Analysis of Reportable Segments
Dell Technologies Inc. operates in 2 segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
Segment Profit Margin
Dell Technologies Inc., profit margin by reportable segment
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | |
|---|---|---|---|---|---|---|
| Infrastructure Solutions Group (ISG) | 11.69% | 12.80% | 12.65% | 13.15% | 10.87% | 11.59% |
| Client Solutions Group (CSG) | 5.56% | 6.14% | 7.18% | 6.57% | 7.10% | 6.93% |
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 segment profit margins for the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) exhibit distinct trends over the analyzed period. ISG demonstrates overall stability with fluctuations, while CSG shows a more pronounced downward trend towards the end of the period.
- Infrastructure Solutions Group (ISG) Profit Margin
- The ISG profit margin began at 11.59% in 2021, decreased to 10.87% in 2022, and then increased to a peak of 13.15% in 2023. A slight decline to 12.65% was observed in 2024, followed by a further slight increase to 12.80% in 2025. The most recent year, 2026, shows a decrease to 11.69%. This suggests a generally healthy and resilient segment, capable of maintaining profitability despite some year-over-year variation. The fluctuations indicate potential sensitivity to external factors or internal strategic shifts.
- Client Solutions Group (CSG) Profit Margin
- The CSG profit margin started at 6.93% in 2021 and experienced a modest increase to 7.10% in 2022. It then decreased to 6.57% in 2023, rebounded to 7.18% in 2024, and subsequently declined more significantly to 6.14% in 2025. The most recent value, 5.56% in 2026, represents the lowest profit margin within the observed timeframe. This indicates a weakening profitability trend within the CSG segment, potentially due to increased competition, pricing pressures, or changing consumer demand.
- Comparative Analysis
- Throughout the period, the ISG consistently maintained a higher profit margin than the CSG. The gap between the two segments’ margins appears to widen in the later years, particularly in 2025 and 2026, as the CSG margin declines more rapidly. This divergence suggests differing competitive landscapes or operational efficiencies between the two groups. The ISG’s relative stability contrasts with the CSG’s declining performance, potentially signaling a need for strategic review within the CSG.
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Segment Profit Margin: Infrastructure Solutions Group (ISG)
Dell Technologies Inc.; Infrastructure Solutions Group (ISG); segment profit margin calculation
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 7,111) | 5,579) | 4,286) | 5,045) | 3,736) | 3,776) |
| Net revenue | 60,826) | 43,593) | 33,885) | 38,356) | 34,366) | 32,588) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 11.69% | 12.80% | 12.65% | 13.15% | 10.87% | 11.59% |
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).
1 2026 Calculation
Segment profit margin = 100 × Operating income ÷ Net revenue
= 100 × 7,111 ÷ 60,826 = 11.69%
The Infrastructure Solutions Group (ISG) demonstrated fluctuating performance between 2021 and 2026. Operating income and net revenue generally increased over the period, though with some intermediate declines. The segment profit margin exhibited corresponding variability, remaining within a relatively narrow range.
- Operating Income Trend
- Operating income began at US$3,776 million in 2021, experienced a slight decrease to US$3,736 million in 2022, and then increased substantially to US$5,045 million in 2023. A subsequent decline to US$4,286 million occurred in 2024, followed by increases to US$5,579 million in 2025 and a significant rise to US$7,111 million in 2026. This indicates a generally positive trajectory with some short-term volatility.
- Net Revenue Trend
- Net revenue followed a similar pattern to operating income. Starting at US$32,588 million in 2021, it rose to US$34,366 million in 2022 and further to US$38,356 million in 2023. A decrease to US$33,885 million was observed in 2024, before increasing to US$43,593 million in 2025 and reaching US$60,826 million in 2026. The growth in net revenue appears to accelerate towards the end of the analyzed period.
