Dell (DELL) 26 Nov 242025 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, you're currently on hold for the fiscal year 2025 Third Quarter Financial Results Conference Call for Dell Technologies Inc.

Ladies and gentlemen, good afternoon, and welcome to the fiscal year 2025 Third Quarter Financial Results Conference Call for Dell Technologies Inc. I'd like to inform all participants, this call is being recorded at the request of Dell Technologies. This broadcast is copyrighted property of Dell Technologies Inc. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited.

to Investor call Relations. like Franz, to I'd of Head Instructions] turn over the Paul [Operator Mr. Franz, may you begin.

Thanks, everyone, Yvonne Johnson. Clarke, today are for joining us. McGill With and me Jeff Tyler

I on please Guidance Also, some will this today's content time presentation, on IR available to these the take are call. view be includes materials to review covered earnings website, Our afternoon. and which encourage to complement you materials. discussion our additional our

to references and During net measures, their non-GAAP A be this to share, most measures refer in unless and financial call, flow. web operating income, income, free of press flow adjusted can per financial found our all non-GAAP operating to directly our margin, indicated, earnings gross free release. comparable including cash these measures deck reconciliation cash measures otherwise expenses diluted GAAP

Growth made to results based Statements unless during to otherwise events this on are percentages specified. future year-over-year relate statements forward-looking expectations. and that refer change current call

and materially results in could differ and and web which update are forward-looking assume obligation our projected of number to our from risks deck no events due our filings. discussed a statements. We uncertainties, Actual to SEC those

turn to I'll over Jeff. it Now

thanks, and joining Paul, for Thanks, us. everyone,

was up operations was delivered $X.X and performance We execute and from flow EPS XX%, continue cash growth. to well was billion. XX% ISG Diluted in $XX.X QX. revenue strong strong Revenue billion, on $X.XX, up

overall per $X.XX. share revenue year-to-date, CSG flow. Our focus EPS and cash our earnings of delivered on balanced with and has ISG growth XX% income, profitability paid proud of and operating fact team of off combined We're in the that improved

in substantial billion, X customers. pipeline. demand AI sequentially, driven up server was providers growth momentum a enterprise Tier saw expansion our in X-quarter $X.X our Orders service continued by In XX% primarily with record cloud continued, and ISG, we

billion. of seen in XEXXXX. growth servers server QX, backlog shipped the sequential the resulting in orders every AI of We of have billion demand $X.X since launch quarter $X.X AI We

pipeline sequentially, with growth all across X-quarter customer more Our grew than XX% types.

over Gen X,XXX enterprises disruptive growing services, all AI, enterprise success with enterprise incredible to our and gain with designs large-scale market. system of with the proof and professional Underpinning continue Increasingly high-value to norm. customers We nature and enterprise traction is innovation the unique engineering and engineering experimentation with highly and custom and and time mindset coverage, opportunities concepts. solutions leadership specialized the resulting broad done in since a small, deployments AI design, and speed These require Gen where lunch. deployments fast customers large see are workloads

like Beyond management surround network solutions, profit the servers, cables, switches, financial and cooling that services. storage, AI we services the maintenance, pools them, and deployment power optics, professional network like distribution,

speed year. accelerated needs innovation of customers' the We the to to have our NAI past over respond

VX past X factories OU from OR solutions XX at are future-proof XX-inch highlights to can with A scale. data We the IRAC deployment, ensuring at few the meet our launched This per XXX design and rack rack rack power AI in falls demands XXXX which training kilowatts focused a integrated Dell's that and on months. scale foundational is integrated in networking the of scalable both rack. multi-generational up cooling, our and XX integrated center

rack. holds server We first the with up racks that liquid are direct GBXXX-NVLXX industry's cooling XX shipping to our XEXXXX enterprise-ready with per new GPUs

per And the rack computing we high-performance a announced [indiscernible], also up also have XX, meet supporting liquid CPU server dense one compute to design, designs. industry's to of AI cooling, per XXX GPUs a supporting which new MXXXX, the demands. most Supercompute with We XX,XXX dense that supports to rack, up cores

achieve GPUs traditional more a rack XX-inch rack can X,XXX per to XX with IR Our design. up and

focused unit. customers the rack with XX XXXX, XEXXXX the performance ] the for includes on inferencing. XXX density of [ SSDs of which our terabytes the IR introduced QLC terabytes updating scale we XEXXXXL, power PowerScale XXXX increased products, per the We've of Within enterprise and and XXX and density designed capacity

