Dell Technologies(US:DELL)2025-11-25 21:10Financial Performance - Record Q3 revenue of $27 billion, up 11% year over year, with record Q3 profitability and strong cash generation [2] - Full-year FY26 revenue expected between $111.2 billion and $112.2 billion, representing a 17% increase year over year [6] - Operating income for Q3 was $2.119 billion, up 23% year over year [7] - Total net revenue for the three months ended October 31, 2025, was $27,005 million, representing an 11% increase compared to $24,366 million for the same period in 2024 [21] - Total consolidated net revenue for the three months ended October 31, 2025, was $27,005 million, an increase of 11% compared to $24,366 million for the same period in 2024 [30] - Infrastructure Solutions Group (ISG) net revenue reached $14,107 million, a 24% increase from $11,368 million year-over-year [30] - Client Solutions Group (CSG) total net revenue was $12,478 million, reflecting a 3% increase from $12,131 million in the prior year [30] Earnings and EPS - GAAP diluted EPS expected to be $8.38 at the midpoint, up 31% year over year, and non-GAAP diluted EPS to be $9.92, up 22% [6] - Non-GAAP diluted EPS for Q3 was $2.59, an increase of 17% year over year [7] - Earnings per share attributable to Dell Technologies Inc. increased by 39% to $2.28 for the three months ended October 31, 2025, and by 26% to $5.34 for the nine months ended [46] - Non-GAAP earnings per share attributable to Dell Technologies Inc. is projected to be $3.50 for the three months ending January 30, 2026, and $9.92 for the fiscal year ending January 30, 2026 [53] Cash Flow and Returns - Capital return to shareholders in Q3 amounted to $1.6 billion, with a total of $5.3 billion returned year to date [3] - Free cash flow decreased by 45% to $506 million for the three months ended October 31, 2025, but increased by 122% to $4.602 billion for the nine months ended [50] - Adjusted free cash flow rose by 133% to $1.67 billion for the three months ended October 31, 2025, and by 145% to $6.42 billion for the nine months ended [50] - Cash flow from operations decreased by 25% to $1.172 billion for the three months ended October 31, 2025, while it increased by 65% to $6.511 billion for the nine months ended [50] Orders and Shipments - AI shipment guidance raised to approximately $25 billion, reflecting over 150% year-over-year growth [2] - Record AI server orders of $12.3 billion in Q3, with total orders year to date reaching $30 billion [2] Expenses and Margins - The gross margin for the three months ended October 31, 2025, was 20.7%, down from 22.0% in the same period last year [21] - Research and development expenses increased by 1% to $752 million for the three months ended October 31, 2025 [21] - Non-GAAP gross margin for the three months ended October 31, 2025, was $5,686 million, a 4% increase from $5,490 million in the same quarter of 2024 [38] - Non-GAAP operating income for the three months ended October 31, 2025, was $2,503 million, an 11% increase from $2,252 million year-over-year [38] - Non-GAAP net income for the three months ended October 31, 2025, was $1,762 million, reflecting an 11% increase from $1,583 million in the prior year [38] Assets and Liabilities - Total assets increased to $87,479 million as of October 31, 2025, up from $79,746 million as of January 31, 2025 [23] - Total liabilities rose to $90,099 million as of October 31, 2025, compared to $81,133 million as of January 31, 2025 [23] Interest and Other Expenses - The company reported a 36% decrease in interest and other net expenses, totaling $(178) million for the three months ended October 31, 2025, compared to $(276) million in the same period last year [21]