Dell Technologies Inc.

Company Overview

Business Model: Dell Technologies is a global technology industry leader providing innovative solutions for the data and artificial intelligence ("AI") era. Its portfolio spans client devices and peripherals to infrastructure solutions across servers, networking, and storage, designed to meet evolving customer needs and drive business outcomes. The Company designs, deploys, and supports secure, integrated solutions from the edge to the core to the cloud, emphasizing AI-optimized, software-defined, and cloud native infrastructure. Dell Technologies offers customers flexible acquisition models, including utility, subscription, as-a-Service, leases, loans, and immediate pay options. Dell Financial Services and its affiliates ("DFS") support these financing solutions by originating, collecting, and servicing customer receivables.

Market Position: Dell Technologies positions itself as an essential technology partner, leveraging operational advantages such as an extensive end-to-end solutions portfolio, robust go-to-market capabilities, a world-class supply chain, and a global services footprint. These strengths enable the Company to deliver competitive, scalable, and integrated solutions with current and desired product and service features at competitive prices. The Company is at the forefront of AI, software-defined, and cloud native infrastructure solutions.

Recent Strategic Developments:

• AI-Optimized Servers Focus: Effective in the fourth quarter of Fiscal 2026, Dell Technologies disaggregated its servers and networking offerings into AI-optimized servers offerings and traditional servers and networking offerings, reflecting the significant scale and growth in its AI-optimized servers business.
• VMware LLC Relationship Evolution: Following Broadcom Inc.'s acquisition of VMware LLC on November 22, 2023, Dell Technologies terminated its Commercial Framework Agreement with VMware LLC on March 25, 2024, ceasing its role as a distributor of standalone VMware LLC products and services. Dell Technologies continues to support prior resale offerings and integrates certain VMware LLC products and services with its VxRail solution, with results reflected in the Infrastructure Solutions Group.
• Secureworks Corp. Divestiture: On February 3, 2025, Secureworks Corp. was acquired by Sophos Inc., an affiliate of Thoma Bravo, L.P., for approximately $0.9 billion. Dell Technologies received approximately $0.6 billion in cash consideration for its equity interest, recognizing a $0.2 billion gain on sale in Fiscal 2026.
• Enhanced Payment Solutions: The Dell Payment Solutions portfolio has expanded to offer a wide range of payment and consumption options, including utility, subscription, as-a-Service, leases, and loans, designed to provide operational and financial flexibility and generate recurring revenue streams through multiyear agreements.
• Cost Efficiency Initiatives: Dell Technologies is committed to disciplined cost management and ongoing business modernization, implementing measures such as employee reorganizations and limitations on external hiring to align investments with strategic priorities and customer needs, resulting in a continued reduction in overall headcount.

Geographic Footprint: Dell Technologies operates globally in over 170 countries. Approximately 65% of Infrastructure Solutions Group revenue and 60% of Client Solutions Group revenue are generated from sales to customers in the Americas. The remaining portions are derived from sales to customers in the Europe, Middle East, and Africa region and the Asia-Pacific and Japan region. Sales outside the United States accounted for approximately 45% of consolidated net revenue for Fiscal 2026. The corporate headquarters is located in Round Rock, Texas.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 20.0% (Fiscal 2026), 22.2% (Fiscal 2025)
• Operating Margin: 7.2% (Fiscal 2026), 6.5% (Fiscal 2025)
• Net Margin: 5.2% (Fiscal 2026), 4.8% (Fiscal 2025)

Investment in Growth:

• R&D Expenditure: $3.1 billion (2.8% of revenue) in Fiscal 2026, $3.1 billion in Fiscal 2025, and $2.8 billion in Fiscal 2024.
• Capital Expenditures: $2.6 billion in Fiscal 2026, $2.7 billion in Fiscal 2025 (includes capitalized software development costs, net).
• Strategic Investments: Dell Technologies held strategic investments in non-marketable securities of $1.6 billion as of January 30, 2026, and $1.5 billion as of January 31, 2025. These investments, managed through Dell Technologies Capital, focus on emerging technology areas such as storage, software-defined networking, management and orchestration, security, machine learning and AI, big data and analytics, cloud, edge computing, and software development operations.