SXXX in new [indiscernible] that diagnosis performance models of of XXX Ethernet a cancers. Xx the treatment when center research a our generation. with streaming An to streaming the by right is that of and release increases train treatment software data with about various support and reperformance I'm that AI versus previous will using combined take resulting by their XEXXXX And advance technology biomedical scale and better power prevention, and this unstructured over own personalized types the application XXX% excited plans,

the with their XXG opportunity memory AI are dense and denser and infrastructure. its power double we improved with storage of counts, and data per efficiency into floor QX, are AI demand consecutive units making power servers, making efficient and X all year-over-year way growing in The innovation enterprise. consolidation core servers, will enormous, digits up our with valuable is of growth, space modernizing In more and and in ASPs focusing quarters that boundaries Customers centers and their pushing by on this freeing driven support server. traditional engineering is by the

with enhancements margin And market the and storage, indicating PowerScale future FXXX the traditional in environment The will demand time. and the PowerFlex FXXX growth and to double-digit driving servers. over our demand drive grew midrange growth all-flash quarter, digits trail on that ramp portfolio. software nicely, double unstructured continue in product continue and PowerStore to the focus

in albeit commercial saw price-competitive CSG, in demand modest are in continued row. customers a environment. for a the with we In more to More enterprise quarter growth third and stability PCs beginning refresh,

AI are their enterprises We refresh next with clear a are cycles in year, their upgrade up PCs are the signal their first customers purchases. indication new need their future-proof that that of desire to half lining to an balancing seeing and

Consumer continues demand and challenged. be profitability to

welcome weeks. cycle The in installed XX base optimistic and are in significant Windows are AI-enabled PC tailwinds. end continues refresh coming of and the to with the advancements architectures We life about as application development reaching XX age

be robust of said, That for ISG AI our with this in as opportunity and business us an will in and down. as underlying a silicon are no high portfolio across AI changing slowing that priced not Regardless, broader to linear, is customers both delivering all-time an a especially premium winning much our have interest value In ecosystem. road is that closing, deals CSG, competition, we navigate signs map

to pair positioned. We and and server sheet portfolio, business PC customers. you our traditional to balance with a pending have our recovering storage grow credibility and the market the refresh extremely commitments When on a to well updated our this are we deliver

financials. for Now the Ivan over to

Thanks, Jeff.

of guidance. in In the into cash our quarter, our and overview Let including ISG CSG on an we revenue. me I'll that with begin specifics growth of jump growth strong outpaced revenue profitability. third results, resulted EPS performance. maintaining delivered This focus while Then the double-digit

Additionally, strong delivered the cash performance. business

ISG in CSG. total continued servers combined specifically Our was revenue XX.X% XX% an environment, grew and pricing margin XXX and revenue. down CSG to points driven mix This AI was or XX%. server up our our increase due basis more competitive is strength of AI and $XX.X a billion was Gross by traditional in business to billion. and optimized This $X.X in

AI unlocking or Operating focused revenue. business expense efficiencies leveraging and to billion remain higher of structure reimagine was $X.X and XX.X% X% within our drive on productivity. down our cost to We

All this business. continuing of while to the grow

revenue X% We driven margin $X.X decline billion expenses which lower higher offset a gross partially of revenue. by a our to operating XX% income. Now let's delivered in was This by at or operating and were look rate. increase

up EPS operating Finally, was by And driven QX income was stronger $X.X XX% income. our to net $X.XX. up XX% diluted billion, primarily to

and was Now Storage $X billion, to continue revenue a billion. environment another was across both and strong $XX.X where to overall lag revenue in traditional quarter that networking up we delivered storage ISG XX%. XX%. and Servers The up to let's revenue $X.X move up afters. see was traditional This us, a strong continues demand was demand ISG, to X% performance. server. billion, record for we QX of

primarily mentioned, revenue. as operating X However, double-digit higher of our Jeff growth offerings. in This We was driven marquee of up midrange by demand strong saw billion, had and PowerStore $X.X ISG XX%. income we PowerFlex,

income gross servers and Our especially expense. ISG rate of rate XXX The was basis up points XX.X% again to margins, improvement of reduced operating the in improving of was operating sequentially revenue. result

environment, CSG. consumer CSG XX operating billion. CSG primarily Commercial was while revenue revenue up X% $XXX billion, down to $XX.X the was more to basis XX% to to billion. X% to competitive or turn sequentially $X $XX.X This down income lower in was X.X% is let's consumer pricing revenue. Now space. due million a revenue was of points

configured well Enterprise expected held push purchase into more demand as demand quarters. space the devices. promising, than we sequentially though in saw to commercial [indiscernible] customers continue as future some up Profitability was less

PC life The Windows than Our as AI-driven aging consumer tailwinds was has installed pushing but refresh is next an weaker and profitability end challenged. year into expected significant enhancements hardware and cycle demand like life. battery of around remain base, XX business

