Dell Technologies Reports 10% Revenue Growth to $24.4 Billion in Q3 Fiscal 2025

Dell Technologies Inc. reported a significant increase in its financial performance for the third quarter and first nine months of Fiscal 2025, with total net revenue reaching $24.4 billion, a 10% increase compared to $22.3 billion in the same period last year. For the nine months ended November 1, 2024, net revenue was $71.6 billion, up 8% from $66.1 billion. The company’s net income for the third quarter was $1.1 billion, a 12% increase from $1.0 billion in the prior year, while net income for the nine months rose 43% to $2.9 billion from $2.0 billion.

The growth in revenue was primarily driven by the Infrastructure Solutions Group (ISG), which saw a 34% increase in net revenue to $11.4 billion for the third quarter, largely due to strong demand for servers and networking products, particularly AI-optimized solutions. In contrast, the Client Solutions Group (CSG) experienced a slight decline in net revenue, attributed to decreased consumer sales. The company also noted a decline in revenue from its other businesses, particularly due to the cessation of its distribution of standalone VMware products following Broadcom's acquisition of VMware.

Dell Technologies has made strategic moves, including the announcement of a definitive agreement for the sale of Secureworks to Sophos Inc. for approximately $0.9 billion, expected to close in early 2025. The company also established a new consumer revolving financing program with Comenity Capital Bank, which included the sale of its U.S. consumer revolving customer receivables portfolio for $390 million. These initiatives reflect Dell's ongoing efforts to streamline operations and focus on core business areas.

Operationally, Dell reported an increase in accounts receivable to $11.2 billion, driven by growth in AI-optimized server offerings and the timing of cash receipts. The company’s financing receivables also rose to $10.9 billion, with new financing originations totaling $5.9 billion for the first nine months of Fiscal 2025. The company’s employee headcount has been reduced as part of its cost management strategy, which is expected to continue in response to market conditions.

Looking ahead, Dell Technologies anticipates continued strong demand for its server and networking offerings, particularly in the AI sector, while expecting modest growth in CSG revenue. The company is focused on maintaining disciplined cost management and strategic investments to drive long-term growth, despite challenges such as inflationary pressures on input costs and competitive pricing environments.