Business Segment Analysis

Infrastructure Solutions Group (ISG)

Financial Performance:

• Revenue: $60,826 million (+40% YoY) in Fiscal 2026.
• Operating Income: $7,111 million (+27% YoY) in Fiscal 2026.
• Operating Margin: 11.7% in Fiscal 2026, down from 12.8% in Fiscal 2025, primarily due to a shift in mix towards AI-optimized servers offerings.
• Key Growth Drivers: Primarily driven by significant demand for AI-optimized servers offerings and, to a lesser extent, traditional servers and networking offerings.

Product Portfolio:

• Dell Technologies offers a comprehensive portfolio of advanced infrastructure solutions, including AI-optimized servers, traditional servers and networking, and storage solutions.
• AI-optimized servers are specialized for demanding compute-intensive workloads like AI model training, fine-tuning, and inferencing.
• Traditional servers and networking provide the foundation for modern IT environments, supporting general-purpose and mission-critical workloads, and transforming infrastructure.
• The storage portfolio includes modern and traditional solutions (primary, unstructured, data protection) delivered through various architectures (all-flash, purpose-built, software-defined, hyper-converged infrastructure).
• ISG also provides software, peripherals, and services, including consulting, configuration, and support and deployment.

Market Dynamics:

• ISG solutions enable digital transformations, addressing AI, machine learning, data analytics, and multicloud environments, optimized for public, private, and on-premises clouds.
• The segment experienced significant increased demand for AI-optimized servers, leading to substantial backlog growth by year-end Fiscal 2026. The timing of demand and shipments for these offerings is inherently non-linear, causing revenue variability.
• Within traditional servers and networking, customers are modernizing and consolidating data centers, driving strong demand and revenue growth.
• Long-term demand for storage solutions is expected to be driven by data growth, with offerings supporting both traditional and AI workloads.
• ISG storage sales typically exhibit seasonality, being stronger in the fourth fiscal quarter.

Sub-segment Breakdown:

• AI-optimized servers: $24,683 million revenue (+166% YoY) in Fiscal 2026.
• Traditional servers and networking: $19,512 million revenue (+9% YoY) in Fiscal 2026.
• Storage: $16,631 million revenue (+1% YoY) in Fiscal 2026.

Client Solutions Group (CSG)

Financial Performance:

• Revenue: $50,984 million (+5% YoY) in Fiscal 2026.
• Operating Income: $2,833 million (-5% YoY) in Fiscal 2026.
• Operating Margin: 5.6% in Fiscal 2026, down from 6.1% in Fiscal 2025, primarily due to a change in mix within offerings.
• Key Growth Drivers: Driven by strength in commercial offerings, partially offset by lower demand for consumer offerings. The ongoing PC refresh cycle is contributing to increased demand for commercial offerings.

Product Portfolio:

• CSG offers branded personal computers (notebooks, desktops, workstations), branded peripherals (displays, docking stations, keyboards, mice, webcam, audio devices), and third-party software and peripherals.
• Offerings include on-device AI for enhanced end-user creativity and productivity.
• Services include configuration, support and deployment, and extended warranties.

Market Dynamics:

• CSG is a strategic element, generating strong cash flow and cross-selling opportunities.
• The segment focuses on driving market share gains while balancing profitability, enhancing its product portfolio, and expanding its presence across the broader PC ecosystem.
• CSG anticipates long-term benefits from AI advancements, as customers will require PCs capable of running complex AI workloads.
• Competitive dynamics significantly influence pricing and operating results within the CSG business.
• The CSG demand environment is subject to seasonal trends and the influence of the PC refresh cycle.

Sub-segment Breakdown:

• Commercial: $44,062 million revenue (+8% YoY) in Fiscal 2026.
• Consumer: $6,922 million revenue (-8% YoY) in Fiscal 2026.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Dell Technologies repurchased approximately 54 million shares of Class C Common Stock for a total of $6.0 billion in Fiscal 2026. The Board of Directors authorized an additional $10 billion for repurchase on February 26, 2026, bringing the remaining authorized amount to approximately $15.2 billion.
• Dividend Payments: The Company paid $1.5 billion in dividends and dividend equivalents in Fiscal 2026, at a rate of $0.525 per share per fiscal quarter.
• Future Capital Return Commitments: On February 26, 2026, the Board of Directors approved a 20% increase in the quarterly dividend rate to $0.630 per share, effective from the first quarter of the fiscal year ending January 29, 2027.