Shifting down for driven Dell of optimized sale up originations the consumer Financial our portfolio, We $X.X by exit gears, billion strength in DFS originations Services normalize in and the the to quarter. resell XX% were VMware our third business servers. were of AI revolving X%,

operations balance was the working flow primarily capital. offset cash Now This partially driven flow from by profitability, cash move to $X.X QX sheet. billion. let's and by was

ended returns server sequentially. cash historical Our partially our business $X.X compared levels AI billion $X.X negative by is of billion to linearity. flow This generation, result cycle the billion. offset with $X.X up We conversion was capital inventory, cash in the is quarter to $X.X billion and with which days in XX cash elevated order and AI of due investments, free

an capital shares we've billion the FY per repurchases dividends. at of million and X.X program average dividend shareholders beginning at began share. repurchased and of We of our Since price $XXX.XX $X.X a returned stock to $X.XX 'XX, of stock return through paid

sequentially leverage Finally, at our flat ratio core was X.Xx.

is certain to IT our to said, others. growth guidance. faster areas turning That continues environment dynamic business experiencing model with Now The advantaged. be than spending

poised broad a capture to and solutions that's opportunities. portfolio engine a these have of We go-to-market

We our in business expect the continue. to server strength

more that and large short ISG midpoint. to storage $XX at growing be spend CSG and in revenues However, of IT at billion, the up the XX% billion backdrop, expect combined, $XX.X midpoint we Against XX% enterprise being $XX the their and mindful PC QX of and with billion are between customers term.

revenue growth growth IHG servers. revenue up to expect driven rate mid-XXs up digits to the low we the rate CSG be and by year-over-year. AI be traditional year-over-year single And expect We

the digits decline OpEx to to efficiencies continue we is drive expected as mid-single in business.

to income operating rate be the continued up in improvement with expect sequentially ISG. We

year-over-year. diluted $X.XX, our XXX non-GAAP and shares. QX midpoint. X% million is to is $X.XX, expected between diluted our non-GAAP revenue expect at guidance, And We full the ] up plus grow count expected or the [ XX% minus XX EPS $X.XX, At to [ EPS [ to to be be year diluted of XXX our ]% share be up ] expected midpoint and is million

Now call, turning year provide view about our of fiscal We'll you QX to many year. but I XXXX. questions on next that our guidance on formal have know

walk let thinking. So you me our through current

We next expect aging robust strong installed base AI into for supported X-quarter prime multiple that PCs pipeline. year, including There's our also a servers in are an traditional both tailwinds by more and going demand refresh.

expect ISG to by be followed traditional AI primarily We by driven servers, storage. growth and servers

enterprise and the the grow CSG cost invest large we'll and customers refresh within efficiencies and cost in environment, the profitability, managing and as aging portfolio. growth We'll installed while to expect to competitive across continue We base. landscape driving price continue balance business a input

profitability, remain of focused team we I'm margin We looking operationally. incredibly to dollars. always closing, optimize and proud In and and the on our growth how rates executed

We strategy where leadership new and we unique leverage capture our operating our growth. to strengths model and extend a have position

with conversion ratings. a capabilities and cash We differentiated have a financing environment, investment-grade cycle, DSS balance control strong strong sheet,

position elements these us incremental of All business. win to

history underpinned confidence Our durable generation. of by flow our and cash is XX-year success

I'll well are FY we 'XX echo QX look and as positioned Jeff, to beyond. we extremely

in AI. winning recovering. are are We Traditional servers

for storage long are the the PCs positioning refresh. and a term stabilizing cusp commercial and are We on of

differentiated our we'll always, continue and drive to for As customers provide solutions shareholder value.

begin turn I'll Q&A. it to Paul back Now to

Thanks, Yvonne.

question. concise In a -- Q&A. of order as to to get to possible, many we please as ask go you get X ensure Let's

Let's the question. first go to

question Amit Evercore take from We'll Daryanani first our ISI. with

just margins. ISV in focus the I on [indiscernible] better folks guess I think came what to at than wanted I most were They expecting.

go into dig this what takes So were more than you forward that what durability the about. were seems margin impressive ISG people just that performance margins enable apprehensive And just of well. of can you and then perhaps kind the about puts the talked as ISG as you

that. start I'll on

So Revenue [ ISG, let ]% year-over-year. XX me grew start with revenue.

basis points and points XXX impressive since up basis and up like an with quarter-over-quarter, So ISG performance up was operating X%. server networking you said, storage is XX% QX. which XXX income, up

So gross servers primarily change so a especially quarter-on-quarter a percentage. had nice recovery there operating indicated. margin, The improving expense as and reduced driven in QX we by was

and server ASPs we've seen and denser richly more customers counts demand server. last quarters. as memory few which Units and more improved over Traditional configured buying are servers, and storage with per the core grew

by So standpoint, up up to power see. storage were efficiency flat From focused data for or as modernizing volume AI an AI AI some margins again, to servers great -- frees consolidation their and centers, infrastructure. well slightly Customers which as space quarter-on-quarter. on

So that income. was see. more again helping quarter-on-quarter, our cost realized to we also And operating good efficiencies

to QX, into to continue Looking rates ISG expect operating improve. income

comes Sacconaghi with next Tony Our from question Bernstein.

