On this page of StockholderLetter.com we present the latest annual shareholder letter from Dell Technologies Inc. — ticker symbol DELL. Reading current and past DELL letters to shareholders can bring important insights into the investment thesis.
May 2025 Dear stockholders, customers, partners and friends, In scal year 2025 (FY25), we returned to growth and delivered revenue and EPS well above our long-term value creation framework. I m proud of our performance, our team and our customer innovation. Generative arti cial intelligence (GenAI) is driving global growth and advancing human progress, and Dell is positioned at the forefront of this technology revolution. By continuing to execute our strategy and operating model, we are expanding our leadership in AI, increasing e ciency, and positioning ourselves well for growth opportunities. Financial Performance Delivered full-year revenue of $95.6B, up 8% Full-year operating income of $6.2B, up 15%, and non-GAAP operating income1 of $8.5B, up 8% Full-year diluted EPS of $6.38, up 39%, and record non-GAAP diluted EPS1 of $8.14, up 10% Returned $3.9B to shareholders through share repurchases and dividends Infrastructure Solutions Group We achieved record ISG revenue, showcasing strong growth and pro tability. Data center modernization is creating tailwinds across our entire ISG business from fast-growing AI environments, to accelerating traditional server consolidation, and a signi cant pivot to Dell IP storage. We are continuing to innovate across our portfolio to extend our leadership and capture new growth opportunities. Record revenue of $43.6B, up 29% AI server shipments of $9.8B, up from $1.5B in FY24 Record operating income of $5.6B, up 30% Client Solutions Group We are excited about the future of PCs, the world s leading productivity tool. We've extended our #1 position in Commercial AI PCs with the broadest portfolio of Copilot+ AI PCs. And we're optimistic about a broader PC refresh this year due to an aging installed base, the approaching Windows 10 end-of-life, and wider availability of AI PCs. Simplifying our branding, redesigning our PC portfolio, and broadening our silicon options position us well for the refresh and to focus on pro table segments. Revenue of $48.4B, down 1% Operating income of $3B, down 20% See Non-GAAP Financial Measures beginning on page 43 of the Annual Report on Form 10-K for the year ended January 31, 2025 for a reconciliation of these metrics, which are not calculated in accordance with generally accepted accounting principles in the United States of America ( GAAP ), to the most comparable GAAP measures. 1
Capital Return We're excited about the future and remain con dent in our ability to create meaningful long-term value for shareholders. Returned $10.8B to shareholders through $7.5B of share repurchases and $3.3B of dividends since initiating our capital allocation framework (more than 100% of our adjusted free cash ow to shareholders over the last three years) Raised our annual dividend by 18% from $1.78 to $2.10 per share, re ecting continued con dence in our long-term business model and ability to generate strong cash ow over time Increased share repurchase authorization by $10B Reached 1.2x core leverage ratio exiting the scal year We also remain committed to returning 80% or more of our adjusted free cash ow to shareholders over the long term and targeting at least 10% dividend growth each year through scal year 2028. Innovation Driving innovation for our customers is an integral part of who we are. It was an exciting year for us with the limitless possibilities of GenAI, Data Center Modernization and Edge. We added ve platforms to our AI-optimized portfolio, including Blackwell architectures We o ered the most GPU dense rack scale AI solutions We moved from AI server optimization to data center optimization for our largest customers We developed AI factories for enterprise customers and were the rst in the world to ship NVIDIA s NVL-72 GB200 solution These are prime examples of the pace of innovation and engineering leadership evident across our entire portfolio. Looking forward We are extremely well positioned to capture growth across every segment of our business and extend AI from the largest at-scale cloud service providers into enterprise workloads and out to the edge with the PC. With IT spending expected to grow, we will leverage our pace of innovation and unique operating model that has driven value creation time and time again. We are con dent that our opportunity is tremendous as we look ahead to FY26. As always, we are grateful to our shareholders, customers and partners for their continued support. Michael S. Dell Chairman of the Board and Chief Executive O cer
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DELL Shareholder/Stockholder Letter Transcript:

