Dell Technologies Inc. stock research
FY2025 Q2
Dell Technologies (DELL) Gross Margin — Quarter Ended Aug 2, 2024
Revenue and gross profit rose compared to the prior quarter, while the gross margin declined slightly. Cost of revenue increased faster than gross profit, compressing the margin.
Gross margin takeaway
Quarter ended Aug 2, 2024 · FY2025 Q2
Revenue and gross profit rose compared to the prior quarter, while the gross margin declined slightly. Cost of revenue increased faster than gross profit, compressing the margin.
- The gross margin decreased compared with the immediately preceding quarter and the same quarter one year earlier, driven by a proportionally larger rise in cost of revenue relative to gross profit.
- Revenue and gross profit were higher sequentially but gross margin weakened. Versus the year-ago quarter, revenue and gross profit were also higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.4%
Gross profit
$5.4B
Revenue
$25.0B
Cost of revenue
$19.7B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.8 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 |
|---|---|---|---|---|
| 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% |
| Aug 2, 2024 | $25.0B | $5.4B | $19.7B | 21.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2024
-0.4 pts
Year-over-year change
Aug 4, 2023
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decreased compared with the immediately preceding quarter and the same quarter one year earlier, driven by a proportionally larger rise in cost of revenue relative to gross profit.
Revenue and gross profit were higher sequentially but gross margin weakened. Versus the year-ago quarter, revenue and gross profit were also higher, while gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate outpaced revenue expansion and weighed on margin.