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Dell Technologies — Q3 FY25 Performance Review (company IR deck)
Dell Technologies (DELL) · 47 slides · Filed Oct 27, 2026
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Slide 1 — Performance Review
November 26, 2024 3Q 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 expenses, 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.
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. Strong execution, improved ISG profitability and strong cash • Revenue of $24.4B, up 10% Y/Y with record Q3 ISG revenue • ISG operating income improved to 13.3% of revenue, up 230 bps sequentially • Diluted EPS of $1.58, up 16% Y/Y, and non-GAAP diluted EPS1 of $2.15, up 14% Y/Y AI optimized server momentum continued • Orders demand increased to a record $3.6B, up 11% Q/Q, with continued growth in enterprise customers • $2.9B of shipments, resulting in AI backlog of $4.5B exiting Q3 • AI optimized server pipeline grew more than 50% sequentially with growth across all customer types • Continue to gain traction with Enterprise customers, with over 2,000 unique Enterprise customers since launch Strong cash generation and capital return • Generated $1.6B of cash flow from operations • Returned $0.7B of capital to shareholders through $413M of share repurchases and $312M in dividends Q3 FY25 Overview
Slide 4 — Q3 Highlights
Copyright © Dell Inc. All Rights Reserved. 4 Cash Flow from Operations of $1.3B, and Adj. Free Cash Flow of $1.3B Q3 Highlights Strong execution with 10% revenue growth, 14% non-GAAP EPS growth1,2, and strong cash flow AI Servers Q3 demand was strong, with record AI optimized server orders revenue of $3.6B Cash Flow Cash Flow from Operations of $1.6B in Q3, and $5.5B TTM Commercial PC Traditional Server Demand improved double digits in Q3, driven by growing units and ASPs with richer configurations Third consecutive quarter of both Y/Y and Q/Q demand growth
Slide 5 — Consolidated GAAP results
Copyright © Dell Inc. All Rights Reserved. 5 Consolidated GAAP results We are focused on maximizing long-term value creation for all shareholders
Slide 6 — Consolidated non-GAAP results1
Copyright © Dell Inc. All Rights Reserved. 6 Consolidated non-GAAP results1 We delivered strong operating results with a third quarter record in Servers and Networking revenue
Slide 7 — Business units trending
Copyright © Dell Inc. All Rights Reserved. 7 Business units trending CSG and ISG combined revenue grew 13% Y/Y in Q3 as customers continue to invest in their digital futures
Slide 8 — Cash flow and capital returns
Copyright © Dell Inc. All Rights Reserved. 8 CASH FLOW FROM OPERATIONS -28% Y/Y ADJUSTED FCF1 -17% Y/Y CAPITAL RETURNS $0.7B -1% Q/Q $1.6B $0.7B 3Q24 4Q24 1Q25 2Q25 3Q25 $1.6B $1.3B $5.5B $6.1B $1.0B $7.9B $1.5B $8.7B $2.2B $9.9B 3Q24 4Q24 1Q25 2Q25 3Q25 $0.7B $1.3B $3.6B $3.8B $0.6B $5.5B $1.0B $5.6B $0.9B $6.9B 3Q24 4Q24 1Q25 2Q25 3Q25 $1.0B $1.1B $1.1B $1.0B $0.7B Cash flow and capital returns We have returned $9.8B or ~100% of our adjusted FCF1 to shareholders over the last eleven quarters Fiscal quarter TTM 1 See supplemental slides in Appendix B for reconciliation of adjusted FCF to cash flow from operations. 2 See footnote 5 on slide 20 for definition of core leverage ratio. Repurchased 3.7M shares for $413M in Q3 and 21.4M shares for ~$2.7B over the past 12 months Paid dividends of $0.445 per share or ~$312M in Q3 Our core leverage ratio2 ended Q3 at 1.4x, below our long-term target Ended the fiscal quarter with $6.6B of cash and investments Share Repurchases Dividends
