Dell Technologies Inc. 10-Q

ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED) Index Page Condensed Consolidated Statements of Financial Position as of May 1, 2026 and January 3 0 , 20 26 5 Condensed Consolidated Statements of Income for the three months ended May 1, 202 6 and May 2 , 202 5 6 Condensed Consolidated Statements of Comprehensive Income for the three months ended May 1 , 202 6 and May 2 , 202 5 7 Condensed Consolidated Statements of Cash Flows for the three months ended May 1 , 202 6 and May 2 , 202 5 8 Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the three months ended May 1 , 202 6 and May 2 , 202 5 9 Notes to the Condensed Consolidated Financial Statements 11 Note 1 — Overview and Basis of Presentation 11 Note 2 — Fair Value Measurements 13 Note 3 — Investments 15 Note 4 — Financial Services 16 Note 5 — Leases 22 Note 6 — Debt 24 Note 7 — Derivative Instruments and Hedging Activities 26 Note 8 — Goodwill and Intangible Assets 30 Note 9 — Deferred Revenue 32 Note 10 — Commitments and Contingencies 33 Note 11 — Income and Other Taxes 35 Note 12 — Accumulated Other Comprehensive Income (Loss) 36 Note 13 — Capitalization 37 Note 14 — Earnings Per Share 39 Note 15 — Segment Information 40 Note 16 — Supplemental Consolidated Financial Information 43 Note 17 — Subsequent Events 46 4 Table of Contents DELL TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions; unaudited) May 1, 2026 January 30, 2026 ASSETS Current assets: Cash and cash equivalents $ 11,578 $ 11,528 Accounts receivable, net of allowance of $ 77 and $ 77 25,854 17,585 Short-term financing receivables, net of allowance of $ 124 and $ 121 8,237 8,458 Inventories 15,052 10,437 Other current assets 9,886 9,594 Total current assets 70,607 57,602 Property, plant, and equipment, net 6,945 6,676 Long-term investments 2,484 1,730 Long-term financing receivables, net of allowance of $ 88 and $ 92 5,713 5,822 Goodwill 19,504 19,547 Intangible assets, net 4,439 4,533 Other non-current assets 5,221 5,376 Total assets $ 114,913 $ 101,286 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 7,550 $ 7,990 Accounts payable 45,261 33,630 Accrued and other 8,594 8,315 Short-term deferred revenue 13,193 13,334 Total current liabilities 74,598 63,269 Long-term debt 23,611 23,513 Long-term deferred revenue 14,259 13,596 Other non-current liabilities 3,849 3,378 Total liabilities $ 116,317 $ 103,756 Commitments and contingencies (Note 10) Stockholders’ equity (deficit): Common stock and capital in excess of $ 0.01 par value $ 9,111 $ 9,457 Treasury stock at cost ( 16,149 ) ( 14,533 ) Retained earnings 6,343 3,325 Accumulated other comprehensive loss ( 709 ) ( 719 ) Total stockholders’ equity (deficit) ( 1,404 ) ( 2,470 ) Total liabilities and stockholders’ equity $ 114,913 $ 101,286 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements . 5 Table of Contents DELL TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts ; unaudited) Three Months Ended May 1, 2026 May 2, 2025 Net revenue: Products $ 38,105 $ 17,599 Services 5,737 5,779 Total net revenue 43,842 23,378 Cost of net revenue: Products 32,852 15,116 Services 3,208 3,325 Total cost of net revenue 36,060 18,441 Gross margin 7,782 4,937 Operating expenses: Selling, general, and administrative 3,143 2,964 Research and development 983 808 Total operating expenses 4,126 3,772 Operating income 3,656 1,165 Interest and other, net 292 ( 82 ) Income before income taxes 3,948 1,083 Income tax expense 510 118 Net income $ 3,438 $ 965 Earnings per share: Basic $ 5.30 $ 1.39 Diluted $ 5.24 $ 1.37 Weighted-average shares outstanding: Basic 649 692 Diluted 656 702 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements . 6 Table of Contents DELL TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions ; unaudited) Three Months Ended May 1, 2026 May 2, 2025 Net income $ 3,438 $ 965 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments ( 74 ) 252 Cash flow hedges: Change in unrealized gains (losses) 75 ( 257 ) Reclassification adjustment for net losses included in net income 8 11 Net change in cash flow hedges 83 ( 246 ) Pension and other postretirement plans: Recognition of actuarial net gains (losses) from pension and other postretirement plans 1 ( 1 ) Total other comprehensive income, net of tax expense (benefit) of $ 6 and $( 22 ), respectively 10 5 Comprehensive income, net of tax $ 3,448 $ 970 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Table of Contents DELL TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions ; unaudited) Three Months Ended May 1, 2026 May 2, 2025 Cash flows from operating activities: Net income $ 3,438 $ 965 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 758 738 Stock-based compensation expense 189 190 Deferred income taxes 45 ( 256 ) Other, net (a) ( 387 ) 174 Changes in assets and liabilities: Accounts receivable ( 8,331 ) 691 Financing receivables 263 23 Inventories ( 4,715 ) ( 734 ) Other assets and liabilities 496 ( 3,276 ) Accounts payable 11,661 4,511 Deferred revenue 664 ( 230 ) Change in cash from operating activities 4,081 2,796 Cash flows from investing activities: Purchases of investments ( 124 ) ( 97 ) Maturities and sales of investments 1 31 Capital expenditures and capitalized software development costs ( 963 ) ( 568 ) Divestitures of businesses and assets, net — 533 Other 19 13 Change in cash from investing activities ( 1,067 ) ( 88 ) Cash flows from financing activities: Repurchases of common stock ( 1,628 ) ( 1,980 ) Repurchases of common stock for employee tax withholdings ( 537 ) ( 352 ) Payments of dividends and dividend equivalents ( 464 ) ( 396 ) Proceeds from debt 2,465 6,308 Repayments of debt ( 2,788 ) ( 2,310 ) Debt-related costs and other, net ( 2 ) ( 33 ) Change in cash from financing activities ( 2,954 ) 1,237 Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 13 ) 89 Change in cash, cash equivalents, and restricted cash 47 4,034 Cash, cash equivalents, and restricted cash at beginning of the period 11,706 3,819 Cash, cash equivalents, and restricted cash at end of the period $ 11,753 $ 7,853 ____________________ (a) During the three months ended May 1, 2026, other, net, includes $ 0.6 billion of gains recognized within the Company’s strategic investments portfolio. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 8 Table of Contents DELL TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (in millions, except per share amounts ; unaudited; continued on next page) Common Stock and Capital in Excess of Par Value Treasury Stock Issued Shares Amount Shares Amount Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Income (Loss) Dell Technologies Stockholders’ Equity (Deficit) Non-Controlling Interests Total Stockholders’ Equity (Deficit) Balances as of January 31, 2025 834 $ 9,119 138 $ ( 8,502 ) $ ( 1,160 ) $ ( 939 ) $ ( 1,482 ) $ 95 $ ( 1,387 ) Net income — — — — 965 — 965 — 965 Dividends and dividend equivalents declared ($ 0.525 per common share) — — — — ( 372 ) — ( 372 ) — ( 372 ) Foreign currency translation adjustments — — — — — 252 252 — 252 Cash flow hedges, net change — — — — — ( 246 ) ( 246 ) — ( 246 ) Pension and other post-retirement — — — — — ( 1 ) ( 1 ) — ( 1 ) Issuance of common stock, net of shares repurchased for employee tax withholding 9 ( 352 ) — — — — ( 352 ) — ( 352 ) Stock-based compensation expense — 190 — — — — 190 — 190 Treasury stock repurchases — — 22 ( 1,986 ) — — ( 1,986 ) — ( 1,986 ) Sale of SecureWorks Corp. — — — — — 8 8 ( 95 ) ( 87 ) Balances as of May 2, 2025 843 $ 8,957 160 $ ( 10,488 ) $ ( 567 ) $ ( 926 ) $ ( 3,024 ) $ — $ ( 3,024 ) The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 9 Table of Contents DELL TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (continued; in millions, except per share amounts ; unaudited) Common Stock and Capital in Excess of Par Value Treasury Stock Issued Shares Amount Shares Amount Retained Earnings Accumulated Other Comprehensive Income (Loss) Dell Technologies Stockholders’ Equity (Deficit) Non-Controlling Interests Total Stockholders’ Equity (Deficit) Balances as of January 30, 2026 844 $ 9,457 192 $ ( 14,533 ) $ 3,325 $ ( 719 ) $ ( 2,470 ) $ — $ ( 2,470 ) Net income — — — — 3,438 — 3,438 — 3,438 Dividends and dividend equivalents declared ($ 0.630 per common share) — — — — ( 420 ) — ( 420 ) — ( 420 ) Foreign currency translation adjustments — — — — — ( 74 ) ( 74 ) — ( 74 ) Cash flow hedges, net change — — — — — 83 83 — 83 Pension and other post-retirement — — — — — 1 1 — 1 Issuance of common stock, net of shares repurchased for employee tax withholding 8 ( 535 ) — — — — ( 535 ) — ( 535 ) Stock-based compensation expense — 189 — — — — 189 — 189 Treasury stock repurchases — — 11 ( 1,616 ) — — ( 1,616 ) — ( 1,616 ) Balances as of May 1, 2026 852 $ 9,111 203 $ ( 16,149 ) $ 6,343 $ ( 709 ) $ ( 1,404 ) $ — $ ( 1,404 ) The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 10 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1 — OVERVIEW AND BASIS OF PRESENTATION Dell Technologies is a leader in the global technology industry that designs, develops, manufactures, markets, sells, and supports a wide range of comprehensive and integrated solutions, products, and services. Dell Technologies offerings include servers, networking, storage, cloud solutions, desktops, notebooks, services, software, branded peripherals, and third-party software and peripherals. References in these Notes to the Condensed Consolidated Financial Statements to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries. Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2026. These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of the Company as of May 1, 2026 and January 30, 2026 and the results of its operations, corresponding comprehensive income, changes in stockholders’ equity (deficit), and cash flows for the three months ended May 1, 2026 and May 2, 2025. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of its operations, corresponding comprehensive income, changes in stockholders’ equity (deficit), and cash flows for the three months ended May 1, 2026 and May 2, 2025 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period. The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ending January 29, 2027 and the fiscal year ended January 30, 2026 may be referred to as “Fiscal 2027” and “Fiscal 2026,” respectively. Both the fiscal year ending January 29, 2027 and the fiscal year ended January 30, 2026 are 52-week periods. Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies Inc. and its wholly-owned subsidiaries, as well as the accounts of SecureWorks Corp. (“Secureworks”), which was majority-owned by Dell Technologies through the date of the sale of Secureworks as discussed below. All intercompany transactions have been eliminated. The Company also consolidates Variable Interest Entities ("VIEs") where it has been determined that the Company is the primary beneficiary of the applicable entities’ operations. For each VIE, the primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to such VIE. In evaluating whether the Company is the primary beneficiary of each entity, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of each entity and the risks each entity was designed to create and pass through to its respective variable interest holders. The Company also evaluates its economic interests in each of the VIEs. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs. Secureworks — 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. The Company 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 Condensed Consolidated Statements of Income for the three months ended May 2, 2025. Related Party Transactions — The Company enters into purchase and sales transactions with other publicly-traded and privately-held companies, as well as not-for-profit organizations, that could be influenced by members of the Company’s board of directors, executive officers, or significant stockholders. The Company enters into these arrangements in the ordinary course of its business. Transactions with related parties were immaterial for the three months ended May 1, 2026 and May 2, 2025. 11 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Recently Issued Accounting Pronouncements Environmental Credits and Environmental Credit Obligations — In May 2026, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the financial accounting disclosure of environmental credits and environmental credit obligations, providing recognition, measurement, presentation, and disclosure requirements for all entities that generate, purchase, or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, the guidance will be applied retrospectively. The Company is currently evaluating the impact and timing of adoption of this guidance. Internal-Use Software — In September 2025, the FASB issued guidance to modernize internal-use software capitalization by removing references to software development project stages, increasing the operability of the recognition guidance permitting consideration of different methods of software development, including the agile method. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, the guidance may be applied prospectively, retrospectively, or through a modified approach. The Company is currently evaluating the impact and timing of adoption of this guidance. Expense Disaggregation Disclosures — In November 2024, the FASB issued guidance to improve disclosures about a public entity’s expenses by requiring disclosure of additional information about the types of expenses commonly presented in the financial statements on an annual and interim basis. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2026, with early adoption permitted. Upon adoption, the guidance will be applied prospectively. Adoption of this new guidance will result in increased disclosures in the Notes to the Condensed Consolidated Financial Statements. 12 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 2 — FAIR VALUE MEASUREMENTS The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated: May 1, 2026 January 30, 2026 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Assets: Money market funds $ 7,520 $ — $ — $ 7,520 $ 8,052 $ — $ — $ 8,052 Marketable equity and other securities 77 — — 77 77 — — 77 Derivative instruments — 97 — 97 — 160 — 160 Total assets $ 7,597 $ 97 $ — $ 7,694 $ 8,129 $ 160 $ — $ 8,289 Liabilities: Derivative instruments $ — $ 116 $ — $ 116 $ — $ 126 $ — $ 126 Total liabilities $ — $ 116 $ — $ 116 $ — $ 126 $ — $ 126 The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value. Money Market Funds — The Company’s investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices for identical assets in active markets, when available, or pricing models whereby all significant inputs are observable, or can be derived from, or corroborated by, observable market data. The Company reviews security pricing and assesses money market fund liquidity on a quarterly basis. As of May 1, 2026, the Company’s portfolio had no exposure to money market funds with a fluctuating net asset value. Marketable Equity and Other Securities — The Company’s investments in equity and other securities that are measured at fair value on a recurring basis consist of strategic investments in publicly-traded companies. The valuation of these securities is based on quoted prices in active markets. Derivative Instruments — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative financial instrument portfolio. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s derivative financial instrument activities. Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees which allow participants to defer a portion of their compensation. Assets and liabilities associated with the plans are measured at fair value using Level 1 inputs. Assets were the same as liabilities associated with the plans at approximately $ 269 million and $ 274 million as of May 1, 2026 and January 30, 2026, respectively, and are included in other assets and other liabilities on the Condensed Consolidated Statements of Financial Position. The net impact on the Condensed Consolidated Statements of Income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the recurring fair value table above. 13 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of financial assets such as the Company’s strategic investments in non-marketable equity and other securities and non-financial assets such as goodwill and intangible assets. Strategic investments in non-marketable equity and other securities and certain non-financial assets such as goodwill and intangible assets are measured at fair value only if they are deemed to be impaired or when there is an adjustment from observable price changes in the current period. If measured at fair value in the Condensed Consolidated Statements of Financial Position, these securities would generally be classified as Level 3 in the fair value hierarchy. See Note 3 and Note 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s investments and goodwill and intangible assets, respectively. Carrying Value and Estimated Fair Value of Outstanding Debt — The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 6 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated: May 1, 2026 January 30, 2026 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Notes $ 20.9 $ 21.1 $ 21.4 $ 21.8 Legacy Notes $ 0.9 $ 1.0 $ 0.9 $ 1.0 DFS Debt $ 9.3 $ 9.1 $ 9.1 $ 8.9 The fair values of the outstanding debt shown in the table above were determined based on observable market prices in a less active market or based on valuation methodologies using observable inputs and were categorized as Level 2 in the fair value hierarchy. 14 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 3 — INVESTMENTS The Company has strategic investments in equity and other securities as well as immaterial investments in fixed income debt securities that are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. As of May 1, 2026 and January 30, 2026, total investments were $ 2.5 billion and $ 1.7 billion, respectively. Equity and other securities include strategic investments in marketable and non-marketable securities. Investments in marketable securities are measured at fair value on a recurring basis. Investments in non-marketable equity and other securities primarily represent early-stage companies without readily determinable fair values. The Company has elected to apply the measurement alternative for non-marketable securities which allows investments without readily determinable fair values to be measured at cost, less impairment, adjusted for observable price changes. The Company makes a separate election to apply the measurement alternative for each eligible investment and is required to reassess at each reporting period whether an investment qualifies for the alternative. In evaluating these investments for impairment or observable price changes, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those events on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance. The following table presents the carrying value of the Company's strategic investments in marketable and non-marketable equity and other securities as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Marketable $ 77 $ 77 Non-marketable 2,394 1,640 Total equity and other securities $ 2,471 $ 1,717 The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Marketable securities: Net unrealized losses $ ( 24 ) $ ( 1 ) Non-marketable securities: Unrealized gains 681 22 Unrealized losses ( 26 ) ( 6 ) Net unrealized gains (a) 655 16 Net unrealized gains on equity and other securities $ 631 $ 15 ____________________ (a) During the three months ended May 1, 2026, net unrealized gains on non-marketable securities was primarily attributable to an upward observable price adjustment of $ 0.6 billion related to a single investee. As of May 1, 2026 and January 30, 2026, the cumulative unrealized gains on non-marketable securities were $ 1.8 billion and $ 1.1 billion, respectively. As of both May 1, 2026 and January 30, 2026, the cumulative unrealized losses, including impairments, on non-marketable securities were $ 0.3 billion. 