Dell Technologies Inc. stock research
FY2026 Q1
Dell Technologies (DELL) Gross Margin — Quarter Ended May 2, 2025
Revenue decreased compared to the previous quarter, while cost of revenue increased slightly, leading to a lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue was higher but gross profit was unchanged, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended May 2, 2025 · FY2026 Q1
Revenue decreased compared to the previous quarter, while cost of revenue increased slightly, leading to a lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue was higher but gross profit was unchanged, resulting in a slightly lower gross margin.
- The strongest observable margin driver is the relationship between cost of revenue and revenue. Cost of revenue increased relative to the previous quarter while revenue declined, and year-over-year cost grew at a similar rate to revenue, leaving gross profit flat.
- Compared to the previous quarter, revenue was lower and cost of revenue was higher, resulting in lower gross profit and a weaker gross margin. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was unchanged, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.1%
Gross profit
$4.9B
Revenue
$23.4B
Cost of revenue
$18.4B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| 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% |
| May 2, 2025 | $23.4B | $4.9B | $18.4B | 21.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 1, 2024
-0.9 pts
Year-over-year change
May 3, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue. Cost of revenue increased relative to the previous quarter while revenue declined, and year-over-year cost grew at a similar rate to revenue, leaving gross profit flat.
Compared to the previous quarter, revenue was lower and cost of revenue was higher, resulting in lower gross profit and a weaker gross margin. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was unchanged, and gross margin was slightly lower.
Monitor the trend of cost of revenue relative to revenue, as it directly impacts gross margin.