Slide 9 — Infrastructure Solutions Group
Copyright © Dell Inc. All Rights Reserved. 9 REVENUE $11.4B +34% Y/Y -2% Q/Q Servers & Networking $4.7B, -10% Y/Y $4.9B, -2% Y/Y $5.5B, +42% Y/Y $7.7B, +80% Y/Y $7.4B, +58% Y/Y Storage $3.8B, -13% Y/Y $4.5B, -10% Y/Y $3.8B, 0% Y/Y $4.0B, -5% Y/Y $4.0B, +4% Y/Y OPERATING INCOME $1.5B +41% Y/Y +17% Q/Q % of ISG revenue Basis points -170bps Y/Y -30bps Y/Y -170bps Y/Y -140bps Y/Y +70bps Y/Y 12.6% 15.3% 8.0% 11.0% 13.3% 3Q24 4Q24 1Q25 2Q25 3Q25 $11.4B $11.6B +34% Y/Y +38% Y/Y $9.2B +22% Y/Y $9.3B -6% Y/Y $8.5B -12% Y/Y 3Q24 4Q24 1Q25 2Q25 3Q25 $1,508M $1,284M +41% Y/Y +22% Y/Y $736M -1% Y/Y $1,428M -7% Y/Y $1,069M -22% Y/Y Infrastructure Solutions Group Strong momentum with record Q3 revenue, improving profitability, and AI as a significant tailwind Amounts are based on underlying data and may not visually foot due to rounding. Operating income rate was up 230 bps sequentially to 13.3% PowerStore and PowerFlex demand both grew double digits in the quarter AI server pipeline grew over 50% sequentially with growth across both Tier 2 CSPs and Enterprise customers Traditional server demand was up Y/Y for the fourth consecutive quarter
Slide 10 — Growing AI TAM paired with #1 positions in servers and storage
Copyright © Dell Inc. All Rights Reserved. 10 25% 24% 38% 55% 35% External Raid Midrange RAID High End RAID Converged HCI 2 2 3 3 20% 23% 30% 30% 19% 2 22% 23% 23% 23% 27% 29% 28% 28% 29% 31% 26% 29% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2Q24 TTM Growing AI TAM paired with #1 positions in servers and storage Long-term structural share gains in server, and storage share greater than next two competitors combined Mainstream server share1 AI HW & services represent a $174B opportunity by 20274 1) IDC Quarterly Server Tracker, 2024Q2, based on CY13 – 2Q24 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, 2024Q2, based on 2Q24 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 2024Q2, based on 2Q24 TTM revenue. 4) IDC Worldwide AI and Generative AI Spending Guide, V2 2024 (Aug). Hardware includes Servers and Storage only. 2023 2025 2027 $79B $121B $174B Hardware Services +22% CAGR TTM storage share vs nearest competitors (IDC Mainstream Server Revenue) Dell Gained ~7pts Share Over the Past 10.5 years1 (IDC External RAID Storage Revenue & IDC Converged Revenue)
Slide 11 — Client Solutions Group
Copyright © Dell Inc. All Rights Reserved. 11 REVENUE $12.1B -1% Y/Y -2% Q/Q Commercial $9.8B, -8% Y/Y $9.6B, -11% Y/Y $10.2B, +3% Y/Y $10.6B, 0% Y/Y $10.1B, +3% Y/Y Consumer $2.4B, -19% Y/Y $2.2B, -19% Y/Y $1.8B, -15% Y/Y $1.9B, -22% Y/Y $2.0B, -18% Y/Y OPERATING INCOME $694M -25% Y/Y -10% Q/Q % of CSG revenue Basis points 6.2% -130bps Y/Y 5.7% -180bps Y/Y 7.5% -20bps Y/Y 6.2% +120bps Y/Y 6.1% -130bps Y/Y 3Q24 4Q24 1Q25 2Q25 3Q25 $12.1B $12.4B -1% Y/Y -4% Y/Y $12.0B 0% Y/Y $11.7B -12% Y/Y $12.3B -11% Y/Y 3Q24 4Q24 1Q25 2Q25 3Q25 $694M $767M -25% Y/Y -21% Y/Y $732M -18% Y/Y $726M +8% Y/Y $925M -13% Y/Y Client Solutions Group Third consecutive quarter of sequential demand growth 1) Per IDC WW Quarterly PC Device Tracker, CY24Q3. Premium Commercial refers to units with ASP > $800; Amounts are based on underlying data and may not visually foot due to rounding. Third consecutive quarter of Commercial demand growth both Y/Y and Q/Q Second consecutive quarter of Y/Y premium commercial PC share gain1 Profitability in the Commercial space held up well as customers continue to purchase more richly configured devices Dell Technologies has the number one share position in Commercial AI PC1
Slide 12 — Not all PCs are created equal
Copyright © Dell Inc. All Rights Reserved. 12 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 16% 23% 2013 3Q24 TTM Total PC Market DELL IDC 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, CY24Q3 2) Per IDC WW Quarterly PC Device Tracker, CY24Q3, 3Q24 TTM. 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 Dell CSG TRU3 $1,235 +$250 since Q4 2020 $650 ~+$40 since Q4 2020 PC Unit Mix2 (IDC 2024 Q3 PC Units) >80% of Dell’s Unit Mix ~7 pts of Commercial PC share gain over the past 10.75 years Dell Commercial PC Unit Share1 (IDC Commercial PC Units) FY21 FY22 FY24 FY23 FY25
Slide 13 — Guidance
Copyright © Dell Inc. All Rights Reserved. 13 Q4 FY251 • Revenue expected to be in the range of $24 and $25 billion with a midpoint of $24.5 billion and 10% growth – Expect the combination of ISG and CSG to grow 13% at the midpoint – Expect ISG to be up in the mid twenties driven by AI and traditional servers – Expect CSG to be up low-single digits • Non-GAAP Opex expected to decline mid-single digits • Opinc rate expected to improve sequentially with continued improvement in ISG • Diluted share count expected to be approximately 715 to 719 million shares • Non-GAAP diluted EPS expected to be $2.50 plus or minus $0.10, up 14% at the midpoint FY26 • Expect multiple tailwinds that support growth next year – More robust AI demand with a strong five quarter pipeline going into next year – An aged install base in both PCs and traditional servers, prime for refresh • Expect ISG growth driven by AI servers, followed by traditional servers, then storage • Expect CSG to grow, as enterprise companies refresh a large and aging install base • Expect to continue to balance growth and profitability managing price within the competitive landscape and input cost environment 1 See supplemental slides in Appendix D for reconciliation of forward-looking non-GAAP measures to their most directly comparable GAAP measures. Guidance
Slide 14 — Innovation
Innovation
Slide 15 — Dell AI solutions portfolio ... broad, modular and open ecosystem
Copyright © Dell Inc. All Rights Reserved. 15 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: (NEW!) 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 planned support on F910 in December (732TB per RU) • Support for 200GbE today with IB support planned in December • 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 16 — Broad AI optimized server portfolio & distinct solution advantages
Copyright © Dell Inc. All Rights Reserved. 16 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 Blue = NEW!
