs.
Slide 33 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 33 $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP selling, general, and administrative 3,109 3,123 3,189 2,894 2,746 Amortization of intangibles 1 (126) (108) (109) (108) (104) Stock-based compensation (108) (112) (103) (105) (94) Other corporate expenses 2 (166) (93) (229) (82) (52) Non-GAAP selling, general, and administrative 2,709 2,810 2,748 2,599 2,496 GAAP research and development 716 763 780 745 773 Stock-based compensation (58) (60) (50) (54) (55) Other corporate expenses 2 (38) (40) (48) (52) (74) Non-GAAP research and development 620 663 682 639 644 GAAP operating expenses 3,825 3,886 3,969 3,639 3,519 Amortization of intangibles 1 (126) (108) (109) (108) (104) Stock-based compensation (166) (172) (153) (159) (149) Other corporate expenses 2 (204) (133) (277) (134) (126) Total adjustments to operating expenses (496) (413) (539) (401) (379) Non-GAAP operating expenses 3,329 3,473 3,430 3,238 3,140 Non-GAAP OpEx % of revenue 14.9% 15.6% 13.7% 13.3% 13.1% Supplemental non-GAAP measures Selling, general, and administrative; research and development; and operating expense 1 This amount includes non-cash purchase accounting adjustments primarily related to the EMC merger transaction in 3Q17. 2 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
Slide 34 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 34 Supplemental non-GAAP measures Operating income $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP operating income 1,547 965 1,392 1,721 2,159 Non-GAAP adjustments: Amortization of intangibles 1 210 168 168 168 163 Stock-based compensation 203 210 191 198 186 Other corporate expenses 2 235 176 333 165 166 Total adjustments to operating income 648 554 692 531 515 Non-GAAP operating income 2,195 1,519 2,084 2,252 2,674 Non-GAAP OpInc % of revenue 9.8% 6.8% 8.3% 9.2% 11.2% 1 This amount includes non-cash purchase accounting adjustments primarily related to the EMC merger transaction in 3Q17. 2 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. Includes $328 million of severance expense during 2Q25.
Slide 35 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 35 Supplemental non-GAAP measures Interest and other $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP interest and other, net: Investment income, primarily interest 92 54 38 35 33 Gain (loss) on investments, net 83 (30) 5 46 156 Interest expense (373) (343) (387) (321) (343) Foreign exchange (72) (38) (13) (29) (32) Other 67 (16) 4 (7) (1) GAAP interest and other, net (203) (373) (353) (276) (187) Adjustments: Non-GAAP adjustments 1 (91) 24 (9) (45) (157) Non-GAAP interest and other, net (294) (349) (362) (321) (344) Interest and other as a % of revenue -1.3% -1.5% -1.4% -1.3% -1.5% 1 Primarily consists of the (gain) loss on strategic investments, which includes recurring fair value adjustments on equity investments..
Slide 36 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 36 $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP income tax expense (benefit) 136 (400) 157 275 440 Total aggregate adjustment for income taxes 1 105 611 153 73 (21) Non-GAAP income tax expense 241 211 310 348 419 GAAP net income 1,208 992 882 1,170 1,532 Non-GAAP adjustments: Amortization of intangibles 2 210 168 168 168 163 Stock-based compensation 203 210 191 198 186 Other corporate expenses 3 227 170 329 166 165 Fair value adjustments on equity investments 4 (83) 30 (5) (46) (156) Aggregate adjustment for income taxes 1 (105) (611) (153) (73) 21 Total adjustments 452 (33) 530 413 379 Non-GAAP net income 1,660 959 1,412 1,583 1,911 Net income % of revenue 7.4% 4.3% 5.6% 6.5% 8.0% Supplemental non-GAAP measures Income tax expense and net income 1 Consists of the tax effects of non-GAAP adjustments, 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. During 1Q25, aggregate adjustment for income taxes included discrete tax benefits of $0.4 billion related to changes in uncertain tax benefits resulting from the expiration of certain statutes of limitations and $0.2 billion related to stock-based compensation. 2 This amount includes non-cash purchase accounting adjustments primarily related to the EMC merger transaction in 3Q17. 3 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. Includes $328 million of severance expense during 2Q25. 4 Consists of the (gain) loss on strategic investments, which includes recurring and nonrecurring fair value adjustments on equity and other investments.
