Q2 2025 Dell Technologies Inc Earnings Call Transcript
Key Points
- Dell Technologies Inc (DELL) reported a 9% increase in revenue to $25 billion, with record performance in servers and networking.
- Diluted EPS rose by 9% to $1.89, and cash flow from operations was $1.3 billion.
- AI momentum accelerated, with $3.1 billion in AI server shipments and a healthy AI server backlog of $3.8 billion.
- Dell IP core storage demand grew double digits, indicating strong performance in products like PowerMax, PowerScale, PowerStore, and PowerProtect Data Domain.
- Dell Financial Services originations increased by 5% to $2.4 billion, showing strong interest in customer payment solutions.
- Gross margin decreased by 230 basis points to 21.8% of revenue due to an increase in AI optimized server mix and a competitive pricing environment.
- Storage revenue declined by 5%, impacted by headwinds in the partner IP portion of the HCI portfolio.
- Consumer revenue in the CSG segment fell by 22%, reflecting a challenging market environment.
- Dell took a $328 million charge for workforce reductions as part of its optimization efforts.
- The competitive environment and inflationary input costs are expected to continue impacting gross margin rates.
Good afternoon, and welcome to the fiscal year 2025 second quarter financial results conference call for Dell Technologies Inc. I'd like to inform all participants, this call is being recorded at the request of Dell Technologies. This broadcast is a copyrighted property of Dell Technologies Inc. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. (Operator Instructions)
I'd like to turn the call over to Rob Williams, Head of Investor Relations. Mr. Williams, you may begin.
Thanks, everyone, and thanks for joining us. With me today are Jeff Clarke, Yvonne McGill, and Tyler Johnson. Our earnings materials are available on our IR website, and I encourage you to review these materials and the presentation, which includes additional content to complement our discussion this afternoon. Guidance will be covered on today's call.
During this call, unless otherwise indicated, all references to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