Slide 17 — Dell Integrated Rack Scalable Systems
Copyright © Dell Inc. All Rights Reserved. 17 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. 17 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 18 — Shaping our customers’ digital future
Copyright © Dell Inc. All Rights Reserved. 18 Shaping our customers’ digital future Customers turn to Dell Technologies as a trusted, strategic partner It was recently announced that Dell Technologies is shipping the industry’s first enterprise ready NVIDIA GB200 NVL72 server racks to AI hyperscaler CoreWeave. These provide the foundation for Dell AI Factory with NVIDIA and mark a groundbreaking step in advancing high-performance computing for CoreWeave with fully-integrated, liquid-cooled PowerEdge XE9712 racks. Dell’s advanced hardware combined with CoreWeave’s leading Cloud Services Platform are setting new standards in AI innovation. CoreWeave Technicolor Group, a Global Media & Entertainment organization with over 100 years of rich history working on colour, sound, and VFX postproduction, is using all flash PowerScale F710 to increase production performance for some of the biggest feature films around the world. More than 1,000 artists and users now have the ability to work on a feature simultaneously on a single cluster. Technicolor Group Sesterce announced the launch of a state-of-the-art high performance computing cluster in Paris. The cluster, leveraging the Dell PowerEdge XE9680 servers equipped with NVIDIA H200 Tensor Core GPUs, is among the first of its kind in Europe. It aims to ensure that AI-driven solutions are accessible and scalable and position France as a leading player in the field of AI. Sesterce Musashino Red Cross Hospital in Japan revamped the virtualization infrastructure that underpins its healthcare operations with Dell Technologies solutions to improve patient care. The upgraded platform, powered by Dell PowerEdge servers, delivers enhanced performance, more than double the capacity and faster response times. Musashino Red Cross Moyo, a leading digital business consultancy based in South Africa, has partnered with Dell Technologies to introduce an autonomous drone that uses AI to detect potato leaf disease and help improve crop yield and quality. This innovative solution, developed using the Dell AI Factory with NVIDIA and Dell Precision AI-ready workstations, supports more sustainable agriculture in South Africa. Moyo Kohl’s recently announced a new centralized, private cloud-based system to manage technology infrastructure across its 1,100+ stores nationwide. Developed in collaboration with Dell Technologies, Kohl’s new model streamlines store-level technology operations. The system will be fully integrated into all stores in time for the holiday shopping season, enhancing the experience for both customers and store associates. Kohl’s
Slide 19 — Investment Thesis
Investment Thesis
Slide 20 — Proven track record of performance
Copyright © Dell Inc. All Rights Reserved. 20 $37.8B $33.4B $16.5B $18.4B $15.1B FY20 FY21 FY22 FY23 FY24 -12% Y/Y -51% Y/Y -18% Y/Y -11% Y/Y +12% Y/Y $4.60 $4.88 $6.22 $7.61 $7.13 FY20 FY21 FY22 FY23 FY24 12% CAGR +6% Y/Y +27% Y/Y +22% Y/Y -6% Y/Y 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 ‒ ~6 pts of mainstream server revenue share over last ten years ‒ ~1.5 pts of midrange RAID storage revenue share since EMC acquisition ‒ ~6 pts of commercial PC unit share gain over last ten years • Diluted EPS has grown at a 12% CAGR over the last 4 fiscal years • We have delivered $24.1B of adjusted FCF over the last 5 fiscal years • We have returned ~100% 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 2QCY24, data between 2QCY14 – 2QCY24 TTM. Per IDC WW Quarterly Enterprise Storage Systems Tracker 2QCY24, data between 4QCY17 – 2QCY24 TTM. Midrange refers to systems with ASP between $25k and $250k. Per IDC PC Units Q3CY24, data between Q3CY14 – Q3CY24. 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 ~$4.8B Avg. annual adj. FCF FY20-FY24 EPS growing faster than revenue Maintained 1.5x core leverage target 1.8x $85.0B $86.8B $101.2B $102.3B $88.4B FY20 FY21 FY22 FY23 FY24 +2% Y/Y +17% Y/Y +1% Y/Y +1% Y/Y -14% Y/Y $5.3B $6.5B $5.2B $1.5B $5.6B FY20 FY21 FY22 FY23 FY24 +22% Y/Y -19% Y/Y -71% Y/Y +56% Y/Y +266% Y/Y
Slide 21 — Copyright © Dell Inc. All Rights Reserved.