Balance Sheet Position:

• Cash and Equivalents: $11,528 million as of January 30, 2026.
• Total Debt: $31,763 million (principal amount) as of January 30, 2026.
• Debt Maturity Profile: $8.0 billion of total debt is payable within 12 months as of January 30, 2026. Future interest payments associated with outstanding debt are $9.1 billion, with $1.4 billion payable within 12 months.

Cash Flow Generation:

• Operating Cash Flow: $11,185 million in Fiscal 2026.
• Free Cash Flow: $8,555 million in Fiscal 2026.
• Cash Conversion Metrics: Operating cash flow in Fiscal 2026 was driven by net revenue growth, profitability, and working capital dynamics, partially offset by higher financing receivables. Financing receivables and working capital were primarily affected by increased demand for AI-optimized servers offerings.

Operational Excellence

Production & Service Model: Dell Technologies designs, develops, manufactures, markets, sells, and supports a wide range of integrated solutions. Its manufacturing process involves assembly, software installation, functional testing, and quality control, supported by a formal, documented quality management system certified to the ISO 9001 International Standard. Quality control includes burn-in periods, production reliability audits, and failure tracking. Order fulfillment, manufacturing, and test facilities also hold ISO 14001 (environmental), ISO 45001 (health and safety), and ISO 50001 (energy) certifications.

Supply Chain Architecture: The Company operates a world-class supply chain at significant scale, emphasizing agility. It utilizes contract manufacturers globally for product assembly to achieve operational flexibility and cost efficiencies. Dell Technologies purchases components from suppliers and sells them to contract manufacturers, generating non-trade accounts receivables. The Company maintains a Supplier Code of Conduct and manages recycling processes for returned products, driving responsible manufacturing through human rights due diligence and environmental stewardship, and monitoring adherence to the Responsible Business Alliance Code of Conduct.

Key Suppliers & Partners: Dell Technologies sources materials, components, and products from a large number of qualified suppliers. In some cases, it relies on single-source or limited-source suppliers for critical products or components due to performance, quality, or cost advantages. A significant portion of outsourced manufacturing is concentrated with a few contract manufacturers, primarily in Asia. Receivables from the Company's three largest contract manufacturers totaled $13.2 billion as of January 30, 2026.

Facility Network:

• Manufacturing: Dell Technologies owns manufacturing facilities in the United States, Malaysia, China, Brazil, India, Poland, and Ireland.
• Research & Development: The Company maintains a global R&D presence.
• Distribution: The Company's facilities include order fulfillment, manufacturing, and test centers.
• Overall, Dell Technologies owned or leased 18.2 million square feet of office, manufacturing, and warehouse space worldwide as of January 30, 2026, with 11.4 million square feet owned and 6.8 million square feet leased.

Operational Metrics:

• Product Backlog: Increasing demand for AI-optimized servers offerings continued to drive backlog growth in Fiscal 2026. The timing of demand and shipments for AI-optimized servers is non-linear due to the scale of AI opportunities, varying customer readiness, and frequent component updates. Demand for traditional servers and networking offerings also outpaced supply in Fiscal 2026, leading to incremental backlog growth.

Market Access & Customer Relationships

Go-to-Market Strategy: Dell Technologies employs a collaborative, customer-focused global sales and marketing model. Its go-to-market operations are segmented by geography and customer type, serving large global and national enterprises, governmental and public institutions, educational and healthcare organizations, small and medium-sized businesses, and consumers.

Distribution Channels:

• Direct Sales: A significant competitive advantage, the direct sales channel emphasizes direct communication with customers, aiding product refinement, marketing programs, and navigation of supply chain challenges.
• Channel Partners: Dell Technologies utilizes a global network of value-added resellers, system integrators, distributors, and retailers. These channels generated approximately 40% of net revenue in Fiscal 2026. The Dell Technologies partner program provides incentives and facilitates access to third-party financing for partners.
• Digital Platforms: The Company engages with consumers through robust online and channel engagement, including social media.

