Dell Technologies (DELL) Q3 FY2025 Earnings Breakdown

Key Highlights:

• Revenue Growth: Overall revenue reached $24.4 billion, a 10% increase year-over-year.
• ISG Surge: ISG revenue soared to $11.4 billion, a remarkable 34% increase, with servers and networking revenue experiencing a staggering 58% jump, reaching $7.4 billion.
• AI Momentum: Dell is capitalizing on the robust AI opportunity. “AI is a robust opportunity for us with no signs of slowing down," said Jeff Clarke, COO. Record AI server orders demand reached $3.6 billion in Q3, with the pipeline growing over 50%.
• CSG Performance: CSG revenue dipped slightly by 1% to $12.1 billion. However, commercial client revenue grew by 3% to $10.1 billion, offsetting the 18% decline in Consumer revenue.
• Profitability: Diluted earnings per share increased by 16% to $1.58, while non-GAAP diluted earnings per share rose 14% to $2.15. "Our continued focus on profitability resulted in EPS growth that outpaced revenue growth," stated CFO Yvonne McGill.
• Strong Cash Flow: Cash flow from operations remained strong at $1.6 billion, with Dell ending the quarter with $6.6 billion in cash and investments.