- Segment Profit Margin Analysis
- The segment profit margin began at 11.59% in 2021, decreased to 10.87% in 2022, and then increased to 13.15% in 2023. It decreased slightly to 12.65% in 2024, remained relatively stable at 12.80% in 2025, and concluded at 11.69% in 2026. Despite fluctuations, the segment profit margin remained above 10% throughout the entire period, suggesting consistent profitability. The margin generally tracked the operating income trend, increasing with higher operating income and decreasing with lower operating income.
The observed increases in both operating income and net revenue towards the end of the period, coupled with a maintained profit margin, suggest improving operational efficiency and market position for the ISG. The dip in 2024 warrants further investigation to understand the underlying causes.
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Segment Profit Margin: Client Solutions Group (CSG)
Dell Technologies Inc.; Client Solutions Group (CSG); segment profit margin calculation
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 2,833) | 2,972) | 3,512) | 3,824) | 4,365) | 3,352) |
| Net revenue | 50,984) | 48,393) | 48,916) | 58,213) | 61,464) | 48,355) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 5.56% | 6.14% | 7.18% | 6.57% | 7.10% | 6.93% |
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).
1 2026 Calculation
Segment profit margin = 100 × Operating income ÷ Net revenue
= 100 × 2,833 ÷ 50,984 = 5.56%
The Client Solutions Group (CSG) experienced fluctuating performance between 2021 and the projected 2026 fiscal year. Operating income and net revenue both exhibited initial growth followed by declines and a potential stabilization. However, the segment profit margin demonstrated a more complex pattern, peaking in 2022 before trending downwards.
- Operating Income Trend
- Operating income increased from US$3,352 million in 2021 to US$4,365 million in 2022, representing a substantial gain. A subsequent decrease to US$3,824 million occurred in 2023, followed by a further decline to US$3,512 million in 2024. Projections indicate continued decreases to US$2,972 million in 2025 and US$2,833 million in 2026.
- Net Revenue Trend
- Net revenue mirrored the initial growth observed in operating income, rising from US$48,355 million in 2021 to US$61,464 million in 2022. Revenue then decreased to US$58,213 million in 2023 and experienced a more significant drop to US$48,916 million in 2024. The forecast suggests relative stability with US$48,393 million in 2025 and a slight increase to US$50,984 million in 2026.
- Segment Profit Margin Analysis
- The segment profit margin began at 6.93% in 2021 and increased to a peak of 7.10% in 2022. It then decreased to 6.57% in 2023, before a rebound to 7.18% in 2024. The projected trend indicates a continued decline, falling to 6.14% in 2025 and further to 5.56% in 2026. This suggests that while revenue is stabilizing, profitability is under pressure.
The divergence between net revenue and segment profit margin trends, particularly in the later forecast years, warrants further investigation. While revenue is projected to increase slightly in 2026, the continued decline in segment profit margin suggests increasing costs or pricing pressures within the CSG. The initial strong growth in both operating income and revenue was not sustained, and the recent trends indicate a potential shift in the segment’s performance characteristics.
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Net revenue
Dell Technologies Inc., net revenue by reportable segment
US$ in millions
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | |
|---|---|---|---|---|---|---|
| Infrastructure Solutions Group (ISG) | 60,826) | 43,593) | 33,885) | 38,356) | 34,366) | 32,588) |
| Client Solutions Group (CSG) | 50,984) | 48,393) | 48,916) | 58,213) | 61,464) | 48,355) |
| VMware | —) | —) | —) | —) | —) | 11,873) |
| Reportable segment | 111,810) | 91,986) | 82,801) | 96,569) | 95,830) | 92,816) |
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).
Overall net revenue for the reportable segments exhibited fluctuating performance over the observed period. Initial growth from 2021 to 2023 was followed by a significant decline in 2024, with a subsequent recovery projected through 2026. A detailed examination of individual segment performance reveals varying contributions to these trends.
- Infrastructure Solutions Group (ISG)
- The ISG demonstrated a generally positive trajectory, increasing from US$32.588 billion in 2021 to US$38.356 billion in 2023. A notable decrease to US$33.885 billion occurred in 2024, but projections indicate substantial growth, reaching US$60.826 billion by 2026. This suggests a potential resurgence in demand or successful strategic initiatives within this segment.
