Dell Technologies (DELL) Q4 2025 earnings summary

Executive summary

• FY25 revenue reached $95.6 billion, up 8% year-over-year, with record non-GAAP EPS of $8.14 (up 10%) and GAAP EPS of $6.38 (up 39%).

• Q4 revenue was $23.9 billion, up 7%, with operating income up 40% and net income up 27%.

• AI business grew to $10 billion in FY25, with a robust pipeline and backlog, and is expected to reach at least $15 billion in FY26.

• Returned $3.9 billion to shareholders in FY25, increased annual dividend by 18%, and announced $10 billion share repurchase authorization.

• Board approved significant capital return actions, with operational excellence and innovation investment as key focuses.

Financial highlights

• Q4 gross margin was $5.8 billion (24.3% of revenue), down 50 bps due to competitive pricing and higher AI server mix.

• Q4 operating income rose 22% to $2.7 billion (11.2% of revenue); net income up 15% to $1.9 billion; diluted EPS up 18% to $2.68.

• FY25 cash flow from operations was $4.5 billion; Q4 cash flow was $0.6 billion, impacted by inventory investments.

• Adjusted EBITDA for Q4 FY25 was $3.29 billion (13.7% of revenue); FY25 adjusted EBITDA was $11.1 billion.

• Gross margin for the year was $21.3 billion (22.2% of revenue); FY25 non-GAAP operating margin was 8.9%.

Outlook and guidance

• FY26 revenue expected between $101–$105 billion (midpoint $103 billion, up 8%).

• ISG projected to grow high teens, driven by $15 billion in AI server shipments; CSG to grow low to mid single digits, weighted to H2.

• FY26 non-GAAP EPS expected at $9.30 ± $0.25, up 14% at midpoint; Q1 revenue guidance $22.5–$23.5 billion.

• Gross margin rate expected to decline ~100 bps in FY26 due to higher AI server mix and competition.

• FY26 GAAP diluted EPS expected to grow 23%.