Customer Portfolio:

• Enterprise Customers: A dedicated field sales force and account teams serve large enterprises and public institutions globally, developing tailored solutions and gathering customer feedback.
• Customer Concentration: One customer accounted for 12% of consolidated net revenue in Fiscal 2026, with substantially all of this revenue from Infrastructure Solutions Group offerings. No single customer accounted for 10% or more of consolidated net revenue in Fiscal 2025 or Fiscal 2024.

Geographic Revenue Distribution:

• United States: $63,140 million in Fiscal 2026.
• Foreign countries: $50,398 million in Fiscal 2026.
• No single foreign country accounted for 10% or more of consolidated net revenue in Fiscal 2026, Fiscal 2025, or Fiscal 2024.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: Dell Technologies operates in an industry characterized by rapid technological advances in hardware, software, and services, including AI, cloud, and security. The market is subject to ongoing product and price competition from both branded and generic competitors, including specialists in specific product or service lines. The Company competes globally across diverse customer segments, from large corporations to small businesses, consumers, and government/non-profit organizations. New entrants and strategic alliances among competitors are expected to intensify competitive pressures.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Dell Technologies faces aggressive competition from a variety of competitors across all business areas, including companies specializing in specific product or service lines. Emerging Competitive Threats: Non-traditional IT companies, such as large Infrastructure-as-a-Service providers that procure infrastructure directly from original design manufacturers, pose a competitive threat, particularly if customers shift existing workloads to these providers.

Competitive Response Strategy: Dell Technologies competes by offering competitive, scalable, and integrated solutions with the most current and desired product and service features at competitive prices. The Company closely monitors changing demand to adapt to customer needs and macroeconomic factors and continues to invest in innovation across its portfolio.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Adverse Global Economic Conditions: Global and regional economic downturns, including those caused by elevated inflation, interest rates, geopolitical volatility, extreme weather, or trade disputes, can reduce customer demand, postpone spending, and negatively impact net revenue and profitability.
• Technology Disruption: Rapid technological advancements in hardware, software, and services (including AI, cloud, and security) necessitate continuous adaptation. Failure to evolve offerings and maintain a competitive advantage could adversely affect market share, revenue, and profitability.
• Customer Concentration: One customer accounted for 12% of consolidated net revenue in Fiscal 2026, primarily from Infrastructure Solutions Group offerings. Large orders from such customers can lead to revenue fluctuations, intense competition, pricing pressure, and increased working capital commitments, potentially affecting cash flow and inventory risk.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on third-party vendors, including single-source or limited-source suppliers for critical components, increases the risk of shortages, delivery delays, and cost increases, potentially hindering the ability to fulfill customer orders.
• Geographic Concentration: Significant portions of product assembly are outsourced to a few contract manufacturers, primarily in Asia, often in single locations, creating concentration risk.
• Capacity Constraints: Disruptions in component or product availability, particularly during periods of high demand for new products like AI-optimized solutions, could impede timely shipments and negatively impact operating results.

Financial & Regulatory Risks

Market & Financial Risks:

• Demand Volatility: Sales of AI solutions, currently concentrated among a small number of large customers and cloud service providers, can cause fluctuations in operating results due to the episodic nature of large orders and associated pricing pressures.
• Foreign Exchange: Operating results are impacted by fluctuations in foreign currency exchange rates, particularly given approximately 45% of net revenue is generated outside the United States. Ineffective hedging programs could expose the Company to adverse currency movements.
• Credit & Liquidity: Access to capital markets is crucial for customer financing and corporate purposes. Volatility in these markets, credit rating downgrades, or adverse economic conditions could increase funding costs, limit financing availability, or reduce the ability to originate customer financing, harming financial performance.

Regulatory & Compliance Risks:

• Industry Regulation: Dell Technologies is subject to extensive regulation by various U.S. federal, state, and international governmental agencies concerning antitrust, consumer protection, product safety, health information privacy, and environmental, employment, and labor laws.
• Export Controls: Compliance with U.S. government export controls, customs regulations, economic sanctions laws, and embargoes is critical. Violations could result in severe criminal or civil sanctions and penalties.
• Data Privacy: The Company faces increasing compliance risks under evolving domestic and international laws and regulations related to cybersecurity, product security, software supply chain security, AI, and data collection, use, residency, transfer, and protection. Non-compliance could lead to fines, litigation, and reputational damage.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: International operations are exposed to risks from varied local economic and labor conditions, political instability, public health issues, and changes in regulatory environments.
• Trade Relations: Trade protection measures, including tariffs and trade barriers, and changes in international trade arrangements, could increase manufacturing costs, reduce demand, limit sales, or disrupt procurement and logistics.
• Sanctions & Export Controls: Compliance with U.S. government sanctions and export controls is mandatory, and violations can lead to severe penalties and business limitations.