Slide 37 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 37 Supplemental non-GAAP measures Net income attributable to Dell Technologies Inc. $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP net income attributable to Dell Technologies Inc. 1,210 997 887 1,175 1,533 Amortization of intangibles1 210 168 168 168 163 Stock-based compensation 203 210 191 198 186 Other corporate expenses 2 227 170 329 166 165 Fair value adjustments on equity investments 3 (83) 30 (5) (46) (156) Aggregate adjustment for income taxes 4 (105) (611) (153) (73) 21 Total non-GAAP adjustments attributable to non-controlling interests (4) (6) (5) (6) (1) Total adjustments 448 (39) 525 407 378 Non-GAAP net income attributable to Dell Technologies Inc. 1,658 958 1,412 1,582 1,911 1 This amount includes non-cash purchase accounting adjustments primarily related to the EMC merger transaction in 3Q17. 2 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. Includes $328 million of severance expense during 2Q25. 3 Consists of the (gain) loss on strategic investments, which includes recurring and nonrecurring fair value adjustments on equity and other investments. 4 Consists of the tax effects of non-GAAP adjustments, as well as an adjustment for discrete tax items. Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.
Slide 38 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 38 Supplemental non-GAAP measures Earnings per share - basic and diluted $ in millions, except per share amounts 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP net income attributable to Dell Technologies Inc. 1,210 997 887 1,175 1,533 Weighted-average shares outstanding - basic 710 708 708 703 699 GAAP EPS attributable to Dell Technolgies Inc. - basic $1.70 $1.41 $1.25 $1.67 $2.19 GAAP net income attributable to Dell Technolgies Inc. - diluted 1,210 997 887 1,175 1,533 Weighted-average shares outstanding - diluted 731 727 724 717 714 GAAP EPS attributable to Dell Technolgies Inc. - diluted $1.66 $1.37 $1.23 $1.64 $2.15 Non-GAAP net income attributable to Dell Technologies Inc. 1,658 958 1,412 1,582 1,911 Weighted-average shares outstanding - basic 710 708 708 703 699 Non-GAAP EPS attributable to Dell Technolgies Inc. - basic $2.34 $1.35 $1.99 $2.25 $2.73 Non-GAAP net income attributable to Dell Technolgies Inc. - diluted 1,658 958 1,412 1,582 1,911 Weighted-average shares outstanding - diluted 731 727 724 717 714 Non-GAAP EPS attributable to Dell Technolgies Inc. - diluted $2.27 $1.32 $1.95 $2.21 $2.68
Slide 39 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 39 Supplemental non-GAAP measures Adjusted EBITDA $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 GAAP net income 1,208 992 882 1,170 1,532 Adjustments: Interest and other, net 203 373 353 276 187 Income tax provision (benefit) 136 (400) 157 275 440 Depreciation and amortization 841 800 784 765 774 EBITDA 2,388 1,765 2,176 2,486 2,933 Adjustments: Stock-based compensation 203 210 191 198 186 Other corporate expenses 1 235 176 333 165 166 Adjusted EBITDA 2,826 2,151 2,700 2,849 3,285 Adj EBITDA % of revenue 12.7% 9.7% 10.8% 11.7% 13.7% 1 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
Slide 40 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 40 Supplemental non-GAAP measures Adjusted free cash flow $ in millions 4Q24 1Q25 2Q25 3Q25 4Q25 Cash flow from operations 1,533 1,043 1,340 1,553 585 Adjustments: Capital expenditures and capitalized software development costs, net 1 (727) (586) (636) (639) (702) Free cash flow 806 457 704 914 (117) Adjustments: Financing receivables 2 136 165 487 (233) 532 Equipment under operating leases 3 68 1 93 35 59 Adjusted free cash flow 1,010 623 1,284 716 474 1 Capital expenditures and capitalized software development costs, net includes proceeds from sales of facilities, land, and other assets. 2 Financing receivables represent the operating cash flow impact from the change in DFS financing receivables. 3 Equipment under operating leases represents the net change of capital expenditures and depreciation expense for DFS leases and contractually embedded leases identified within flexible consumption arrangements.
