EARNINGS REVIEW
Quarterly cash recovery versus annual funding needs
Historical earnings report · Management guidance reflects expectations at the time of the release, not subsequent outcomes. The financial comparison uses the site’s normalized dataset, including comparative figures restated in later filings.
Fourth-quarter revenue was $11.120 billion and net income $1.178 billion. Management reported a 17.5% gross margin and an improved enterprise customer mix. The annual filing identifies larger shipments of complex, higher-value rack systems including GB200 and GB300.
Assessment · Margin and quarterly cash recovery are positive, but annual cash consumption and customer concentration remain important. Sustained inventory and receivable recovery determine how much growth can be funded without further external capital.
01 Drivers by business
Fourth-quarter revenue was $11.120 billion and net income $1.178 billion. Management reported a 17.5% gross margin and an improved enterprise customer mix. The annual filing identifies larger shipments of complex, higher-value rack systems including GB200 and GB300.
02 Margins and earnings quality
Quarterly operating cash flow recovered to $0.747 billion, but the full year was negative $6.810 billion. One positive quarter does not erase the annual funding burden. The August 31 10-K takes precedence over the August 11 preliminary release; annual-minus-nine-month PP&E purchases give $0.028230 billion for Q4.
03 Cash conversion and funding
Quarterly OCF was $0.747 billion, cash CapEx $0.028 billion and analytical OCF-minus-CapEx $0.719 billion. Cumulative flows with the same fiscal-year start are subtracted; acquisition payments are excluded from CapEx.
Company-defined FCF was not verified and is left blank. OCF minus PP&E purchases is provided only as analytical FCF. Cash and cash equivalents and total liabilities are not interchangeable with debt or net cash.
04 RPO versus order backlog
Filed RPO was $2.612 billion. Obligations under contracts with an original term of one year or less are excluded, so this is not total server backlog. RPO growth alone cannot determine future consolidated revenue growth.
05 Guidance at the announcement date
At August 11, guidance was $14.5–15.5 billion for FY27 Q1 and $65–72 billion for FY27. The preliminary release also disclosed an independent review of transactions involving export-control issues. Forecasts, filed figures and preliminary-release uncertainty are kept separate.
06 Investment checkpoints
Margin and quarterly cash recovery are positive, but annual cash consumption and customer concentration remain important. Sustained inventory and receivable recovery determine how much growth can be funded without further external capital.
Quarterly results · CY-aligned view
| Metric · B$ | 2025 full-year total | 1Q FY25 Q3 2025-03-31 | 2Q FY25 Q4 2025-06-30 | 3Q FY26 Q1 2025-09-30 | 4Q FY26 Q2 2025-12-31 | 2026 total of 2 included quarters | 1Q FY26 Q3 2026-03-31 | 2Q FY26 Q4 2026-06-30 | QoQ Δ | YoY Δ |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 28.057 | 4.600 | 5.757 | 5.018 | 12.682 | 21.363 | 10.243 | 11.120 | 0.877 | 5.363 |
| Operating income | 1.032 | 0.147 | 0.228 | 0.182 | 0.474 | 2.114 | 0.626 | 1.488 | 0.862 | 1.260 |
| Operating margin (%) | 3.677 | 3.191 | 3.967 | 3.632 | 3.740 | 9.895 | 6.110 | 13.382 | 7.272 pp | 9.415 pp |
| Net income | 0.873 | 0.109 | 0.195 | 0.168 | 0.401 | 1.662 | 0.483 | 1.178 | 0.695 | 0.983 |
| FCF · company definition | — | — | — | — | — | — | — | — | — | — |
| Operating cash flow · total | 0.549 | 0.627 | 0.864 | −0.918 | −0.024 | −5.868 | −6.615 | 0.747 | 7.362 | −0.117 |
| Net cash CapEx · common | 0.109 | 0.033 | 0.023 | 0.032 | 0.021 | 0.109 | 0.080 | 0.028 | −0.052 | 0.006 |
| Cash CapEx · Chinese company definition | — | — | — | — | — | — | — | — | — | — |
| FCF · total calculation | 0.440 | 0.594 | 0.841 | −0.950 | −0.045 | −5.977 | −6.696 | 0.719 | 7.414 | −0.122 |
| Net cash · liquid assets less borrowings | −0.772 | 0.047 | 0.418 | −0.565 | −0.772 | −1.176 | −7.468 | −1.176 | 6.292 | −1.594 |
| Liquid assets · including short-term investments | 4.106 | 2.540 | 5.176 | 4.211 | 4.106 | 7.545 | 1.305 | 7.545 | 6.240 | 2.368 |
| Borrowings · interest-bearing debt | 4.878 | 2.492 | 4.758 | 4.776 | 4.878 | 8.720 | 8.773 | 8.720 | −0.053 | 3.963 |
| Cash and cash equivalents | 4.091 | 2.536 | 5.170 | 4.197 | 4.091 | 7.521 | 1.290 | 7.521 | 6.231 | 2.352 |
| Total liabilities · accounting liabilities | 21.009 | 4.359 | 7.717 | 7.862 | 21.009 | 15.466 | 15.876 | 15.466 | −0.411 | 7.749 |
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.
Tables use SEC-filed comparative values verified through 2026-10-17. Guidance retains the original announcement date; later outcomes are not backdated into past forecasts. This report does not claim a complete conference-call Q&A review.