Annual growth and softer year-end cash flow

01 Business drivers

FY25 annual revenue increased 8% to approximately $95.6 billion and operating profit rose 15% to roughly $6.2 billion. Fourth-quarter ISG revenue increased 22% year on year. The annual recovery and latest-quarter cash outcome require separate conclusions.

02 Earnings and comparison basis

On the filed comparative basis, revenue was $23.931 billion, operating income $2.159 billion, operating margin 9.02%, and net income $1.533 billion. Non-operating items and tax can separate net earnings from operating profit; the table distinguishes absolute changes from margin-point changes.

Against the previous quarter, the absolute changes were -0.435 B$ in revenue and +0.438 B$ in operating income.

Against the year-earlier quarter, the absolute changes were +1.613 B$ in revenue and +0.612 B$ in operating income.

Quarterly OCF of $0.585 billion was below net cash CapEx of $0.702 billion, leaving FCF negative $0.117 billion. Approximately $9 billion of AI server backlog discussed at the announcement reflected post-quarter orders; it must not be backdated to the January balance-sheet date.

03 Cash flow and investment burden

Total quarterly OCF of $0.585 billion less net cash CapEx of $0.702 billion gives common FCF of $-0.117 billion. Company FCF was $-0.117 billion. Cumulative cash-flow subtraction uses the same fiscal-year start and business perimeter; acquisition consideration is excluded from CapEx.

Dell company FCF measures cash after net capital investment and differs from adjusted FCF excluding DFS financing receivables and operating-lease equipment effects. Consolidated cash flow including financing services is not standalone AI-server cash flow.

04 Liquidity and borrowings

Quarter-end liquid assets were $3.633 billion, interest-bearing borrowings $24.567 billion and net cash $-20.934 billion. A negative net-cash balance denotes net debt. Liquid assets include cash, cash equivalents and verified short-term investments; total accounting liabilities of $81.133 billion are a different measure from borrowings.

05 Scope of disclosed RPO

Verified contractual RPO was $38.000 billion. It represents transaction price allocated to unsatisfied performance obligations, not a demand pipeline, cancellable order backlog or ARR. Revenue timing, profit and cash collection require separate assessment, and other backlog measures must not be added to it.

06 Guidance at the release date

At the release, management projected approximately 8% FY26 revenue growth, 23% GAAP EPS growth and 14% non-GAAP EPS growth at the midpoints, and announced an 18% dividend increase. These were plans at that date, not realized outcomes.

07 Management remarks in the earnings release

Yvonne McGill characterized the results as “FY25 was a transformative year – we hit…”. This brief quotation records management’s assessment in the original release; it does not establish review of conference-call Q&A.

08 CFO assessment

Annual revenue and profit recovered, but recent-quarter FCF was negative. Larger orders and the cash required to fulfill them must be evaluated together; annual growth does not erase weaker current-quarter cash conversion.

Quarterly results · CY-aligned view

CY denotes the calendar quarter with the greatest overlap with the fiscal period. If the first period has no start date, 89 days before its end is used only for calendar mapping. Financial values are not recalculated into calendar quarters. Incomplete years show totals of included quarters; cash, liabilities, borrowings and net cash use the last period-end balance. QoQ and YoY show absolute changes; margin changes are percentage points. Dashes indicate missing evidence or incomparable periods or definitions. Total liabilities never substitute for borrowings.

Definitions and evidence coverage

A dash means unavailable or undisclosed, not zero. Company-defined FCF may differ from total operating cash flow less common-basis CapEx. Total liabilities are accounting liabilities, not interest-bearing debt.

This report reviews the quarter and comparative figures in official earnings releases and financial filings. Segment descriptions and guidance retain their original announcement-date scope. It does not imply completion of a full conference-call and Q&A review.