15 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 4 — FINANCIAL SERVICES The Company offers or arranges a portfolio of payment and consumption solutions and services for its customers globally, including utility, subscription, as-a-Service, leases, and loans, designed to match customers' consumption and financing preferences and to provide operational and financial flexibility. To support financing solutions and services as part of the Dell Technologies portfolio, Dell Financial Services and its affiliates (“DFS”) originate, collect, and service customer financing arrangements primarily related to the purchase and use of Dell Technologies products and services. In some cases, the Company also offers financing for the purchase of third-party technology products that complement the portfolio of the Company’s products and services. New financing originations were $ 2.8 billion and $ 1.6 billion for the three months ended May 1, 2026 and May 2, 2025, respectively. The Company’s financing arrangements with customers are aggregated as fixed-term leases and loans as described below. Leases — The Company enters into fixed-term financing arrangements with customers who seek lease financing for equipment. Leases are generally classified as sales-type leases or operating leases. Additionally, utility, subscription, and as-a-Service flexible consumption models may result in identification of embedded lease arrangements that require the recognition of sales-type leases or operating leases. Leases with business customers generally have fixed terms of two to five years . Loans — The Company also offers fixed-term loans to qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers. These loans are repaid in periodic payments including interest and have defined terms typically ranging from one to five years . The fair value of the fixed-term loan portfolio is determined using market observable inputs. The carrying value of these loans approximates fair value. Financing Receivables The following table presents the components of the Company’s financing receivables as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Customer receivables, gross (a) $ 13,966 $ 14,295 Allowance for losses ( 212 ) ( 213 ) Customer receivables, net 13,754 14,082 Residual interest 196 198 Financing receivables, net $ 13,950 $ 14,280 Short-term $ 8,237 $ 8,458 Long-term $ 5,713 $ 5,822 ____________________ (a) Customer receivables, gross include amounts due from customers under fixed-term leases and loans and accrued interest. The following table presents the changes in allowance for financing receivable losses for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Balances at beginning of period $ 213 $ 153 Charge-offs, net of recoveries ( 10 ) ( 10 ) Provision charged to income statement 9 1 Balances at end of period $ 212 $ 144 16 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The Company recognizes an allowance for financing receivable losses, including both the lease receivable and unguaranteed residual, in an amount equal to the expected credit losses, net of recoveries. The allowance for financing receivable losses on the lease receivable is determined based on various factors, including lifetime expected losses determined using macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios as well as past due receivables, receivable type, and customer risk profile. The Company continues to monitor broader economic indicators and their potential impact on future credit loss performance. Aging The following table presents the aging of the Company’s customer financing receivables, gross, including accrued interest, as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Current 0 — 30 Days $ 13,723 $ 13,985 Past Due 31 — 90 Days 120 195 Past Due > 90 Days 123 115 Total $ 13,966 $ 14,295 Aging is likely to fluctuate as a result of the variability in volume of large transactions entered into over the period, and the administrative processes that accompany those transactions. Aging is also impacted by the timing of the Company’s fiscal period end date relative to calendar month-end customer payment due dates. As a result of these factors, fluctuations in aging from period to period do not necessarily indicate a material change in the collectibility of the portfolio. Customer receivables are placed on non-accrual status if principal or interest is past due and considered delinquent, or if there is concern about the collectibility of a specific customer receivable. The receivables identified as doubtful for collectibility may be classified as current for aging purposes. Credit Quality The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, as of the dates indicated: May 1, 2026 Fiscal Year of Origination 2027 2026 2025 2024 2023 Years Prior Total (in millions) Higher $ 980 $ 2,378 $ 1,508 $ 1,185 $ 420 $ 54 $ 6,525 Mid 705 3,492 962 299 89 11 5,558 Lower 356 992 268 163 88 16 1,883 Total $ 2,041 $ 6,862 $ 2,738 $ 1,647 $ 597 $ 81 $ 13,966 January 30, 2026 Fiscal Year of Origination 2026 2025 2024 2023 2022 Years Prior Total (in millions) Higher $ 2,671 $ 1,683 $ 1,430 $ 564 $ 84 $ 14 $ 6,446 Mid 4,077 1,354 419 163 22 1 6,036 Lower 1,153 321 209 109 11 10 1,813 Total $ 7,901 $ 3,358 $ 2,058 $ 836 $ 117 $ 25 $ 14,295 17 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The categories shown in the tables above segregate customer receivables, gross, based on the relative degrees of credit risk. Credit quality indicators are updated on a periodic basis. An internal grading system is utilized that assigns a credit level score based on a number of considerations, including liquidity, operating performance, and industry outlook. Leases The following table presents amounts included in the Condensed Consolidated Statements of Income related to sales-type lease activity for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Interest income — products $ 86 $ 93 Net revenue — products $ 534 $ 119 Cost of net revenue — products 525 131 Gross margin — products $ 9 $ ( 12 ) The following table presents the future maturity of the Company’s customer leases and associated financing payments, and reconciles the undiscounted cash flows to the customer receivables, gross recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated: May 1, 2026 (in millions) Fiscal 2027 (remaining nine months) $ 2,382 Fiscal 2028 2,090 Fiscal 2029 1,373 Fiscal 2030 645 Fiscal 2031 and thereafter 328 Total undiscounted cash flows 6,818 Loans 8,337 Less: Unearned income ( 1,189 ) Total customer receivables, gross $ 13,966 Operating Leases The Company’s operating leases primarily consist of fixed-term leases and contractually committed embedded leases identified within flexible consumption arrangements. The following table presents the components of the Company’s operating lease portfolio included in property, plant, and equipment, net as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Equipment under operating lease, gross $ 4,946 $ 4,651 Less: Accumulated depreciation ( 2,215 ) ( 2,192 ) Equipment under operating lease, net $ 2,731 $ 2,459 18 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following table presents operating lease income related to lease payments and depreciation expense for the Company’s operating lease portfolio for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Income related to lease payments $ 405 $ 358 Depreciation expense $ 254 $ 244 The following table presents the future payments to be received by the Company in operating lease contracts as of the date indicated: May 1, 2026 (in millions) Fiscal 2027 (remaining nine months) $ 1,111 Fiscal 2028 1,118 Fiscal 2029 711 Fiscal 2030 240 Fiscal 2031 and thereafter 114 Total $ 3,294 DFS Debt The Company maintains programs that facilitate the funding of leases, loans, and other alternative payment structures in the capital markets. The majority of DFS debt is non-recourse to Dell Technologies and represents borrowings under securitization programs and structured financing programs for which the Company’s risk of loss is limited to transferred lease and loan payments and associated equipment. The following table presents DFS debt as of the dates indicated and excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business: May 1, 2026 January 30, 2026 (in millions) DFS U.S. debt: Asset-based financing facility $ 2,901 $ 3,146 Fixed-term securitization offerings 3,033 2,648 Total DFS U.S. debt, principal amount 5,934 5,794 DFS international debt: Securitization facility 656 698 Other borrowings 928 851 Dell Bank senior unsecured eurobonds 1,760 1,796 Total DFS international debt, principal amount 3,344 3,345 Total DFS debt, principal amount $ 9,278 $ 9,139 Short-term $ 5,775 $ 5,719 Long-term $ 3,503 $ 3,420 19 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) DFS U.S. Debt Asset-Based Financing Facility — The Company maintains an asset-based financing facility in the United States, which is a revolving facility for fixed-term leases and loans. This debt is collateralized solely by the U.S. lease and loan payments and associated equipment in the facility. The asset-based financing facility consists of two tranches, with effective dates through July 7, 2026 and July 7, 2027, respectively. As of May 1, 2026, the total debt capacity related to the asset-based financing facility was $ 4.6 billion. The debt has a variable interest rate, and the duration of the debt is based on the terms of the underlying lease and loan payment streams. The Company enters into interest rate swap agreements to economically convert a portion of this debt from a floating rate to a fixed rate. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s interest rate swaps. The asset-based financing facility contains standard structural features related to the performance of the funded receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the facility, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of May 1, 2026, these criteria were met. Fixed-Term Securitization Offerings — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. The asset-backed debt securities are collateralized solely by the U.S. fixed-term lease and loan payments and associated equipment, which are held by Special Purpose Entities (“SPEs”), as discussed below. The interest rate on these securities is fixed and ranges from 4.01 % to 6.75 % per annum as of May 1, 2026, and the duration of these securities is based on the terms of the underlying lease and loan payment streams. DFS International Debt Securitization Facility — The Company maintains a securitization facility in Europe for fixed-term leases and loans. The debt under this facility has a variable interest rate, and the duration of the debt is based on the terms of the underlying lease and loan payment streams. This facility is effective through December 22, 2026 and had a total debt capacity of $ 938 million as of May 1, 2026. The securitization facility contains standard structural features related to the performance of the securitized receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the program, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of May 1, 2026, these criteria were met. Other Borrowings — In connection with the Company’s international financing operations, the Company has entered into revolving structured financing debt programs related to its fixed-term lease and loan products sold in Canada, Europe, the Middle East, Australia and New Zealand, and Singapore. The debt under these programs has a variable interest rate. The duration of the debt in Canada, Europe, the Middle East, and Australia and New Zealand is based on the terms of the underlying lease and loan payment streams. These facilities are collateralized solely by the lease and loan payments and associated equipment in their respective region or country. As of May 1, 2026, • the Canadian facility had a total debt capacity of $ 258 million and is effective through January 15, 2028, • the European facility had a total debt capacity of $ 469 million and is effective through December 14, 2026, • the Middle East facility had a total debt capacity of $ 150 million and is effective through March 14, 2028, and • the Australia and New Zealand facility had a total debt capacity of $ 306 million and is effective through April 17, 2027. The Company also has two unsecured Singapore facilities, which had a total debt capacity of $ 259 million as of May 1, 2026 and are effective through July 12, 2026 and July 3, 2027, respectively. Subsequent to the close of the three months ended May 1, 2026, the Company extended the term of the July 12, 2026 facility to be effective through July 12, 2027. 20 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Dell Bank Senior Unsecured Eurobonds — On October 27, 2021, Dell Bank issued € 500 million of 0.5 % senior unsecured five-year eurobonds due October 2026. On October 18, 2022, Dell Bank issued € 500 million of 4.5 % senior unsecured five-year eurobonds due October 2027. On June 24, 2024, Dell Bank issued € 500 million of 3.6 % senior unsecured five-year eurobonds due June 2029. The issuances of the senior unsecured eurobonds support the expansion of the financing operations in Europe. Variable Interest Entities In connection with the asset-based financing facility, fixed-term securitization offerings, and securitization facility discussed above, the Company transfers certain U.S. and European lease and loan payments and associated equipment to SPEs that meet the definition of a VIE and are consolidated, along with the associated debt described above, into the Condensed Consolidated Financial Statements, as the Company is the primary beneficiary of the VIEs. The SPEs are bankruptcy-remote legal entities with separate assets and liabilities. The purpose of the SPEs is to facilitate the funding of customer lease and loan payments and associated equipment in the capital markets. Some of the SPEs have entered into financing arrangements with multi-seller conduits that, in turn, issue asset-backed debt securities in the capital markets. DFS debt outstanding held by the consolidated VIEs is collateralized by the lease and loan payments and associated equipment. The Company’s risk of loss related to securitized receivables is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The Company provides credit enhancement to the securitization offerings in the form of over-collateralization. The following table presents the assets and liabilities held by the consolidated VIEs as of the dates indicated, which are included in the Condensed Consolidated Statements of Financial Position: May 1, 2026 January 30, 2026 (in millions) Assets held by consolidated VIEs: Other current assets $ 174 $ 176 Financing receivables, net of allowance: Short-term $ 3,143 $ 3,280 Long-term $ 2,945 $ 2,704 Property, plant, and equipment, net $ 964 $ 984 Liabilities held by consolidated VIEs: Debt, net of unamortized debt issuance costs: Short-term $ 4,373 $ 4,548 Long-term $ 2,204 $ 1,933 Lease and loan payments and associated equipment transferred via securitization through SPEs were $ 1.3 billion and $ 1.2 billion for the three months ended May 1, 2026, and May 2, 2025, respectively. Customer Receivables Sales To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term customer receivables to unrelated third parties on a periodic basis, without recourse. The amounts of customer receivables sold for this purpose were immaterial for both the three months ended May 1, 2026 and May 2, 2025. The Company’s continuing involvement in these customer receivables is primarily limited to servicing arrangements. 21 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 5 — LEASES The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for office space used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain property, equipment, and warehouses. As of May 1, 2026, the remaining terms of the Company’s leases generally range from one month to approximately ten years . As of May 1, 2026 and January 30, 2026, there were no material finance leases in which the Company was a lessee. The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered under DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the Company’s lessor arrangements. The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Operating lease costs $ 67 $ 58 Variable costs 21 23 Total lease costs $ 88 $ 81 During the three months ended May 1, 2026 and May 2, 2025, sublease income, finance lease costs, and short-term lease costs were immaterial. The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: Classification May 1, 2026 January 30, 2026 (in millions, except for term and discount rate) Operating lease right-of-use assets Other non-current assets $ 661 $ 640 Current operating lease liabilities Accrued and other current liabilities $ 250 $ 246 Non-current operating lease liabilities Other non-current liabilities 495 481 Total operating lease liabilities $ 745 $ 727 Weighted-average remaining lease term (in years) 4.19 4.11 Weighted-average discount rate 4.70 % 4.74 % The following table presents supplemental cash flow information related to leases for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases $ 67 $ 63 Right-of-use assets obtained in exchange for new operating lease liabilities $ 78 $ 65 22 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following table presents the future maturity of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated: May 1, 2026 (in millions) Fiscal 2027 (remaining nine months) $ 191 Fiscal 2028 216 Fiscal 2029 161 Fiscal 2030 110 Fiscal 2031 65 Thereafter 77 Total lease payments 820 Less: Imputed interest 75 Total $ 745 Current operating lease liabilities $ 250 Non-current operating lease liabilities $ 495 As of May 1, 2026, the Company’s undiscounted operating leases that had not yet commenced were immaterial. 23 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 6 — DEBT The following table summarizes the Company’s outstanding debt as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Senior Notes $ 21,073 $ 21,573 Legacy Notes 952 952 DFS Debt (Note 4) 9,278 9,139 Other 110 99 Total debt, principal amount 31,413 31,763 Unamortized discount, net of unamortized premium ( 109 ) ( 112 ) Debt issuance costs ( 143 ) ( 148 ) Total debt, carrying value $ 31,161 $ 31,503 Short-term $ 7,550 $ 7,990 Long-term $ 23,611 $ 23,513 During the three months ended May 1, 2026, the Company repaid the remaining outstanding $ 0.5 billion principal amount of 6.02 % Senior Notes due June 2026. Outstanding Debt Senior Notes — The Company completed offerings of multiple series of senior notes which were issued on June 1, 2016, March 20, 2019, April 9, 2020, December 13, 2021, January 24, 2023, March 18, 2024, October 8, 2024, April 1, 2025, and October 6, 2025 in aggregate principal amounts of $ 20.0 billion, $ 4.5 billion, $ 2.3 billion, $ 2.3 billion, $ 2.0 billion, $ 1.0 billion, $ 1.5 billion, $ 4.0 billion, and $ 4.5 billion, respectively (collectively, the “Senior Notes”). The Senior Notes have maturity dates ranging from 2026 through 2051. Interest rates on these borrowings are fixed, ranging from 3.38 % to 8.35 % per annum, and interest is payable semiannually. Legacy Notes — The Company has outstanding unsecured notes and debentures (collectively, the “Legacy Notes”) that were issued by Dell Inc. (“Dell”), a wholly-owned subsidiary of Dell Technologies Inc., prior to the acquisition of Dell by Dell Technologies Inc. in the going-private transaction that closed in October 2013. The Legacy Notes’ maturities range from 2028 through 2040. Interest rates on these borrowings are fixed, ranging from 5.40 % to 7.10 % per annum, and interest is payable semiannually. DFS Debt — See Note 4 and Note 7 of the Notes to the Condensed Consolidated Financial Statements, respectively, for discussion of DFS debt and the interest rate swap agreements that hedge a portion of that debt. Revolving Credit Facility — The Company’s revolving credit facility provides the Company with revolving commitments in an aggregate principal amount of $ 6.0 billion for general corporate purposes and includes a letter of credit sub-facility of up to $ 0.5 billion and a swing-line loan sub-facility of up to $ 0.5 billion. The revolving credit facility allows the Company to obtain incremental additional commitments on one or more occasions in minimum amounts of $ 10 million. The facility also acts as a backstop to provide liquidity support for the Company’s commercial paper program. Borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at the borrowers’ option, either (a) the specified adjusted term Secured Overnight Financing Rate (“SOFR”) or (b) a base rate. The margin applicable to SOFR and base rate borrowings varies based upon the Company’s existing credit ratings. The base rate is calculated based upon the greatest of the specified prime rate, the specified federal reserve bank rate, or SOFR plus 1 %. The borrowers may voluntarily repay outstanding loans at any time without premium or penalty, other than customary breakage costs. The facility matures on November 1, 2027. As of May 1, 2026, the Company had no outstanding borrowings under the revolving credit facility. 