Slide 41 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 41 Supplemental non-GAAP measures Adjusted free cash flow $ in millions FY20 FY21 FY22 FY23 FY24 FY25 Cash flow from operations 9,291 11,407 10,307 3,565 8,676 4,521 Adjustments: Capital expenditures and capitalized software development costs, net 1 (2,553) (2,062) (2,755) (2,993) (2,753) (2,563) Free cash flow 6,738 9,345 7,552 572 5,923 1,958 Adjustments: Financing receivables 2 1,329 728 241 461 (309) 951 Equipment under operating leases 3 819 474 394 500 (7) 188 Adjusted free cash flow 8,886 10,547 8,187 1,533 5,607 3,097 VMware cash flow from operations 3,872 4,409 3,220 - - - Adjustments: VMware capital expenditures (279) (329) (263) - - - VMware free cash flow 3,593 4,080 2,957 - - - Adjusted free cash flow excluding VMware 5,293 6,467 5,230 1,533 5,607 3,097 1 Capital expenditures and capitalized software development costs, net includes proceeds from sales of facilities, land, and other assets. 2 Financing receivables represent the operating cash flow impact from the change in DFS financing receivables. 3 Equipment under operating leases represents the net change of capital expenditures and depreciation expense for DFS leases and contractually embedded leases identified within flexible consumption arrangements. Amounts are based on underlying data and may not visually foot due to rounding.
Slide 42 — Supplemental FY20 - FY25 non-GAAP Measures
Copyright © Dell Inc. All Rights Reserved. 42 Supplemental FY20 - FY25 non-GAAP Measures $ in millions, except per share amounts FY20 FY21 FY22 FY23 FY24 FY25 Revenue 84,815 86,670 101,197 102,301 88,425 95,567 Impact of purchase accounting 1 229 106 32 - - — Non-GAAP revenue 85,044 86,776 101,229 102,301 88,425 95,567 Net income from continuing operations attributable to Dell Technologies Inc. 525 2,249 4,948 2,442 3,388 4,592 Amortization of intangibles1 3,245 2,277 1,708 1,014 833 667 Stock-based compensation 245 487 808 931 878 785 Other corporate expenses 2 960 (64) (1,806) 1,796 793 830 Fair value adjustment on equity investments 3 (159) (427) (572) 206 (47) (177) Aggregate adjustment for income taxes 4 (1,361) (772) (156) (642) (407) (816) Total non-GAAP adjustments attributable to non-controlling interest (4) (6) (7) (13) (13) (18) Total adjustments to Net income attributable to Dell Technologies Inc. 2,926 1,495 (25) 3,292 2,037 1,271 Non-GAAP net income attributable to Dell Technologies Inc. 3,451 3,744 4,923 5,734 5,425 5,863 Net income attributable to Dell Technologies Inc. 525 2,249 4,948 2,442 3,388 4,592 Weighted-average shares outstanding - basic 724 744 762 734 720 705 Earnings per share attributable to Dell Technologies Inc. - basic $0.73 $3.02 $6.49 $3.33 $4.71 $6.51 Weighted-average shares outstanding - diluted 751 767 791 753 736 720 Earnings per share attributable to Dell Technologies Inc. - diluted $0.70 $2.93 $6.26 $3.24 $4.60 $6.38 Non-GAAP net income attributable to Dell Technologies Inc. 3,451 3,744 4,923 5,734 5,425 5,863 Weighted-average shares outstanding - basic 724 744 762 734 720 705 Non-GAAP earnings per share attributable to Dell Technologies Inc. - basic $4.77 $5.03 $6.46 $7.81 $7.53 $8.32 Weighted-average shares outstanding - diluted 751 767 791 753 736 720 Non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted $4.60 $4.88 $6.22 $7.61 $7.37 $8.14 1 This amount includes non-cash purchase accounting adjustments primarily related to the EMC merger transaction in FY17. 2 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. 3 Consists of the (gain) loss on strategic investments, which includes recurring and nonrecurring fair value adjustments on equity and other investments. 4 Consists of the tax effects of non-GAAP adjustments, as well as an adjustment for discrete tax items.
