Dell Technologies Inc. stock research
FY2023 Q4
Dell Technologies (DELL) Gross Margin — Quarter Ended Feb 3, 2023
Revenue decreased slightly from the prior quarter while gross profit remained broadly stable, resulting in a marginal weakening of gross margin. Compared with the same quarter a year earlier, revenue was lower but gross profit improved, and gross margin strengthened meaningfully.
Gross margin takeaway
Quarter ended Feb 3, 2023 · FY2023 Q4
Revenue decreased slightly from the prior quarter while gross profit remained broadly stable, resulting in a marginal weakening of gross margin. Compared with the same quarter a year earlier, revenue was lower but gross profit improved, and gross margin strengthened meaningfully.
- The improvement in gross margin compared to the year-ago quarter was driven by a proportionally larger decline in cost of revenue relative to the decline in revenue.
- Gross margin was slightly lower than the prior quarter and notably higher than the same quarter one year earlier. Revenue was modestly lower sequentially and substantially lower year over year, while cost of revenue declined more steeply than revenue on a year-over-year basis.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.0%
Gross profit
$5.8B
Revenue
$25.0B
Cost of revenue
$19.3B
Quarter-over-quarter change
n/a
Year-over-year change
+2.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 3, 2023 | $25.0B | $5.8B | $19.3B | 23.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 28, 2022
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin compared to the year-ago quarter was driven by a proportionally larger decline in cost of revenue relative to the decline in revenue.
Gross margin was slightly lower than the prior quarter and notably higher than the same quarter one year earlier. Revenue was modestly lower sequentially and substantially lower year over year, while cost of revenue declined more steeply than revenue on a year-over-year basis.
Monitor whether the sequential stability in gross profit can be sustained as revenue continues to decline.