guidance midpoint wondering, Yes. -- think were I'm was I of the the your last just you billion. $XX quarter, for year

the weaker of And than fact pipeline is wondering it $XX.X expectations, is changed billion. really sounds AI coming in the strong. midpoint like I'm that especially terms what has light the your up in Now of

was I put grew which you at and to XX% backlog, it said have sequentially. of would think $XX last $XX quarter, said it billion multiples billion, you it

optimistic looking for we billion? you XX me, is a not And are a why or ago? more QX informing view that backlog So what billion that's than like at days $XX $XX had pipeline, that's excuse

things of build past in think can couple what's changed a days Yvonne the our and this. over maybe about to Tony, on thinking XX

is was foremost, we're the continues as the our out. the and in to in that remarks underrun QX, of It we with our refresh refresh -- reflecting and is a slower move. First source the base but to balance lay through tried PC installed life we is triggers to this a that XX and been coming, Windows large that end year know of we're the there anticipating all of is have that move

specifically why refreshing slow best demand, is a have in AI now a many annual we we is it. calendar have fiscal we when guidance, of year believe to 'XX. and our Blackwell. are the And demand that in fiscal in guidance reflection In pushing the see X Yvonne? that that's cases, is in you that pent-up reflect ship QX element we the starting backlog demand the and in in our second or and 'XX can And QX those late and it's And shift levers into we in change

say It's and that happen, it's if next bring I'd elements. we're going Yes. not a we Tony, guidance year matter -- of the basically the revenue down, as seeing pressure you into move X the then did and PCs. and it's QX to unpredictability is mentioned, more of those shipments. when AI

those together, about performance there putting we so but QX, what X we is guide timing overall things strong the when quarter. more the anticipating were in gave the than last we some And feel differences

with from Our Aaron next comes Rakers question Fargo. Wells

have -- How several in volume X you theme Yes. of I'm cadence I shipping the of traditional AI that this Blackwell you. AI dynamics. much the as relative that do Kind of would of as How pipeline, server curious on and on be Jeff, of you profile your thoughts of date. defined think any about margin and the of the a -- or as in be how those would front to think, GBXXXNVL? think service multiples percentage much ship do you about maybe sticking AI to you around the mix the quarters the

from bridging Look, several XX%. about backlog exact about couple the of telling Sure. a and in maybe without as think we and talked Tony's quarter-over-quarter number, X grew expanded of quarter the group, at that yours. to you things we excess multiple And question multiples

a saw towards that reflection us remember, of out, it it's the Blackwell that a and one moving on to grow. design, growing it's That's the of unweighted grow. -- pretty now our even for marketplace. shift an The in enterprise But we to the convert rapid customer opportunity. full QX a believe the continues We saw We in demand of you shift GBXXX. that's That's portion grew the Obviously, faster orders specific backlog. called the pipeline.

backlog. So and significant and we're the trying what specific ability reflect for our of hands the That's portion it a of a you put our get quarter guidance of a to that giving now demand the in percentage customers. and backlog [indiscernible] significant was without in material is orders portion the to in the the then

seen designed X post the have ago, would GBXXX days we ship in first the XX or us were You a that to marketplace.

We Blackwell's have designed continue ready or go. to It to we'll in will ramp and production. ready. be

question Our David next with comes Vogt UBS. from

an I guys you AI. different on horse the federal on kind and I how the do impact a margin you seeing we the in you sovereign traditional if servers, to impact that vertical. captured about then that might a a heard business? of commercial Not Can Is into that off an topic. having storage new think getting spending. try what think as on to for that guys in update mean spending of give that about And dead category. resolved beat want the through PC sort you're talk and federal administration and us it's maybe don't 'XX or in I move

quarter, products. this the is demand strong strong across can in types build the for business all was was saw on federal government we -- QX. Yvonne government Well, of the The

opportunity We're does Yvonne? it, With opportunities, but I not which front it actively in there. aware across to have the us sovereign component the in to, globe sizable it. significant to engaged a AI speaks sovereign a reflect that's to respect the of still that referred We're in does not that well the pipeline number opportunities. those number of

pipeline the build federal hit we Jeff. have within to are strong quarter third quarter it, The specifically on you the think did see I a No, continuing business, and there.

about So that excited opportunity.

Erik from Morgan with comes Stanley. question next Woodring Our

Sorry about that.

And kind kind at look some server pull year, the you just hasn't curious, this as that is AI forward untapped it AI that and services that love would of that. And of this yet. double-click sales would whether your on to you materialized storage if earlier an hasn't still and be opportunity needs materialized, base, would demand. Jeff, of server case. the and services evolution I'm So customer of I believe for why the storage just kind

Of expand AI the individual excited beyond Look, in the about pretty to course, we're opportunity node. Erik.

