Financial Analysis

COMMITMENTS AND CONTINGENCIES Purchase Obligations The Company has contractual obligations that are enforceable and legally binding to purchase goods or services and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Purchase obligations include the non-cancelable portion or the minimum cancellation fee under the contract, and are primarily related to commitments with suppliers, software maintenance, and support services. As of May 1, 2026, such purchase obligations were $16.9 billion for the remainder of Fiscal 2027, $1.2 billion for Fiscal 2028, $1.4 billion for Fiscal 2029, $0.8 billion for Fiscal 2030, and $0.5 billion for Fiscal 2031 and thereafter. Legal Matters The Company is involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time to time in the ordinary course of its business, including those identified below, consisting of matters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis. The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The following table summarizes the Companys outstanding debt as of the dates indicated: May 1, 2026 January 30, 2026 (in millions) Senior Notes $ 21,073 $ 21,573 Legacy Notes 952 952 DFS Debt (Note 4) 9,278 9,139 Other 110 99 Total debt, principal amount 31,413 31,763 Unamortized discount, net of unamortized premium (109) (112) Debt issuance costs (143) (148) Total debt, carrying value $ 31,161 $ 31,503 Short-term $ 7,550 $ 7,990 Long-term $ 23,611 $ 23,513 During the three months ended May 1, 2026, the Company repaid the remaining outstanding $0.5 billion principal amount of 6.02% Senior Notes due June 2026. Outstanding Debt Senior Notes The Company completed offerings of multiple series of senior notes which were issued on June 1, 2016, March 20, 2019, April 9, 2020, December 13, 2021, January 24, 2023, March 18, 2024, October 8, 2024, April 1, 2025, and October 6, 2025 in aggregate principal amounts of $20.0 billion, $4.5 billion, $2.3 billion, $2.3 billion, $2.0 billion, $1.0 billion, $1.5 billion, $4.0 billion, and $4.5 billion, respectively (collectively, the Senior Notes). The Senior Notes have maturity dates ranging from 2026 through 2051. Interest rates on these borrowings are fixed, ranging from 3.38% to 8.35% per annum, and interest is payable semiannually. Legacy Notes The Company has outstanding unsecured notes and debentures (collectively, the Legacy Notes) that were issued by Dell Inc. (Dell), a wholly-owned subsidiary of Dell Technologies Inc., prior to t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the disaggregation of net revenue by reportable segment and by major product categories within the segments for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Net revenue: Infrastructure Solutions Group: AI-optimized servers $ 16,132 $ 1,882 Traditional servers and networking 8,543 4,439 Storage 4,334 3,996 Total ISG net revenue $ 29,009 $ 10,317 Client Solutions Group: Commercial $ 13,020 $ 11,046 Consumer 1,589 1,463 Total CSG net revenue $ 14,609 $ 12,509

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FAIR VALUE MEASUREMENTS The following table presents the Companys hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated: May 1, 2026 January 30, 2026 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Assets: Money market funds $ 7,520 $ $ $ 7,520 $ 8,052 $ $ $ 8,052 Marketable equity and other securities 77 77 77 77 Derivative instruments 97 97 160 160 Total assets $ 7,597 $ 97 $ $ 7,694 $ 8,129 $ 160 $ $ 8,289 Liabilities: Derivative instruments $ $ 116 $ $ 116 $ $ 126 $ $ 126 Total liabilities $ $ 116 $ $ 116 $ $ 126 $ $ 126 The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value. Money Market Funds The Companys investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices for identical assets in active markets, when available, or pricing models whereby all significant inputs are observable, or can be derived from, or corroborated by, observable market data. The Company reviews security pricing and assesses …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS Goodwill The Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) reporting units are consistent with the reportable segments identified in Note 15 of the Notes to the Condensed Consolidated Financial Statements. The following table presents goodwill allocated to the Companys reportable segments and changes in the carrying amount of goodwill as of the dates indicated: Infrastructure Solutions Group Client Solutions Group Total (in millions) Balances as of January 30, 2026 $ 15,315 $ 4,232 $ 19,547 Impact of foreign currency translation and other (43) (43) Balances as of May 1, 2026 $ 15,272 $ 4,232 $ 19,504 Intangible Assets The following table presents the Companys intangible assets as of the dates indicated: May 1, 2026 January 30, 2026 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 16,644 $ (15,386) $ 1,258 $ 16,644 $ (15,321) $ 1,323 Developed technology 9,524 (9,402) 122 9,525 (9,376) 149 Trade names 875 (871) 4 875 (869) 6 Definite-lived intangible assets 27,043 (25,659) 1,384 27,044 (25,566) 1,478 Indefinite-lived trade names 3,055 3,055 3,055 3,055 Total intangible assets $ 30,098 $ (25,659) $ 4,439 $ 30,099 $ (25,566) $ 4,533 For both the three months ended May 1, 2026 and May 2, 2025, amortization expense related to definite-lived intangible assets was $0.1 billion. There were no material impairment charges related to intangible assets during the three month …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME AND OTHER TAXES For the three months ended May 1, 2026, the Companys effective income tax rate was 12.9% on pre-tax income of $3.9 billion compared to 10.9% on pre-tax income of $1.1 billion for the three months ended May 2, 2025. The changes in the Companys effective income tax rate were primarily driven by discrete tax items. For the three months ended May 1, 2026 and May 2, 2025, the Company recorded discrete tax benefits of $0.2 billion and $0.1 billion, respectively, related to stock-based compensation. The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 21% is primarily due to foreign earnings taxed at different rates, as well as to discrete tax items. In June 2023, the Company received a Revenue Agents Report for the federal income tax examination by the Internal Revenue Service (IRS) of fiscal years 2018 through 2019. The IRS proposed significant adjustments primarily relating to certain transactions the Company completed as part of its business integration efforts. In August 2023, the Company submitted a written protest to the IRS relating to certain assessments. The Company received a rebuttal from the IRS to its written protest in April 2024. The Company disagrees with the IRSs proposed adjustments and will contest them through the IRS administrative appeals procedures. The Company expects to continue discussions with the IRS Independent Office of Appeals throughout the fiscal year and anticipates that the …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Companys lease contracts are generally for office space used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain property, equipment, and warehouses. As of May 1, 2026, the remaining terms of the Companys leases generally range from one month to approximately ten years. As of May 1, 2026 and January 30, 2026, there were no material finance leases in which the Company was a lessee. The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered under DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the Companys lessor arrangements. The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Operating lease costs $ 67 $ 58 Variable costs 21 23 Total lease costs $ 88 $ 81 During the three months ended May 1, 2026 and May 2, 2025, sublease income, finance lease costs, and short-term lease costs were immaterial. The followin …

