Cash recovers alongside convertible financing; margins remain low

01 Results and comparisons

Filed revenue was $5.757 billion, operating income $0.228 billion, operating margin 3.97% and net income $0.195 billion. Against the preceding quarter, revenue changed by $+1.157 billion (+25.2%), operating income by $+0.082 billion and margin by +0.78 percentage points. Against the same quarter a year earlier, revenue changed by $+0.402 billion (+7.5%), operating income by $-0.060 billion and margin by -1.42 percentage points.

Against the prior quarter, net income changed by +0.086 B$, OCF by +0.237 B$, cash CapEx by -0.010 B$, and analytical FCF by +0.247 B$.

Against the year-earlier quarter, net income changed by -0.102 B$, OCF by +1.511 B$, cash CapEx by +0.009 B$, and analytical FCF by +1.503 B$.

02 Business drivers and management commentary

FY25 server and storage revenue was $21.312 billion, representing 97.0% of sales. The annual filing describes demand and pricing for GPU and rack systems including H200, H100 and B200 products. These are annual product drivers, not separate fourth-quarter GPU sales figures.

03 Earnings quality and special items

Fourth-quarter gross margin remained low at 9.5%. The annual filing identifies competitive pricing to gain share, product and customer mix and manufacturing expenses as margin pressures. Non-GAAP improvement and GAAP operating profit are evaluated separately.

04 Cash flow, investment and financial position

Quarterly OCF was $0.864 billion, cash PP&E purchases $0.023 billion and analytical FCF $0.841 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. The release’s $0.079 billion covers CapEx and investments together. Common CapEx of $0.022678 billion excludes equity investments.

At period end, cash and cash equivalents were $5.170 billion; liquid financial assets including separately disclosed marketable equities were $5.176 billion. Interest-bearing debt was $4.758 billion, including $0.075 billion of current bank borrowings. Liquid assets less borrowings were $0.418 billion. Restricted cash, illiquid equity holdings and operating leases are excluded. Total accounting liabilities of $7.717 billion are not substituted for debt. Debt includes $4.645 billion of convertible notes at carrying value without double counting bank debt.

05 RPO and contract scope

Disclosed remaining performance obligations (RPO) was $0.7314 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

On August 5, guidance was $6–7 billion for FY26 Q1 and at least $33 billion for FY26. Guidance issued later is not retroactively inserted into this historical report.

Operating cash recovery is established, but convertible financing also contributed to higher cash balances. Debt and margins must be assessed together; more cash does not mean financing burdens have disappeared.

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.