Copyright © Dell Inc. All Rights Reserved. 21 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 21.2% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q2 Storage Software #1 Dell maintained the #1 position with 8.7% share Per IDC WW Storage Software and Cloud Services Tracker CY24Q2 External RAID Enterprise Storage #1 Dell maintained the #1 position with 23.9% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q2 Purpose-Built Backup Appliance #1 Dell maintained the #1 position with 32.5% share Per IDC WW Quarterly Purpose-Built Backup Appliance Tracker CY24Q2 Mid Range RAID Storage #1 High End RAID Storage #1 Converged Systems #1 Dell maintained the #1 position with 64.1% share Per IDC WW Quarterly Converged Systems Tracker CY24Q2 Hyperconverged Systems #1 Dell maintained the #1 position with 34.0% share Per IDC WW Quarterly Converged Systems Tracker CY24Q2 Dell maintained the #1 position with 35.5% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q2 Dell maintained the #1 position with 21.1% share Per IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q2
Slide 22 — Copyright © Dell Inc. All Rights Reserved.
Copyright © Dell Inc. All Rights Reserved. 22 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 11.8% unit share and 14.6% revenue share Per IDC WW Quarterly Server Tracker CY24Q2 Mainstream Server #1 Dell is the leader with 24.0% unit share and 31.7% revenue share Per IDC WW Quarterly Server Tracker CY24Q2 PC Monitors #1 Dell maintained the #1 position with 16.8% share Per IDC WW Quarterly Monitor Tracker CY24Q3 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 Q3 FY25 North America Commercial PC #1 Commercial AI PC #1 Dell is the leader with 31.0% share Per IDC WW Quarterly PC Device Tracker, CY24Q3. Includes workstations North America Desktop #1 Dell maintained the #1 position with 32.2% share Per IDC WW Quarterly PC Device Tracker, CY24Q3. Includes workstations PC Workstations #1 Dell maintained the #1 position with 32.9% share Per IDC WW Quarterly PC Device Tracker, CY24Q3. Includes workstations Dell maintained the #1 position with 43.3% share Per IDC WW Quarterly Workstation Tracker CY24Q3 Note: based on units unless otherwise indicated.
Slide 23 — Dell Technologies investment thesis
Copyright © Dell Inc. All Rights Reserved. 23 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 slide 25 for the list of #1 positions and relevant sources. 2) Long-term financial guidance is provided on a non-GAAP basis. A reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort because of uncertainty regarding, and potential variability of, many of the costs and expenses 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 24 — to long-
Copyright © Dell Inc. All Rights Reserved. 24 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 FY20 FY21 FY22 FY23 FY24 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 $4.8B 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 … $4.8B avg. over last five years • Averaged over 100% NI to adj. FCF conversion over the past five 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 ~20% to $1.78 per share for FY25 Targeted Dividend Payout Operational $1.48 $1.78 FY24 FY25 FY26 FY27 FY28 Capital Return 10%+ 1) Long-term financial guidance is provided on a non-GAAP basis. The Company cannot reasonably forecast certain items that are included in GAAP results. Refer to the discussion of non-GAAP financial measures at the beginning of the presentation for more information. 2) See supplemental slides in Appendix B for reconciliation of non- GAAP measures to their most directly comparable GAAP measures. Adjusted free cash flow represents historical adjusted free cash flow excluding VMware where applicable. 3) FY20-FY24. 4) See footnote 5 on slide 20 for definition of core leverage ratio. 5) Subject to ongoing board evaluation and approval. Adjusted Free Cash Flow ($B)2 +20%
Slide 25 — Copyright © Dell Inc. All Rights Reserved.
