Dell Technologies(DELL) - 2025 Q4 - Annual Results

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]