May 2025
Dear stockholders, customers, partners and friends,
In    scal year 2025 (FY25), we returned to growth and delivered revenue
and EPS well above our long-term value creation framework. I   m proud of
our performance, our team and our customer innovation.
Generative arti   cial intelligence (GenAI) is driving global growth and
advancing human progress, and Dell is positioned at the forefront of this
technology revolution. By continuing to execute our strategy and
operating model, we are expanding our leadership in AI, increasing
e   ciency, and positioning ourselves well for growth opportunities.
Financial Performance


Delivered full-year revenue of $95.6B, up 8%
Full-year operating income of $6.2B, up 15%, and non-GAAP operating income1 of $8.5B, up 8%
Full-year diluted EPS of $6.38, up 39%, and record non-GAAP diluted EPS1 of $8.14, up 10%
Returned $3.9B to shareholders through share repurchases and dividends
Infrastructure Solutions Group
We achieved record ISG revenue, showcasing strong growth and pro   tability. Data center modernization
is creating tailwinds across our entire ISG business   from fast-growing AI environments, to accelerating
traditional server consolidation, and a signi   cant pivot to Dell IP storage. We are continuing to innovate
across our portfolio to extend our leadership and capture new growth opportunities.


Record revenue of $43.6B, up 29%
AI server shipments of $9.8B, up from $1.5B in FY24
Record operating income of $5.6B, up 30%
Client Solutions Group
We are excited about the future of PCs, the world   s leading productivity tool. We've extended our #1
position in Commercial AI PCs with the broadest portfolio of Copilot+ AI PCs. And we're optimistic about
a broader PC refresh this year due to an aging installed base, the approaching Windows 10 end-of-life,
and wider availability of AI PCs. Simplifying our branding, redesigning our PC portfolio, and broadening
our silicon options position us well for the refresh and to focus on pro   table segments.

Revenue of $48.4B, down 1%
Operating income of $3B, down 20%
See Non-GAAP Financial Measures beginning on page 43 of the Annual Report on Form 10-K for the year ended January 31, 2025 for a
reconciliation of these metrics, which are not calculated in accordance with generally accepted accounting principles in the United States of
America (   GAAP   ), to the most comparable GAAP measures.
1

Capital Return
We're excited about the future and remain con   dent in our ability to create meaningful long-term value
for shareholders.



Returned $10.8B to shareholders through $7.5B of share repurchases and $3.3B of dividends
since initiating our capital allocation framework (more than 100% of our adjusted free cash    ow
to shareholders over the last three years)
Raised our annual dividend by 18% from $1.78 to $2.10 per share, re   ecting continued
con   dence in our long-term business model and ability to generate strong cash    ow over time
Increased share repurchase authorization by $10B
Reached 1.2x core leverage ratio exiting the    scal year
We also remain committed to returning 80% or more of our adjusted free cash    ow to shareholders over
the long term and targeting at least 10% dividend growth each year through    scal year 2028.
Innovation
Driving innovation for our customers is an integral part of who we are. It was an exciting year for us with
the limitless possibilities of GenAI, Data Center Modernization and Edge.


We added    ve platforms to our AI-optimized portfolio, including Blackwell architectures
We o   ered the most GPU dense rack scale AI solutions
We moved from AI server optimization to data center optimization for our largest customers
We developed AI factories for enterprise customers and were the    rst in the world to ship
NVIDIA   s NVL-72 GB200 solution
These are prime examples of the pace of innovation and engineering leadership evident across our entire
portfolio.
Looking forward
We are extremely well positioned to capture growth across every segment of our business and extend AI
from the largest at-scale cloud service providers into enterprise workloads and out to the edge with the
PC. With IT spending expected to grow, we will leverage our pace of innovation and unique operating
model that has driven value creation time and time again. We are con   dent that our opportunity is
tremendous as we look ahead to FY26.
As always, we are grateful to our shareholders, customers and partners for their continued support.
Michael S. Dell
Chairman of the Board and Chief Executive O   cer



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