Dell Technologies Inc. stock research
FY2026 Q2
Dell Technologies (DELL) Gross Margin — Quarter Ended Aug 1, 2025
Revenue and cost of revenue both increased from the prior quarter and from the same quarter last year. Gross profit was steady year over year but improved sequentially, while gross margin weakened compared with both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Aug 1, 2025 · FY2026 Q2
Revenue and cost of revenue both increased from the prior quarter and from the same quarter last year. Gross profit was steady year over year but improved sequentially, while gross margin weakened compared with both the prior quarter and the year-ago quarter.
- The relationship between revenue and cost of revenue drove the margin change: revenue growth was accompanied by a proportionally larger increase in cost of revenue, narrowing gross margin.
- Compared with the immediately preceding quarter, revenue was higher yet gross margin was lower, reflecting a higher cost of revenue relative to revenue. Compared with the same quarter one year earlier, revenue was higher while gross margin was lower, with gross profit remaining unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.3%
Gross profit
$5.4B
Revenue
$29.8B
Cost of revenue
$24.3B
Quarter-over-quarter change
-2.8 pts
Year-over-year change
-3.1 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 |
|---|---|---|---|---|
| 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% |
| Aug 1, 2025 | $29.8B | $5.4B | $24.3B | 18.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 2, 2025
-2.8 pts
Year-over-year change
Aug 2, 2024
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the margin change: revenue growth was accompanied by a proportionally larger increase in cost of revenue, narrowing gross margin.
Compared with the immediately preceding quarter, revenue was higher yet gross margin was lower, reflecting a higher cost of revenue relative to revenue. Compared with the same quarter one year earlier, revenue was higher while gross margin was lower, with gross profit remaining unchanged.
Monitor the trajectory of cost of revenue relative to revenue, as its increase outpaced revenue growth in the current quarter.