Dell Technologies Inc. stock research
FY2026 Q3
Dell Technologies (DELL) Gross Margin — Quarter Ended Oct 31, 2025
Revenue decreased compared to the prior quarter, while gross profit increased slightly; cost of revenue fell by a larger proportion than revenue, resulting in an improved gross margin. Versus the same quarter last year, revenue was higher but cost of revenue grew at a faster pace, causing gross profit to remain nearly unchanged and gross margin to weaken.
Gross margin takeaway
Quarter ended Oct 31, 2025 · FY2026 Q3
Revenue decreased compared to the prior quarter, while gross profit increased slightly; cost of revenue fell by a larger proportion than revenue, resulting in an improved gross margin. Versus the same quarter last year, revenue was higher but cost of revenue grew at a faster pace, causing gross profit to remain nearly unchanged and gross margin to weaken.
- The strongest observable margin driver in the current quarter is the absolute reduction in cost of revenue, which outpaced the decline in revenue, directly improving gross margin. This relationship between cost control and margin expansion is the clearest signal from the reported figures.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue declined more sharply than revenue. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue increased proportionally more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.7%
Gross profit
$5.6B
Revenue
$27.0B
Cost of revenue
$21.4B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-1.3 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 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% |
| Oct 31, 2025 | $27.0B | $5.6B | $21.4B | 20.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 1, 2025
+2.4 pts
Year-over-year change
Nov 1, 2024
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver in the current quarter is the absolute reduction in cost of revenue, which outpaced the decline in revenue, directly improving gross margin. This relationship between cost control and margin expansion is the clearest signal from the reported figures.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue declined more sharply than revenue. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue increased proportionally more than revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the current quarter's cost reduction is sustainable.