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This management’s discussion and analysis should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in this Annual Report on Form 10-K.
−Removed: This section of this Annual Report on Form 10-K generally discusses Fiscal 2025 and Fiscal 2024 items.
−Removed: This section also discusses Fiscal 2024 and Fiscal 2023 results, as the Company revised its Fiscal 2024 items to correct for a misstatement in its financial statements discovered during the fourth quarter of Fiscal 2025.
−Removed: The revisions ensure comparability across all periods reflected herein.
−Removed: For additional information, see Note 1 and Note 22 of the Notes to the Consolidated Financial Statements included in this report.
+Added: This section generally discusses Fiscal 2026 results compared to Fiscal 2025 results.
+Added: Discussion of Fiscal 2025 results compared to Fiscal 2024 results, to the extent not included in this Form 10-K, are presented in “Part II — Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025.
In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs, and that are subject to numerous risks and uncertainties.
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Unless otherwise indicated, all changes identified for the current-period results represent comparisons to results for the prior corresponding fiscal period.
−Removed: Unless the context indicates otherwise, references in this report to “we,” “us,” “our,” the “Company,” and “Dell Technologies” mean Dell Technologies Inc.
−Removed: and its consolidated subsidiaries, references to “Dell” mean Dell Inc.
−Removed: and Dell Inc.’s consolidated subsidiaries, and references to “EMC” mean EMC Corporation and EMC Corporation’s consolidated subsidiaries.
+Added: Unless the context indicates otherwise, references in this management’s discussion and analysis to “we,” “us,” “our,” the “Company,” and “Dell Technologies” mean Dell Technologies Inc.
+Added: and its consolidated subsidiaries.
Our fiscal year is the 52- or 53-week period ending on the Friday nearest January 31.
−Removed: We refer to our fiscal years ended January 31, 2025, February 2, 2024, and February 3, 2023 as “Fiscal 2025,” “Fiscal 2024,” and “Fiscal 2023,” respectively.
−Removed: Both Fiscal 2025 and Fiscal 2024 included 52 weeks, while Fiscal 2023 included 53 weeks.
+Added: We refer to our fiscal years ended January 30, 2026, January 31, 2025, and February 2, 2024 as “Fiscal 2026,” “Fiscal 2025,” and “Fiscal 2024,” respectively.
+Added: All fiscal years presented included 52 weeks.
+Added: We refer to our fiscal year ending January 29, 2027 as “Fiscal 2027.”
Company Overview
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Infrastructure Solutions Group and Client Solutions Group.
−Removed: • Infrastructure Solutions Group (“ISG”) — ISG includes our servers and networking offerings and our storage offerings.
−Removed: Our server portfolio includes high-performance general-purpose and AI-optimized servers.
−Removed: Our networking portfolio includes wide area network infrastructure, data center and edge networking switches, and cables and optics.
−Removed: Our comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage.
+Added: Infrastructure Solutions Group (“ISG”) — We provide a comprehensive portfolio of advanced infrastructure solutions designed to help customers simplify, streamline, and automate information technology (“IT”) operations.
ISG also offers software, peripherals, and services, including consulting and support and deployment.
−Removed: • Client Solutions Group (“CSG”) — CSG includes offerings designed for commercial and consumer customers.
−Removed: Our CSG portfolio includes branded PCs, including notebooks, desktops, and workstations, branded peripherals, and third-party software and peripherals.
+Added: Given the scale and growth of our AI-optimized servers business, effective in the fourth quarter of Fiscal 2026, we disaggregated our servers and networking offerings within revenue by major product category into AI-optimized servers offerings and traditional servers and networking offerings.
+Added: As a result, our major product categories within ISG include our AI-optimized servers offerings, our traditional servers and networking offerings, and our storage offerings.
+Added: • AI-optimized servers — We offer a specialized portfolio of AI-optimized servers designed to handle the most demanding compute-intensive workloads, including AI model training, fine-tuning, and inferencing.
+Added: • Traditional servers and networking — Our traditional servers portfolio provides the trusted foundation for modern IT environments, supporting a wide range of general-purpose and mission-critical workloads.
+Added: Our networking portfolio helps our business customers transform and modernize their infrastructure, complementing our storage and AI-optimized and traditional servers offerings, and includes wide area network infrastructure, data center and edge networking switches, and cables and optics.
+Added: • Storage — Our comprehensive storage portfolio includes modern and traditional storage solutions that span primary, unstructured and data protection offerings and are delivered through multiple architectures, including all-flash, purpose-built, software-defined, and hyper-converged infrastructure platforms.
+Added: Client Solutions Group (“CSG”) — Our CSG portfolio includes branded personal computers (“PCs”), including notebooks, desktops, and workstations, branded peripherals, and third-party software and peripherals.
CSG also includes services offerings, such as configuration, support and deployment, and extended warranties.
−Removed: Our other businesses primarily consist of our resale of standalone offerings of VMware LLC (formerly VMware, Inc.
+Added: Our major product categories within CSG include our commercial offerings and consumer offerings.
+Added: • Commercial — Our commercial portfolio provides customers with solutions centered on flexibility to address their complex needs such as IT modernization, hybrid work transformation, and other critical areas.
+Added: • Consumer — Our consumer portfolio provides customers with solutions ranging from essential computing, connectivity, and productivity needs of the everyday user to powerful performance, processing, and end-user experiences in high-end consumer and gaming offerings.
+Added: Our other businesses primarily consist of our historical resale of standalone offerings of VMware LLC (formerly VMware, Inc.
and individually and together with its subsidiaries, “VMware”), referred to as “VMware Resale,” and offerings of SecureWorks Corp.
−Removed: (“Secureworks”).
+Added: (“Secureworks”) through the date of the sale of Secureworks as discussed below.
These businesses are divested businesses or their offerings are no longer actively sold, and are not classified as reportable segments, either individually or collectively.
Their operating results are reported within Corporate and other.
−Removed: On October 21, 2024, Secureworks announced that it had entered into a definitive agreement providing for its sale to Sophos Inc., an affiliate of Thoma Bravo, L.P., a private equity and growth capital firm.
−Removed: The transaction was completed on February 3, 2025, subsequent to the close of the Company’s fiscal year ended January 31, 2025, in an all-cash transaction for a purchase price of approximately $0.9 billion.
+Added: On February 3, 2025, the sale of Secureworks to Sophos Inc., an affiliate of Thoma Bravo, L.P., was completed in an all-cash transaction for a purchase price of approximately $0.9 billion.
+Added: We received total cash consideration for the equity interest held in Secureworks of approximately $0.6 billion, resulting in a gain on sale of $0.2 billion recognized in interest and other, net in the Consolidated Statements of Income during Fiscal 2026.
For further discussion regarding our current reportable segments, see “Results of Operations — Business Unit Results” and Note 18 of the Notes to the Consolidated Financial Statements included in this report.
−Removed: We offer customers choice in how they acquire our solutions, including traditional purchasing and offerings under the Dell Payment Solutions portfolio.
−Removed: These offerings provide both payment and consumption solutions, including as-a-Service, subscription, utility, leases, and loans, which allow our customers to pay over time and provide them with operational and financial flexibility.
+Added: We offer customers choices in how they acquire our solutions, including traditional purchasing and offerings under the Dell Payment Solutions portfolio.
+Added: These offerings provide both payment and consumption solutions, including utility, subscription, as-a-Service, leases, and loans, which allow our customers to pay over time and provide them with operational and financial flexibility.
Dell Financial Services and its affiliates (“DFS”) support financing solutions and services as part of the portfolio.
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Business Trends and Challenges
−Removed: Fiscal 2025 Significant Developments — During Fiscal 2025, we executed our strategy with strong operating results, generating net revenue and operating income growth.
+Added: During Fiscal 2026, we executed our strategy and delivered exceptional operating results, generating significant net revenue and operating income growth.
The following trends and conditions affected the environment in which we operated:
• Macroeconomic environment:
−Removed: The demand environment was strong for our servers and networking offerings, which contributed to overall net revenue growth.
−Removed: Additionally, we saw modest demand improvement in our commercial offerings within CSG.
−Removed: Given the demand dynamics for the year, we experienced a shift in the mix of the business towards our ISG offerings.
−Removed: • Demand for AI-optimized solutions:
−Removed: Our ISG business continued to benefit from increased demand for AI-optimized solutions as customers continue to adopt and further integrate AI into their operations.
−Removed: As a result of the continued strong demand for our AI-optimized servers, backlog levels for such offerings remained elevated as we exited the fiscal year.
−Removed: • Supply chain:
−Removed: Notwithstanding the increased demand for AI-optimized solutions, our supply chain continued to operate efficiently.
−Removed: We experienced a modest increase in input costs, primarily driven by both component and logistics costs.
−Removed: • Broadcom’s acquisition of VMware:
−Removed: On November 22, 2023, Broadcom Inc.
−Removed: (“Broadcom”) completed its acquisition of VMware, leading to changes to our relationship with VMware as described below.
−Removed: We expect demand growth across our servers and networking offerings and, to a lesser extent, our storage offerings, which we expect will result in ISG net revenue growth in Fiscal 2026.
−Removed: We expect modest CSG net revenue growth for the full fiscal year, driven in part by the anticipated PC refresh cycle in the latter part of Fiscal 2026.
−Removed: Additionally, we expect a continued reduction of our Corporate and other net revenue as we no longer act as a distributor of VMware’s standalone products and services.
−Removed: We expect a modest decline in input costs during the first half of Fiscal 2026.
−Removed: Input cost trends are dependent on the strength or weakness of actual end-user demand and supply dynamics, which will continue to fluctuate and ultimately impact our costs, pricing, and operating results.
−Removed: We remain focused on executing our key strategic priorities, building long-term value creation for our stakeholders, and addressing our customers’ needs while continuing to make prudent decisions in response to the environment.
−Removed: We expect margin rate pressure resulting from a continuing shift in mix towards our AI-optimized servers and a competitive environment.
−Removed: We look to balance profitability and growth while maintaining disciplined pricing as we navigate through competitive pricing pressures.
+Added: We experienced significant demand for our AI-optimized servers offerings and strong demand for our traditional servers and networking offerings, resulting in ISG net revenue growth and a shift in the mix of the business towards our ISG offerings.
+Added: The demand environment was also strong for our commercial offerings, resulting in moderate CSG net revenue growth.
+Added: • Demand for AI-optimized servers:
+Added: Our ISG business continued to benefit from significant increased demand for our AI-optimized servers offerings as customers continue to adopt and further integrate AI, resulting in a substantial increase in backlog as we exited the year.
+Added: Given the scale of the AI opportunities, the varying stages of customer readiness, and the frequency of component part updates or transitions, there is inherent non-linearity in the timing of demand and subsequent shipments for our AI-optimized servers offerings, which continues to drive variability in our revenue.
+Added: • Technology refresh in core markets:
+Added: Within our ISG business, we continue to see customers modernize and consolidate their data centers as more customers transition to next-generation products, which contributed to strong demand and net revenue growth during the year within our traditional servers and networking offerings.
+Added: Additionally, within our CSG business, the PC refresh cycle is underway as customers continue to upgrade their devices, which has contributed to increased demand for our commercial offerings and moderate CSG net revenue growth.
+Added: • Business modernization initiatives:
+Added: We continue to prioritize ongoing modernization initiatives to achieve greater efficiencies and streamline our processes, while also continuing to make strategic investments designed to enable growth and innovation.
