Tue, Jun 10, 8:32 PM (6 days ago)
**Dell Technologies Inc. (DELL) Q1 2026 Financial Summary** **Financial Health & Performance:** - **Revenue:** $23.4 billion, up 5% YoY. - **Net Income:** $965 million, down 3% YoY. - **Earnings per Share (EPS):** $1.37 (diluted), flat YoY. - **Cash Flow from Operations:** $2.8 billion, up 168% YoY. **Profit Margins:** - **Gross Margin:** 21.1%, down 70 bps YoY. - **Operating Margin:** 5.0%, up 70 bps YoY. **Cash Flow & Earnings Changes:** - **Free Cash Flow:** $2.2 billion, up 388% YoY. - **Adjusted Free Cash Flow:** $2.2 billion, up 258% YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). - **Margin Pressure:** Competitive pricing in CSG and mix shift in ISG. - **Cost Management:** Continued disciplined cost management led to operating expense reduction. **Trends & Uncertainties:** - **AI Demand:** Strong demand for AI-optimized servers. - **Supply Chain:** Increased inventory levels due to AI component purchases. - **Economic Uncertainty:** Potential near-term demand moderation due to macroeconomic environment. **Future Operations Impact:** - **Revenue Growth:** Expected to be driven by ISG and CSG. - **Margin Growth:** Balancing profitability and growth while maintaining disciplined pricing. - **Cost Management:** Continued reductions in operating expenses and headcount. **Segment Performance:** - **ISG:** Net revenue up 12%, operating income up 36%. - **CSG:** Net revenue up 5%, operating income down 16%. **Cash & Debt:** - **Cash Position:** $7.8 billion. - **Debt:** $28.8 billion, up $4.2 billion QoQ due to Senior Notes issuance. **Valuation (as of May 2, 2025):** - **Market Cap:** Approximately $35 billion (assuming a share price of $50). - **Enterprise Value:** Approximately $64 billion (including debt and excluding cash). **Ticker:** DELL **Note:** Amounts are in thousands, 000s.