Stock Analysis on Net
Stock Analysis on Net

Dell Technologies Inc. (NYSE:DELL)

Common-Size Income Statement 

Dell Technologies Inc., common-size consolidated income statement

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12 months ended: Jan 30, 2026 Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021
Products 79.63 74.73 72.78 77.47 78.89 74.20
Services 20.37 25.27 27.22 22.53 21.11 25.80
Net revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Products -68.75 -62.95 -60.30 -64.54 -66.43 -58.74
Services -11.25 -14.81 -16.10 -13.28 -11.94 -10.04
Cost of net revenue -80.00% -77.76% -76.40% -77.82% -78.37% -68.78%
Gross margin 20.00% 22.24% 23.60% 22.18% 21.63% 31.22%
Selling, general, and administrative -10.05 -12.51 -14.54 -13.82 -14.48 -20.16
Research and development -2.77 -3.20 -3.17 -2.72 -2.55 -5.60
Operating expenses -12.82% -15.71% -17.71% -16.53% -17.03% -25.76%
Operating income 7.18% 6.53% 5.89% 5.64% 4.60% 5.46%
Investment income, primarily interest 0.23 0.17 0.34 0.10 0.04 0.06
Gain (loss) on investments, net 0.22 0.19 0.05 -0.20 0.56 0.62
Interest expense -1.37 -1.46 -1.70 -1.19 -1.52 -2.54
Foreign exchange -0.08 -0.12 -0.23 -0.26 -0.22 -0.13
Gain on disposition of businesses and assets 0.21 0.00 0.00 0.00 3.92 0.00
Legal settlement, net 0.00 0.00 0.00 -0.87 0.00 0.00
Other 0.02 -0.02 0.03 -0.06 -1.53 0.43
Interest and other, net -0.78% -1.24% -1.50% -2.49% 1.25% -1.56%
Income before income taxes 6.40% 5.28% 4.40% 3.15% 5.85% 3.89%
Income tax expense -1.17 -0.49 -0.78 -0.78 -0.97 -0.18
Net income from continuing operations 5.23% 4.79% 3.61% 2.37% 4.88% 3.72%
Income from discontinued operations, net of income taxes 0.00 0.00 0.00 0.00 0.76 0.00
Net income 5.23% 4.79% 3.61% 2.37% 5.64% 3.72%
Net (income) loss attributable to non-controlling interests 0.00 0.02 0.02 0.02 -0.14 -0.27
Net income attributable to Dell Technologies Inc. 5.23% 4.81% 3.63% 2.39% 5.50% 3.45%

Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29).

The common-size income statement reveals several noteworthy trends over the analyzed period. Revenue composition shifts between products and services, while profitability metrics demonstrate fluctuations influenced by cost management and other income/expense items. Overall, the company exhibits increasing net income attributable to Dell Technologies Inc. towards the end of the period, despite some volatility.

Revenue Composition
Products consistently represent the majority of net revenue, ranging from approximately 72.78% to 79.63% over the period. While initially decreasing from 74.20% in 2021 to 72.78% in 2023, the proportion of revenue from products increases in the later years, reaching 79.63% in 2026. Conversely, the contribution of services to net revenue declines from 25.80% in 2021 to a low of 20.37% in 2026, after peaking at 27.22% in 2024. This suggests a strategic shift or changing market dynamics impacting the relative performance of these two revenue streams.
Cost of Net Revenue and Gross Margin
The cost of net revenue as a percentage of net revenue remains relatively high, consistently above 60% throughout the period, peaking at 78.37% in 2022 and reaching 80.00% in 2026. This high cost structure contributes to fluctuations in the gross margin. The gross margin declines significantly from 31.22% in 2021 to 21.63% in 2022, then experiences a modest recovery, reaching 23.60% in 2024 before decreasing again to 20.00% in 2026. The consistent high cost of revenue suggests potential challenges in supply chain management or pricing pressures.
Operating Expenses and Income
Operating expenses, encompassing selling, general, and administrative expenses as well as research and development, demonstrate a decreasing trend as a percentage of net revenue. From a combined 25.76% in 2021, they fall to 12.82% in 2026. This reduction in operating expenses, coupled with the gross margin fluctuations, impacts operating income. Operating income shows an upward trend, increasing from 5.46% in 2021 to 7.18% in 2026, despite a dip in 2022.
Non-Operating Items and Net Income
Several non-operating items influence the overall net income. Investment income, gain (loss) on investments, interest expense, and foreign exchange all contribute to variability. A significant gain on disposition of businesses and assets is observed in 2022 (3.92%). Interest and other, net, fluctuates, impacting income before income taxes. Income tax expense as a percentage of net revenue is relatively stable, ranging from -0.78% to -1.17%. Consequently, net income from continuing operations and net income attributable to Dell Technologies Inc. both exhibit an overall increasing trend, rising from 3.72% and 3.45% in 2021 to 4.79% and 4.81% in 2025, and remaining stable at 5.23% in 2026. The impact of discontinued operations is notable in 2022 (0.76%).

In summary, the company demonstrates a strategic focus on product revenue, manages operating expenses effectively, and experiences increasing net income despite cost of revenue challenges and fluctuations in non-operating items. The trend suggests improved efficiency and profitability towards the later years of the analyzed period.

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