+Added: These initiatives have resulted in a continued net reduction in our operating expenses.
+Added: We remain focused on executing our key strategic priorities, creating long-term value for our shareholders, and addressing our customers’ needs.
+Added: We have the following expectations regarding our performance in Fiscal 2027:
+Added: We expect significant ISG and modest CSG net revenue growth.
+Added: We expect ISG net revenue growth will be driven by increased demand across our servers and networking offerings, largely in our AI-optimized servers offerings, and, to a lesser extent, our storage offerings.
+Added: We anticipate modest CSG net revenue growth to be driven in part by the continuation of the PC refresh cycle.
+Added: Additionally, we expect a continued reduction of our Corporate and other net revenue due to offerings that are no longer actively sold and businesses that have been divested.
+Added: Overall, while customers continue to reassess their priorities throughout the year driven by the dynamic commodity supply environment, we anticipate net revenue growth for the full fiscal year.
+Added: • Gross margin:
+Added: We expect margin growth, while balancing anticipated margin rate pressure resulting from a continuing shift in mix towards our AI-optimized servers offerings.
+Added: We anticipate notable inflation for component costs in Fiscal 2027 and continue to monitor the rapidly evolving commodity supply environment, leverage the agility and scale of our world-class supply chain, and seek to balance profitability and growth while maintaining disciplined pricing.
+Added: • Operating expenses:
We continue to advance our own capabilities to change the way we work and make decisions, improve business outcomes and the customer experience, and reduce costs by leveraging new technology and optimizing business processes.
−Removed: We remain committed to disciplined cost management in coordination with our ongoing business modernization initiatives and expect continued reductions in operating expenses as we take certain measures to reduce costs, including limitation of external hiring, employee reorganizations, and other actions to align our investments with our strategic priorities and customer needs.
−Removed: We anticipate these actions will result in additional reductions in our overall headcount.
−Removed: We believe our unique operating advantages provide a foundation to foster growth, drive efficiencies, and continue to position us for long-term success.
−Removed: Relationship with VMware — On November 22, 2023, VMware was acquired by Broadcom, and subsequently announced changes to its go-to-market approach for VMware offerings that impacted our commercial relationship with VMware.
−Removed: On March 25, 2024, we terminated our Commercial Framework Agreement with VMware, which provided the framework under which we and VMware continued our commercial relationship following our spin-off of VMware on November 1, 2021.
−Removed: We no longer act as a distributor of Broadcom’s VMware standalone products and services, although we will continue to support customers that have purchased resale offerings sold in prior periods.
−Removed: We continue to integrate and embed certain VMware products and services with selected Dell Technologies’ offerings to end-users, such as through our VxRail solution.
−Removed: The results of such offerings are reflected within CSG or ISG, depending upon the nature of the underlying offering sold.
−Removed: VMware was a related party until the date of its acquisition by Broadcom.
+Added: We remain committed to disciplined cost management in coordination with our ongoing business modernization initiatives, and expect to continue to scale operating expenses as we take targeted measures to reduce costs, including employee reorganizations, limitation of external hiring, and other actions to align our investments with our strategic priorities and customer needs.
+Added: We believe our unique operating advantages provide a foundation to foster business growth, enable innovation, drive efficiencies, and continue to position us for long-term success.
+Added: Relationship with VMware — In March 2024, following the acquisition of VMware by Broadcom, we terminated our Commercial Framework Agreement with VMware, whereby we acted as a distributor of VMware standalone products and services.
+Added: We no longer act as a distributor of those products and services, although we continue to support customers that have purchased resale offerings sold in prior periods.
+Added: We continue to integrate and embed certain VMware products and services with our VxRail solution for end-user customers.
+Added: The results for this integrated offering are reflected within ISG.
+Added: VMware was a related party until its acquisition by Broadcom on November 22, 2023.
The acquisition terminated the preexisting related party relationship with VMware such that no related party relationship exists with either Broadcom or VMware effective as of November 22, 2023.
For more information regarding the impact of the Broadcom acquisition of VMware and our prior related party transactions with VMware, see Note 19 of the Notes to the Consolidated Financial Statements included in this report.
−Removed: ISG — We expect ISG will continue to be impacted by the evolving nature of the IT infrastructure market and competitive environment.
−Removed: With our scale and market-leading solutions portfolio, we believe we are well-positioned to address the ongoing competitive dynamics and trends in technology and customer needs.
−Removed: Through our collaborative, customer-focused approach to innovation, we strive to deliver new and relevant solutions and software to our customers quickly and efficiently.
−Removed: We continue to focus on customer base expansion and the lifetime value of customer relationships.
−Removed: We anticipate ISG will continue to benefit from technology advancements and interest in AI as customers continue to adopt and integrate AI into their operations.
+Added: ISG — We expect that ISG will be influenced by the dynamic nature of the IT infrastructure market and the competitive landscape.
+Added: With our extensive scale and market-leading solutions portfolio, we believe we are well-positioned to navigate these competitive dynamics and evolving technology trends to meet customer needs.
+Added: By leveraging our collaborative, customer-focused approach to innovation, we aim to deliver relevant new and next-generation solutions and software to our customers swiftly and efficiently.
+Added: We remain focused on expanding our customer base and enhancing the lifetime value of our customer relationships.
+Added: We anticipate that ISG will continue to benefit from technology advancements and interest in AI as customers continue to adopt and integrate AI.
The timing of customer purchases reflects the varying stages of adoption of AI by different customer segments and drives variability in our revenue.
−Removed: To meet the growing demand and increasing complexity of our AI-optimized offerings, we have increased our purchases of certain components with suppliers, which has resulted in increased inventory levels, higher purchase obligations, and new working capital dynamics.
+Added: To meet the growing demand and increasing complexity of our AI-optimized servers offerings, we have increased our purchases of certain components with suppliers, which has resulted in increased inventory levels, higher purchase obligations, and new working capital dynamics.
Additionally, frequent component part updates or transitions create additional challenges in managing demand and supply levels.
−Removed: While we have seen lead times shorten, we anticipate the next-generation of these components will be subject to supply constraints as demand for these components remains high.
+Added: While we have seen lead times shorten, we anticipate the next generation of these components, for which demand remains high, will be subject to supply constraints.
We expect that growth in data will continue to generate long-term demand for our storage solutions and services.
−Removed: Cloud native applications are expected to continue to be a key trend in the infrastructure market.
We continue to expand our offerings in external storage arrays, which incorporate flexible, cloud-based functionality.
−Removed: We benefit from offering solutions that address software-defined storage, hyper-converged infrastructure, and modular solutions based on server-centric architectures.
+Added: We benefit from offering solutions that provide the foundation for AI, enabling organizations to store, protect, and manage data across environments for both traditional and AI workloads.
Our storage business is subject to seasonal trends, which may continue to impact ISG results.
−Removed: CSG — We participate in all segments of the PC market with a focus on commercial and high-end consumer computing devices, which we believe represent the most stable and profitable markets.
+Added: CSG — Our CSG offerings are an important element of our strategy, generating strong cash flow and opportunities for cross-selling of complementary solutions.
+Added: We maintain a broad presence across all segments of the PC market.
+Added: Our strategic focus is on driving share gain while balancing profitability across all segments, enhancing our product portfolio to address evolving customer needs, and expanding our presence across the broader PC ecosystem through branded peripherals.
We anticipate that CSG will benefit from advances in AI over the long-term as customers will require PCs with the ability to run their complex AI workloads.
−Removed: Competitive dynamics remain an important factor in our CSG business and continue to impact pricing and operating results.
+Added: Competitive dynamics remain an important factor in our CSG business and continue to influence pricing and operating results.
We are committed to our long-term CSG strategy and will continue to make investments to innovate across the portfolio.
−Removed: We expect that the CSG demand environment will be subject to seasonal trends and influenced by the timing and scale of the anticipated PC refresh cycle.
−Removed: Recurring Revenue and Consumption Models — We expect that our flexible consumption models will further strengthen our customer relationships and provide a foundation for growth in recurring revenue.
+Added: We expect that the CSG demand environment will continue to be subject to seasonal trends and to be influenced by the PC refresh cycle.
+Added: Recurring Revenue and Consumption Models — We expect that our flexible consumption models will further strengthen our customer relationships and provide a foundation for recurring revenue.
We define recurring revenue as revenue recognized that is primarily related to hardware and software maintenance, as well as operating leases, subscription, as-a-Service, and usage-based offerings.
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Dollar basis.
−Removed: However, we have a large global presence, generating approximately half of our net revenue from sales to customers outside of the United States during Fiscal 2025 and Fiscal 2024.
+Added: However, we have a large global presence, generating approximately 45% and 50% of our net revenue from sales to customers outside of the United States during Fiscal 2026 and Fiscal 2025, respectively.
As a result, our operating results can be, and particularly in recent periods have been, impacted by fluctuations in foreign currency exchange rates.
We utilize a comprehensive hedging strategy intended to mitigate the impact of foreign currency volatility over time, and we adjust pricing when possible to further minimize foreign currency impacts.
−Removed: Other Macroeconomic Risks and Uncertainties — The impacts of trade protection measures, including increases in tariffs and trade barriers, changes in government policies and international trade arrangements, geopolitical volatility, and global macroeconomic conditions (including those in China) may affect our ability to conduct business in some non-U.S.
−Removed: We monitor and seek to mitigate these risks with adjustments to our manufacturing, supply chain, and distribution networks.
+Added: Other Macroeconomic Risks and Uncertainties — During Fiscal 2026, a number of countries, including the United States, imposed or proposed tariffs on imports, and may continue to do so.
+Added: The impacts of trade protection measures, including changes in tariffs and trade barriers, changes in government policies and international trade arrangements, geopolitical volatility associated with terrorism, military conflicts (including the Iran conflict), and other events, and global macroeconomic conditions, or uncertainty regarding the impact of proposed or future trade protection measures, may affect our results of operations in some markets.
+Added: We continue to leverage the agility and scale of our world-class supply chain to mitigate impacts of trade protection measures and will continue to respond to changing market conditions as needed.
NON-GAAP FINANCIAL MEASURES
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• Amortization of Intangible Assets — Amortization of intangible assets primarily consists of the amortization of customer relationships, developed technology, and trade names.
−Removed: In connection with our acquisition by merger of EMC, referred to as the “EMC merger transaction,” and the acquisition of Dell by Dell Technologies Inc., referred to as the “going-private transaction,” all of the tangible and intangible assets and liabilities of EMC and Dell, respectively, were accounted for and recognized at fair value on the transaction dates.
+Added: In connection with our acquisition by merger of EMC Corporation in 2016, all of the tangible and intangible assets and liabilities were accounted for and recognized at fair value on the transaction date.
We exclude amortization charges for the amortization of intangible assets as they do not reflect our current operating performance and charges are significantly impacted by the timing and magnitude of our acquisitions and, as a result, may vary in amount from period to period.
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To estimate the fair value of performance-based awards containing a market condition, we use the Monte Carlo valuation model.
−Removed: For other share-based awards, the fair value is generally based on the closing price of the Class C Common Stock as reported on the New York Stock Exchange on the date of grant.
+Added: For other share-based awards, the fair value is generally based on the closing price of the Class C Common Stock as reported on the New York Stock Exchange on the date of grant or most recent preceding trading day if the grant date falls on a non-trading day.
