Annual growth meets sequential weakness and reporting risks

01 Results and comparisons

Filed revenue was $5.678 billion, operating income $0.369 billion, operating margin 6.49% and net income $0.321 billion. Against the preceding quarter, revenue changed by $-0.259 billion (-4.4%), operating income by $-0.141 billion and margin by -2.08 percentage points. Against the same quarter a year earlier, revenue changed by $+2.013 billion (+54.9%), operating income by $-0.003 billion and margin by -3.64 percentage points.

Against the prior quarter, net income changed by -0.104 B$, OCF by -0.649 B$, cash CapEx by -0.017 B$, and analytical FCF by -0.632 B$.

Against the year-earlier quarter, net income changed by +0.025 B$, OCF by +0.355 B$, cash CapEx by +0.013 B$, and analytical FCF by +0.343 B$.

02 Business drivers and management commentary

Filed server and storage sales were $5.487 billion and accessories $0.191 billion. Higher-value GPU, HPC and rack products supported annual growth, while consolidated sales declined sequentially. Broad AI demand and near-term shipment timing are different measures.

03 Earnings quality and special items

Filed gross margin was 11.8%, down from 15.4% a year earlier. The February 11 information was preliminary; the final 10-Q was filed on February 25. Midpoints of preliminary ranges are not used as actual financial data.

04 Cash flow, investment and financial position

Quarterly OCF was $-0.240 billion, cash PP&E purchases $0.028 billion and analytical FCF $-0.267 billion. Cumulative flows sharing the same fiscal-year start were subtracted, without allocating annual rounding residuals. A separate company-defined FCF was not verified and is left blank.

At period end, cash and cash equivalents were $1.430 billion; liquid financial assets including separately disclosed marketable equities were $1.435 billion. Interest-bearing debt was $1.909 billion, including $0.155 billion of current bank borrowings. Liquid assets less borrowings were $-0.474 billion. Restricted cash, illiquid equity holdings and operating leases are excluded. Total accounting liabilities of $3.490 billion are not substituted for debt. Debt includes $1.701 billion of convertible notes at carrying value without double counting bank debt.

05 RPO and contract scope

Disclosed deferred revenue on contracts longer than one year was $0.5987 billion. The disclosure applies the exemption for contracts with an original duration of one year or less. It is therefore neither total server backlog nor guaranteed next-year sales, and is not added to orders as if they were the same measure.

06 Guidance and assessment at release

Guidance at the release was $5–6 billion for the next quarter and $23.5–25 billion for FY25. The FY26 expectation of $40 billion was a forward-looking management target, not backlog or booked sales.

Margin compression and cash outflow deserve attention alongside annual growth. Completion of filings is different from remediation of controls, and subsequent sales and cash conversion remain essential checks.

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 missing historical report was prepared from official earnings releases and SEC documents. Financial tables follow the latest verified filed comparatives, while guidance retains the announcement date above. Reviewing management remarks in a release is distinct from completing a full conference-call and Q&A review; this report makes no claim of call completion.