Innovation & Technology Leadership

Research & Development Focus:

• Core Technology Areas: Dell Technologies focuses on developing innovative solutions with desirable features and capabilities, leveraging direct customer input and a global network of technology partners. Software engineers are key to developing next-generation solutions, with embedded software increasingly utilizing AI and machine-learning for automation.
• Innovation Pipeline: The Company prioritizes delivering new and relevant products to market quickly and efficiently, investing in R&D to enhance product and solution capabilities and drive long-term growth.
• R&D Expenditure: R&D expenses were $3.1 billion in Fiscal 2026 and Fiscal 2025, and $2.8 billion in Fiscal 2024, reflecting a commitment to innovation.

Intellectual Property Portfolio:

• Patent Strategy: Dell Technologies holds a worldwide portfolio of 25,859 granted patents and 8,189 pending patent applications, covering current and future offerings, computer systems, software products, manufacturing processes, and related technologies. This portfolio is considered valuable for negotiating intellectual property rights within the industry.
• Licensing Programs: The Company holds licenses to numerous third-party patents and also licenses some of its technologies and intellectual property to third parties.
• IP Litigation: The Company may face legal actions or pay damages if found to have violated third-party intellectual property rights.

Technology Partnerships: Dell Technologies collaborates with a global network of technology partners to architect new system designs, influence future development, and integrate new technologies into its products and solutions.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Dell Technologies is highly dependent on the services of Michael S. Dell, its founder, Chief Executive Officer, and largest stockholder, as well as other key executive leadership team members like Jeffrey W. Clarke. The loss of such key personnel or an inability to attract and retain suitable replacements could severely disrupt business and growth.

Board Composition: The Board of Directors oversees significant cybersecurity risks, directly and through its Audit Committee. Dell Technologies is a "controlled company" under New York Stock Exchange rules due to the voting power held by Michael Dell and the Susan Lieberman Dell Separate Property Trust. While the Company currently maintains a board with a majority of independent directors and three standing committees composed entirely of independent directors, it may elect not to comply with certain corporate governance requirements in the future.

Human Capital Strategy

Workforce Composition: As of January 30, 2026, Dell Technologies had approximately 97,000 employees. In Fiscal 2026, the Company implemented disciplined cost management and business modernization initiatives, including employee reorganizations and limited external hiring, which resulted in a continued reduction in overall headcount.

Talent Management:

• Acquisition & Retention: Dell Technologies aims to attract, develop, and retain top talent through an inclusive culture, training and development offerings, and competitive, comprehensive benefits that support physical, mental, emotional, and financial well-being.
• Employee Value Proposition: The Company provides competitive compensation aligned with consistent practices to motivate and recognize critical skills. It offers centralized programs for career growth, including formal training, individualized development, 360-degree feedback, mentoring, networking, and internal opportunities.

Diversity & Development:

• Development Programs: Dell Technologies is committed to equal employment opportunity and fostering an inclusive culture. It provides tools and resources to empower employees to direct their career paths and build transferable skills, with a focus on building a leadership pipeline with diverse skills.
• Culture & Engagement: Employee feedback is gathered through initiatives like the annual Tell Dell survey and 13 unique Employee Resource Groups, which foster connection, engagement, and community involvement.

Environmental & Social Impact

Environmental Commitments: Dell Technologies embeds circularity principles throughout its value chain, integrating sustainable practices with suppliers, customers, and stakeholders to advance a circular economy. The Company is committed to understanding and mitigating its environmental impact, actively addressing climate-related risks by managing greenhouse gas emissions across operations, supply chain, and product lifecycle. It also offers products and solutions to help customers reduce their emissions and operate more efficiently.

Supply Chain Sustainability: Dell Technologies manages responsible business practices within its large supply chain, ensuring responsible manufacturing through robust assurance practices, human rights due diligence, and environmental stewardship. The Company monitors supplier adherence to the Responsible Business Alliance Code of Conduct using third-party audits and provides resources for skills building in areas like forced labor and health and safety. Dell Technologies complies with the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding conflict minerals sourcing.

