Dell Technologies Inc. stock research
FY2026 Q4
Dell Technologies (DELL) Gross Margin — Quarter Ended Jan 30, 2026
Revenue grew versus both the prior quarter and the same quarter last year, while gross profit rose compared to the prior quarter but was roughly level with the year-ago period. Gross margin weakened relative to both comparison periods as cost of revenue increased at a faster pace than revenue.
Gross margin takeaway
Quarter ended Jan 30, 2026 · FY2026 Q4
Revenue grew versus both the prior quarter and the same quarter last year, while gross profit rose compared to the prior quarter but was roughly level with the year-ago period. Gross margin weakened relative to both comparison periods as cost of revenue increased at a faster pace than revenue.
- The most observable driver was the change in revenue, which was higher than both the prior quarter and the year-ago quarter. This drove gross profit higher on a sequential basis, though margin compression occurred as cost of revenue rose proportionally more.
- Compared to the immediately preceding quarter, gross margin lowered slightly. Compared to the same quarter one year earlier, gross margin weakened more notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.2%
Gross profit
$6.7B
Revenue
$33.4B
Cost of revenue
$26.6B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-3.6 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 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% |
| Jan 30, 2026 | $33.4B | $6.7B | $26.6B | 20.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
-0.5 pts
Year-over-year change
Jan 31, 2025
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver was the change in revenue, which was higher than both the prior quarter and the year-ago quarter. This drove gross profit higher on a sequential basis, though margin compression occurred as cost of revenue rose proportionally more.
Compared to the immediately preceding quarter, gross margin lowered slightly. Compared to the same quarter one year earlier, gross margin weakened more notably.
Monitor the pace of cost of revenue relative to revenue, as the current quarter showed margin compression despite revenue growth.