Although stock-based compensation is an important aspect of the compensation of our employees and executives, we exclude such expense because the fair value of the stock-based awards may fluctuate based on factors unrelated to the operating performance of the business and may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards.
−Removed: • Other Corporate Expenses — Other corporate expenses consist primarily of severance expenses, payroll taxes associated with stock-based compensation, incentive charges related to equity investments, facility action costs, transaction-related expenses, and impairment charges.
−Removed: Severance costs are primarily related to severance and benefits for employees terminated pursuant to cost management initiatives.
+Added: • Other Corporate Expenses — Other corporate expenses consist primarily of severance expenses, transaction-related impacts of the sales of businesses, payroll taxes associated with stock-based compensation, incentive charges related to equity investments, transaction-related expenses, facility action costs, and impairment charges.
+Added: Severance costs are primarily related to severance and benefits for employees impacted by cost management initiatives.
During Fiscal 2026, Fiscal 2025, and Fiscal 2024, we recognized $0.6 billion, $0.7 billion, and $0.6 billion, respectively, of severance expense related to workforce reduction activities.
−Removed: During Fiscal 2023, other corporate expenses also included $0.9 billion of net expense recognized within interest and other, net, in connection with an agreement to settle the Class V transaction litigation.
−Removed: See Note 11 of the Notes to the Consolidated Financial Statements included in this report for information about this matter.
−Removed: Transaction-related expenses typically consist of acquisition, integration, and divestitures related costs, primarily representing costs for legal, banking, consulting, and advisory services, and are expensed as incurred.
−Removed: Although we may incur these types of expenses in the future, we exclude other corporate expenses as they can vary from period to period, are significantly impacted by the timing and nature of these events, and are not used by management in assessing operating performance of the business.
+Added: During Fiscal 2026, we recognized a $0.2 billion gain related to the sale of Secureworks.
+Added: Although we may incur these types of items in the future, we exclude other corporate expenses as they can vary from period to period, are significantly impacted by the timing and nature of these events, and are not used by management in assessing operating performance of the business.
• Fair Value Adjustments on Equity Investments — Fair value adjustments on equity investments primarily consist of the gain (loss) on strategic investments, which includes recurring fair value adjustments of investments in publicly-traded companies, as well as those in privately-held companies, which are adjusted for observable price changes and any potential impairments.
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See Note 12 of the Notes to the Consolidated Financial Statements included in this report for additional information about our income taxes.
−Removed: Beginning in Fiscal 2025, our non-GAAP income tax was calculated using a fixed estimated annual tax rate that is determined based on historical trends and projections for the current fiscal year.
−Removed: We may adjust our estimated annual tax rate during the fiscal year to take into account events that would significantly impact our income tax expense, including significant changes resulting from tax legislation, material changes in geographic mix of revenue and expenses, changes to our corporate structure, and other significant events.
+Added: Our non-GAAP income tax was calculated using a fixed estimated annual tax rate that is determined based on historical trends and projections for the current fiscal year.
+Added: We may adjust our estimated annual tax rate during the fiscal year to take into account events that would significantly impact our income tax expense, including significant changes resulting from tax legislation, material changes in geographic mix of net revenue and expenses, changes to our corporate structure, and other significant events.
The following table presents a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure for the periods indicated:
Fiscal Year Ended
−Removed: January 31, 2025 % Change February 2, 2024 % Change February 3, 2023
+Added: January 30, 2026 % Change January 31, 2025 % Change February 2, 2024
(in millions, except percentages)
23 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 % Change February 2, 2024 % Change February 3, 2023
+Added: January 30, 2026 % Change January 31, 2025 % Change February 2, 2024
(in millions, except percentages and per share amounts)
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In addition to the above measures, we use free cash flow and adjusted free cash flow as non-GAAP liquidity measures to evaluate our performance.
−Removed: As presented in the following table, we define free cash flow as cash flow from operations after excluding capital expenditures and capitalized software costs, net.
−Removed: To measure adjusted free cash flow, we exclude the impact of financing receivables and equipment under operating leases from free cash flow, as the initial funding of these DFS offerings at the time of origination is largely subsequently replaced with cash inflows from our DFS debt, the majority of which is asset-backed.
+Added: As presented in the following table, we define free cash flow as cash flow from operations after excluding capital expenditures and capitalized software development costs, net.
+Added: To measure adjusted free cash flow, we exclude the impact of financing receivables and equipment under operating leases from free cash flow, as the initial funding of these DFS offerings at the time of origination is largely subsequently replaced with cash inflows from our DFS related debt.
Free cash flow and adjusted free cash flow provide useful information to management and investors in part because we use these metrics in our long-term capital allocation framework.
5 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 % Change February 2, 2024 % Change February 3, 2023
+Added: January 30, 2026 % Change January 31, 2025 % Change February 2, 2024
(in millions, except percentages)
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Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
Dollars % of Net Revenue % Change Dollars % of Net Revenue % Change Dollars % of Net Revenue
14 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
Dollars % of Net Revenue % Change Dollars % of Net Revenue % Change Dollars % of Net Revenue
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See “Non‑GAAP Financial Measures” for additional information about these non-GAAP financial measures, including our reasons for including these measures, material limitations with respect to the usefulness of the measures, and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.
−Removed: During Fiscal 2025, net revenue increased by 8%, driven by an increase in ISG net revenue that was partially offset by a decrease in Corporate and other net revenue and, to a lesser extent, CSG net revenue.
−Removed: The increase in ISG net revenue was driven by growth in our servers and networking offerings.
−Removed: Corporate and other net revenue declined primarily due to a decrease in VMware Resale revenue as we no longer act as a distributor of standalone VMware offerings.
−Removed: The decline in CSG net revenue was attributable to a decrease in sales of our consumer offerings.
+Added: During Fiscal 2026, net revenue increased by 19% driven by an increase in ISG net revenue and, to a lesser extent, CSG net revenue that was partially offset by a decrease in Corporate and other net revenue.
+Added: The increase in ISG net revenue was primarily driven by growth in our AI-optimized servers offerings and, to a lesser extent, our traditional servers and networking offerings.
+Added: The increase in CSG net revenue was attributable to an increase in sales of our commercial offerings.
+Added: Corporate and other net revenue declined primarily due to a decrease in VMware Resale revenue, as we no longer act as a distributor of standalone VMware offerings, and, to a lesser extent, the sale of Secureworks.
During Fiscal 2026, operating income and non-GAAP operating income increased by 31% to $8.1 billion and 17% to $10.0 billion, respectively.
−Removed: During Fiscal 2025, the increases in operating income and non-GAAP operating income were primarily attributable to an increase in ISG operating income that was driven by our servers and networking offerings and, to a lesser extent, our storage offerings, which was partially offset by a decrease in CSG operating income.
−Removed: During Fiscal 2025, operating income and non-GAAP operating income as a percentage of net revenue increased 40 basis points to 6.5% and remained flat at 8.9%, respectively.
−Removed: The operating income and non-GAAP operating income rates during the current year were affected by the favorable impact of a decrease in operating expense rate that was driven by strong ISG net revenue growth coupled with continued disciplined cost management.
−Removed: The favorable impact of a decrease in operating expense rate was offset by a decline in gross margin as a percentage of net revenue due to a shift in mix towards AI-optimized server offerings and a competitive CSG pricing environment.
−Removed: Cash provided by operating activities was $4.5 billion during Fiscal 2025, and was driven by profitability, partially offset by working capital dynamics.
−Removed: Working capital was primarily impacted by AI, which led to higher inventory, accounts receivable, and accounts payable levels.
−Removed: During Fiscal 2024, cash provided by operating activities was $8.7 billion, which was primarily driven by profitability coupled with strong inventory management and cash collections performance.
−Removed: Cash provided by operating activities during Fiscal 2024 also reflected the impact of the $0.9 billion net payment to settle the Class V transaction litigation and $0.4 billion in proceeds from the sale of our U.S.
−Removed: consumer revolving customer receivables portfolio.
+Added: The increases in operating income and non-GAAP operating income were primarily attributable to an increase in ISG operating income that was driven by our servers and networking offerings and our storage offerings.
+Added: During Fiscal 2026, operating income as a percentage of net revenue increased 70 basis points to 7.2%.
+Added: Operating income as a percentage of net revenue benefited from the favorable impact of a decline in operating expense rate as a result of strong net revenue growth coupled with continued disciplined cost management and, to a lesser extent, lower other corporate expenses.
+Added: The favorable impact of operating expense rate was partially offset by a decline in gross margin rate as a result of a shift in mix towards our AI-optimized servers offerings.
+Added: During Fiscal 2026, non-GAAP operating income as a percentage of net revenue decreased 10 basis points to 8.8%.
+Added: The decrease reflected a decline in gross margin rate as a result of a shift in mix towards our AI-optimized servers offerings, which was largely offset by the favorable impact of a decline in operating expense rate as a result of strong net revenue growth coupled with continued disciplined cost management.
+Added: Cash provided by operating activities was $11.2 billion during Fiscal 2026 and was driven by net revenue growth, profitability, and working capital dynamics, partially offset by higher financing receivables.
+Added: Financing receivables and working capital were primarily affected by increased demand for our AI-optimized servers offerings.
+Added: During Fiscal 2025, cash provided by operating activities was $4.5 billion and was driven by profitability, partially offset by working capital dynamics.
+Added: Working capital during Fiscal 2025 was primarily impacted by AI dynamics, which led to higher inventory, accounts receivable, and accounts payable levels.
See “Liquidity, Cash Requirements, and Market Conditions” for additional information about our cash flow metrics.
2 unchanged sentences
As we continue to innovate and modernize our offerings, we believe that Dell Technologies is well-positioned for long-term profitable growth.
−Removed: Fiscal 2025 compared to Fiscal 2024
−Removed: During Fiscal 2025, net revenue increased 8%, primarily driven by an increase in ISG net revenue that was partially offset by a decrease in Corporate and other net revenue and, to a lesser extent, CSG net revenue.
+Added: During Fiscal 2026, net revenue increased 19%, driven by an increase in ISG net revenue and, to a lesser extent, CSG net revenue that was partially offset by a decrease in Corporate and other net revenue.
See “Business Unit Results” for further information.
• Product Net Revenue — Product net revenue includes revenue from the sale of hardware products and software licenses.
−Removed: During Fiscal 2025, product net revenue increased 11% due to an increase in ISG product net revenue driven by growth in our servers and networking offerings.
−Removed: The increase was partially offset by a decrease in CSG product net revenue as a result of a decrease in the average selling prices of our CSG offerings and, to a lesser extent, a decline in units sold within our consumer offerings, as well as a decline in Corporate and other product net revenue as we no longer act as a distributor of standalone VMware offerings.
+Added: During Fiscal 2026, product net revenue increased 27%, due to an increase in ISG product net revenue and, to a lesser extent, CSG product net revenue.
+Added: The increase in ISG product net revenue was primarily driven by growth in our AI-optimized servers offerings and, to a lesser extent, our traditional servers and networking offerings.
+Added: The increase in CSG product net revenue reflected growth in our commercial offerings, which was partially offset by lower demand for our consumer offerings.
• Services Net Revenue — Services net revenue includes revenue from our services offerings and support services related to hardware products and software licenses.
−Removed: During Fiscal 2025, services net revenue was flat as the growth within CSG services net revenue and, to a lesser extent, ISG services net revenue was offset by a decline in Corporate and other services net revenue.