24 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Commercial Paper Program — The Company maintains a commercial paper program under which the Company 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 issuance. The notes are sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the notes are used for general corporate purposes. As of May 1, 2026, the Company had no outstanding issuances under the commercial paper program. The Company may purchase, redeem, prepay, refinance, or otherwise retire any amount of outstanding indebtedness under the terms of such indebtedness at any time and from time to time, in open market or negotiated transactions with the holders of such indebtedness or otherwise, as considered appropriate in light of market conditions and other relevant factors. Covenants — The credit agreement governing the revolving credit facility and the indentures governing the Senior Notes and the Legacy Notes impose various limitations, subject to exceptions, on creating certain liens and entering into sale and lease-back transactions. The foregoing credit agreement and indentures contain customary events of default, and the revolving credit facility is subject to an interest coverage ratio covenant that is tested at the end of each fiscal quarter with respect to the Company’s preceding four fiscal quarters. The Company was in compliance with this financial covenant as of May 1, 2026. Aggregate Future Maturities The following table presents the aggregate future maturities of the Company’s debt as of May 1, 2026, excluding associated carrying value adjustments, for the periods indicated: May 1, 2026 (in millions) Fiscal 2027 (remaining nine months) $ 6,910 Fiscal 2028 3,368 Fiscal 2029 2,864 Fiscal 2030 3,957 Fiscal 2031 1,773 Thereafter 12,541 Total maturities, principal amount $ 31,413 25 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 7 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively. The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same line items on the Condensed Consolidated Statements of Income as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the instruments. Foreign Exchange Risk The Company uses foreign currency forward and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted transactions denominated in currencies other than the U.S. Dollar. Hedge accounting is applied based upon the criteria established by accounting guidance for derivative instruments and hedging activities. The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The risk of loss associated with purchased options is limited to premium amounts paid for the option contracts. The majority of these contracts typically expire in twelve months or less. During the three months ended May 1, 2026 and May 2, 2025, the Company did not discontinue any cash flow hedges related to foreign exchange contracts that had a material impact on the Company’s results of operations due to the probability that the forecasted cash flows would not occur. The Company uses forward contracts to hedge monetary assets and liabilities denominated in a foreign currency. These contracts generally expire in three months or less, are considered economic hedges, and are not designated for hedge accounting. The change in the fair value of these instruments represents a natural hedge as their gains and losses offset the changes in the underlying fair value of the monetary assets and liabilities due to movements in currency exchange rates. In connection with DFS operations in Europe, forward contracts are used to hedge financing receivables denominated in foreign currencies other than Euro. These contracts are not designated for hedge accounting and most expire within three years or less. Interest Rate Risk The Company uses interest rate swaps to hedge the variability in cash flows related to the interest rate payments on structured financing debt. The interest rate swaps economically convert the variable rate on the structured financing debt to a fixed interest rate to match the underlying fixed rate being received on fixed-term customer leases and loans. These contracts are not designated for hedge accounting and most expire within four years or less. Interest rate swaps are utilized to manage the interest rate risk, at a portfolio level, associated with DFS operations in Europe. The interest rate swaps economically convert the fixed rate on financing receivables to a one-month or three-month Euribor floating rate in order to match the floating rate nature of the banks’ funding pool. The Company also uses interest rate swaps to manage the cash flows related to interest payments on Dell Bank senior unsecured eurobonds. The interest rate swaps economically convert the fixed rate on the eurobonds to a floating rate to match the underlying lease repayments profile. These contracts are not designated for hedge accounting and most expire within five years or less. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the senior unsecured eurobonds. The Company utilizes cross-currency amortizing swaps to hedge the currency and interest rate risk exposure associated with the European securitization program. The cross-currency swaps combine a Euro-based interest rate swap with a British Pound or U.S. Dollar foreign exchange forward contract in which the Company pays a fixed or floating British Pound or U.S. Dollar amount and receives a fixed or floating amount in Euros linked to the one-month Euribor rate. The notional value of the swaps amortizes in line with the expected cash flows and runoff of the securitized assets. The swaps are not designated for hedge accounting and expire within five years or less. 26 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Derivative Instruments The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 8,579 $ 7,491 Non-designated as hedging instruments 6,701 5,887 Total $ 15,280 $ 13,378 Interest rate contracts: Non-designated as hedging instruments $ 6,809 $ 7,048 The following table presents the effect of derivative instruments designated as cash flow hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated: Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated OCI into Income (in millions) (in millions) For the three months ended May 1, 2026: Total net revenue $ ( 4 ) Foreign exchange contracts $ 75 Total cost of net revenue ( 4 ) Total $ 75 Total $ ( 8 ) For the three months ended May 2, 2025: Total net revenue $ ( 8 ) Foreign exchange contracts $ ( 257 ) Total cost of net revenue ( 3 ) Total $ ( 257 ) Total $ ( 11 ) The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 Location of Gain (Loss) Recognized (in millions) Foreign exchange contracts $ ( 101 ) $ 298 Interest and other, net Interest rate contracts 10 ( 14 ) Interest and other, net Total $ ( 91 ) $ 284 27 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The Company presents its derivative instruments on a net basis in the Condensed Consolidated Statements of Financial Position due to the right of offset by its counterparties under master netting arrangements. The following tables present the fair value of those derivative instruments presented on a gross basis as of the dates indicated: May 1, 2026 Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities Total Fair Value (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 52 $ — $ 16 $ — $ 68 Foreign exchange contracts in a liability position ( 14 ) — ( 32 ) — ( 46 ) Net asset (liability) 38 — ( 16 ) — 22 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 88 — 86 — 174 Foreign exchange contracts in a liability position ( 66 ) — ( 168 ) — ( 234 ) Interest rate contracts in an asset position 3 34 — — 37 Interest rate contracts in a liability position — — ( 1 ) ( 17 ) ( 18 ) Net asset (liability) 25 34 ( 83 ) ( 17 ) ( 41 ) Total derivatives at fair value $ 63 $ 34 $ ( 99 ) $ ( 17 ) $ ( 19 ) January 30, 2026 Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities Total Fair Value (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 26 $ — $ 13 $ — $ 39 Foreign exchange contracts in a liability position ( 54 ) — ( 59 ) — ( 113 ) Net asset (liability) ( 28 ) — ( 46 ) — ( 74 ) Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 291 1 119 — 411 Foreign exchange contracts in a liability position ( 146 ) — ( 169 ) — ( 315 ) Interest rate contracts in an asset position 5 37 — — 42 Interest rate contracts in a liability position — — — ( 30 ) ( 30 ) Net asset (liability) 150 38 ( 50 ) ( 30 ) 108 Total derivatives at fair value $ 122 $ 38 $ ( 96 ) $ ( 30 ) $ 34 28 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated: May 1, 2026 Gross Amounts of Recognized Assets/(Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Financial assets $ 279 $ ( 182 ) $ 97 $ — $ ( 49 ) $ 48 