- Client Solutions Group (CSG)
- The CSG experienced significant growth between 2021 and 2022, rising from US$48.355 billion to US$61.464 billion. However, revenue subsequently declined to US$58.213 billion in 2023 and further to US$48.916 billion in 2024. The forecast indicates relatively stable revenue for this segment, with a modest increase to US$50.984 billion by 2026. This suggests a potential plateauing of demand or increased competition within the client solutions market.
- VMware
- VMware reported US$11.873 billion in revenue in 2021. Revenue figures are absent for subsequent years, indicating a potential divestiture, restructuring, or change in reporting practices related to this segment. The lack of ongoing revenue information prevents a comprehensive assessment of its performance.
- Total Reportable Segment Revenue
- Total revenue across all reportable segments increased from US$92.816 billion in 2021 to US$96.569 billion in 2023. A substantial decline to US$82.801 billion was observed in 2024. Projections suggest a recovery, with revenue reaching US$111.810 billion by 2026. The 2024 decrease appears to be driven by a combination of factors, including the decline in CSG revenue and the absence of VMware revenue. The projected growth in 2025 and 2026 is largely attributable to the anticipated expansion of the ISG.
The significant fluctuations in revenue, particularly the decline in 2024 and subsequent projected recovery, warrant further investigation. Understanding the underlying drivers of these changes within each segment is crucial for informed strategic decision-making.
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Operating income
Dell Technologies Inc., operating income by reportable segment
US$ in millions
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | |
|---|---|---|---|---|---|---|
| Infrastructure Solutions Group (ISG) | 7,111) | 5,579) | 4,286) | 5,045) | 3,736) | 3,776) |
| Client Solutions Group (CSG) | 2,833) | 2,972) | 3,512) | 3,824) | 4,365) | 3,352) |
| VMware | —) | —) | —) | —) | —) | 3,571) |
| Reportable segment | 9,944) | 8,551) | 7,798) | 8,869) | 8,101) | 10,699) |
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 operating income performance of the reportable segments exhibits varied trends over the observed period. Overall, reportable segment operating income decreased from 2021 to 2022, then demonstrated recovery through 2024, with projected increases in 2025 and 2026.
- Infrastructure Solutions Group (ISG)
- ISG operating income initially decreased slightly from US$3,776 million in 2021 to US$3,736 million in 2022. A substantial increase was then observed in 2023, reaching US$5,045 million. This was followed by a decline to US$4,286 million in 2024. Projections indicate a strong recovery, with operating income rising to US$5,579 million in 2025 and further to US$7,111 million in 2026. This suggests a strengthening position for this segment.
- Client Solutions Group (CSG)
- CSG experienced a significant increase in operating income from US$3,352 million in 2021 to US$4,365 million in 2022. However, this was followed by consecutive declines, reaching US$3,824 million in 2023, US$3,512 million in 2024, and projected to US$2,972 million in 2025 and US$2,833 million in 2026. This indicates a weakening trend for this segment.
- VMware
- VMware reported operating income of US$3,571 million in 2021. No operating income figures are available for subsequent years, suggesting a change in reporting structure or segment status.
- Total Reportable Segment
- Total reportable segment operating income decreased from US$10,699 million in 2021 to US$8,101 million in 2022. A recovery period followed, with operating income reaching US$8,869 million in 2023 and US$7,798 million in 2024. Forecasts suggest continued growth, with operating income projected to reach US$8,551 million in 2025 and US$9,944 million in 2026. The projected growth is largely driven by the anticipated performance of the ISG segment.
The contrasting trends between ISG and CSG suggest a potential shift in the company’s revenue drivers. While CSG experienced initial growth followed by decline, ISG demonstrated a recovery after a slight initial dip, and is projected to be a significant contributor to overall growth. The absence of VMware data after 2021 warrants further investigation.
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