−Removed: The increase in CSG services net revenue was primarily due to CSG third-party software support and maintenance as well as support and maintenance associated with products sold in prior periods.
−Removed: The increase in ISG services net revenue was primarily due to support and maintenance associated with products sold in prior periods.
−Removed: Corporate and other services net revenue declined as we no longer act as a distributor of standalone VMware offerings.
−Removed: A substantial portion of services net revenue is derived from offerings that have been deferred over a period of time, and, as a result, reported growth rates for services net revenue will be different than reported growth rates for product net revenue.
−Removed: From a geographical perspective, net revenue increased during Fiscal 2025 in the Americas and, to a lesser extent, APJ and remained flat in EMEA.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: During Fiscal 2024, net revenue decreased 14%, primarily driven by declines in CSG net revenue and, to a lesser extent, ISG net revenue.
−Removed: See “Business Unit Results” for further information.
−Removed: • Product Net Revenue — During Fiscal 2024, product net revenue decreased 19% due to declines in CSG product net revenue and, to a lesser extent, ISG product net revenue.
−Removed: CSG product net revenue decreased primarily as a result of a decline in units sold, which impacted both our commercial and consumer offerings.
−Removed: The decline in ISG product net revenue was primarily attributable to a decrease in product net revenue attributable to our servers and networking offerings that was driven by a decrease in units sold and, to a lesser extent, a decline in our product net revenue attributable to storage offerings.
−Removed: • Services Net Revenue — During Fiscal 2024, services net revenue increased 4%, driven primarily by growth within services net revenue attributable to CSG and Corporate and other.
−Removed: The increase in services net revenue attributable to CSG was driven primarily by third-party software support and maintenance and hardware support and maintenance.
−Removed: The increase in services net revenue attributable to Corporate and other was driven primarily by VMware software maintenance arrangements.
−Removed: See “Introduction” for additional information about the impact of Broadcom’s acquisition of VMware on our relationship with VMware.
−Removed: From a geographical perspective, net revenue decreased in the Americas, EMEA, and APJ during Fiscal 2024, most notably within APJ.
−Removed: Fiscal 2025 compared to Fiscal 2024
−Removed: During Fiscal 2025, both gross margin and non-GAAP gross margin increased 1%, to $21.3 billion and $21.8 billion, respectively, driven by an increase in ISG gross margin that was largely offset by a decrease in CSG gross margin.
−Removed: The increase in ISG gross margin was primarily attributable to growth in our AI-optimized server offerings and, to a lesser extent, our storage offerings.
−Removed: The decrease in CSG gross margin was primarily attributable to a competitive pricing environment.
−Removed: During Fiscal 2025, gross margin and non-GAAP gross margin percentage decreased 160 basis points to 22.2% and 170 basis points to 22.8%, respectively.
−Removed: The decreases in gross margin percentage and non-GAAP gross margin percentage were primarily driven by a shift in mix towards AI-optimized server offerings and a competitive CSG pricing environment.
−Removed: • Product Gross Margin — During Fiscal 2025, product gross margin and non-GAAP product gross margin remained flat at $11.3 billion and decreased 1% to $11.6 billion, respectively, as the decrease in CSG product gross margin was largely offset by an increase in ISG product gross margin.
−Removed: The decline in CSG product gross margin was primarily attributable to a competitive pricing environment.
−Removed: The increase in ISG product gross margin was primarily due to growth in our AI-optimized server offerings and, to a lesser extent, our storage offerings.
−Removed: During Fiscal 2025, product gross margin percentage and non-GAAP product gross margin percentage decreased 170 basis points to 15.8% and 190 basis points to 16.2%, respectively.
−Removed: The declines were primarily attributable to a shift in mix towards our AI-optimized server offerings and a competitive CSG pricing environment.
−Removed: • Services Gross Margin — During Fiscal 2025, both services gross margin and non-GAAP services gross margin increased 2%, to $10.0 billion and $10.2 billion, respectively.
−Removed: Services gross margin and non-GAAP services gross margin benefited from an increase in support and maintenance associated with products sold in prior periods within both ISG and CSG and, to a lesser extent, an increase in CSG third-party software support and maintenance.
−Removed: During Fiscal 2025, services gross margin percentage and non-GAAP services gross margin percentage increased 60 basis points to 41.4% and 80 basis points to 42.4%, respectively.
−Removed: The increases in services gross margin percentage and non-GAAP services gross margin percentage were primarily driven by a shift in mix as we no longer act as a distributor of standalone VMware offerings.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: During Fiscal 2024, gross margin and non-GAAP gross margin decreased 7% to $21.1 billion and 8% to $21.6 billion, respectively.
−Removed: The declines were driven by decreases in both ISG and CSG gross margin that were primarily attributable to a decrease in net revenue, the effect of which was partially offset by lower input costs.
−Removed: Both gross margin and non-GAAP gross margin percentage increased 160 basis points, to 23.8% and 24.5%, respectively, during Fiscal 2024.
−Removed: The increases were primarily attributable to the impacts of an overall decline in input costs coupled with an increase in average selling prices across many of our offerings as we continued to exercise disciplined pricing in an increasingly competitive environment.
−Removed: • Product Gross Margin — During Fiscal 2024, product gross margin and non-GAAP product gross margin both decreased 15%, to $11.2 billion and $11.6 billion, respectively.
−Removed: The decreases were primarily driven by declines in both ISG and CSG product gross margin, which were largely attributable to declines in product net revenue, partially offset by lower input costs.
−Removed: During Fiscal 2024, product gross margin percentage and non-GAAP product gross margin percentage both increased 80 basis points, to 17.5% and 18.1%, respectively, primarily due to an increase in CSG product gross margin percentage.
−Removed: CSG product gross margin percentage increased primarily as a result of the impacts of an overall decline in input costs coupled with an increase in average selling prices across many of our product offerings.
+Added: During Fiscal 2026, services net revenue decreased 4% due to a decline in Corporate and other services net revenue.
+Added: The decline was primarily due to a decrease in VMware Resale revenue, as we no longer act as a distributor of standalone VMware offerings and, to a lesser extent, the sale of Secureworks.
+Added: The decline was partially offset by growth within services net revenue attributable to ISG and CSG, which was driven by support and maintenance associated with products sold in prior periods within both CSG and ISG and higher AI-optimized servers offerings within ISG.
+Added: A substantial portion of services net revenue is derived from offerings that have been deferred over a period of time.
+Added: As a result, reported growth rates for services net revenue will be different than reported growth rates for product net revenue.
+Added: From a geographical perspective, net revenue during Fiscal 2026 increased in the Americas, driven by our AI-optimized servers offerings, and, to a lesser extent, in EMEA and APJ.
+Added: During Fiscal 2026, gross margin and non-GAAP gross margin increased 7% to $22.7 billion and 6% to $23.2 billion, respectively, primarily due to an increase in ISG gross margin that was driven by growth in our servers and networking offerings and, to a lesser extent, growth in our core storage offerings.
+Added: The increase in ISG gross margin was partially offset by a decline in Corporate and other gross margin driven by the sale of Secureworks.
+Added: During Fiscal 2026, gross margin percentage and non-GAAP gross margin percentage decreased 220 basis points to 20.0% and 240 basis points to 20.4%, respectively.
+Added: The decreases in gross margin percentage and non-GAAP gross margin percentage were primarily driven by a shift in mix towards our AI-optimized servers offerings.
+Added: • Product Gross Margin — During Fiscal 2026, product gross margin and non-GAAP product gross margin increased 10% to $12.3 billion and 9% to $12.6 billion, respectively.
+Added: The increases in product gross margin and non-GAAP product gross margin were primarily attributable to an increase in ISG product gross margin due to growth in our servers and networking offerings and, to a lesser extent, the mix in our storage offerings.
+Added: During Fiscal 2026, product gross margin percentage and non-GAAP product gross margin percentage decreased 210 basis points to 13.7% and 230 basis points to 13.9%, respectively, primarily due to a shift in mix towards our AI-optimized servers offerings.
• Services Gross Margin — During Fiscal 2026, services gross margin and non-GAAP services gross margin increased 4% to $10.4 billion and 3% to $10.6 billion, respectively.
−Removed: The increases were primarily attributable to growth within ISG services gross margin and, to a lesser extent, CSG services gross margin that were driven by support and maintenance associated with products sold in prior periods.
−Removed: During Fiscal 2024, services gross margin percentage decreased 30 basis points to 40.8% and non-GAAP services gross margin percentage decreased 50 basis points to 41.6%.
−Removed: The decreases were driven primarily by a shift in mix of services delivered.
+Added: The increases were principally attributable to an increase in ISG services gross margin, which was primarily driven by higher AI-optimized servers offerings and hardware support and maintenance associated with products sold in prior periods.
+Added: The increase in ISG services gross margin was partially offset by a decline in Corporate and other gross margin driven by the sale of Secureworks.
+Added: During Fiscal 2026, services gross margin percentage and non-GAAP services gross margin percentage increased 340 basis points to 44.8% and 320 basis points to 45.6%, respectively, primarily driven by a shift in mix, as we no longer act as a distributor of standalone VMware offerings.
Vendor Programs
6 unchanged sentences
We monitor our component costs and seek to address the effects of any changes to terms that might arise under our vendor rebate programs.
−Removed: Our gross margins for Fiscal 2025 and Fiscal 2024 were not materially affected by any changes to the terms of our vendor rebate programs, as the amounts we received under these programs were generally stable relative to our total net cost.
+Added: Our gross margins for Fiscal 2026 were not materially affected by any changes to the terms of our vendor rebate programs, as the amounts we received under these programs were generally stable relative to our total net cost.
We are not aware of any significant changes to our vendor rebate programs that will materially impact our results in the near term.
2 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
Dollars % of Net Revenue % Change Dollars % of Net Revenue % Change Dollars % of Net Revenue
5 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
Dollars % of Net Revenue % Change Dollars % of Net Revenue % Change Dollars % of Net Revenue
1 unchanged sentence
Non-GAAP operating expenses $ 13,168 11.6 % (1) % $ 13,281 13.9 % (4) % $ 13,766 15.6 %
−Removed: Fiscal 2025 compared to Fiscal 2024
During Fiscal 2026, total operating expenses decreased 3% due to a decline in selling, general, and administrative (“SG&A”) expenses.
−Removed: • Selling, General, and Administrative — During Fiscal 2025, SG&A expenses decreased 7%, driven by a decrease in employee compensation and benefits expense, principally due to a decline in overall headcount.
+Added: • Selling, General, and Administrative — During Fiscal 2026, SG&A expenses decreased 4%, driven by a decrease in employee compensation and benefits expense, which primarily resulted from a decline in overall headcount.
• Research and Development — Research and development (“R&D”) expenses are primarily composed of personnel-related expenses incurred in connection with product development.
−Removed: R&D expenses increased 9% during Fiscal 2025, principally due to an increase in R&D-related employee compensation and benefits expense.
−Removed: As a percentage of net revenue, R&D expenses for both Fiscal 2025 and Fiscal 2024 were 3.2%.
+Added: R&D expenses increased 3% during Fiscal 2026, principally due to continued support of investments in R&D initiatives.
+Added: As a percentage of net revenue, R&D expenses for Fiscal 2026 and Fiscal 2025 were 2.8% and 3.2%, respectively.
