Financial Data and Key Metrics Changes - FY '25 revenue was $95.6 billion, up 8% year-over-year, with operating income of $8.5 billion [10] - Operating expenses were reduced by 4%, resulting in record EPS of $8.14, up 10%, and cash flow of $4.5 billion [11][50] - Q4 revenue was $23.9 billion, up 7%, with net income up 15% to $1.9 billion [16][30] Business Line Data and Key Metrics Changes - ISG revenue was $11.4 billion, up 22%, with servers and networking revenue at a record $6.6 billion, up 37% [31] - CSG revenue was up 1% to $11.9 billion, with commercial revenue up 5% and consumer revenue down 12% [35] - PowerStore saw strong demand growth for four consecutive quarters, with double-digit growth in the last three quarters [22][32] Market Data and Key Metrics Changes - AI orders demand in Q4 was $1.7 billion, with $2.1 billion in shipments and a backlog of $4.1 billion [17] - The AI hardware and services total addressable market (TAM) is expected to nearly double to $295 billion by 2027, growing at a 33% CAGR [25] - The installed base of PCs is aging, with a significant opportunity for a broader PC refresh as Windows 10 approaches end of life [24][138] Company Strategy and Development Direction - The company is focused on leveraging strengths in AI, traditional servers, and storage to capture new growth opportunities [25][50] - A significant pivot to Dell IP storage is underway, with a focus on disaggregated architectures in storage [22][113] - The company aims to simplify branding and broaden silicon options across Intel, AMD, and Qualcomm to prepare for the PC refresh [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities driven by AI, data center modernization, and PC refresh cycles [42][43] - The competitive environment is acknowledged, with expectations of flat to slightly declining margins in certain segments [46][60] - The company is modernizing operations to improve efficiency and drive innovation while reducing operating expenditures [129][130] Other Important Information - The company returned $1.1 billion to shareholders through stock repurchases and dividends, with an 18% increase in the annual dividend to $2.10 per share [40] - A $10 billion increase in share repurchase authorization was approved by the Board of Directors, reflecting confidence in the business [41] Q&A Session Summary Question: Can you discuss the fiscal '26 guidance and assumptions? - Management guided to a midpoint revenue of $103 billion, with ISG expected to grow in the high teens and CSG in the mid-single digits [56][57] Question: What are the risks of ODM encroachment in the AI server market? - Management acknowledged the presence of ODMs but emphasized Dell's engineering capabilities and differentiated solutions as key competitive advantages [65][70] Question: What is the company's exposure to the U.S. federal government? - Management indicated that while they do business with the federal government, they are confident in their ability to navigate budget cycles and demand for technology [75][78] Question: Can you elaborate on the free cash flow expectations for fiscal '26? - Management noted that free cash flow was impacted by lower-than-expected growth in CSG and increased investment in AI, but they expect improvements in FY '26 [126][128] Question: What is the confidence level regarding the PC refresh? - Management expressed optimism about the upcoming PC refresh driven by aging installed bases and the end of Windows 10 support [137][141]

Dell Technologies showcased robust earnings performance, exceeding EPS estimates despite missing revenue estimates.Dell Technologies (DELL -6.76%), a leading provider of IT solutions, reported mixed fiscal 2025 fourth-quarter results on Thursday, Feb. 27. Adjusted EPS of $2.68 surpassed analyst's consensus expectations of $2.52. However, revenue fell slightly short of estimates, landing at $23.9 billion against a forecast of $24.57 billion. Overall, Dell's performance highlighted its operational efficiency, ...

Dell Technologies (DELL) came out with quarterly earnings of $2.68 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.93%. A quarter ago, it was expected that this computer and technology services provider would post earnings of $2.06 per share when it actually produced earnings of $2.15, delivering a surprise of 4.37%.Over th ...

Group 1 - Dell reported fiscal fourth-quarter adjusted earnings of $1.91 billion, or $2.68 per share, an increase from $1.66 billion, or $2.27 per share, a year earlier, exceeding analysts' expectations [2] - Revenue for the quarter was $23.9 billion, up 7% year-over-year, although it slightly missed analyst consensus [2] - The revenue growth was driven by a 37% increase in servers and networking revenue, reaching $6.6 billion, fueled by demand for AI and traditional servers [2] Group 2 - Dell is reportedly nearing a deal to sell over $5 billion worth of servers powered by Nvidia chips to Elon Musk's AI company, xAI, continuing their partnership [3] - The company has a strong outlook for AI, with a backlog of AI server orders amounting to approximately $9 billion [4] - Dell forecasts fiscal 2026 revenue between $101 billion and $105 billion, with adjusted EPS of $9.30, compared to analysts' expectations of $103.81 billion in revenue and adjusted EPS of $9.28 [4] Group 3 - Following the earnings release, Dell's shares rose by 2% in extended trading and have gained about 14% over the past year [5]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research and understand the risks involved before investing in any financial instruments [1].

