Free cash flow margins recovered to 7.1% in 2027Q1, supported by an operating cash flow to net income ratio of 1.19 and disciplined capital returns of $2.06B.
| Metric | TTM | Jan'26 | Jan'25 | Feb'24 | Feb'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 |
|---|
| Cash from Operations | 12.47B | 11.19B | 4.52B | 8.68B | 3.56B | 10.31B | 11.41B | 9.29B | 6.99B | 6.84B | 2.37B | 2.16B | 2.55B | 2.69B |
| Operating CF Margin % | - | 9.85% | 4.73% | 9.81% | 3.48% | 10.19% | 13.16% | 10.95% | 7.71% | 8.66% | 3.81% | 4.25% | 4.73% | 4.76% |
| Operating CF Growth % | 810.18% | 147.4% | -47.89% | 143.37% | -65.41% | -9.64% | 22.77% | 32.9% | 2.16% | 189.1% | 9.48% | -15.25% | -5.03% | - |
| Net Income | 8.41B | 5.94B | 4.58B | 3.37B | 2.42B | 5.71B | 3.5B | 5.53B | -2.18B | -2.93B | -1.16B | -1.1B | -1.22B | -1.71B |
| Depreciation & Amortization | 2.29B | 3.03B | 3.12B | 3.3B | 3.16B | 4.55B | 5.39B | 6.14B | 7.75B | 8.63B | 4.73B | 2.87B | 2.98B | 1.75B |
| Stock-Based Compensation | 533M | 723M | 785M | 878M | 931M | 1.62B | 1.61B | 1.26B | 918M | 835M | 398M | 72M | 72M | 266M |
| Deferred Taxes | 196M | -60M | -208M | -91M | -717M | -365M | -399M | -6.34B | -1.33B | -2.6B | -2.05B | -205M | -465M | 0 |
| Other Non-Cash Items | 1.18B | 714M | 453M | 609M | 961M | -3.13B | -88M | 938M | 756M | 754M | -1.6B | 408M | 459M | 1.27B |
| Working Capital Changes | -142M | 843M | -4.21B | 605M | -3.19B | 1.92B | 1.39B | 1.76B | 1.08B | 2.15B | 1.84B | 119M | 729M | 1.1B |
| Change in Receivables | -10.48B | -9.76B | -2.25B | 3.29B | -348M | -2.43B | -1.12B | -1.61B | -2.41B | -3.24B | -2.53B | -134M | -788M | 32M |
| Change in Inventory | -3.25B | -3.99B | -3.52B | 975M | 875M | -2.51B | -243M | 311M | -1.45B | -325M | 1.08B | -5M | 71M | -242M |
| Change in Payables | 8.15B | 12.66B | 1.7B | -498M | -8.55B | 5.74B | 1.6B | 894M | 952M | 3.78B | 751M | -374M | 1.03B | 0 |
| Cash from Investing | -3.03B | -2.06B | -2.21B | -2.78B | -3.02B | 1.31B | -460M | -4.69B | 3.39B | -2.88B | -31.24B | -321M | -355M | -6.99B |
| Capital Expenditures | -3.03B | -2.63B | -2.65B | -2.76B | -3B | -2.8B | -2.08B | -2.59B | -1.57B | -1.74B | -906M | -482M | -478M | -532M |
| CapEx % of Revenue | 2.26% | 2.32% | 2.77% | 3.12% | 2.94% | 2.76% | 2.4% | 3.05% | 1.73% | 2.2% | 1.46% | 0.95% | 0.89% | 0.94% |
| Acquisitions | -84M | 449M | 0 | -126M | -70M | 3.94B | 1.76B | -2.47B | -760M | -658M | -30.74B | 96M | -40M | -9.2B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 86M | 80M | 180M | 45M | 41M | 62M | 28M | 51M | 30M | 30M | -13M | 85M | 175M | 2.74B |
| Cash from Financing | -5.66B | -1.46B | -5.82B | -7.09B | -1.63B | -16.61B | -5.95B | -4.6B | -14.33B | 403M | 31.82B | -496M | -3.09B | 9.33B |
| Debt Issued (Net) | 2.16B | 6.48B | -1.31B | -3.47B | 2.65B | -6.3B | -4.53B | -1.64B | 1.59B | 2.16B | 29.9B | -490M | -3.12B | 8.47B |
| Equity Issued (Net) | -5.3B | -6.01B | -3.16B | -2.44B | -3.28B | -1.5B | -1.15B | -2.35B | -13.69B | -1.32B | 3.17B | -2M | 28M | 0 |
| Dividends Paid | -1.53B | -1.46B | -1.27B | -1.07B | -964M | 0 | 0 | 0 | -2.13B | 0 | 0 | 0 | 0 | -653M |
| Share Repurchases | -5.31B | -6.01B | -3.17B | -2.45B | -3.28B | -1.84B | -1.6B | -3.56B | -14.49B | -1.83B | -1.42B | -2M | 0 | 0 |
| Other Financing | -984M | -478M | -64M | -109M | -39M | -8.81B | -270M | -620M | -104M | -432M | -430M | -4M | -5M | 1.51B |
| Net Change in Cash | 3.9B | 7.89B | -3.69B | -1.39B | -1.19B | -5.1B | 5.03B | -89M | -4.14B | 4.55B | 2.94B | 1.18B | -1.05B | 17.49B |
| Free Cash Flow | 9.44B | 8.55B | 1.87B | 5.92B | 562M | 7.51B | 9.32B | 6.7B | 5.49B | 5.26B | 1.46B | 1.68B | 2.07B | 2.15B |
| FCF Margin % | 7.05% | 7.53% | 1.96% | 6.69% | 0.55% | 7.42% | 10.76% | 7.9% | 6.06% | 6.66% | 2.35% | 3.3% | 3.84% | 3.82% |
