Executive Summary
Dell Technologies reported solid QQ3 2025 results characterized by revenue growth, stable gross margins, and meaningful free cash flow generation, against a backdrop of leverage and balance sheet headwinds. Revenue reached USD 24.366 billion, up 9.5% year over year, with gross profit of USD 5.307 billion and a gross margin of 21.78%. Operating income was USD 1.668 billion, yielding an operating margin of 6.85% and an EBITDA of USD 2.485 billion (EBITDA margin 10.20%). Net income stood at USD 1.132 billion (net margin 4.65%). Net cash provided by operating activities was USD 1.553 billion, while free cash flow was USD 0.914 billion, reflecting disciplined capital expenditure of USD 0.639 billion. The company maintains a robust cash balance (USD 5.225 billion) but carries substantial gross and net leverage (net debt approximately USD 19.8 billion and total debt USD 25.0 billion) with negative shareholders’ equity (~USD -2.29 billion), signaling balance sheet fragility despite strong operating performance.
Key takeaway for investors is the duality of performance: Dell delivers both revenue expansion and free cash flow generation, which support potential deleveraging and returns, but the balance sheet and liquidity metrics warrant careful monitoring. Enterprise value relative to EBITDA sits at ~7.68x, indicating mid-cycle valuation context for a hardware-centric, technology supplier with ongoing commitments to shareholder returns and potential margin upside from mix shift toward higher-margin ESG and services. Management commentary (where available) would typically address near-term supply chain normalization, product mix evolution, and the trajectory of data-center/server demand, but explicit forward guidance is not provided in the dataset.
Key Performance Indicators
Key Insights
Revenue: USD 24.366B; YoY +9.54%; QoQ 0.00%
Gross Profit: USD 5.307B; YoY +9.40%; QoQ 0.00%
Operating Income: USD 1.668B; YoY +72.85%; QoQ 0.00%
Net Income: USD 1.132B; YoY +13.54%; QoQ 0.00%
EPS (Diluted): Not disclosed in the dataset; YoY +18.38% implied by reported YoY earnings per share metrics
EBITDA Margin: 10.20%
Operating Margin: 6.85%
Net Margin: 4.65%
Revenue Growth (YoY): 9.54%
Gross Margin: 21.78%
Free Cash Flow (FCF): USD 0.914B
Operating Cash Flow: USD 1.553B
Capital Expenditure (C...
Financial Highlights
Revenue: USD 24.366B; YoY +9.54%; QoQ 0.00%
Gross Profit: USD 5.307B; YoY +9.40%; QoQ 0.00%
Operating Income: USD 1.668B; YoY +72.85%; QoQ 0.00%
Net Income: USD 1.132B; YoY +13.54%; QoQ 0.00%
EPS (Diluted): Not disclosed in the dataset; YoY +18.38% implied by reported YoY earnings per share metrics
EBITDA Margin: 10.20%
Operating Margin: 6.85%
Net Margin: 4.65%
Revenue Growth (YoY): 9.54%
Gross Margin: 21.78%
Free Cash Flow (FCF): USD 0.914B
Operating Cash Flow: USD 1.553B
Capital Expenditure (Capex): USD -0.639B
Cash & Equivalents: USD 5.225B
Total Debt: USD 25.022B
Net Debt: USD 19.797B
Total Assets: USD 81.951B
Total Liabilities: USD 84.141B
Total Stockholders’ Equity: USD -2.285B
Current Ratio: 0.768; Quick Ratio: 0.634; Cash Ratio: 0.106
EBITDA / Interest Coverage: 5.09
EV/EBITDA: 7.68x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
24.37B |
9.54% |
0.00% |
| Gross Profit |
5.31B |
9.40% |
0.00% |
| Operating Income |
1.67B |
72.85% |
0.00% |
| Net Income |
1.13B |
13.54% |
0.00% |
Key Financial Ratios
operatingProfitMargin
6.85%
dividendPayoutRatio
27.6%
Management Commentary
No earnings call transcript quotes are available in the provided data. As a result, this section cannot enumerate management quotes or group them by themes. If a transcript becomes available, we will extract quotes on strategy, operations, and market conditions with context and significance.
Forward Guidance
No explicit forward guidance was provided in the supplied data. In assessing Dell’s trajectory, consider: (1) potential upside from data-center, server, networking, and AI-driven workloads which could sustain data-center capex and higher-margin services; (2) continued leverage management to deleverage the balance sheet given net debt of USD ~19.8B and negative equity; (3) risk factors including cyclical PC hardware demand, supply-chain normalization timelines, currency volatility, and competitive dynamics from peers like HP and Lenovo. Absent formal targets, the base case assumes mid-single-digit revenue growth with modest margin expansion driven by mix shift toward higher-margin ESG and services, supported by robust free cash flow to reduce leverage and improve liquidity. Key monitors: debt trajectory, working capital efficiency, mix evolution, and any strategic pivots toward higher-margin solutions.