Michael Dell, chairman and chief executive officer of Dell Inc., speaks during the Dell Technologies World conference in Las Vegas, Nevada, US, on Monday, May 20, 2024.Dell reported fourth-quarter sales that fell short of analysts' estimates but earnings topped Wall Street expectations. Here's how the hardware company did versus LSEG consensus estimates:Revenue: $23.9 billion, versus $24.55 billion estimatedEPS: $2.68, adjusted, versus $2.53 estimated.Dell shares are down less than 5% so far in 2025, but th ...

Financial Performance - Full-year revenue reached $95.6 billion, an 8% increase year over year[3] - Full-year operating income was $6.2 billion, up 15% year over year, with non-GAAP operating income at $8.5 billion, up 8%[3] - Record diluted earnings per share (EPS) of $6.38, a 39% increase year over year, and non-GAAP diluted EPS of $8.14, up 10%[3] - Fourth-quarter revenue was $23.9 billion, a 7% increase year over year, with operating income of $2.2 billion, up 40% year over year[3] - Fourth-quarter Servers and Networking revenue was $6.6 billion, up 37%, driven by AI and traditional server demand[7] - Non-GAAP operating income for the three months ended January 31, 2025, was $2,674 million, a 22% increase from $2,195 million year-over-year[41] - Non-GAAP net income for the three months ended January 31, 2025, was $1,911 million, reflecting a 15% increase from $1,660 million in the previous year[41] - Non-GAAP earnings per share for the three months ended January 31, 2025, was $2.68, an 18% increase from $2.27 in the same period last year[41] - Non-GAAP net income for the fiscal year 2025 was $5,865 million, an 8% increase from $5,422 million in fiscal year 2024[45] - Earnings per share attributable to Dell Technologies Inc. for the three months ended January 31, 2025, was $2.15, a 30% increase from $1.66 in the same period last year[47] Revenue Breakdown - Infrastructure Solutions Group revenue grew by 22% in Q4, with AI server backlog at approximately $9 billion[3] - Product revenue increased by 12% to $18,049 million, while services revenue decreased by 5% to $5,882 million for the same three-month period[25] - Infrastructure Solutions Group (ISG) net revenue increased by 22% to $11,352 million compared to $9,332 million in the prior year[31] - Client Solutions Group (CSG) total net revenue grew by 1% to $11,881 million, with commercial revenue up 5% but consumer revenue down 12%[31] Cash Flow and Assets - Cash flows from operating activities showed a change of $585 million for the three months ended January 31, 2025, compared to $1,533 million in the prior year[29] - The company reported a total cash, cash equivalents, and restricted cash balance of $3,819 million at the end of the period, down from $7,507 million at the beginning[29] - Total current assets increased to $36,229 million as of January 31, 2025, compared to $35,984 million as of February 2, 2024[27] - Cash and cash equivalents decreased significantly to $3,633 million from $7,366 million[27] - Adjusted free cash flow for the fiscal year 2025 was $3,097 million, a 45% decrease from $5,607 million in fiscal year 2024[53] Liabilities and Equity - Total liabilities decreased to $81,133 million from $84,258 million year-over-year[27] - The company’s long-term debt increased slightly to $19,363 million from $19,012 million[27] - The reportable segment operating income for the same period was $2,051 million, compared to $2,018 million in the previous year, showing a slight increase of 2%[67] - The company reported an accumulated deficit of $(4,630) million, which was revised to $(4,453) million after adjustments, a positive change of $177 million[76] - Total stockholders' equity deficit improved from $(2,309) million to $(2,132) million, reflecting a positive adjustment of $177 million[76] Future Guidance - FY26 guidance includes full-year revenue growth of 8%, diluted EPS growth of 23%, and non-GAAP diluted EPS growth of 14%[3] - Full-year FY26 revenue is expected between $101.0 billion and $105.0 billion, with GAAP diluted EPS expected to be $7.85, up 23% year over year[8] - The company projects diluted earnings per share of $1.29 for the three months ending May 2, 2025, and $7.85 for the fiscal year ending January 30, 2026[58] - Non-GAAP earnings per share attributable to Dell Technologies Inc. is expected to be $1.65 for the three months ending May 2, 2025, and $9.30 for the fiscal year ending January 30, 2026[58] Dividend and Share Repurchase - The company announced an 18% increase in annual cash dividend to $2.10 per share and a $10 billion increase in share repurchase authorization[5] Adjustments and Misstatements - The company identified a misstatement impacting the Client Solutions Group segment, overstating cost of goods sold by approximately $200 million in fiscal 2024 and $148 million in fiscal 2025[11]

