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.