Dell Technologies(DELL) - 2025 Q1 - Quarterly Results

Financial Performance - Dell Technologies reported first quarter fiscal 2025 revenue of $22.2 billion, representing a 6% increase year over year[2]. - Operating income decreased by 14% to $920 million, while non-GAAP operating income fell 8% to $1.5 billion[2][5]. - Total consolidated net revenue for the three months ended May 3, 2024, was $22,244 million, representing a 6% increase compared to $20,922 million for the same period in 2023[39]. - Net income for the three months ended May 3, 2024, was $955 million, a 65% increase from $578 million in the same period last year[39]. - Non-GAAP operating income decreased by 8% to $1,474 million, with a non-GAAP operating margin of 6.6% compared to 7.6% in the prior year[39]. Revenue Breakdown - The Infrastructure Solutions Group (ISG) generated $9.2 billion in revenue, up 22% year over year, with servers and networking revenue reaching a record $5.5 billion, up 42%[4][6]. - Client Solutions Group (CSG) revenue remained flat at $12.0 billion, with commercial client revenue increasing by 3% to $10.2 billion, while consumer revenue declined by 15% to $1.8 billion[4][7]. - Infrastructure Solutions Group (ISG) net revenue increased by 22% to $9,227 million, driven by a 42% increase in servers and networking revenue[29]. - Client Solutions Group (CSG) net revenue remained stable at $11,967 million, with commercial revenue increasing by 3% while consumer revenue decreased by 15%[29]. Earnings and Shareholder Returns - Diluted earnings per share increased by 67% to $1.32, while non-GAAP diluted earnings per share decreased by 3% to $1.27[4][5]. - Dell returned $1.1 billion to shareholders through share repurchases and dividends, ending the quarter with $7.3 billion in cash and investments[3]. - The company repurchased $700 million of common stock during the quarter, compared to $240 million in the same period last year[26]. - Non-GAAP earnings per share (diluted) was $1.27, a decrease of 3% from $1.31 in the prior year[39]. Cash Flow and Assets - Dell's cash flow from operations for the last 12 months was $7.9 billion, demonstrating strong cash generation capabilities[3]. - Cash flows from operating activities generated $1,043 million, down from $1,777 million in the previous year[26]. - Total current assets decreased to $34,627 million from $35,947 million, primarily due to a reduction in cash and cash equivalents[24]. - Total liabilities decreased to $82,913 million from $84,398 million, reflecting a reduction in current liabilities[24]. - Free cash flow declined to $457 million, representing a 58% decrease compared to $1,079 million in the same period last year[48]. - Adjusted free cash flow was $623 million, a 9% decrease from $687 million year-over-year[48]. - Capital expenditures and capitalized software development costs netted at $(586) million, down from $(698) million[48]. AI and Innovation - AI-optimized server orders increased sequentially to $2.6 billion, with shipments up more than 100% to $1.7 billion and backlog growing more than 30% to $3.8 billion[8]. - The Dell AI Factory was introduced, combining infrastructure and solutions optimized for AI workloads with partners like NVIDIA and Microsoft[9]. - New AI PCs, Copilot+ powered by Qualcomm Snapdragon processors, were launched, enhancing battery life and AI performance[9]. Other Financial Metrics - Cash flow from operations decreased to $1,043 million, down 41% from $1,777 million year-over-year[48]. - Financing receivables showed a positive impact of $165 million, contrasting with a negative impact of $(367) million in the previous year[49]. - Equipment under operating leases recorded a net change of $1 million, compared to a decrease of $(25) million previously[49].