And the scale maybe we've until previous here, very then efficient but think you reflect cooling beyond specific and things to full how take mundane to the management, out, to is scale doing very rack the be to subsystems comments, node our opportunity, that energy do the how actually putting storage tried we I like networking integration. in, in distribution, try opportunity telemetry integration, it's management. build do rack cooling opportunity, power the density power power

All to to to of for to solutions add we and and the competitors. it, and are integrated those are at and and customers ability -- us believe financial service able scale. our The growing our scale field, in to our and our we margins a do services, to at component team in rack opportunities take differentiated service our our ultimately a ability early deploy these at LXX, provide why premium Then can times rates. LXX solution this be expand the support those have DFS you design the incredible

is opportunities, we're being every matters opportunity of increasingly Dell one exists each another it's of seeing matter, for scale. the its to That cabling, networking, and speed those combination the then it's all of and design whether able again, characteristic storage, in whether and these the opportunity. deploy of us large

next of comes Our America. Wamsi Mohan with question from Bank

also Can think main would my a AI how up. down talk as how into expecting is in Last should be margins tariffs? quarter-on-quarter And revenues you fiscal that you you QX impact about 'XX XQ. Yvonne, you're we question thinking CSG, where look from potentially as you be just about clarification. talk contemplating quarter, quarter, Can revenues about you're noted to any early you're on and Last in quick mentioned well? context about that

don't within to a the we bit have but stay QX about I but that taken into we So holistically, expecting which AI and expecting I those guide, know about mix relatively -- guide, talk the talk account can consistent. them margins, expect and in

mix what's be there. So driving would the

growing to I We've we we operating talked out 'XX, But 'XX. dilutive dollar revenue I growing about FY the see across ISG move you've -- we're and -- very and portfolio. offerings, fully our margin think bit process into continue to heading talk high FY that had income I record in as about in while grow. If to, we're margin continuing again, results, think the in early play so and you're which a or it's AI AI -- seen the accretive our we'll

expect We next kick very the over process growth off We we do year and optimistic that full head. next support where few but -- don't that in next about weeks, we'll tailwinds we're year. multiple

that. about positive feel we So

both robust portfolio AI already or traditional Jeff So into going there. pipeline aging year, base opportunity servers, X-quarter a and strong talked an the installed opportunity about PCs more demand that for with again,

refresh We followed by and And coming cycle expansion then traditional ISG -- and AI that to we in is driven expect will by revenue. drive enterprise soon CSG expect that storage, servers coming help profitability those the servers growth and grow, primarily

guide, we year. looking to intend little next next call earnings soon and at a we for everyone up for for So us a what next announce too but to follow forward will that give year, the

ramping now your given the best guidance, will hopper, in Look, of reflection into -- the we on we've believe specific ability and what that Wamsi, we've shift is best it's production Blackwell our to existing our in well on in quarter, that's of translate XXX indication about in the that as what's then on quarter and question as reflected. backlog shipments, backlog what And QX. as in shipments of GB it's the AI that's clears the our

Somewhat down sequentially.

yes. down, Slightly

Rides comes Melius Research Our Ben question from with next

hoping, one was pipeline of seen and chronicled with that issues have you the pipeline in I is uptick in I you bunch it in your press And baked? then your the an Yvonne. there. Question, and clarified you wanted have to reason your had what you are a or that surged for you in November and/or in would just clarify some grow grows that has competitors AI? the -- And interest their I already think solutions storage -- year new regard was pipeline with of well products to financials. next don't in And if AI, seeing

your there margin appreciated other product things among discussed 'XX. the highest would on clarity be you about some So

Sure, Ben.

Let opportunity. give in up, see the the one working where of the showing We're and pick engineering, start believe, growing. That's those of we differentiated appropriate competitive technical me stuff. to size, a opportunities. a Again, Look, in believe every That's pipeline opportunity can with is differentiation we and why formidable We enormous then each Yvonne competitors in is up. with AI immense. having be at a up stack these Clearly, the opportunities are is our are. that co-architecting starts we We're showing very we have, why success innovation, offer. we're very, everybody

in the scale we're case highly is X about this, design storage at than a This speed. goes months, also In financial that, and driving customers' XX,XXX badge scale, installation driving. deploying XX/X are services people site that that, the the that weeks. I that rack on in networking, record service deployment compute engineer full-scale and services of ultimately with able people along is solutions professional GPUs deployment some go our along which hands the in X are with they described and doing of to These in turning being less solutions to complex putting altogether,

does It to We is is a the new differentiator. of market innovation Speed The matter. solution. first with accelerating. were pace the

platforms. see We that. brought continue drive Recently, We're the with more responding to to we that. And in continuing we're portfolio.

service largest digital We pursuit that side chain the of and X opportunities the as that. the different native go-to-market obviously, on doing what supply continue enterprise the for to our includes side capability in we're invest well capabilities R&D teams as then with

new giving more expect and new our into invested second IP to take we've not it 'XX, while marketplace expect as storage making we with solutions, share competitive. FY storage we grow next Dell Your question, the to guidance, portfolio, capabilities, we're year,