We continue to support R&D initiatives to innovate and introduce new and enhanced solutions into the market.
−Removed: During Fiscal 2025, non-GAAP operating expenses decreased 4%, driven by a decline in employee compensation and benefits expense, primarily resulting from a decline in overall headcount.
−Removed: The decline in employee compensation and benefits expense was partially offset by continued support of R&D initiatives.
+Added: During Fiscal 2026, non-GAAP operating expenses decreased 1%, driven by a decline in employee compensation and benefits expense which primarily resulted from a decline in overall headcount.
+Added: The decline in employee compensation and benefits expense was largely offset by continued support of investments in R&D initiatives.
We continue to make strategic investments designed to enable growth and innovation, while balancing our efforts to drive cost efficiencies in the business.
We also expect to continue making investments in support of our own digital transformation, which aims to streamline and optimize our business processes.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: During Fiscal 2024, total operating expenses decreased 7% due to a decline in SG&A expenses.
−Removed: • Selling, General, and Administrative — During Fiscal 2024, SG&A expenses decreased 9%, driven by a decrease in employee compensation and benefits expense, principally due to a decline in overall headcount and, to a lesser extent, a decrease in advertising and outside services expense as a result of continued disciplined cost management.
−Removed: • Research and Development — R&D expenses increased 1% during Fiscal 2024 principally due to an increase in R&D-related employee compensation and benefits expense, partially offset by a decrease in outside services as a result of continued disciplined cost management.
−Removed: As a percentage of net revenue, R&D expenses for Fiscal 2024 and Fiscal 2023 were 3.2% and 2.7%, respectively.
−Removed: The increases in R&D expenses as a percentage of net revenue were attributable to continued R&D investments as we support R&D initiatives to innovate and introduce new and enhanced solutions into the market.
−Removed: During Fiscal 2024, non-GAAP operating expenses decreased 7% principally due to continued disciplined cost management, which resulted in a decline in employee compensation and benefits, outside services, and advertising expenses, among other items.
Operating Income
−Removed: Fiscal 2025 compared to Fiscal 2024
During Fiscal 2026, operating income and non-GAAP operating income increased by 31% to $8.1 billion and 17% to $10.0 billion, respectively.
−Removed: During Fiscal 2025, the increases in operating income and non-GAAP operating income were primarily attributable to an increase in ISG operating income that was driven by our servers and networking offerings and, to a lesser extent, our storage offerings, which was partially offset by a decrease in CSG operating income.
−Removed: During Fiscal 2025, operating income and non-GAAP operating income as a percentage of net revenue increased 40 basis points to 6.5% and remained flat at 8.9%, respectively.
−Removed: The operating income and non-GAAP operating income rates during the current year were affected by the favorable impact of a decrease in operating expense rate that was driven by strong ISG net revenue growth coupled with continued disciplined cost management.
−Removed: The favorable impact of a decrease in operating expense rate was offset by a decline in gross margin as a percentage of net revenue due to a shift in mix towards AI-optimized server offerings and a competitive CSG pricing environment.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: Operating income and non-GAAP operating income decreased by 6% to $5.4 billion and 9% to $7.9 billion, respectively, during Fiscal 2024.
−Removed: The decreases were driven by a decrease in ISG operating income, which declined primarily as a result of a decrease in net revenue that outpaced the favorable impacts of a decline in input costs and cost management measures.
−Removed: The decline in ISG operating income was primarily attributable to decreases in our servers and networking offerings and, to a lesser extent, our storage offerings.
−Removed: The decline in operating income was partially offset by decreases in other corporate expenses and amortization of intangibles.
−Removed: During Fiscal 2024, both operating income and non-GAAP operating income as a percentage of net revenue increased 50 basis points, to 6.1% and 8.9%, respectively.
−Removed: The increases were due to an increase in gross margin as a percentage of net revenue, which was principally driven by a decline in input costs.
−Removed: The increase in operating income and non-GAAP operating income as a percentage of net revenue was offset by an increase in operating expense rate, principally within ISG, that was attributable to a decrease in net revenue which outpaced the impact of continued cost management measures.
+Added: The increases in operating income and non-GAAP operating income were primarily attributable to an increase in ISG operating income that was driven by our servers and networking offerings and our storage offerings.
+Added: During Fiscal 2026, operating income as a percentage of net revenue increased 70 basis points to 7.2%.
+Added: Operating income as a percentage of net revenue benefited from the favorable impact of a decline in operating expense rate as a result of strong net revenue growth coupled with continued disciplined cost management and, to a lesser extent, lower other corporate expenses.
+Added: The favorable impact of operating expense rate was partially offset by a decline in gross margin rate as a result of a shift in mix towards our AI-optimized servers offerings.
+Added: During Fiscal 2026, non-GAAP operating income as a percentage of net revenue decreased 10 basis points to 8.8%.
+Added: The decrease reflected a decline in gross margin rate as a result of a shift in mix towards our AI-optimized servers offerings, which was largely offset by the favorable impact of a decline in operating expense rate as a result of strong net revenue growth coupled with continued disciplined cost management.
Interest and Other, Net
1 unchanged sentence
Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
(in millions)
1 unchanged sentence
Investment income, primarily interest $ 256 $ 160 $ 305
−Removed: Gain (loss) on investments, net 177 47 (206)
+Added: Gain on investments, net 254 177 47
Interest expense (1,560) (1,394) (1,501)
Foreign exchange (95) (112) (199)
−Removed: Legal settlement, net — — (894)
+Added: Gain on disposition of businesses and assets 236 — —
Other 23 (20) 24
Total interest and other, net $ (886) $ (1,189) $ (1,324)
−Removed: Fiscal 2025 compared to Fiscal 2024
−Removed: During Fiscal 2025, the change in interest and other, net was favorable primarily due to gains recognized within our strategic investments portfolio and a reduction in interest expense, partially offset by a decline in interest income on investments.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: The change in interest and other, net was favorable primarily as a result of $0.9 billion of expense recognized in Fiscal 2023 in connection with an agreement to settle the Class V transaction litigation, coupled with a gain on investments and an increase in investment income during Fiscal 2024.
−Removed: Favorable impacts within interest and other, net were partially offset by an increase in interest expense primarily associated with DFS securitization and structured financing programs.
−Removed: See Note 11 to the Notes to the Consolidated Financial Statements for additional information about the settlement of the Class V transaction litigation.
+Added: During Fiscal 2026, the change in interest and other, net was favorable primarily due to the gain on the sale of Secureworks, investment income, and gains recognized within our strategic investments portfolio, partially offset by increased interest expense.
Income and Other Taxes
1 unchanged sentence
Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
(in millions, except percentages)
2 unchanged sentences
Effective income tax rate 18.3 % 9.4 % 17.5 %
−Removed: Fiscal 2025 compared to Fiscal 2024
For Fiscal 2026 and Fiscal 2025, our effective income tax rates were 18.3% and 9.4%, respectively.
−Removed: The change in our effective tax rates for Fiscal 2025 as compared to Fiscal 2024 was primarily attributable to discrete tax items.
+Added: The changes in our effective tax rates for Fiscal 2026 as compared to Fiscal 2025 were primarily attributable to discrete tax items and a change in the Company’s jurisdictional mix of income related to the tax impact of foreign operations.
For Fiscal 2025, we recorded discrete tax benefits of $0.4 billion related to changes in uncertain tax benefits resulting from the expiration of certain U.S.
statutes of limitations and $0.2 billion related to stock-based compensation.
−Removed: Our effective income tax rate can fluctuate depending on the geographic distribution of our worldwide earnings, as our foreign earnings are generally taxed at lower rates than in the United States.
−Removed: The differences between our effective income tax rates and the U.S.
−Removed: federal statutory rate of 21% principally result from the geographical distribution of income, differences between the book and tax treatment of certain items, and discrete tax items.
−Removed: In certain jurisdictions, our tax rate is significantly less than the applicable statutory rate as a result of tax holidays.
−Removed: The majority of our foreign income subject to these tax holidays is attributable to Singapore and China.
−Removed: A significant portion of these income tax benefits relates to a tax holiday that will be effective until January 31, 2029.
−Removed: Most of our other tax holidays will expire in whole or in part during Fiscal 2030 and Fiscal 2031.
−Removed: Many of these tax holidays and reduced tax rates may be extended when certain conditions are met or may be terminated early if certain conditions are not met or as a result of changes in tax legislation.
−Removed: As of January 31, 2025, we were not aware of any matters of non-compliance.
−Removed: Our income tax benefits attributable to tax holidays and incentives of the affected subsidiaries were immaterial to our provision for income taxes and earnings per share for Fiscal 2025 and Fiscal 2024.
−Removed: Many countries, including Singapore, a country in which we have a tax holiday, have enacted or are in the process of enacting laws based on the Pillar Two proposal relating to a global minimum tax issued by the Organisation for Economic Co-operation and Development (“OECD”).
−Removed: While we expect our effective income tax rate and cash income tax payments may increase in future years as a result of the global minimum tax, the tax did not have a material impact on our Fiscal 2025 consolidated results of operations and we do not expect a material impact for Fiscal 2026.
−Removed: Our assessment could be affected by legislative guidance and future enactment of additional provisions within the Pillar Two framework.
−Removed: For further discussion regarding tax matters, including the status of income tax audits, see Note 12 of the Notes to the Consolidated Financial Statements included in this report.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: For Fiscal 2024 and Fiscal 2023, our effective income tax rates were 17.5% and 24.9%, respectively.
−Removed: The change related to our effective income tax rates for Fiscal 2024 as compared to Fiscal 2023 was primarily attributable to the tax impact of foreign operations and benefits from U.S.
−Removed: research and development tax credits.
−Removed: In addition, our effective tax rate for Fiscal 2023 included the impact of an expense recognized in connection with the agreement to settle the Class V transaction litigation described in Note 11 of the Notes to the Consolidated Financial Statements included in this report.
−Removed: Fiscal 2025 compared to Fiscal 2024
−Removed: During Fiscal 2025, net income and non-GAAP net income increased 36% to $4.6 billion and 8% to $5.9 billion, respectively.
−Removed: Net income increased primarily due to an increase in operating income and, to a lesser extent, lower income tax expense.
−Removed: Non-GAAP net income increased primarily due to an increase in operating income.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: During Fiscal 2024, net income increased 39% to $3.4 billion, driven primarily by a favorable change in interest and other, net, partially offset by a decline in operating income.
−Removed: During Fiscal 2024, non-GAAP net income decreased 5% to $5.4 billion, driven by a decline in operating income, partially offset by a decline in income tax expense.
+Added: On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States.
+Added: The new law contains a broad range of tax reform provisions, which include the extension and modification of certain provisions of the Tax Cuts and Jobs Act.
+Added: Effective for Fiscal 2026, changes include, but are not limited to, immediate expensing of domestic research and development expenditures, the restoration of 100% bonus depreciation, and an EBITDA-based interest expense limitation.
+Added: These provisions did not have a material impact on the Company’s Consolidated Financial Statements for Fiscal 2026.
+Added: Effective starting in Fiscal 2027, additional changes will include certain modifications to the international tax framework.
+Added: We currently do not anticipate these changes to have a material impact to our results in future periods.
+Added: The Company will continue to monitor any developments and guidance related to OBBBA.
