Dell Technologies Inc. stock research
FY2025 Q3
Dell Technologies (DELL) Gross Margin — Quarter Ended Nov 1, 2024
Revenue was lower than the prior quarter but higher than a year ago. Gross profit held steady sequentially and grew year-over-year, while cost of revenue decreased sequentially and increased year-over-year, leading to a gross margin that improved from the prior quarter but weakened from the same quarter last year.
Gross margin takeaway
Quarter ended Nov 1, 2024 · FY2025 Q3
Revenue was lower than the prior quarter but higher than a year ago. Gross profit held steady sequentially and grew year-over-year, while cost of revenue decreased sequentially and increased year-over-year, leading to a gross margin that improved from the prior quarter but weakened from the same quarter last year.
- The sequential improvement in gross margin was accompanied by a decrease in cost of revenue that was proportionally larger than the decline in revenue. The year-over-year weakening in gross margin occurred as cost of revenue increased more than revenue. The company’s liquidity discussion notes that operating cash flows are influenced by demand trends, and it monitors balance sheet efficiency.
- Compared to the prior quarter, gross margin improved as cost of revenue declined more than revenue. Compared to the same quarter one year ago, gross margin weakened as cost of revenue rose faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.0%
Gross profit
$5.4B
Revenue
$24.4B
Cost of revenue
$19.0B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| 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% |
| Nov 1, 2024 | $24.4B | $5.4B | $19.0B | 22.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2024
+0.6 pts
Year-over-year change
Nov 3, 2023
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was accompanied by a decrease in cost of revenue that was proportionally larger than the decline in revenue. The year-over-year weakening in gross margin occurred as cost of revenue increased more than revenue. The company’s liquidity discussion notes that operating cash flows are influenced by demand trends, and it monitors balance sheet efficiency.
Compared to the prior quarter, gross margin improved as cost of revenue declined more than revenue. Compared to the same quarter one year ago, gross margin weakened as cost of revenue rose faster than revenue.
Monitor the trend of cost of revenue relative to revenue, as its movement has been the primary factor behind gross margin changes.