AI We expect servers, across growth storage. ISG, servers, traditional

next comes our And Asiya Merchant with question from Citigroup.

customer commented from investors revenues concentration a you on get talked that. We you of orders, and the about lot Jeff, AI the backlog, the know questions I about enterprise in

you AI and of your then you're you're for could that what to backlog a that in have into $XXX if calendar on that, feel that how seeing be share and orders moats right just market TAM you constitutes competitive fact here a 'XX. related substantial So pretty you now, about plus pricing the calendar the to identified customer And in the given just this would great. a what premium, concentration your 'XX? TAM, double-click guys TAM do billion that guys And

Sure.

Let me that try to pull apart.

customers First of journey. now we to we enterprise over all, said we sold important since clear, be I note, to began I X,XXX think that think what's really have this

question. continues of Is X of pipeline. our larger as the still at to rate said than a the to Our platforms, the side. us. be building those grow, the digital enterprise last opportunity a business portion for of customers grow, native It's grew customers without But it portion enterprise towards CSPs quarters, I weighted continue continues larger think, to grow. The portion Tier and we've, other a the the out X-quarter X enterprise pipeline greater

their we about deploy early to proof very, And of larger very the figuring in when as levels in in how innings It understand in drives we're only of experimentation, the productivity, they're levels AI. it's highly innovation, of enterprises higher out higher some of in to that disruptive. that, events the opportunity AI the production. unmet, is the of decade course And think fact, enterprise through inference of putting over I think, migrate they concept. They

there. actually new the of as ] we of and us that alignment our where which sell we like will with efficient I I today, given made to we more It's go-to-market that's innovation them Given largest solutions, well [ what make helped. enterprise most and levels more It's -- opportunity and to learn customers our our innovation our as forcing that our drive capable. and other scale, chances it's do. gear, footprint, our think hope

Mehdi next comes from Our from question Hosseini SIG.

thoughts for mix your will and get AR ] HGX, platform assumption GX as your Any Yes, What key appreciated. want your I [ to be is from underline between Blackwell. to thoughts there the Harper customer migrates Jeff, MTX?

choppy and you that us, repeat apologize. for could I was please? question That

I'll try again.

It's much clearer.

Sure. about It's myself -- sorry that.

your do Hope like -- change of the you As from envision DGX migrates to and Blackwell DX, platform key partner changing, MGX? architecture how

continue Well, to production at look I in ramping will in the Hoppers that way next year. in be production. be is think We'll and year. simplest Blackwell's in next production production to

see I won't. on that demand have in X-quarter that way changing to continue don't without in which regard. we know you both of backlog, the how describe giving We to architectures, specifics I the is Nothing better the pipeline.

I'm sorry, to to I'm in -- DGX But from HGX I'm and is trying understand trying better new customization your a to changing assumption MGX. just platform like of understand

I the designed at way open very a based it is architecture. we've Well, look

IR is this to meet provide and of of based their type, through in at kilowatts on design distribution designs example, power headroom new way optimization that. XXX as customers our an model put driven the and XXXX So our needs. look if to in place you thermal thermal combination and place, of new take that order is the architecture system we the technology the needs by rack we any at being we've designed able XXXX and and scale in believe Much the to and solution headroom and speed that the take that the can able to our customers short unique being help available,

down [indiscernible] pipeline, ORV new And talked exactly allows I'm to will X move us built with ability then [ things the solution quickly and MVLXX to we've ] come what very that we and future. open take like that its is sure, design the in subsequent chassis, technologies provide our new an

Sankar question next comes Our TD with Cowen. from Krish

the in value mentioned having The about unique a the on of stack of customers. advantage storage you server up attach past as and and rate. comes to Jeff, full a your question proposition

say X billion storage quarters, or was much look AI services look server attach you to the rate Is you in how shipped a based at at business If you last about and way X or quarters. for on the saw revenues. trailing the there $X that

question. it the specific? infrastructure? to of Is that I Is AI sure I'm general context not ISG understand and the

No, AI specific.

as that rate? having spoken an to the attach and your advantage solution you've -- about think server [indiscernible] how I a is storage

Absolutely.