+Added: For further discussion regarding tax matters, including the status of income tax audits and the effects of tax holidays, see Note 12 of the Notes to the Consolidated Financial Statements included in this report.
+Added: During Fiscal 2026, net income increased 30% to $5.9 billion primarily due to an increase in operating income and, to a lesser extent, a favorable change in interest and other, net, the effects of which were partially offset by higher income tax expense.
+Added: During Fiscal 2026, non-GAAP net income increased 20% to $7.0 billion, primarily due to an increase in operating income.
Business Unit Results
4 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 % Change February 2, 2024 % Change February 3, 2023
+Added: January 30, 2026 % Change January 31, 2025 % Change February 2, 2024
(in millions, except percentages)
+Added: AI-optimized servers $ 24,683 166 % $ 9,286 396 % $ 1,873
+Added: Traditional servers and networking 19,512 9 % 17,850 13 % 15,751
Servers and networking 44,195 63 % 27,136 54 % 17,624
4 unchanged sentences
% of segment net revenue 11.7 % 12.8 % 12.6 %
−Removed: Fiscal 2025 compared to Fiscal 2024
−Removed: Net Revenue — During Fiscal 2025, ISG net revenue increased 29%, driven primarily by strength in our servers and networking offerings.
−Removed: Net revenue from sales of servers and networking increased 54% during Fiscal 2025.
−Removed: The increase in servers and networking net revenue was driven by growth in our AI-optimized server offerings and, to a lesser extent, our traditional server and networking offerings.
−Removed: Storage net revenue increased 1% during Fiscal 2025 primarily due to an increase in our core storage offerings.
−Removed: From a geographical perspective, net revenue attributable to ISG increased across all regions during Fiscal 2025, most notably in the Americas.
−Removed: Operating Income — During Fiscal 2025, ISG operating income as a percentage of net revenue increased 20 basis points to 12.8% due to a decline in operating expense as a percentage of revenue that outpaced the decline in gross margin rate.
−Removed: Operating expense as a percentage of net revenue declined primarily due to strong ISG net revenue growth coupled with continued disciplined cost management.
−Removed: Gross margin rate decreased primarily as the result of a shift in mix towards AI-optimized server offerings.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: Net Revenue — During Fiscal 2024, ISG net revenue decreased 12%, driven primarily by servers and networking net revenue and, to a lesser extent, storage net revenue as global macroeconomic conditions continued to impact demand.
−Removed: Revenue from sales of servers and networking decreased 14% during Fiscal 2024, driven by a decrease in units sold, the effect of which was partially offset by an increase in the average selling prices of our server offerings.
−Removed: The average selling prices of our server offerings increased as a result of the impact of attached offerings and richer configurations.
−Removed: During Fiscal 2024, storage net revenue decreased 9%, driven by a decline in net revenue across the majority of our storage offerings.
−Removed: From a geographical perspective, net revenue attributable to ISG decreased in the Americas, EMEA, and APJ during Fiscal 2024.
−Removed: Operating Income — During Fiscal 2024, ISG operating income as a percentage of net revenue decreased 60 basis points to 12.6% principally due to an increase in operating expenses as a percentage of net revenue.
−Removed: Operating expenses as a percentage of net revenue increased as a result of a decline in revenue that outpaced the impact of continued cost management measures coupled with continued investment in research and development.
−Removed: The impact of an increase in operating expenses as a percentage of net revenue was partially offset by an overall decline in input costs coupled with an increase in average selling prices.
+Added: Net Revenue — During Fiscal 2026, ISG net revenue increased 40%, driven primarily by strength in our AI-optimized servers offerings and, to a lesser extent, our traditional servers and networking offerings.
+Added: AI-optimized servers net revenue increased 166% and 396% during Fiscal 2026 and Fiscal 2025, respectively, primarily driven by an increase in units sold as a result of significant increased demand for our AI-optimized servers offerings for both periods.
+Added: Traditional servers and networking net revenue increased 9% and 13% during Fiscal 2026 and Fiscal 2025, respectively, primarily due to an increase in the average selling price of our traditional servers and networking offerings, partially offset by a decline in units sold for both periods.
+Added: The increase in the average selling price was primarily driven by richer configurations for both periods.
+Added: During Fiscal 2026, storage net revenue increased 1% primarily due to an increase in our core storage offerings.
+Added: From a geographical perspective, ISG net revenue during Fiscal 2026 increased in the Americas, driven by our AI-optimized servers offerings and, to a lesser extent, in EMEA and APJ.
+Added: Operating Income — During Fiscal 2026, ISG operating income as a percentage of net revenue decreased 110 basis points to 11.7%, due to a decline in gross margin rate that outpaced the decline in operating expense rate.
+Added: Gross margin rate decreased primarily as the result of a shift in mix towards our AI-optimized servers offerings.
+Added: Operating expense rate declined primarily due to strong ISG net revenue growth coupled with continued disciplined cost management.
Client Solutions Group
1 unchanged sentence
Fiscal Year Ended
−Removed: January 31, 2025 % Change February 2, 2024 % Change February 3, 2023
+Added: January 30, 2026 % Change January 31, 2025 % Change February 2, 2024
(in millions, except percentages)
5 unchanged sentences
% of segment net revenue 5.6 % 6.1 % 7.6 %
−Removed: Fiscal 2025 compared to Fiscal 2024
−Removed: Net Revenue — During Fiscal 2025, CSG net revenue declined 1% primarily due to a decrease in units sold and, to a lesser extent, a decline in the average selling prices of our offerings.
−Removed: Commercial net revenue increased 3% during Fiscal 2025 primarily due to an increase in units sold.
−Removed: Consumer net revenue decreased 17% during Fiscal 2025, primarily as the result of a decline in units sold and, to a lesser extent, a decline in the average selling prices of our consumer offerings.
−Removed: From a geographical perspective, net revenue attributable to CSG decreased in APJ and the Americas and increased in EMEA during Fiscal 2025.
−Removed: Operating Income — During Fiscal 2025, CSG operating income as a percentage of net revenue decreased 150 basis points to 6.1% primarily due to a decline in gross margin rate, which was partially offset by a decrease in operating expenses as a percentage of net revenue.
−Removed: The decline in gross margin rate was primarily the result of a competitive pricing environment.
−Removed: The decline in operating expenses as a percentage of net revenue was due to continued disciplined cost management.
−Removed: Fiscal 2024 compared to Fiscal 2023
−Removed: Net Revenue — During Fiscal 2024, CSG net revenue decreased 16% driven by a decline in units sold as global macroeconomic conditions continued to impact demand.
−Removed: Commercial net revenue decreased 13% during Fiscal 2024.
−Removed: The decline was primarily due to a decrease in units sold, which was partially offset by the effect of an increase in the average selling prices of our commercial offerings.
−Removed: Average selling prices of our commercial offerings increased primarily as a result of richer configurations and the mix of offerings sold.
−Removed: Consumer net revenue decreased 28% during Fiscal 2024 principally due to a decrease in units sold and, to a lesser extent, a decline in the average selling prices of our consumer offerings.
−Removed: From a geographical perspective, net revenue attributable to CSG decreased primarily in APJ and, to a lesser extent, in the Americas and EMEA during Fiscal 2024.
−Removed: Operating Income — During Fiscal 2024, CSG operating income as a percentage of net revenue increased 100 basis points to 7.6% primarily due to the impact of an overall decrease in input costs coupled with an increase in the average selling prices of our commercial offerings, as described above.
−Removed: The impact of these factors was partially offset by an increase in operating expenses as a percentage of net revenue, which increased as a result of a decline in CSG net revenue that outpaced the impact of continued cost management measures.
+Added: Net Revenue — During Fiscal 2026, CSG net revenue increased 5%, driven by strength in our commercial offerings, partially offset by lower demand for our consumer offerings.
+Added: During Fiscal 2026, commercial net revenue increased 8% primarily due to an increase in units sold and richer configurations, partially offset by a decline in average selling prices.
+Added: Consumer net revenue decreased 8% during Fiscal 2026 due to a decline in average selling prices and units sold.
+Added: The decline in average selling prices for our consumer offerings was primarily driven by lower attach rates and mix of configurations.
+Added: From a geographical perspective, net revenue attributable to CSG during Fiscal 2026 increased in EMEA and the Americas and, to a lesser extent, in APJ.
+Added: Operating Income — During Fiscal 2026, CSG operating income as a percentage of net revenue decreased 50 basis points to 5.6%.
+Added: The decline in operating income rate during Fiscal 2026 was primarily due to a decline in gross margin rate driven by a change in mix within our offerings.
OTHER BALANCE SHEET ITEMS
1 unchanged sentence
We sell products and services directly to customers and through a variety of sales channels, including retail distribution.
−Removed: Our accounts receivable, net was $10.3 billion and $9.3 billion as of January 31, 2025 and February 2, 2024, respectively.
−Removed: Accounts receivable, net was up due to growth in our AI-optimized server offerings and the timing of cash receipts.
+Added: Our accounts receivable, net was $17.6 billion and $10.3 billion as of January 30, 2026 and January 31, 2025, respectively.
+Added: The increase in accounts receivable, net was primarily driven by an increase in net revenue largely due to our AI-optimized servers offerings.
We maintain an allowance for expected credit losses to cover receivables that may be deemed uncollectible.
−Removed: The allowance for expected credit losses is an estimate based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and its reasonable and supportable expectation of future conditions, as well as specific identifiable customer accounts that are deemed at risk.
−Removed: As of January 31, 2025 and February 2, 2024, the allowance for expected credit losses was $63 million and $71 million, respectively.
+Added: The allowance for expected credit losses is an estimate based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and its reasonable and supportable expectation of future conditions, as well as specific identifiable customer accounts considered at risk or uncollectible.
+Added: As of January 30, 2026 and January 31, 2025, the allowance for expected credit losses was $77 million and $63 million, respectively.
Based on our assessment, we believe that we are adequately reserved for expected credit losses.
3 unchanged sentences
To support financing solutions and services as part of the portfolio, DFS originates, collects, and services customer receivables primarily related to the purchase of our product and services solutions.
−Removed: New financing originations were $8.4 billion for both Fiscal 2025 and Fiscal 2024 and $9.7 billion for Fiscal 2023.
+Added: New financing originations were $11.9 billion for Fiscal 2026 and $8.4 billion for both Fiscal 2025 and Fiscal 2024.
Our leases are generally classified as sales-type leases or operating leases.
3 unchanged sentences
We recognize product revenue and depreciation expense, classified as cost of net revenue, over the contract term.
−Removed: As of January 31, 2025 and February 2, 2024, our financing receivables, net were $11.2 billion and $10.5 billion, respectively .
+Added: As of January 30, 2026 and January 31, 2025, our financing receivables, net were $14.3 billion and $11.2 billion, respectively .
+Added: The increase in financing receivables, net was primarily attributable to our AI-optimized servers offerings.
We maintain an allowance to cover expected financing receivables credit losses and evaluate credit loss expectations based on our total portfolio.
−Removed: The principal charge-off rate for our financing receivables portfolio was 0.6% for Fiscal 2025 and 0.5% for both Fiscal 2024 and Fiscal 2023.
+Added: The principal charge-off rate for our financing receivables portfolio was 0.2%, 0.6%, and 0.5% for Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively.
The credit quality of our financing receivables remains strong due to the mix of high-quality commercial accounts in our portfolio.