Slide 43 — Appendix C
Appendix C Supplemental Financial Statements
Slide 44 — Balance Sheet
Copyright © Dell Inc. All Rights Reserved. 44 Balance Sheet Assets $ in millions 4Q24 4Q25 Current assets: Cash and cash equivalents 7,366 3,633 Accounts receivable, net 9,343 10,298 Short-term financing receivables, net 4,643 5,304 Inventories, net 3,622 6,716 Other current assets 11,010 9,610 Current assets held for sale — 668 Total current assets 35,984 36,229 Property, plant, and equipment, net 6,432 6,336 Long-term investments 1,316 1,496 Long-term financing receivables, net 5,877 5,927 Goodwill 19,700 19,120 Intangible assets, net 5,701 4,988 Other non-current assets 7,116 5,650 Total assets 82,126 79,746
Slide 45 — Balance Sheet
Copyright © Dell Inc. All Rights Reserved. 45 Balance Sheet Liabilities and equity $ in millions 4Q24 4Q25 Current liabilities: Short-term debt 6,982 5,204 Accounts payable 19,226 20,832 Accrued and other 6,828 6,597 Short-term deferred revenue 15,318 13,673 Current liabilities held for sale — 221 Total current liabilities 48,354 46,527 Long-term debt 19,012 19,363 Long-term deferred revenue 13,827 12,292 Other non-current liabilities 3,065 2,951 Total liabilities 84,258 81,133 Total Dell Technologies Inc. stockholders' equity (deficit) (2,227) (1,482) Non-controlling interest 95 95 Total stockholders' equity (deficit) (2,132) (1,387) Total liabilities and stockholders' equity 82,126 79,746
Slide 46 — Appendix D
Appendix D Guidance
Slide 47 — Supplemental non-GAAP Measures
Copyright © Dell Inc. All Rights Reserved. 47 Supplemental non-GAAP Measures Financial guidance1 1Q26 FY26 $ in billions, except per share amounts Diluted EPS Operating expenses Operating income Diluted EPS GAAP guidance $1.19 - $1.39 $13.8 $8.0 - $8.4 $7.60 - $8.10 Estimated adjustments for: Amortization of intangibles 2 0.17 (0.3) 0.5 0.70 Stock-based compensation 0.26 (0.6) 0.7 1.04 Other corporate expenses 3 — — — — Fair value adjustments on equity investments 4 — — — — Aggregate adjustment for income taxes 5 (0.07) — — (0.29) Non-GAAP guidance $1.55 - $1.75 $12.9 $9.2 - $9.6 $9.05 - $9.55 1 Amounts are subject to change with no obligation to reconcile these estimates. Amounts may not visually foot due to underlying data. 2 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 FY26. 3 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. 4 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. 5 The FY26 aggregate adjustment to reconcile from GAAP to Non-GAAP income tax expense is approximately $0.2 billion. This 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
Slide 48 — Appendix E
Appendix E End Notes
Slide 49 — End Notes
Copyright © Dell Inc. All Rights Reserved. 49 End Notes Page 17: PC Portfolio for the AI era 1 Per IDC WW Quarterly PC Device Tracker, CY24Q4. Premium Commercial refers to units with ASP > $800 2 Per IDC WW Quarterly Monitor Tracker CY24Q4. 3 Based on Internal testing using DVT1 pre-production samples, tested with Local Video Playback, comparing Dell 14 Plus with u7 LNL/FHD+/64Whr battery vs Inspiron 14 Plus with u7 MTL H/FHD+/64Whr battery 4 Based on Internal testing comparing Dell 16 Plus (DB16250) with Inspiron 16 Plus (7640) 5 Dell Pro 13 Premium and Latitude 7350 tested. Battery life results were compared for like-to-like configs (i.e., same or similar memory, storage, display, etc.) except for CPU and Battery (3Whr gen over gen increase in capacity) Based on testing using the Mobile Mark 2025 battery life benchmark test in December 2024. For more information about this benchmark test, visit www.bapco.com. Actual battery life may be significantly less than the test results and varies depending on product configuration and use, software, usage, operating conditions, power management settings and other factors. Maximum battery life will decrease with time. 6 Based on internal evaluation of the new Dell Pro Max 14 and the previous generation, Precision 3490. February 2025 7 Based on internal analysis of multiple durability tests performed on Dell Pro 14 Plus and HP EliteBook 640 G11, November 2024. 8 Based on Dell internal competitive analysis, October 2024 9 Based on Dell internal analysis of 4K monitors, October 2024. 10 Most secure is based on Dell internal analysis, October 2024. Applicable to PCs on Intel processors. Not all features available with all PCs. Additional purchase required for some features. Validated by Principled Technologies. A comparison of security features, April 2024. Most-manageable commercial PCs when comparing the systems management capabilities of Dell Update Processes, Dell Manageability Solution capabilities and integrations with 3rd Party Management Solutions, with competitor update processes, systems management solution capabilities and integrations with 3rd party management solutions. 3rd Party Management Solution - Microsoft Intune, is a separate purchase. Based on Dell internal analysis, January 2025. 11 Based on Dell internal analysis – November 2024.