is is AI storage. simply run publicly And multiple So a It because let feed I you I've important that GPUs information. mean take storage think of not to data. opportunity I this lot devoured typically very I I at for they're me information to have times because immense think for try very effective us. the the mean, unstructured. said a it -- without be to beast. tends

and data tuning transient file XX% So think scale of and file capabilities this the for essential. and we And is is of essential. are large think object end-use kind for on-prem. parallel training, We training data systems remember, inference out these environments

is architecture. driveto really we think architecture, AI in a storage So driving which X-tier needs new the

our workloads. portfolio So high to ability And that's of things scale, drive the above to these what all all are to high-performance, ability to the ability efficient and is. storage, AI be performance modern the deployment flexible meet required

us to Project for ability do have file then and this Data said, built allows that Dell Dell we which at Lake management architecture high-performance to house, scale data announced platform exactly Dell take towards take the independently high-performance allows our in and where our optimize our specifically that moving World, to Technology data portfolio The around a soon, parallel metadata a platform platform, IP and believe, for we system and disaggregated AI storage X-tier us purposeful object, some Lightning management. then that absolutely performance. file, All is PowerScale the right is and networking deliver CPU we to

combination is storage made is in of a couple of the has capacity. about our of remarks FXXX XXX FXXX, state capability, capacity. we I remember we positioned. absolutely well AI, X.XX and and of one the It's PowerScale, the we're That the of references terabytes for correctly, XXX very why future If believe, terabytes

the footprint not done mouthful, that's that the that's to attributes density are revision Both going but that why ultimately as more optimize of forward. be that go both we to opportunity, our of know It's able first double to how we platform we was have I the reference to We're of of dramatically and market. a of be come. I performance latest in IP those the I in higher half software. with drives next improved made will year to AI to products think those the it. first believe

from Michael Our comes Sachs. question Goldman with Ng next

down the quarter. about growth around I revenue the despite quarter wanted to being server this backlog ask comments AI sequentially next

Or AI First, grow is the the that backlog view, in is just potential we because And availability? component server point? And and of larger? the unusually high? the some is will growing mix of billion Blackwell flush $X.X at normal with backlog second, see your then backlog an to in

QX to be be the going ramp and them, translated in it towards QX get dramatically is QX. to which we've clear clear, last shift that is time into clear, That And our production. backlog product order probably Again, in so QX shipments believe reflects can and it's be when able from parts ship slightly should its Blackwell. we're we I to obviously, have as been, quarter-over-quarter and our in shifted the guidance, down say I to wasn't

it of to XX%. to us The to The new I next expect that that can't X-quarter or continue to platforms it and for clear. quarter of all than meet excess we grew year. We're was this in what bigger convert say I that would than scalable better opportunity today enterprise, is to quarter us pipeline XX% going as any more work new happens pipeline, grow. bigger, that in any reflect continue with well open think technology, excess of are needs last can in the platform,

and in and these products continue to finance speed us engineer are are that for design, to internal in headroom things those. capabilities differentiating investments the offers, financial The that provide to ability that the we'll service and the innovate focus in made on all market, we've an at

Chatterjee with JPMorgan. next question Samik from comes Our

And Jeff, the of servers. if enterprise non-AI I can and just sort change about talk a gears here or bit

there's of more growth couple cyclical into -- a business. of moderation might bit replacement demand, year You've are a front. a year, a I for is this but go demand investor strong this see after servers growth here the had quarters. enterprise on general a perception that next you that think double-digit you And as

great. you're these growth levels? year, how sustainability highlight your into customers, If about what's of that would you comfortable just And do with you next be what seeing sort driving can of feel that

Sure.

recall, so marketplace. of in this we thought ago, that we might we the or history IT period the in middle digestion in the it recovery think cycle the quarters were the the You would was of longest I server thought X that be And reason is server-led.

out which servers. faster that would of in seen. quarter And digestion consecutive this row And believe in growth. said period as coming X in a year-over-year that's we in on her now period And that of now remarks, we're growth, technology. we're And quarter-over-quarter exactly tells that seeing what Yvonne recovery. recovery a we've be a sixth of now our me at We're of quarters consuming is

I think workloads is important modernization. modern maybe AI catalyst. the the both modernization we center what's lot very We a about catalyst think there's in a The could that is data as well that talk in happening in a traditional about as

for X to a we're free into sometimes you servers And floor as traditional seeing the Yvonne space you XXG what server. X, is of so to is cooling up AI. get what well our data space with XXG can a from and center, consolidate consolidation, server terms a consolidation, in single But anywhere of X a said,

average, our server, workloads as in twice reflected on seeing twice XXG as QX. storage our we're more memory, them. why run a as the we're much expansion XXG It's business TRU seeing was and why better in XXG, is server much On has in which

the the a of about ago So security in seen more applications you economics, probably today driving the are they undertones some flexibility that as seeing is that's and than of performance And that from much. what's marketplace, consolidation driven twice considering CIOs whether that of demand in we're the well as play. fundamental repatriation you've research get, were cycle. TCO, the or this year fundamental

And we are seeing unit growth.

part growth And provide all this resources side modernization, in of it which consolidation workloads. So believe towards is for capability the the TRU other expansion, very these we're modern unit early and consumption cycle reasons, of to it. is fueled actually the we of

