Dell Technologies Inc. stock research
FY2025 Q1
Dell Technologies (DELL) Gross Margin — Quarter Ended May 3, 2024
Revenue was nearly unchanged from the prior quarter, while gross profit decreased and cost of revenue increased, causing gross margin to weaken. Compared to the same quarter last year, revenue was higher but gross profit was lower, cost of revenue was higher, and gross margin weakened.
Gross margin takeaway
Quarter ended May 3, 2024 · FY2025 Q1
Revenue was nearly unchanged from the prior quarter, while gross profit decreased and cost of revenue increased, causing gross margin to weaken. Compared to the same quarter last year, revenue was higher but gross profit was lower, cost of revenue was higher, and gross margin weakened.
- Gross margin declined as cost of revenue rose faster than revenue, compressing profitability. The relationship between a slightly lower revenue and a notably higher cost of revenue drove gross profit lower.
- Compared to the prior quarter, revenue was slightly lower while cost of revenue was higher, leading to lower gross profit and a weakened margin. Versus the same quarter last year, revenue was higher but cost of revenue increased more than proportionally, resulting in lower gross profit and a weakened margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.8%
Gross profit
$4.9B
Revenue
$22.2B
Cost of revenue
$17.4B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-2.5 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% |
| Aug 4, 2023 | $22.9B | $5.3B | $17.6B | 23.2% |
| Nov 3, 2023 | $22.3B | $5.1B | $17.1B | 23.1% |
| May 3, 2024 | $22.2B | $4.9B | $17.4B | 21.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 3, 2023
-1.3 pts
Year-over-year change
May 5, 2023
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined as cost of revenue rose faster than revenue, compressing profitability. The relationship between a slightly lower revenue and a notably higher cost of revenue drove gross profit lower.
Compared to the prior quarter, revenue was slightly lower while cost of revenue was higher, leading to lower gross profit and a weakened margin. Versus the same quarter last year, revenue was higher but cost of revenue increased more than proportionally, resulting in lower gross profit and a weakened margin.
Monitor the trajectory of cost of revenue relative to revenue, as its increase outpaced revenue growth in both comparisons.