Core Viewpoint - Dell Technologies Inc is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of $2.53 and revenues of $24.56 billion, indicating a strong market interest in the upcoming results [1] Stock Performance - Dell stock has increased by 26.31% over the past year but has seen a slight decline of 0.76% year-to-date [1] - The stock is currently trading at $112.85, with analysts projecting a price target of $134.05, suggesting a potential upside of 24% [6] Technical Analysis - The stock is exhibiting a strongly bullish trend, trading above its five-day, 20-day, and 50-day exponential moving averages, indicating sustained buying pressure [2] - The Moving Average Convergence Divergence (MACD) indicator at 0.94 supports a bullish outlook, while the 20-day and 50-day simple moving averages (SMA) at $111.04 and $112.98 indicate continued strength in the short- to mid-term [3] - However, the eight-day SMA at $116.52 presents a bearish signal, suggesting near-term resistance, and the 200-day SMA at $122.99 indicates a longer-term downtrend, which could hinder sustained gains [4] Investor Sentiment - The Relative Strength Index (RSI) of 49.90 places Dell stock in neutral territory, indicating it is neither overbought nor oversold, with potential buying opportunities if the stock dips toward the 50-day SMA [5]

Core Viewpoint - Dell's stock has underperformed since November due to market concerns about a slowdown in AI data center construction, but the company is positioned to benefit from the shift towards inference computing, suggesting potential upside for its stock price [1][10]. Group 1: Market Concerns and Opportunities - The market is worried about the efficiency of AI chips leading to a slowdown in GPU demand, which could impact sales growth expectations for companies like Dell [1]. - Despite concerns, key factors are shifting favorably for Dell, particularly in the inference computing space, which is expected to perform well [1][10]. - The transition from pre-training to inference computing is anticipated to happen faster than expected, with more cost-effective data centers supporting AI inference [3][10]. Group 2: Strategic Partnerships - Dell has partnered with AMD to integrate Ryzen AI PRO processors into new Dell Pro devices, marking a significant milestone in their strategic collaboration [4]. - AMD's CEO highlighted that the total cost of ownership (TCO) for AMD's inference computing solutions is significantly lower than Nvidia's, which could benefit Dell in both PC and server markets [4][9]. Group 3: Financial Performance Expectations - Dell is expected to report solid earnings and revenue growth in its upcoming Q4 financial results, with analysts predicting a 14.46% year-over-year increase in earnings per share (EPS) to $2.52 [5]. - Revenue forecasts for Q4 are set at $24.57 billion, indicating a 10.09% year-over-year growth, with a consensus among analysts on the earnings estimates [5][6]. Group 4: Valuation Metrics - Dell's non-GAAP expected price-to-earnings (P/E) ratio is 14.50, significantly lower than the industry median of 23.87, indicating a 39.26% discount [9]. - The expected price-to-sales (P/S) ratio for Dell is 0.83, which is 73.43% lower than the industry median of 3.11, suggesting strong valuation metrics [9]. Group 5: Future Growth Catalysts - Dell is projected to benefit from a $5 billion deal with Elon Musk's xAI and an anticipated $4 billion increase in AI server shipments from FY 2024 to FY 2025 [8][9]. - The shift towards inference computing is expected to catalyze Dell's next growth phase, supported by recent strategic agreements [11].

Group 1 - The account is managed by Noah's Arc Capital Management, focusing on 20th century stocks undergoing transformation in the 21st century [1] - The research aims to identify innovations in business models that could lead to significant stock changes [1] Group 2 - The main author, Noah Cox, is the managing partner of Noah's Arc Capital Management, and his views may not reflect the firm's overall stance [3] - The article is intended solely for informational purposes and does not constitute investment advice [3]