Dell Technologies Reports Strong Q1 2025 Results with 6% Revenue Growth and 67% Increase in Earnings per Share

Dell Technologies has released its financial results for Q1 2025, revealing a 6% year-on-year increase in revenue to $22.2bn. The company's Infrastructure Solutions Group (ISG) saw revenue rise by 22% to $9.2bn, driven by a 42% increase in servers and networking revenue to $5.5bn. Its Client Solutions Group (CSG) revenue was flat at $12bn, with commercial client revenue rising 3% to $10.2bn. Diluted earnings per share increased by 67% to $1.32, while non-GAAP diluted earnings per share decreased by 3% to $1.27. The company has also announced plans to expand its portfolio for AI solutions.```html Dell Technologies Delivers First Quarter Fiscal 2025 Financial Results

Dell Technologies Delivers First Quarter Fiscal 2025 Financial Results

Story Highlights

First quarter revenue of $22.2 billion, up 6% year over year
Infrastructure Solutions Group (ISG) revenue of $9.2 billion, up 22% year over year, with record servers and networking revenue of $5.5 billion, up 42%
Client Solutions Group (CSG) revenue of $12.0 billion, flat year over year, with commercial client revenue at $10.2 billion, up 3%
Diluted earnings per share of $1.32, up 67% year over year, and non-GAAP diluted earnings per share of $1.27, down 3%

Overview

Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 first quarter. Revenue was $22.2 billion, up 6% year over year. Operating income was $920 million and non-GAAP operating income was $1.5 billion, down 14% and 8% year over year, respectively. Cash flow from operations was $1.0 billion. Diluted earnings per share was $1.32, and non-GAAP diluted earnings per share was $1.27, up 67% and down 3% year over year, respectively.

Dell returned $1.1 billion to shareholders through share repurchases and dividends and ended the quarter with $7.3 billion in cash and investments.

Quotes

“We again demonstrated our ability to execute and deliver strong cash flow, with AI continuing to drive new growth,” said Yvonne McGill, chief financial officer, Dell Technologies. “Revenue was up 6% at $22.2 billion, servers and networking revenue was up 42%, and we generated $7.9 billion of cash flow from operations over the last 12 months.”

First Quarter Fiscal 2025 Financial Results

Net revenue: $22,244 million (6% increase)
Operating income: $920 million (14% decrease)
Net income: $955 million (65% increase)
Change in cash from operating activities: $1,043 million (41% decrease)
Earnings per share - diluted: $1.32 (67% increase)
Non-GAAP operating income: $1,474 million (8% decrease)
Non-GAAP net income: $923 million (4% decrease)
Adjusted free cash flow: $623 million (9% decrease)
Non-GAAP earnings per share - diluted: $1.27 (3% decrease)

Infrastructure Solutions Group (ISG)

Infrastructure Solutions Group delivered first quarter revenue of $9.2 billion, up 22% year over year. Servers and networking revenue was a record $5.5 billion, up 42%, with demand strength across AI and traditional servers. Storage revenue was flat at $3.8 billion. Operating income was $736 million.

Client Solutions Group (CSG)

Client Solutions Group delivered first quarter revenue of $12.0 billion, flat year over year. Commercial client revenue was $10.2 billion, up 3% year over year, and Consumer revenue was $1.8 billion, down 15%. Operating income was $732 million.

Comments on AI Optimization

“No company is better positioned than Dell to bring AI to the enterprise,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “Servers and networking hit record revenue in Q1, with our AI-optimized server orders increasing sequentially to $2.6 billion, shipments up more than 100% to $1.7 billion, and backlog growing more than 30% to $3.8 billion.”

Dell Technologies World and Innovations

On May 20, Dell expanded the industry’s broadest AI solutions portfolio from desktop to data center to cloud with innovations designed to accelerate AI adoption and innovation:

The Dell AI Factory combines Dell infrastructure, solutions and services optimized for AI workloads with an open ecosystem of partners including NVIDIA, Meta, Microsoft and Hugging Face.
The Dell AI Factory with NVIDIA includes the new PowerEdge XE9680L server, which offers direct liquid cooling in a 4U form factor and can support 72 NVIDIA Blackwell GPUs in a single rack – 33% more GPU density per node compared to the XE9680.
Dell PowerStore software updates give customers up to a 66% performance boost, native sync replication for file and block and improved multicloud data mobility capabilities.
New AI PCs are Copilot+ and powered by Qualcomm Snapdragon® X Elite and Snapdragon® X Plus processors, delivering exceptional battery life and AI performance.