The chart below shows how DELL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DELL sees a -2.26% change in stock price 10 days leading up to the earnings, and a -0.82% change 10 days following the report. On the earnings day itself, the stock moves by -1.23%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Year-over-Year Revenue Increase: Revenue growth of 8% year-over-year, reaching $95.6 billion for FY '25.
Strong Profitability Increase: Operating income increased to $8.5 billion, demonstrating strong profitability.
Record EPS Achievement: Record EPS of $8.14, up 10% year-over-year, indicating effective cost management and revenue growth.
Strong Cash Generation: Cash flow from operations was $4.5 billion, showcasing strong cash generation capabilities.
Q4 Revenue Surge: ISG revenue grew 22% in Q4, driven by strong demand for servers and storage solutions.
AI Demand and Backlog: AI orders demand reached $1.7 billion in Q4, with a backlog of $9 billion, highlighting strong market positioning in AI.
Storage Demand Growth: PowerStore and PowerScale saw double-digit demand growth, indicating strong product performance in storage.
Commercial PC Revenue Growth: Commercial PC revenue grew 5%, marking the second consecutive quarter of growth, signaling recovery in the market.
Dividend Increase Announcement: Announced an 18% increase in annual dividend to $2.10 per share, reflecting confidence in future performance.
FY '26 Revenue Guidance: Guidance for FY '26 revenue growth of 8%, with expectations for continued growth in ISG and CSG segments.
Negative
Q4 Revenue Growth Analysis: Revenue growth of 7% in Q4 was primarily driven by ISG, while CSG saw only 1% growth, indicating a slowdown in consumer demand.
Consumer Revenue Decline: Consumer revenue decreased by 12%, highlighting ongoing challenges in the consumer market and a competitive pricing environment.
Gross Margin Decline Factors: Gross margin declined by 50 basis points due to increased competition in CSG and a shift towards AI-optimized server mix, which may affect profitability.
Operating Income Rate Decline: Operating income rate for CSG decreased by 90 basis points sequentially, reflecting weaker-than-expected profitability in the commercial segment.
Demand Environment Challenges: Despite strong performance in ISG, the overall demand environment is lagging behind traditional servers, indicating potential future challenges.
Gross Margin Decline Forecast: The company expects a decline in gross margin rate by roughly 100 basis points in FY '26 due to a higher mix of AI-optimized servers and competitive pressures.
Liquidity Concerns in Operations: Cash flow from operations was only $0.6 billion, indicating potential liquidity concerns amid working capital challenges.
High Inventory Concerns: Inventory levels were high at $6.7 billion, which could signal overstocking or reduced demand for certain products.
Dell Technologies Inc. (DELL) Q4 2025 Earnings Call Transcript
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