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Recently Issued Accounting Pronouncements Environmental Credits and Environmental Credit Obligations In May 2026, the Financial Accounting Standards Board (FASB) issued guidance to improve the financial accounting disclosure of environmental credits and environmental credit obligations, providing recognition, measurement, presentation, and disclosure requirements for all entities that generate, purchase, or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, the guidance will be applied retrospectively. The Company is currently evaluating the impact and timing of adoption of this guidance. Internal-Use Software In September 2025, the FASB issued guidance to modernize internal-use software capitalization by removing references to software development project stages, increasing the operability of the recognition guidance permitting consideration of different methods of software development, including the agile method. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, the guidance may be applied prospectively, retrospectively, or through a modified approach. The Company is currently evaluating the impact and timing of adoption of this guidance. Expense Disaggregation Disclosures In …

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DEFERRED REVENUE Deferred revenue consists of support and deployment services, software maintenance, training, software-as-a-service, and undelivered hardware and professional services, consisting of installations and consulting engagements. Deferred revenue is recorded when the Company has invoiced or payments have been received for undelivered products or services, or in situations where revenue recognition criteria have not been met. Revenue is recognized as the Companys performance obligations under the contract are completed. The following table presents the changes in the Companys deferred revenue for the periods indicated: Three Months Ended May 1, 2026 May 2, 2025 (in millions) Deferred revenue at beginning of period $ 26,930 $ 25,965 Revenue deferrals 5,540 5,455 Revenue recognized (5,018) (5,100) Deferred revenue at end of period $ 27,452 $ 26,320 Short-term $ 13,193 $ 13,907 Long-term $ 14,259 $ 12,413 Remaining Performance Obligations Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded in deferred revenue. The value of the transaction price allocated to remaining performance obligations as of May 1, 2026 was approximately $97 billion. The Company expects to recognize approximately 80% of remaining performance obliga …

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SEGMENT INFORMATION The Company reports its financial results through two reportable segments which are based on the following business units: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The Company organizes its reportable segments based on the manner in which management evaluates the performance of the Company. The Companys Chief Executive Officer is the Chief Operating Decision Maker (CODM). The CODM is regularly provided and reviews segment revenue and segment operating income to assess the performance of each segment and allocate resources to the segments in the annual planning process. The Companys measure of segment revenue and segment operating income for management reporting purposes excludes Corporate and other, amortization of intangible assets, stock-based compensation expense, and other corporate expenses, as applicable, which are not used in evaluating the results of, or in allocating resources to, the segments. The Company does not allocate assets to its reportable segments for internal reporting purposes. The accounting policies of the segments are the same as those described in Note 2 to the Companys Annual Report on Form 10-K for the fiscal year ended January 30, 2026. ISG includes the Companys Artificial Intelligence (AI)-optimized servers offerings, traditional servers and networking offerings, and storage offerings as major product categories. The Companys AI-optimized servers are designed to run high-value workloads, including …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

CAPITALIZATION The following table presents the Companys authorized, issued, and outstanding common stock as of the dates indicated: Authorized Issued Outstanding (in millions) Common stock as of May 1, 2026: Class A 600 277 277 Class B 200 48 48 Class C 7,900 527 324 Class D 100 8,800 852 649 Common stock as of January 30, 2026: Class A 600 277 277 Class B 200 52 52 Class C 7,900 515 323 Class D 100 8,800 844 652 Preferred Stock The Company is authorized to issue one million shares of preferred stock, par value $0.01 per share. As of May 1, 2026 and January 30, 2026, no shares of preferred stock were issued or outstanding. Common Stock Dell Technologies Common Stock The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock are collectively referred to as Dell Technologies Common Stock. The par value for all series of Dell Technologies Common Stock is $0.01 per share. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings. Voting Rights Each holder of record of (a) Class A Common Stock is entitled to ten votes per share of Class A Common Stock; (b) Class B Common Stock is entitled to ten votes per share of Class B Common Stock; (c) Class C Common Stock is entitled to one vote per share of Class C Common Stock; and (d) Class D Common Stock is not entitled to any vote …

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SUBSEQUENT EVENTS There were no known events occurring after May 1, 2026 and up until the date of issuance of this report that would materially affect the information presented herein.

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