DE

Dell Technologies Inc. stock research

Nov 3, 2023

FY2024 Q3

Dell Technologies (DELL) Gross Margin — Quarter Ended Nov 3, 2023

In the current quarter, revenue and gross profit were lower than both the prior quarter and the same quarter last year, while cost of revenue also decreased. Gross margin remained nearly unchanged from the prior year but was slightly lower than the prior quarter, reflecting a stable relationship between gross profit and revenue.

Gross margin takeaway

Quarter ended Nov 3, 2023 · FY2024 Q3

In the current quarter, revenue and gross profit were lower than both the prior quarter and the same quarter last year, while cost of revenue also decreased. Gross margin remained nearly unchanged from the prior year but was slightly lower than the prior quarter, reflecting a stable relationship between gross profit and revenue.

  • The strongest observable margin driver is the consistency of gross margin relative to the year-ago period, as the ratio of gross profit to revenue held steady despite a decline in both revenue and cost of revenue.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue all declined, and gross margin edged slightly lower. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin was unchanged.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

23.1%

Gross profit

$5.1B

Revenue

$22.3B

Cost of revenue

$17.1B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

+0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Feb 3, 2023$25.0B$5.8B$19.3B23.0%
Aug 4, 2023$22.9B$5.3B$17.6B23.2%
Nov 3, 2023$22.3B$5.1B$17.1B23.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Aug 4, 2023

-0.1 pts

Year-over-year change

Oct 28, 2022

+0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the consistency of gross margin relative to the year-ago period, as the ratio of gross profit to revenue held steady despite a decline in both revenue and cost of revenue.

Compared to the prior quarter, revenue, gross profit, and cost of revenue all declined, and gross margin edged slightly lower. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin was unchanged.

Monitor whether gross margin can maintain its current level as revenue and cost of revenue continue to change.