Common-Size Income Statement
Quarterly Data
Dell Technologies Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-07-31), 10-Q (reporting date: 2026-05-01), 10-K (reporting date: 2026-01-30), 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01).
The financial performance over the observed period is characterized by a significant shift in revenue composition and a strategic reduction in operating expenses, which has collectively supported an expansion in operating and net profit margins despite a general compression in gross profitability.
- Revenue Mix and Composition
- A clear transition in the revenue stream is evident, with a growing reliance on product sales relative to services. Product revenue as a percentage of net revenue rose from 73.24% in May 2020 to a peak of 87.53% by July 2026. Conversely, services revenue experienced a long-term decline, falling from 26.76% to 12.47% over the same period. This shift indicates a strategic or market-driven pivot toward hardware-centric revenue generation.
- Gross Margin Trends
- Gross margins have undergone notable compression. Starting at 31.30% in May 2020, margins declined significantly, fluctuating between 18% and 24% for the majority of the subsequent years, and reaching a low of 17.75% in January 2026. This decline is primarily attributed to the rising cost of net revenue, which increased from 68.70% to a high of 82.25% before settling at 79.07% by July 2026. The increased cost of products as a percentage of revenue suggests higher input costs or a shift toward lower-margin product lines.
- Operating Expense Management
- Significant operational efficiencies were achieved through the reduction of operating expenses as a percentage of net revenue. Selling, general, and administrative (SG&A) expenses dropped precipitously from 22.31% in May 2020 to 7.10% by July 2026. Similarly, research and development (R&D) spending decreased from 5.78% to 2.36%. Total operating expenses fell from 28.09% to 9.46%, indicating an aggressive cost-containment strategy that successfully offset the erosion of gross margins.
- Operating and Net Profitability
- Operating income margins exhibited a general upward trajectory, rising from 3.21% in May 2020 to 11.46% by July 2026. This improvement demonstrates that the reduction in operating overhead had a more profound impact on the bottom line than the decline in gross margins. Net income attributable to the company followed a similar positive trend, increasing from 0.65% in May 2020 to 8.80% by July 2026, supported by a reduction in the relative burden of interest and other expenses.
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