1 unchanged sentence
We have an extensive process to manage our exposure to customer credit risk that includes active management of credit lines and collection activities.
−Removed: We also sell selected fixed-term financing receivables without recourse to unrelated third parties on a periodic basis, primarily to manage certain concentrations of customer credit exposure.
+Added: We also sell select fixed-term financing receivables without recourse to unrelated third parties on a periodic basis, primarily to manage certain concentrations of customer credit exposure.
Based on our assessment of the customer financing receivables, we believe that we are adequately reserved.
We retain a residual interest in equipment leased under our lease programs.
−Removed: As of January 31, 2025 and February 2, 2024, the residual interest recorded as part of financing receivables was $168 million and $157 million, respectively.
+Added: As of January 30, 2026 and January 31, 2025, the residual interest recorded as part of financing receivables was $198 million and $168 million, respectively.
The amount of the residual interest is established at the inception of the lease based upon estimates of the value of the equipment at the end of the lease term using historical studies, industry data, and future value-at-risk demand valuation methods.
3 unchanged sentences
No expected losses were recorded related to residual assets during Fiscal 2026 and Fiscal 2025.
−Removed: As of both January 31, 2025 and February 2, 2024, equipment under operating leases, net was $2.2 billion.
+Added: As of January 30, 2026 and January 31, 2025, equipment under operating leases, net was $2.5 billion and $2.2 billion, respectively.
We assess the carrying amount of the equipment under operating leases for impairment whenever events or circumstances may indicate that an impairment has occurred.
No material impairment losses were recorded related to such equipment during Fiscal 2026, Fiscal 2025, and Fiscal 2024.
−Removed: DFS offerings are initially funded through cash on hand at the time of origination, most of which is subsequently replaced with asset-backed financing.
−Removed: For offerings that qualify as sales-type leases, the initial funding of financing receivables is reflected as an impact to cash flows from operations and is largely subsequently offset by cash proceeds from financing.
−Removed: For offerings that qualify as operating leases, the initial funding is classified as a capital expenditure and reflected as an impact to cash flows used in investing activities.
See Note 5 of the Notes to the Consolidated Financial Statements included in this report for additional information about our financing receivables and the associated allowances, and equipment under operating leases.
6 unchanged sentences
We believe that our current cash and cash equivalents, together with cash that will be provided by future operations and borrowings and issuances expected to be available under our revolving credit facility and commercial paper program, will be sufficient over the next twelve months and for the foreseeable future thereafter to meet our material cash requirements, including funding of our operations, debt-related payments, capital expenditures, and other corporate needs.
−Removed: As part of our overall capital allocation strategy, we intend to return capital to our stockholders through both share repurchase programs and dividend payments and use the remaining available cash to drive growth and maintain our investment grade credit rating.
+Added: As part of our overall capital allocation strategy, we intend to continue returning capital to our stockholders through both share repurchase programs and dividend payments and to use the remaining available cash to drive growth and maintain our investment grade credit rating.
The following table presents our cash and cash equivalents as well as our available borrowings as of the dates indicated:
−Removed: January 31, 2025 February 2, 2024
+Added: January 30, 2026 January 31, 2025
(in millions)
3 unchanged sentences
Total cash and cash equivalents, and available borrowings $ 17,414 $ 9,632
−Removed: During Fiscal 2025, cash and cash equivalents decreased by $3.7 billion primarily due to the return of capital to our stockholders, capital expenditures, net repayment of DFS debt and Senior Notes, and payments to settle employee tax withholdings on stock-based compensation, the effects of which were partially offset by cash flows from operations.
+Added: During Fiscal 2026, cash and cash equivalents increased by $7.9 billion primarily due to an increase in cash flows from operations, net debt from the issuance of Senior Notes and DFS debt, and the proceeds from the sale of Secureworks, the effects of which were partially offset by the return of capital to our stockholders, capital expenditures, and payments to settle employee tax withholdings on stock-based compensation.
As of January 30, 2026, our revolving credit facility had a maximum capacity of $6.0 billion.
1 unchanged sentence
As of January 30, 2026, there were no borrowings outstanding under the facility and remaining available borrowings totaled approximately $5.9 billion.
−Removed: The revolving credit facility also acts as a backstop to provide liquidity support for our commercial paper program.
+Added: The facility also acts as a backstop to provide liquidity support for our commercial paper program.
We maintain a commercial paper program under which we may issue unsecured notes in a maximum aggregate face amount of $5.0 billion outstanding at any time, with maturities of up to 397 days from the date of issue.
3 unchanged sentences
The following table presents our outstanding debt as of the dates indicated:
−Removed: January 31, 2025 Change February 2, 2024
+Added: January 30, 2026 Change January 31, 2025
(in millions)
11 unchanged sentences
Total debt, carrying value $ 31,503 $ 6,936 $ 24,567
−Removed: The outstanding principal amount of our debt decreased $1.4 billion to $24.8 billion as of January 31, 2025, driven primarily by net repayments of our DFS debt and Senior Notes.
+Added: The outstanding principal amount of our total debt increased $7.0 billion to $31.8 billion as of January 30, 2026, driven primarily by an increase in net debt from the issuance of Senior Notes and, to a lesser extent, DFS debt.
+Added: Subsequent to the close of the fiscal year ended January 30, 2026, we repaid the remaining outstanding $0.5 billion principal amount of 6.02% Senior Notes due June 2026.
We define core debt as the total principal amount of our debt, less DFS related debt and other debt.
−Removed: Our core debt was $13.0 billion and $14.9 billion as of January 31, 2025 and February 2, 2024, respectively.
+Added: Our core debt was $17.0 billion and $13.0 billion as of January 30, 2026 and January 31, 2025, respectively.
See Note 7 of the Notes to the Consolidated Financial Statements included in this report for additional information about our debt.
−Removed: DFS related debt primarily represents debt from our securitization and structured financing programs.
+Added: DFS debt primarily represents debt from our securitization and structured financing programs.
Our risk of loss under these programs is limited to transferred lease and loan payments and associated equipment, as the credit holders have no recourse to Dell Technologies.
4 unchanged sentences
The following table presents DFS owned assets as of the dates indicated:
−Removed: January 31, 2025 February 2, 2024
+Added: January 30, 2026 January 31, 2025
(in millions)
4 unchanged sentences
$ 16,739 $ 13,416
−Removed: We believe we will continue to be able to make our debt principal and interest payments, including payment of short-term maturities, from existing and expected sources of cash, primarily from operating cash flows.
−Removed: Cash used for debt principal and interest payments may include short-term borrowings under our commercial paper program, our revolving credit facility, or other borrowings.
+Added: We believe we will continue to be able to make our debt principal and interest payments, including payment of short-term maturities, from existing and expected sources of cash.
+Added: Cash used for debt principal and interest payments may include operating cash flows, short-term borrowings under our commercial paper program or our revolving credit facility, or other borrowings.
Under our variable-rate debt, we could experience variations in our future interest expense from potential fluctuations in applicable reference rates, or from possible fluctuations in the level of DFS debt required to meet future demand for customer financing.
2 unchanged sentences
Fiscal Year Ended
−Removed: January 31, 2025 February 2, 2024 February 3, 2023
+Added: January 30, 2026 January 31, 2025 February 2, 2024
(in millions)
5 unchanged sentences
Change in cash, cash equivalents, and restricted cash $ 7,887 $ (3,688) $ (1,387)
−Removed: Operating Activities — Cash provided by operating activities was $4.5 billion during Fiscal 2025 and was driven by profitability, partially offset by working capital dynamics.
−Removed: Working capital was primarily impacted by AI, which led to higher inventory, accounts receivable, and accounts payable levels.
−Removed: During Fiscal 2024, cash provided by operating activities was $8.7 billion, which was primarily driven by profitability coupled with strong inventory management and cash collections performance.
−Removed: Cash provided by operating activities during Fiscal 2024 also reflected the impact of the $0.9 billion net payment to settle the Class V transaction litigation and $0.4 billion in proceeds from the sale of our U.S.
−Removed: consumer revolving customer receivables portfolio.
+Added: Operating Activities — Cash provided by operating activities was $11.2 billion during Fiscal 2026 and was driven by net revenue growth, profitability, and working capital dynamics, partially offset by higher financing receivables.
+Added: Financing receivables and working capital were primarily affected by increased demand for our AI-optimized servers offerings.
+Added: During Fiscal 2025, cash provided by operating activities was $4.5 billion and was driven by profitability, partially offset by working capital dynamics.
+Added: Working capital was primarily impacted by AI dynamics, which led to higher inventory, accounts receivable, and accounts payable levels.
Investing Activities — Investing activities primarily consist of cash used to fund capital expenditures for property, plant, and equipment inclusive of equipment under operating leases and equipment used to support our as-a-Service offerings, which we refer to collectively as assets in a customer contract.
Additional activities may include capitalized software development costs, the maturities, sales, and purchases of investments, and acquisitions and divestitures.
−Removed: Cash used in investing activities was $2.2 billion and $2.8 billion during Fiscal 2025 and Fiscal 2024, respectively, and was primarily applied to capital expenditures.
+Added: Cash used in investing activities was $2.1 billion during Fiscal 2026 and consisted of cash used for capital expenditures, partially offset by cash proceeds from the sale of Secureworks.
+Added: Cash used in investing activities was $2.2 billion during Fiscal 2025 and was primarily used for capital expenditures.
Financing Activities — Financing activities primarily consist of the proceeds and repayments of debt and return of capital to our stockholders.
−Removed: Cash used in financing activities was $5.8 billion during Fiscal 2025 and primarily consisted of repurchases of common stock, inclusive of payments to settle employee tax withholdings on stock-based compensation, net repayments of our DFS debt and Senior Notes, and the payment of quarterly dividends.
−Removed: During Fiscal 2024, cash used in financing activities was $7.1 billion and primarily consisted of principal repayments of our Senior Notes, repurchases of common stock, inclusive of payments to settle employee tax withholdings on stock-based compensation, and the payment of quarterly dividends.
−Removed: DFS Cash Flow Impacts — DFS offerings are initially funded through cash on hand at the time of origination, most of which is subsequently replaced with asset-backed financing.
−Removed: For offerings that qualify as sales-type leases, the initial funding of financing receivables is reflected as an impact to cash flows from operations and is largely subsequently offset by cash proceeds from financing.
+Added: Cash used in financing activities was $1.5 billion during Fiscal 2026 and primarily consisted of repurchases of common stock, inclusive of payments to settle employee tax withholdings on stock-based compensation, and the payment of quarterly dividends, partially offset by net proceeds from the issuance of Senior Notes and DFS debt.
+Added: Cash used in financing activities was $5.8 billion during Fiscal 2025 and primarily consisted of repurchases of common stock, inclusive of payments to settle employee tax withholdings on stock-based compensation, net repayments on our DFS debt and Senior Notes, and the payment of quarterly dividends.
+Added: DFS Cash Flow Impacts — DFS offerings are initially funded through cash on hand at the time of origination, some of which is subsequently replaced with financing.
+Added: For offerings that qualify as sales-type leases, the initial funding of financing receivables is reflected as an impact to cash flows from operations.
For offerings that qualify as operating leases, the initial funding is classified as a capital expenditure and reflected as cash flows used in investing activities.
−Removed: DFS new financing originations were $8.4 billion during both Fiscal 2025 and Fiscal 2024 and $9.7 billion during Fiscal 2023.