Financial liabilities ( 298 ) 182 ( 116 ) — — ( 116 ) Total derivative instruments $ ( 19 ) $ — $ ( 19 ) $ — $ ( 49 ) $ ( 68 ) January 30, 2026 Gross Amounts of Recognized Assets/(Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Financial assets $ 492 $ ( 332 ) $ 160 $ — $ ( 46 ) $ 114 Financial liabilities ( 458 ) 332 ( 126 ) — 1 ( 125 ) Total derivative instruments $ 34 $ — $ 34 $ — $ ( 45 ) $ ( 11 ) 29 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 8 — GOODWILL AND INTANGIBLE ASSETS Goodwill The Infrastructure Solutions Group (“ISG”) and Client Solutions Group (“CSG”) reporting units are consistent with the reportable segments identified in Note 15 of the Notes to the Condensed Consolidated Financial Statements. The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated: Infrastructure Solutions Group Client Solutions Group Total (in millions) Balances as of January 30, 2026 $ 15,315 $ 4,232 $ 19,547 Impact of foreign currency translation and other ( 43 ) — ( 43 ) Balances as of May 1, 2026 $ 15,272 $ 4,232 $ 19,504 Intangible Assets The following table presents the Company’s intangible assets as of the dates indicated: May 1, 2026 January 30, 2026 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 16,644 $ ( 15,386 ) $ 1,258 $ 16,644 $ ( 15,321 ) $ 1,323 Developed technology 9,524 ( 9,402 ) 122 9,525 ( 9,376 ) 149 Trade names 875 ( 871 ) 4 875 ( 869 ) 6 Definite-lived intangible assets 27,043 ( 25,659 ) 1,384 27,044 ( 25,566 ) 1,478 Indefinite-lived trade names 3,055 — 3,055 3,055 — 3,055 Total intangible assets $ 30,098 $ ( 25,659 ) $ 4,439 $ 30,099 $ ( 25,566 ) $ 4,533 For both the three months ended May 1, 2026 and May 2, 2025, amortization expense related to definite-lived intangible assets was $ 0.1 billion. There were no material impairment charges related to intangible assets during the three months ended May 1, 2026 and May 2, 2025. The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated: May 1, 2026 (in millions) Fiscal 2027 (remaining nine months) $ 282 Fiscal 2028 236 Fiscal 2029 196 Fiscal 2030 159 Fiscal 2031 132 Thereafter 379 Total $ 1,384 30 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Goodwill and Indefinite-Lived Intangible Assets Impairment Testing 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. For the annual impairment review performed during the third quarter of Fiscal 2026, the Company assessed the goodwill in each of its reporting units and indefinite-lived intangible assets. The Company is permitted to conduct a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. The Company’s qualitative assessment included consideration of the relevant events and circumstances affecting the reporting unit, including macroeconomic, industry and market conditions, recent market transactions, overall financial performance, trends in the public company market valuation, changes in projected future cash flows, and the results of the most recent quantitative assessment, where applicable. Based on this assessment, the Company concluded that it was more likely than not that the estimated fair values of the reporting units and indefinite-lived intangible assets were higher than their respective carrying values. No goodwill or indefinite-lived assets impairment test was performed during the three months ended May 1, 2026. 31 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 9 — DEFERRED REVENUE Deferred revenue consists of support and deployment services, software maintenance, training, software-as-a-service, and undelivered hardware and professional services, consisting of installations and consulting engagements. Deferred revenue is recorded when the Company has invoiced or payments have been received for undelivered products or services, or in situations where revenue recognition criteria have not been met. Revenue is recognized as the Company’s performance obligations under the contract are completed. The following table presents the changes in the Company’s deferred revenue for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Deferred revenue at beginning of period $ 26,930 $ 25,965 Revenue deferrals 5,540 5,455 Revenue recognized ( 5,018 ) ( 5,100 ) Deferred revenue at end of period $ 27,452 $ 26,320 Short-term $ 13,193 $ 13,907 Long-term $ 14,259 $ 12,413 Remaining Performance Obligations Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded in deferred revenue. The value of the transaction price allocated to remaining performance obligations as of May 1, 2026 was approximately $ 97 billion. The Company expects to recognize approximately 80 % of remaining performance obligations as revenue in the next twelve months , approximately 10 % in the following twelve months , and the remainder thereafter. The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancelable contracts where there is no substantive termination penalty. The Company applied the practical expedient to exclude the value of remaining performance obligations for contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. Remaining performance obligation estimates are subject to change and are affected by multiple factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that have not materialized, and adjustments for currency. 32 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 10 — COMMITMENTS AND CONTINGENCIES Purchase Obligations The Company has contractual obligations that are enforceable and legally binding to purchase goods or services and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Purchase obligations include the non-cancelable portion or the minimum cancellation fee under the contract, and are primarily related to commitments with suppliers, software maintenance, and support services. As of May 1, 2026, such purchase obligations were $ 16.9 billion for the remainder of Fiscal 2027, $ 1.2 billion for Fiscal 2028, $ 1.4 billion for Fiscal 2029, $ 0.8 billion for Fiscal 2030, and $ 0.5 billion for Fiscal 2031 and thereafter. Legal Matters The Company is involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time to time in the ordinary course of its business, including those identified below, consisting of matters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis. The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in the Company’s accrued liabilities are recorded in the period in which such a determination is made. For some matters, the incurrence of a liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. Class Action Relating to Dell 401(k) Plan — On January 28, 2026, a complaint was filed in the U.S. District Court for the Western District of Texas in a putative class action captioned Lowbruck et al. v. Dell Technologies Inc., et al., against the Company, the Company’s Board of Directors, and the Dell Benefits Administration Committee alleging a breach of fiduciary duties under the Employment Retirement Income Security Act of 1974 (“ERISA”). In the complaint, the plaintiffs seek a judicial declaration that the defendants breached their fiduciary duties by failing to remove imprudent investments from the Dell 401(k) (“Plan”) in a reasonable time, engaging in transactions allegedly prohibited under ERISA, and failing to monitor the fiduciaries responsible for the Plan’s administration. The plaintiffs also seek, among other remedies, an award of damages, fees, and costs in an unspecified amount. The Company intends to vigorously defend this action. In accordance with the relevant accounting guidance, the Company provides disclosures of matters where it is at least reasonably possible that the Company could experience a material loss exceeding the amounts already accrued for across all proceedings or matters. In addition, the Company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer, and employee relations considerations. As of May 1, 2026, the Company does not believe there is a reasonable possibility that a material loss exceeding the amounts already accrued for across all proceedings or matters has been incurred. However, since the ultimate resolution of any such proceedings and matters is inherently unpredictable, the Company’s business, financial condition, results of operations, or cash flows could be materially affected in any particular period by unfavorable outcomes in one or more of these proceedings or matters. Whether the outcome of any claim, suit, assessment, investigation, or legal proceeding, individually or collectively, could have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows will depend on a number of factors, including the nature, timing, and amount of any associated expenses, amounts paid in settlement, damages, or other remedies or consequences. Indemnifications Obligations In the ordinary course of business, the Company enters into various contracts under which it may agree to indemnify other parties for losses incurred from certain events as defined in the relevant contract, such as litigation, regulatory penalties, or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnification obligations have not been material to the Company. 33 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Under the Separation and Distribution Agreement entered into with VMware, Inc. (currently operating under the name VMware LLC, and individually and together with its subsidiaries, “VMware”), Dell Technologies and VMware agreed to indemnify each other and their respective subsidiaries, directors, officers, employees, and any successors and assigns of the foregoing, from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to each party as part of the separation of their respective businesses. The amounts that VMware and Dell Technologies may be obligated to pay each other could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. Net income tax indemnification receivables from VMware were immaterial as of May 1, 2026 and January 30, 2026. 