Copyright © Dell Inc. All Rights Reserved. 25 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 CY24Q3 using data for 3Q24; PC Monitors (Units) - IDC WW Quarterly Monitor Tracker CY24Q3 using data for 3Q24; Server (Units) - IDC WW Quarterly Server Tracker CY24Q2 using data for 2Q24; External Storage (Revenue) - IDC WW Quarterly Enterprise Storage Systems Tracker CY24Q2 using data for 2Q24; Storage Software – IDC WW Storage Software and Cloud Services Tracker CY24Q2 using data for 2Q24 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) CY24Q2 using data for 2Q24; Hyperconverged Systems (HCI) (Revenue) - IDC WW Quarterly Converged Systems Tracker CY24Q2 using data for 2Q24.
Slide 26 — Sustainability highlights1
Copyright © Dell Inc. All Rights Reserved. 26 Robust shareholder engagement program driving ongoing governance enhancements Gartner does not endorse any vendor, product or service depicted in its research publications. Learn more: https://bit.ly/3ubZyH2 Sustainability highlights1 From our latest ESG reporting2 and external recognition Source: 1) Metrics are for Dell Technologies; excluding Secureworks. 2) FY24 Environmental, Social, and Governance Report. 3) See description of responsibilities in the 2024 annual meeting proxy statement. Enabling growth by advancing sustainability and cultivating inclusion Governance Social Environmental ~96% sustainable materials used in our packaging Formal ESG governance established with cross-functional executive leadership 396M+ people have benefited from our digital inclusion programs, partnerships and innovation ~41% reduction in Scopes 1 & 2 market-based greenhouse gas emissions since FY20 Net-Zero goal across Scopes 1, 2, & 3 by 2050 ~62% of electricity from renewable sources across Dell facilities By 2030, our goal is that 50% of our global workforce and 40% of our global people leaders will be those who identify as women Ellen Kullman elected by our independent directors as Lead Independent Director 3 All Dell board committee members are independent directors By 2030, our goal is that 25% of our U.S. workforce and 15% of our U.S. people leaders will be those who identify as Black/African American or Hispanic/Latino
Slide 27 — Appendix A
Appendix A Debt and DFS summary
Slide 28 — Debt summary
Copyright © Dell Inc. All Rights Reserved. 28 Debt summary
Slide 29 — DFS summary
Copyright © Dell Inc. All Rights Reserved. 29 DFS summary
Slide 30 — Appendix B
Appendix B Supplemental non-GAAP measures
Slide 31 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 31 Supplemental non-GAAP measures Gross margin
Slide 32 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 32 Supplemental non-GAAP measures Selling, general, and administrative; research and development; and operating expense
Slide 33 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 33 Supplemental non-GAAP measures Operating income
Slide 34 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 34 Supplemental non-GAAP measures Interest and other
Slide 35 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 35 Supplemental non-GAAP measures Net income
Slide 36 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 36 Supplemental non-GAAP measures Net income attributable to Dell Technologies Inc.
Slide 37 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 37 Supplemental non-GAAP measures Earnings per share - basic and diluted
Slide 38 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 38 Supplemental non-GAAP measures Adjusted EBITDA
Slide 39 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 39 Supplemental non-GAAP measures Adjusted free cash flow
Slide 40 — Supplemental non-GAAP measures
Copyright © Dell Inc. All Rights Reserved. 40 Supplemental non-GAAP measures Adjusted free cash flow
Slide 41 — Supplemental FY20 - FY24 non-GAAP Measures
Copyright © Dell Inc. All Rights Reserved. 41 Supplemental FY20 - FY24 non-GAAP Measures
Slide 42 — Appendix C
Appendix C Supplemental Financial Statements
Slide 43 — Balance Sheet
Copyright © Dell Inc. All Rights Reserved. 43 Balance Sheet Assets
Slide 44 — Balance Sheet
Copyright © Dell Inc. All Rights Reserved. 44 Balance Sheet Liabilities and equity
Slide 45 — Appendix D
Appendix D Guidance
Slide 46 — Supplemental non-GAAP Measures
Copyright © Dell Inc. All Rights Reserved. 46 Supplemental non-GAAP Measures Financial guidance1