Summary by Moomoo AI
Dell Technologies reported Q1 FY2025 revenue of $22.2 billion, up 6% year-over-year, driven by 22% growth in Infrastructure Solutions Group revenue to $9.2 billion on strong AI-optimized server demand. Servers and networking revenue surged 42% while storage revenue remained flat at $3.8 billion. Client Solutions Group revenue was steady at $12 billion.Operating income declined 14% to $920 million as gross margin contracted to 21.6% from 24% due to competitive pricing and shift toward AI servers. Operating expenses decreased 2% to $3.9 billion reflecting disciplined cost management. The company recorded a $408 million income tax benefit, helping net income rise 65% to $955 million.Cash flow from operations was $1 billion, down from $1.8 billion last year. Dell repurchased 6.7 million shares for $700 million and paid $316 million in dividends during the quarter. The company raised its quarterly dividend by 20% to $0.445 per share and expects continued revenue growth in FY2025, driven by AI server demand and an anticipated PC refresh cycle.