34 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 11 — INCOME AND OTHER TAXES For the three months ended May 1, 2026, the Company’s effective income tax rate was 12.9 % on pre-tax income of $ 3.9 billion compared to 10.9 % on pre-tax income of $ 1.1 billion for the three months ended May 2, 2025. The changes in the Company’s effective income tax rate were primarily driven by discrete tax items. For the three months ended May 1, 2026 and May 2, 2025, the Company recorded discrete tax benefits of $ 0.2 billion and $ 0.1 billion, respectively, related to stock-based compensation. The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 21% is primarily due to foreign earnings taxed at different rates, as well as to discrete tax items. In June 2023, the Company received a Revenue Agent’s Report for the federal income tax examination by the Internal Revenue Service (“IRS”) of fiscal years 2018 through 2019. The IRS proposed significant adjustments primarily relating to certain transactions the Company completed as part of its business integration efforts. In August 2023, the Company submitted a written protest to the IRS relating to certain assessments. The Company received a rebuttal from the IRS to its written protest in April 2024. The Company disagrees with the IRS’s proposed adjustments and will contest them through the IRS administrative appeals procedures. The Company expects to continue discussions with the IRS Independent Office of Appeals throughout the fiscal year and anticipates that the appeals process for the resolution of these matters will extend beyond the next twelve months. The IRS is also currently conducting a federal income tax examination of the Company for fiscal years 2020 through 2022. The Company is also currently under income tax audits in various U.S. state and foreign taxing jurisdictions. The Company is undergoing negotiations, and in some cases contested proceedings, relating to tax matters with the taxing authorities in these jurisdictions. With respect to major U.S. state and foreign taxing jurisdictions, the Company is generally not subject to tax examinations for years prior to the fiscal year ended February 2, 2018. The Company believes that it has provided adequate reserves related to all income tax matters contained in tax periods open to examination, including the IRS audits described above. Although the Company believes it has made adequate provisions for the uncertainties with respect to these audits, should the Company experience unfavorable outcomes, such outcomes could have a material impact on its results of operations, financial position, and cash flows. Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s provision for income taxes. Net unrecognized tax benefits were $ 1.1 billion as of both May 1, 2026 and January 30, 2026, and are included in other non-current liabilities in the Condensed Consolidated Statements of Financial Position. 35 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 12 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) is presented in stockholders’ equity (deficit) in the Condensed Consolidated Statements of Financial Position and consists of amounts related to foreign currency translation adjustments, unrealized net gains (losses) on cash flow hedges, and actuarial net gains (losses) from pension and other postretirement plans. The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components as of the dates indicated: Foreign Currency Translation Adjustments Cash Flow Hedges Pension and Other Postretirement Plans Accumulated Other Comprehensive Income (Loss) (in millions) Balances as of January 30, 2026 $ ( 565 ) $ ( 129 ) $ ( 25 ) $ ( 719 ) Other comprehensive income (loss) before reclassifications ( 74 ) 75 1 2 Amounts reclassified from accumulated other comprehensive income — 8 — 8 Total change for the period ( 74 ) 83 1 10 Balances as of May 1, 2026 $ ( 639 ) $ ( 46 ) $ ( 24 ) $ ( 709 ) Amounts related to the Company’s cash flow hedges are reclassified to net income during the same period in which the items being hedged are recognized in earnings. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for more information about the Company’s derivative instruments. The following table present reclassifications out of accumulated other comprehensive income (loss), net of tax, to net income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 Cash Flow Hedges Cash Flow Hedges (in millions) Net revenue $ ( 4 ) $ ( 8 ) Cost of net revenue ( 4 ) ( 3 ) Total reclassifications, net of tax $ ( 8 ) $ ( 11 ) 36 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 13 — CAPITALIZATION The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated: Authorized Issued Outstanding (in millions) Common stock as of May 1, 2026: Class A 600 277 277 Class B 200 48 48 Class C 7,900 527 324 Class D 100 — — 8,800 852 649 Common stock as of January 30, 2026: Class A 600 277 277 Class B 200 52 52 Class C 7,900 515 323 Class D 100 — — 8,800 844 652 Preferred Stock The Company is authorized to issue one million shares of preferred stock, par value $ 0.01 per share. As of May 1, 2026 and January 30, 2026, no shares of preferred stock were issued or outstanding. Common Stock Dell Technologies Common Stock — The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock are collectively referred to as Dell Technologies Common Stock. The par value for all series of Dell Technologies Common Stock is $ 0.01 per share. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings. Voting Rights — Each holder of record of (a) Class A Common Stock is entitled to ten votes per share of Class A Common Stock; (b) Class B Common Stock is entitled to ten votes per share of Class B Common Stock; (c) Class C Common Stock is entitled to one vote per share of Class C Common Stock; and (d) Class D Common Stock is not entitled to any vote on any matter except to the extent required by provisions of Delaware law (in which case such holder is entitled to one vote per share of Class D Common Stock). Conversion Rights — Under the Company’s certificate of incorporation, at any time and from time to time, any holder of Class A Common Stock or Class B Common Stock has the right to convert all or any of the shares of Class A Common Stock or Class B Common Stock, as applicable, held by such holder into shares of Class C Common Stock on a one -to-one basis. During the three months ended May 1, 2026, the Company issued approximately 4 million shares of Class C Common Stock to stockholders upon the conversion of the same number of shares of Class B Common Stock in accordance with the Company’s certificate of incorporation. During the fiscal year ended January 30, 2026, the Company issued approximately 10 million shares of Class C Common Stock to stockholders upon the conversion of an immaterial number of Class A Common Stock shares and 10 million shares of Class B Common Stock in accordance with the Company’s certificate of incorporation. 37 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Dividends On February 26, 2026, the Company announced that the Board of Directors approved a 20 % increase in the quarterly dividend rate to $ 0.630 per share per fiscal quarter beginning in the first quarter of Fiscal 2027. The Company paid the following dividends during the periods presented: Three Months Ended Declaration Date Record Date Payment Date Dividend per Share Amount (in millions) Fiscal 2027: May 1, 2026 March 2, 2026 April 21, 2026 May 1, 2026 $ 0.630 $ 410 Fiscal 2026: May 2, 2025 February 27, 2025 April 22, 2025 May 2, 2025 $ 0.525 $ 360 During the three months ended May 1, 2026 and May 2, 2025, the Company also paid an immaterial amount of dividend equivalents on eligible vested equity awards which are not included above. Repurchases of Common Stock On September 23, 2021, the Company’s Board of Directors approved the Company’s current stock repurchase program with no fixed expiration date under which the Company may repurchase a specified dollar value of Class C Common Stock, exclusive of any fees, commissions, or other expenses related to such repurchases. As of January 30, 2026, the Company’s Board of Directors authorized the repurchase of up to $ 20 billion of Class C Common Stock and on February 26, 2026 authorized an additional $ 10 billion of Class C Common Stock for repurchase. Following the February 26, 2026 approval, the Company had approximately $ 15.2 billion of authorized shares remaining for repurchase under the program. During the three months ended May 1, 2026 and May 2, 2025, the Company repurchased approximately 11 million and 22 million shares of Class C Common Stock for total purchase prices of approximately $ 1.6 billion and $ 2.0 billion, respectively. The foregoing amounts exclude U.S. federal excise taxes and shares withheld from equity awards to settle employee tax withholding obligations related to the vesting of such awards. 38 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 14 — EARNINGS PER SHARE Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive. The following table presents basic and diluted earnings per share for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 Earnings per share: Basic $ 5.30 $ 1.39 Diluted $ 5.24 $ 1.37 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Numerator: Net income — basic and diluted $ 3,438 $ 965 Denominator: Weighted-average shares outstanding — basic 649 692 Dilutive effect of equity awards 7 10 Weighted-average shares outstanding — diluted 656 702 Weighted-average shares outstanding — antidilutive — 4 39 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 15 — SEGMENT INFORMATION The Company reports its financial results through two reportable segments which are based on the following business units: Infrastructure Solutions Group (“ISG”) and Client Solutions Group (“CSG”). The Company organizes its reportable segments based on the manner in which management evaluates the performance of the Company. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM is regularly provided and reviews segment revenue and segment operating income to assess the performance of each segment and allocate resources to the segments in the annual planning process. The Company’s measure of segment revenue and segment operating income for management reporting purposes excludes Corporate and other, amortization of intangible assets, stock-based compensation expense, and other corporate expenses, as applicable, which are not used in evaluating the results of, or in allocating resources to, the segments. The Company does not allocate assets to its reportable segments for internal reporting purposes. The accounting policies of the segments are the same as those described in Note 2 to the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2026. ISG includes the Company’s Artificial Intelligence (“AI”)-optimized servers offerings, traditional servers and networking offerings, and storage offerings as major product categories. The Company’s AI-optimized servers are designed to run high-value workloads, including AI model training, fine-tuning, and inferencing. The Company’s traditional servers are high-performance general-purpose servers designed to deliver scalable performance, reliability, and efficient management across a wide range of enterprise workloads. The Company’s networking portfolio includes wide area network infrastructure, data center and edge networking switches, and cables and optics. The Company’s 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. ISG also offers software, peripherals, and services, including consulting and support and deployment. CSG includes the Company’s commercial offerings and consumer offerings as major product categories. The Company’s CSG portfolio includes branded PCs, including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals. CSG also includes services offerings, such as configuration, support and deployment, and extended warranties. In March 2024, the Company terminated the Commercial Framework Agreement with VMware, whereby Dell Technologies acted as a distributor of VMware’s stand-alone products and services and purchased such products and services for resale to end-user customers (“VMware Resale”). Dell Technologies no longer acts as a distributor of those products and services, although it continues to support customers that have purchased resale offerings sold in prior periods. The results of VMware Resale transactions are reflected in Corporate and other. The Company continues to integrate and embed certain VMware products and services with the Company’s VxRail solution to end-user customers. The results for this integrated offering are reflected within ISG. 40 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following table presents a reconciliation of net revenue by the Company’s reportable segments to the Company’s consolidated net revenue as well as a reconciliation of segment operating income to the Company’s consolidated operating income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 29,009 $ 10,317 Client Solutions Group 14,609 12,509 Reportable segment net revenue 43,618 22,826 Corporate and other (a) 224 552 Total consolidated net revenue $ 43,842 $ 23,378 Consolidated operating income: Infrastructure Solutions Group $ 3,055 $ 998 Client Solutions Group 1,170 653 Reportable segment operating income (b) 4,225 1,651 Corporate and other (a) 10 15 Amortization of intangibles (c) ( 97 ) ( 126 ) Stock-based compensation expense (d) ( 189 ) ( 190 ) Other corporate expenses (e) ( 293 ) ( 185 ) Total consolidated operating income (f) $ 3,656 $ 1,165 ____________________ (a) Corporate and other includes VMware Resale and other items that are managed at the corporate level and are not allocated to reportable segments. (b) Depreciation expense directly attributable to each reportable segment is included in the operating results of each segment. However, the CODM does not evaluate depreciation expense by operating segment, and therefore such expense is not separately presented. (c) Amortization of intangibles includes non-cash purchase accounting adjustments that are primarily related to the acquisition by merger of EMC Corporation in 2016. (d) Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. (e) Other corporate expenses includes severance expenses, payroll taxes associated with stock-based compensation, incentive charges related to equity investments, transaction-related expenses, and impairment charges. (f) Income and expenses within interest and other, net, is not allocated to the reportable segments. Therefore, the Company does not report below reportable segment operating income. 41 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following table presents the significant expense categories by reportable segment for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Infrastructure Solutions Group: Cost of net revenue $ 23,475 $ 7,050 Selling, general, and administrative $ 1,794 $ 1,695 Research and development $ 685 $ 574 Client Solutions Group: Cost of net revenue $ 12,204 $ 10,738 Selling, general, and administrative $ 1,043 $ 982 Research and development $ 192 $ 136 The following table presents the disaggregation of net revenue by reportable segment and by major product categories within the segments for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Net revenue: Infrastructure Solutions Group: AI-optimized servers $ 16,132 $ 1,882 Traditional servers and networking 8,543 4,439 Storage 4,334 3,996 Total ISG net revenue $ 29,009 $ 10,317 Client Solutions Group: Commercial $ 13,020 $ 11,046 Consumer 1,589 1,463 Total CSG net revenue $ 14,609 $ 12,509 42 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 16 — SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table presents additional information on selected assets included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 11,578 $ 11,528 Restricted cash (a) 175 178 Total cash, cash equivalents, and restricted cash $ 11,753 $ 11,706 Inventories: Production materials $ 10,634 $ 6,696 Work-in-process 3,483 2,772 Finished goods 935 969 Total inventories $ 15,052 $ 10,437 Prepaid expenses: Total prepaid expenses (b) $ 729 $ 552 Property, plant, and equipment, net: Assets in a customer contract $ 6,217 $ 5,777 Computer and other equipment 3,949 3,849 Land and buildings 3,151 3,134 Internal use software 2,128 2,083 Total property, plant, and equipment 15,445 14,843 Accumulated depreciation and amortization ( 8,500 ) ( 8,167 ) Total property, plant, and equipment, net $ 6,945 $ 6,676 ____________________ (a) Restricted cash is primarily classified as other current assets in the Condensed Consolidated Statements of Financial Position and consists predominantly of cash required to be held in escrow pursuant to DFS securitization arrangements. (b) Prepaid expenses are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term prepaid expenses are included in other non-current assets and are not disclosed above. 43 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Warranty Liability The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Warranty liability at beginning of period $ 450 $ 424 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) 819 211 Service obligations honored ( 234 ) ( 220 ) Warranty liability at end of period (b) $ 1,035 $ 415 ____________________ (a) Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company’s warranty liability process does not differentiate between estimates made for pre-existing warranties and those made for new warranty obligations. (b) The liabilities for standard warranties are included in accrued and other and in non-current liabilities in the Condensed Consolidated Statements of Financial Position. Severance Charges The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is primarily included in accrued and other within current liabilities in the Condensed Consolidated Statements of Financial Position. The following table presents the activity related to the Company’s severance liability for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Severance liability at beginning of period $ 136 $ 238 Severance charges 227 130 Cash paid and other ( 121 ) ( 217 ) Severance liability at end of period $ 242 $ 151 44 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Cost of net revenue $ 81 $ 30 Selling, general, and administrative 106 67 Research and development 40 33 Total severance charges $ 227 $ 130 Supply Chain Finance Program The Company maintains a Supply Chain Finance Program (the “SCF Program”), which enables eligible suppliers, at the supplier's sole discretion, to sell receivables due from the Company to a third-party financial institution. The Company has no involvement in establishing the terms or conditions of the arrangement between its suppliers and the financial institution, no economic interest in a supplier's decision to sell a receivable, and does not provide legally secured assets or other forms of guarantees under the arrangement. The SCF Program does not impact the Company's liquidity, as payments for participating supplier invoices are remitted by the Company to the financial institution on the original invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. As of May 1, 2026 and January 30, 2026, the Company had $ 3.1 billion and $ 2.0 billion, respectively, included within accounts payable on the Condensed Consolidated Statements of Financial Position representing invoices due to suppliers confirmed as valid under the SCF Program. Interest and Other, Net The following table presents information regarding interest and other, net as included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Investment income, primarily interest $ 81 $ 31 Gain on investments, net 631 17 Interest expense ( 391 ) ( 354 ) Foreign exchange ( 17 ) ( 5 ) Gain on disposition of businesses and assets — 236 Other ( 12 ) ( 7 ) Total interest and other, net $ 292 $ ( 82 ) 45 Table of Contents DELL TECHNOLOGIES INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) NOTE 17 — SUBSEQUENT EVENTS There were no known events occurring after May 1, 2026 and up until the date of issuance of this report that would materially affect the information presented herein. 46 Table of Contents