+Added: DFS new financing originations were $11.9 billion during Fiscal 2026 and $8.4 billion during both Fiscal 2025 and Fiscal 2024.
As of January 30, 2026, we had $14.3 billion of total net financing receivables and $2.5 billion of equipment under operating leases, net.
5 unchanged sentences
Material Capital Commitments and Cash Requirements
−Removed: The Company’s material capital commitments include the following:
+Added: Our material capital commitments include the following:
Capital Expenditures — We spent $2.6 billion and $2.7 billion during Fiscal 2026 and Fiscal 2025, respectively, on property, plant, and equipment and capitalized software development costs.
1 unchanged sentence
Product demand, product mix, the use of contract manufacturers, and ongoing investments in operating and information technology infrastructure influence the level and prioritization of our capital expenditures.
−Removed: Repurchases of Common Stock — On September 23, 2021, our Board of Directors approved a stock repurchase program with no fixed expiration date under which we may repurchase up to $5 billion of shares of Class C Common Stock, exclusive of any fees, commissions, or other expenses related to such repurchases.
−Removed: On October 5, 2023 and February 27, 2025, subsequent to the close of Fiscal 2025, our Board of Directors authorized additional shares for repurchase under the stock repurchase program of $5 billion and $10 billion, respectively.
−Removed: Following the February 27, 2025 approval, we had approximately $11.5 billion of authorized shares remaining under the program.
+Added: Repurchases of Common Stock — On September 23, 2021, our Board of Directors approved a stock repurchase program with no fixed expiration date under which we were authorized to repurchase a specified dollar value of Class C Common Stock, exclusive of any fees, commissions, or other expenses related to such repurchases.
+Added: As of January 30, 2026, our Board of Directors authorized the repurchase of up to $20 billion of Class C Common Stock and on February 26, 2026, subsequent to the close of Fiscal 2026, authorized an additional $10 billion of Class C Common Stock for repurchase.
+Added: Following the February 26, 2026 approval, we had approximately $15.2 billion of authorized shares remaining for repurchase under the program.
During Fiscal 2026, we repurchased approximately 54 million shares of Class C Common Stock for a total purchase price of approximately $6.0 billion.
During Fiscal 2025, we repurchased approximately 22 million shares of Class C Common Stock for a total purchase price of approximately $2.6 billion.
−Removed: Dividend Payments — During Fiscal 2025 and Fiscal 2024, the Company paid $1.3 billion and $1.1 billion in dividends and dividend equivalents at a rate of $0.445 and $0.37 per share per fiscal quarter, respectively.
−Removed: On February 27, 2025, we announced that the Board of Directors approved an 18% increase in the dividend rate to $0.525 per share per fiscal quarter beginning in the first quarter of Fiscal 2026.
−Removed: Additionally, the Company’s material cash requirements include the following contractual obligations:
+Added: Dividend Payments — During Fiscal 2026 and Fiscal 2025, we paid $1.5 billion and $1.3 billion, respectively, in dividends and dividend equivalents at a rate of $0.525 per share per fiscal quarter and $0.445 per share per fiscal quarter, respectively.
+Added: On February 26, 2026, subsequent to the close of Fiscal 2026, we announced that the Board of Directors approved a 20% increase in the dividend rate to $0.630 per share per fiscal quarter beginning in the first quarter of Fiscal 2027.
+Added: Additionally, our material cash requirements include the following contractual obligations:
Debt — Our expected principal cash payments on borrowings are exclusive of discounts and premiums.
−Removed: As of January 31, 2025, the Company had outstanding debt for an aggregate principal amount of $24.8 billion, with $5.2 billion payable within 12 months.
−Removed: Included within the aggregate principal amount was $16.1 billion of corporate and other debt with varying maturities, with an immaterial amount payable within 12 months, and $8.7 billion of DFS debt, with $5.2 billion payable within 12 months.
+Added: As of January 30, 2026, the Company had outstanding debt in an aggregate principal amount of $31.8 billion, with $8.0 billion payable within 12 months.
+Added: Included within the aggregate principal amount was $22.6 billion of corporate and other debt with varying maturities, with $2.3 billion payable within 12 months, and $9.1 billion of DFS debt, with $5.7 billion payable within 12 months.
As of January 30, 2026, future interest payments associated with outstanding debt were $9.1 billion, with $1.4 billion payable within 12 months.
−Removed: Included within total future interest payments is $6.9 billion of payments related to corporate and other debt, with $0.9 billion payable within 12 months, and $0.5 billion of payments related to DFS debt, with $0.3 billion payable within 12 months.
+Added: Included within total future interest payments are $8.7 billion of payments related to corporate and other debt, with $1.1 billion payable within 12 months, and $0.4 billion of payments related to our DFS debt, with $0.3 billion payable within 12 months.
Purchase Obligations — Purchase obligations are defined as contractual obligations to purchase goods or services that are enforceable and legally binding on us.
2 unchanged sentences
and the approximate timing of the transaction.
−Removed: Purchase obligations do not include contracts that may be canceled without penalty.
+Added: Purchase obligations include the non-cancelable portion or the minimum cancellation fee under the contract and do not include contracts that may be canceled without penalty.
We utilize several suppliers to manufacture sub-assemblies for our products.
1 unchanged sentence
Consistent with industry practice, we acquire raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on our projected demand and manufacturing needs.
−Removed: Additionally, to meet the growing demand and increasing complexity of our AI-optimized offerings, we have increased our purchases of certain components with suppliers, which has resulted in increased purchase obligations.
These purchase orders are typically fulfilled within 30 days and are entered into during the ordinary course of business in order to establish best pricing and continuity of supply for our production.
Purchase orders are not included in purchase obligations, as they typically represent our authorization to purchase rather than binding purchase obligations.
−Removed: As of January 31, 2025, the Company had purchase obligations of $6.5 billion, of which $5.0 billion was payable within 12 months.
−Removed: Operating Leases — We lease property and equipment, manufacturing facilities, and office space under non-cancelable leases.
+Added: To meet growing demand, we have increased, and expect we will continue to increase, our purchases of certain components with suppliers, resulting in increased purchase obligations.
+Added: As of January 30, 2026, the Company had purchase obligations of $18.8 billion, with $16.8 billion payable within 12 months.
+Added: Operating Leases — We lease property and equipment, warehouses, and office space under non-cancelable leases.
Certain of these leases obligate us to pay taxes, maintenance, and repair costs.
1 unchanged sentence
See Note 6 of the Notes to the Consolidated Financial Statements included in this report for additional information about our leasing transactions in which we are the lessee.
−Removed: Tax Obligations — Tax obligations represent a one-time mandatory deemed repatriation tax on undistributed earnings of foreign subsidiaries.
−Removed: As of January 31, 2025, the balance of tax obligations was $60 million, with the full amount payable within 12 months.
−Removed: Excluded from the amounts above are $0.9 billion in additional liabilities associated with uncertain tax positions as of January 31, 2025.
−Removed: We are unable to reliably estimate the expected payment dates for any liabilities for uncertain tax positions.
−Removed: See Note 12 of the Notes to the Consolidated Financial Statements included in this report for more information regarding these tax matters.
Market Conditions
23 unchanged sentences
The summarized financial information of the Issuers and Guarantors (collectively, the “Obligor Group”) is presented on a combined basis, excluding intercompany balances and transactions between entities in the Obligor Group.
−Removed: The Obligor Group’s investment balances in Non-Obligor Subsidiaries have been excluded.
+Added: The Obligor Group’s investment balances in subsidiaries of Dell Technologies Inc.
+Added: that are not part of the Obligor Group (the “Non-Obligor Subsidiaries”) have been excluded.
The Obligor Group’s amounts due from, amounts due to, and transactions with Non-Obligor Subsidiaries have been presented separately.
12 unchanged sentences
The following table presents summarized balance sheet information for the Obligor Group as of the dates indicated:
−Removed: January 31, 2025 February 2, 2024
+Added: January 30, 2026 January 31, 2025
(in millions)
33 unchanged sentences
If the observable price is available, we utilize that price for the SSP.
−Removed: If the observable price is not available, the SSP must be estimated.
−Removed: We estimate SSP by considering multiple factors, including, but not limited to, pricing practices, internal costs, and profit objectives as well as overall market conditions, which include geographic or regional specific factors, competitive positioning, and competitor actions.
+Added: If the observable price is not available, the SSP must be estimated by considering multiple factors, including, but not limited to, pricing practices, internal costs, and profit objectives as well as overall market and industry conditions, which include geographic or regional specific factors, competitive positioning, and competitor actions.
Our SSP estimates rely, in part, on company pricing trends.
1 unchanged sentence
SSP for our performance obligations is periodically reassessed.
−Removed: For transactions that involve a third party, the Company evaluates whether it is acting as the principal or the agent in the transaction.
+Added: For transactions that involve a third party, we evaluate whether we are acting as the principal or the agent in the transaction.
This determination requires significant judgment and impacts the amount and timing of revenue recognized.
−Removed: If the Company determines that it controls a good or service before it is transferred to the customer, the Company is acting as the principal and recognizes revenue at the gross amount of consideration it is entitled to from the customer.
−Removed: Indicators that the Company controls a good or service before transferring to a customer include, but are not limited to, the Company being the primary obligor to the customer, establishing its own pricing, and having inventory and credit risks.
+Added: If we determine that we control a good or service before it is transferred to the customer, we are acting as the principal and recognize revenue at the gross amount of consideration we are entitled to from the customer.
+Added: Indicators that we control a good or service before transferring to a customer include, but are not limited to, Dell Technologies being the primary obligor to the customer, establishing our own pricing, and having inventory and credit risks.
Goodwill and Indefinite-Lived Intangible Assets Impairment Assessments — Goodwill and indefinite-lived intangible assets are tested for impairment annually during the third fiscal quarter and whenever events or circumstances may indicate that an impairment has occurred.
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Changes in these estimates and assumptions could materially affect the fair value of the indefinite-lived intangible assets, potentially resulting in a non-cash impairment charge.
−Removed: For our annual impairment test during the third fiscal quarter of Fiscal 2025, during which the Company elected to quantitatively test the Infrastructure Solutions Group and Client Solutions Group reporting units, we determined that the fair value of each of these reporting units substantially exceeded its carrying amount.
+Added: For our annual impairment assessment during the third quarter of Fiscal 2026, we performed a qualitative assessment and determined that it was more likely than not that the estimated fair values of each of the reporting units and indefinite-lived assets were higher than their respective carrying values.
For more information about our goodwill and intangible assets, see Note 9 of the Notes to the Consolidated Financial Statements included in this report.
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In assessing the need for a valuation allowance, we consider all available evidence for each jurisdiction, including past operating results, estimates of future taxable income, and the feasibility of ongoing tax planning strategies.
−Removed: In the event we determine that all or part of the net deferred tax assets are not realizable in the future, we will make an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made.
+Added: In the event we determine that all or part of the net deferred tax assets are not realizable in the future, we will make an adjustment to the valuation allowance that would be charged to earnings in the period such a determination is made.
Significant judgment is also required in evaluating our uncertain tax positions.
Although we believe our tax return positions are sustainable, we recognize tax benefits from uncertain tax positions in the financial statements only when it is more likely than not that the positions will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits and a consideration of the relevant taxing authority’s administrative practices and precedents.
−Removed: To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made.
+Added: To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such a determination is made.
The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.