Our next Simon Leopold James. from question with comes Raymond

a and then One question. clarification quick

I OpEx might to for were about bigger be. sequentials the the early that to expectations decline too referencing year-over-year understand of implications mid-single picture to just tariff in And what digits. it's question, I whether on talked You exactly know see wanted guidance. you terms

sort But is remind could coming what manufacturing us from countries regions? and you proportions global of what where of your are or

the was year-over-year, was there. it question, answer first your to So

at Look, long we've this tariffs, on And a been time.

requirements that's consistently happens global they we demands every in a We'll and on as operate see the We meeting multinational navigate have country -- resiliency arise. and and tariff built encounter geopolitical chain supply here. almost a cycles customer company, what we macroeconomic

in through schooled I of not us. think capable We're we're well changes well of may and and navigating working that overreacting. be the front

chain We interest have a our and shareholders. respond resilient supply in the and of best we'll global customers and

question comes from Fox next Fox Our Advisors. Steven with

business flesh of little bit X% the if the the more you I out underlying wondering was a could growth. dynamics storage just

you the of mentioned rest you're could margin-wise growing growth in seeing what and better You of mid-range sales just the business? digits. and of that if double give of the But some was sense sort us a cost-wise

jump comments, Sure. certainly and Maybe of then in. a couple on Yvonne can

PowerStore demand our that view, and around conveyed talked our focus demand we we to and margin of time, We new and about in specifically with to PowerScale, point the the about talked FXXX products. So I this products. the FXXX storage from saw around which last a growing. PowerFlex of from think led the QX is IP organization, we expansion our improvement QX The

adding to it. new high-end well, at Paramax quite product store is ramping the mid-range, power Prime QLC our PowerStore So the in

to XXXX drive these data out to we and to will workloads capability side data an program. domain, as launched, be products to get drive the those just the software-defined AI. storage unstructured and we to and partner about, PowerScale, PowerProtect our and growth I first for the and ability that source continue around talked want that the asset is essential valuable protecting the PowerFlex XXXX, success the preferred see continues channel continued as with We've a asset. our target of new

that selling Those levers grow well And leaning as more market-leading continuing coverage sources largest storage. model and and specialty focus we're we broad in our force to to on the the we're are data storage have serves that. marketplace reduction We're the sales to driving rate differentiation and on our with customers, capabilities.

guide, within And our quarter normally I'd add, perspective. from strongest it's fourth quarter right, our in embedded a storage the

So into that Dell leaning to leaning even more said, drive performance into so IP, expecting as and strong growth there. we're Jeff helping And our profitability.

Let's take to we'll one it Jeff and close this more, to over turn out. then

from Tim We'll Long now final take Barclays. from question our

CPU Just dollars, to the and profit big down profitability. get dollars went AI gross to servers, jump from wanted multi-GPU percentage. profit we in to when was but servers back in Obviously, servers it

move systems that of XX now these the gross about X. think gross in profit should we instead NBL with involved per of getting dollar Just How curious server more the GPUs you're lot or Obviously, a profit percentage? which bill the be up. with higher on to the ASPs higher component servers within the to mark material, lot a is harder going overall are GPU

dollars about us any kind and give can we should So percentage... on you think how comments of

very, build relative certainly, rate rack Yvonne large. a I have and dilutive. rate, XX can and beyond density been ASPs The high-performance On very upon couple and nodes in a driving these with of a and of consistent. the is Maybe macro and GPUs One, comments in them then shoved then X are that.

doing the or many I improved. and improvement side installation, the LXX the services, of storage networking this. beyond. rate around communicated think LXX, I we've and today What's now X the consecutive the that call for the to what the quarters and of describe what that is along we're tried rate around and around things has fueling DFS opportunities financing

It our is the differentiation continue our capabilities to, to competitive opportunity rates. Yvonne? us we're to perform engineering of very allow to market is and leaning a we'll to and us the we the opportunities. given improve premium, That's size why on the continue marketplace believe, on for to a that. focus which

working and points. key the we're holistic drive that operating incremental to dollars Jeff, margin think -- all within Certainly, portfolio. driving hit I you've those we're doing holistically,

think I So close. with move we will to that,

I'll couple comments. parting quick Yes. give of a

for at centers expertise, footprint, supply defined with businesses. with well unique AI scale global extensive unmatched services go-to-market our and comprehensive the engine, engineering solutions for large NAI medium the solutions customers we AI data from positioned are win our by small to enterprise portfolio, end-to-end customers industry-leading providing are operating to our chain and model portfolio and We PCs leading and to between largest

are in no the see business other us. past in started. our well strong, and model can our only we tremendous And XX getting built industry it as no do signs AI recent can company gained from for We've there traction the years The this moment. of solutions are you slowing was over executed something That's the down. or launches, innovation year so, product and we've as as is engine past over

shareholders We have profitability and driving track which a value. solid cash record of growth, Thanks your all flow, today. for time

And ladies and gentlemen, appreciate We participation. your this concludes call. conference today's

at time. now this disconnect may You