To The Moon

**Financial Report Summary for Dell Technologies Inc. (DELL)**

**Bullish Points:**

1. **Net Revenue Growth**: Total net revenue for the quarter ended May 3, 2024, was $22,244 million, up from $20,922 million in the same period in 2023.

2. **Product and Service Revenue**: Product revenue increased to $16,127 million from $15,036 million, and service revenue increased to $6,117 million from $5,886 million.

3. **Net Profit Increase**: Net income attributable to Dell Technologies Inc. for the quarter was $960 million, up from $583 million in the same period in 2023.

4. **Earnings Per Share**: Basic earnings per share increased to $1.36 from $0.81, and diluted earnings per share increased to $1.32 from $0.79.

5. **Debt Reduction**: Short-term debt decreased to $6,098 million from $6,982 million.

6. **Comprehensive Income**: Comprehensive income attributable to Dell Technologies Inc. was $955 million, compared to $716 million in the same period in 2023.

7. **Stock Repurchases**: The company repurchased approximately 6.7 million shares of Class C Common Stock for a total purchase price of approximately $0.7 billion.

8. **Dividend Increase**: The quarterly dividend rate increased by 20% to $0.445 per share.

9. **ISG Performance**: ISG net revenue increased to $9,227 million from $7,593 million, driven by a 42% increase in servers and networking revenue.

10. **AI-Optimized Solutions Demand**: Increased demand for AI-optimized solutions, although demand for AI-optimized servers outpaced the supply of GPUs.

**Bearish Points:**

1. **Gross Margin Decrease**: Gross margin decreased to $4,806 million from $5,018 million.

2. **Operating Income Decline**: Consolidated operating income for the three months ended May 3, 2024, was $920 million, down from $1,069 million in the same period in 2023.

3. **Cash Flow from Operations**: Net cash provided by operating activities was $1,043 million, down from $1,777 million in the same period in 2023.

4. **Inventory Increase**: Inventories increased to $4,782 million from $3,622 million.

5. **Deferred Revenue Decrease**: Short-term deferred revenue decreased to $15,034 million from $15,318 million, and long-term deferred revenue decreased to $13,116 million from $13,827 million.

6. **Debt Increase**: Long-term debt increased to $19,382 million from $19,012 million.

7. **Cash and Cash Equivalents**: Cash, cash equivalents, and restricted cash decreased to $5,962 million as of May 3, 2024, from $7,507 million as of February 2, 2024.

8. **Severance Charges**: Severance charges for the three months ended May 3, 2024, were $92 million, up from $48 million in the same period in 2023.

9. **Free Cash Flow**: Free cash flow decreased by 58% to $457 million.

10. **Operating Lease Liabilities**: Total operating lease liabilities decreased from $829 million to $762 million.

**Objective Summary:**

Dell Technologies Inc. has shown strong revenue growth and increased net income, driven by higher product and service revenues and effective cost management. The company has also increased its dividend and continued its stock repurchase program, indicating confidence in its financial stability. However, challenges remain, including a decrease in gross margin, higher long-term debt, and reduced cash flow from operations. The increase in inventories and severance charges also pose potential risks. Overall, while Dell's financial performance shows positive trends, careful attention to cost management and debt levels will be crucial moving forward.

For more information, you can read the original text of [Dell Technologies Inc.'s financial report](https://www.sec.gov/Archives/edgar/data/1571996/000157199624000062/dell-20240503.htm).