| FCF Growth % | 158.68% | 357.57% | -68.43% | 953.38% | -92.52% | -19.45% | 39.1% | 22.02% | 4.41% | 260.16% | -13.04% | -18.96% | -3.76% | - |
| FCF per Share | 14.39 | 12.51 | 2.58 | 8.04 | 0.75 | 9.50 | 12.16 | 8.93 | 7.64 | 7.32 | 2.03 | 2.34 | 2.89 | 5.33 |
| FCF Conversion (FCF/Net Income) | 1.12x | 1.88x | 0.98x | 2.56x | 1.46x | 1.85x | 3.51x | 2.01x | -3.03x | -2.40x | -2.03x | -1.96x | -2.09x | -1.58x |
| Interest Paid | 0 | 1.35B | 1.3B | 1.44B | 1.17B | 1.82B | 2.28B | 2.5B | 2.35B | 2.19B | 1.57B | 585M | 724M | 363M |
| Taxes Paid | 0 | 1.26B | 555M | 1.38B | 1.21B | 1.26B | 1.42B | 1.41B | 747M | 924M | 978M | 264M | 557M | 0 |
AI Server Margin Dilution
As reported in recent financial statements, Dell's operating cash flow to net income ratio reached 1.19 in 2027Q1, indicating that the company is successfully converting its accounting profits into tangible cash despite the recent volatility in product mix and component procurement costs.
The consistent ability to generate operating cash flow in excess of net income suggests that Dell's earnings are supported by high-quality operational execution rather than aggressive accrual accounting. Investors should monitor whether this conversion efficiency persists as the company scales lower-margin AI server shipments, which typically carry different working capital requirements than traditional storage hardware.
Based on the latest quarterly data, Dell's free cash flow margin reached 7.1% in 2027Q1, reflecting a significant recovery from the negative 0.6% margin observed in 2025Q4 and signaling improved operational efficiency as the company navigates the current infrastructure-heavy demand cycle.
The trajectory of free cash flow appears to be strengthening, suggesting that the company is effectively managing its cash outflows relative to the rapid revenue growth seen in the ISG segment. This trend warrants further investigation to determine if the current FCF levels are sustainable or if they are temporarily inflated by favorable timing in customer payments.
According to the provided cash flow data, Dell's working capital management has shifted from a significant cash drain of $2.1B in 2025Q4 to a neutral position in 2027Q1, indicating a stabilization in inventory procurement and collection cycles during the recent period of rapid growth.
The historical volatility in working capital changes suggests that Dell's cash position is highly sensitive to the timing of large-scale enterprise deployments and component inventory builds. The recent move to a neutral working capital impact may imply that the company has achieved a more predictable cadence in its supply chain logistics.
As disclosed in recent filings, Dell utilized $2.06B for dividends and share repurchases in 2027Q1, demonstrating a consistent commitment to returning capital to shareholders even as the company aggressively invests in the infrastructure required to support its expanding AI server business.
The company's capital deployment strategy appears to balance shareholder returns with the necessity of funding growth, suggesting a mature approach to capital management. However, investors should monitor whether the current pace of buybacks remains sustainable if the lower-margin profile of AI servers begins to exert sustained pressure on overall cash generation.
Quick answers to the most common questions about buying DELL stock.
Dell Technologies Inc. (DELL) generated $11.19B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Dell Technologies Inc. (DELL) generated $8.55B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Dell Technologies Inc. (DELL) spent $2.63B on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Dell Technologies Inc. (DELL) returned $1.46B to shareholders via cash dividends and spent $6.01B on share repurchases. This shows the company's commitment to returning capital to its equity investors.