Social Impact Initiatives: Dell Technologies is committed to driving human progress by leveraging its technology and expertise for societal benefit. Upholding human rights is core to its business strategy, guided by the United Nations’ Guiding Principles on Business and Human Rights and the Organisation for Economic Co-operation and Development’s Guidelines for Multinational Enterprises on Responsible Business Conduct. The Company uses training and technology to promote integrity and compliance among its team members.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Within the Infrastructure Solutions Group, storage sales are typically stronger in the fourth fiscal quarter. Across the Company, sales in the Americas are generally stronger in the second and fourth fiscal quarters, while sales in the Europe, Middle East, and Africa region are typically stronger during the fourth fiscal quarter. Historical seasonal patterns have been influenced by macroeconomic conditions and business mix.
• Economic Sensitivity: Dell Technologies' performance is affected by global and regional economic conditions and demand for technology products and services. Adverse economic conditions can lead to postponed or decreased spending due to concerns over inflation, interest rates, or slowing demand.
• Industry Cycles: The Client Solutions Group is currently benefiting from an ongoing PC refresh cycle.

Planning & Forecasting: The Company manages inventory and demand forecasting, which are increasingly complex tasks, and closely monitors changing demand to align with customer needs.

Regulatory Environment & Compliance

Regulatory Framework:

• Industry-Specific Regulations: Dell Technologies is subject to regulation by various U.S. federal and state governmental agencies and other international governmental agencies. This includes oversight from the U.S. Federal Communications Commission, antitrust activities by the U.S. Federal Trade Commission, the U.S. Department of Justice, and the European Union, consumer protection laws, financial services regulation, product safety, and health information privacy requirements.
• International Compliance: International operations face risks from varied local regulatory environments, and conflicting regulations across jurisdictions may increase compliance costs and risks.

Trade & Export Controls:

• Export Restrictions: The Company is subject to U.S. government export controls, customs regulations, economic sanctions laws, and embargoes.
• Sanctions Compliance: Violations of anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act, or export controls, customs regulations, or economic sanctions laws, can result in severe criminal or civil sanctions and penalties.

Legal Proceedings: Dell Technologies is involved in various claims, suits, investigations, and legal proceedings in the ordinary course of business, including matters related to consumer, antitrust, tax, and intellectual property issues globally. As of January 30, 2026, the Company does not believe there is a reasonable possibility of a material loss exceeding accrued amounts for all proceedings. A class action lawsuit, Lowbruck et al. v. Dell Technologies Inc., et al., was filed on January 28, 2026, alleging breach of fiduciary duties under ERISA related to the Dell 401(k) Plan, which the Company intends to vigorously defend.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The effective income tax rate was 18.3% in Fiscal 2026, 9.4% in Fiscal 2025, and 17.5% in Fiscal 2024. Changes in rates are primarily due to discrete tax items and shifts in the Company’s jurisdictional mix of income.
• Geographic Tax Planning: Dell Technologies benefits from a tax holiday in one of its Singapore subsidiaries, which is in effect until January 31, 2029, and may be extended. The estimated income tax benefit from this holiday was approximately $0.4 billion ($0.58 per share) in Fiscal 2026.
• Tax Reform Impact: The U.S. One Big Beautiful Bill Act, enacted July 4, 2025, includes tax reform provisions such as immediate expensing of domestic R&D and 100% bonus depreciation, which did not materially impact Fiscal 2026 financial statements. Future international tax framework modifications, effective Fiscal 2027, are not anticipated to have a material impact.

Insurance & Risk Transfer

Risk Management Framework: Dell Technologies utilizes derivative instruments to hedge exposures to foreign currency exchange rate fluctuations and interest rate changes. This includes forward contracts and purchased options for foreign currency risks and interest rate swaps for variable-rate debt.

• Insurance Coverage: While Dell Technologies maintains cybersecurity insurance, the costs associated with cybersecurity incidents may not be fully covered.
• Risk Transfer Mechanisms: The Company uses forward contracts and purchased options as cash flow hedges for forecasted foreign currency transactions. Interest rate swaps are used to manage variability in cash flows related to structured financing debt, economically converting variable rates to fixed rates.