Dell Technologies reported a 6% increase in net revenue for the first quarter of Fiscal 2025, driven by growth in Infrastructure Solutions Group (ISG) net revenue, particularly from AI-optimized server offerings. However, the company experienced a competitive pricing environment, which affected gross margin performance in both ISG and Client Solutions Group (CSG). Operating income and non-GAAP operating income decreased by 14% and 8% respectively, due to a decrease in CSG operating income from commercial and consumer offerings. Net income saw a significant increase of 65% to $955 million, primarily due to an income tax benefit. The company's business development was marked by advancements in artificial intelligence, with increased demand for AI-optimized solutions. Dell's supply chain operated efficiently, with a decline in...Show More

Dell Technologies reported a 6% increase in net revenue for the first quarter of Fiscal 2025, driven by growth in Infrastructure Solutions Group (ISG) net revenue, particularly from AI-optimized server offerings. However, the company experienced a competitive pricing environment, which affected gross margin performance in both ISG and Client Solutions Group (CSG). Operating income and non-GAAP operating income decreased by 14% and 8% respectively, due to a decrease in CSG operating income from commercial and consumer offerings. Net income saw a significant increase of 65% to $955 million, primarily due to an income tax benefit. The company's business development was marked by advancements in artificial intelligence, with increased demand for AI-optimized solutions. Dell's supply chain operated efficiently, with a decline in input costs. The acquisition of VMware by Broadcom Inc. led to changes in Dell's relationship with VMware, impacting other businesses' net revenue. Dell expects the demand environment to improve throughout Fiscal 2025, with anticipated net revenue growth driven by ISG and CSG. The company remains focused on executing strategic priorities, disciplined cost management, and leveraging technology to streamline business processes. Dell's relationship with VMware has changed following its acquisition by Broadcom, with Dell terminating the Commercial Framework Agreement with VMware. Dell continues to integrate certain VMware products and services with its offerings. Dell Technologies is well-positioned to address competitive dynamics and customer needs in the IT infrastructure market, with a focus on AI and cloud native applications. The company's flexible consumption models are expected to strengthen customer relationships and grow recurring revenue. Dell Technologies Capital will continue to evaluate opportunities for strategic investments in emerging technology areas.