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%.

• Operating income for FY25 was $8.5 billion (non-GAAP) and $6.2 billion (GAAP), with net income up 36% to $4.6 billion.

• AI business momentum: $9.8 billion in FY25 AI server shipments, $9 billion AI server backlog, and a growing enterprise customer base.

• Returned $3.9 billion to shareholders in FY25, announced an 18% dividend increase to $2.10 per share, and a $10 billion share repurchase authorization.

• Q4 revenue was $23.9 billion, up 7%, with non-GAAP EPS of $2.68, up 18%, and GAAP EPS of $2.15, up 30%.

Financial highlights

• FY25 gross margin was $21.3 billion (23.8% of revenue); Q4 gross margin was $5.8 billion (24.3%).

• Q4 operating income was $2.7 billion (non-GAAP, up 22%) and $2.2 billion (GAAP, up 40%); Q4 net income was $1.9 billion (non-GAAP, up 15%) and $1.5 billion (GAAP, up 27%).

• FY25 cash flow from operations was $4.5 billion; ended with $5.2 billion in cash and investments.

• Core leverage ratio improved to 1.2x, below long-term target.

• Adjusted EBITDA for FY25 was $11.1 billion.

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; GAAP EPS expected to grow 23%.

• Q1 FY26 revenue guidance: $22.5–$23.5 billion; non-GAAP EPS $1.65 ± $0.10, up 25% at midpoint.

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