Dell Technologies Inc - Ordinary Shares - Class C

Record Q1 performance (very strong demand + profitability + capital returns) - Revenue $43.8B (+88% YoY); EPS $4.86 (+214% YoY) (record). - Gross margin dollars $7.9B (+57%); gross margin rate 18.1%, helped by a mix shift to AI servers (AI revenue up ~9x YoY). - Operating expenses down to 8.4% of revenue (OpEx down ~610 bps; “lowest level in 20+ years”); operating income $4.2B (+154%), margin 9.7%. - Cash flow: $4.1B cash from operations; ended with $14.1B cash & investments. - Shareholder returns: $2.1B returned in Q1 via 11M shares repurchased (avg ~$147) + ~$0.63 dividend/share.

AI is the core driver, with backlog and pipeline strength (surprising strength early in FY) - AI momentum: $24.4B AI orders; $16.1B AI server revenue in Q1. - Exited quarter with record $51.3B AI backlog; management says pipeline remains multiples of backlog and is growing sequentially. - Customer base: surpassed 5,000 customers, with growth across Neo Cloud, sovereign, and enterprise. - Management believes share gains stem from integrated solutions that install/deploy quickly, plus flexible financing/consumption options and services—customers aren’t just buying components.

Full-year guidance raised for AI servers; supply remains the key constraint - Full-year revenue outlook: $165B–$169B (about +~50% YoY at midpoint). - AI server revenue forecast: ~$60B at midpoint (raised), about 2.4x YoY. - Mid-year tone: they expect better than previously expected gross margin trajectory excluding AI mix and margin expansion through the year. - Supply vs demand: management repeatedly emphasized demand is strong, but the limiter is parts/supply (not demand), particularly DRAM/NAND generally and parts for AI server supply in the back half.