DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued on next page)

Three Months Ended

Fiscal Year Ended

February 2,
2024

February 3,
2023

%
Change

February 2,
2024

February 3,
2023

%
Change

Gross margin

$         5,316

$         5,756

(8) %

$       20,869

$       22,686

(8) %

Non-GAAP adjustments:

Amortization of intangibles

84

99

331

414

Impact of purchase accounting

—

—

—

2

Stock-based compensation expense

37

40

149

152

Other corporate expenses

31

76

95

173

Non-GAAP gross margin

$         5,468

$         5,971

(8) %

$       21,444

$       23,427

(8) %

Operating expenses

$         3,825

$         4,567

(16) %

$       15,658

$       16,915

(7) %

Non-GAAP adjustments:

Amortization of intangibles

(122)

(139)

(488)

(556)

Impact of purchase accounting

(4)

(11)

(14)

(42)

Transaction-related expenses

(3)

(6)

(12)

(22)

Stock-based compensation expense

(166)

(188)

(729)

(779)

Other corporate expenses

(201)

(422)

(649)

(726)

Non-GAAP operating expenses

$         3,329

$         3,801

(12) %

$       13,766

$       14,790

(7) %

Operating income

$         1,491

$         1,189

25 %

$         5,211

$         5,771

(10) %

Non-GAAP adjustments:

Amortization of intangibles

206

238

819

970

Impact of purchase accounting

4

11

14

44

Transaction-related expenses

3

6

12

22

Stock-based compensation expense

203

228

878

931

Other corporate expenses

232

498

744

899

Non-GAAP operating income

$         2,139

$         2,170

(1) %

$         7,678

$         8,637

(11) %

Net income

$         1,158

$            606

91 %

$         3,195

$         2,422

32 %

Non-GAAP adjustments:

Amortization of intangibles

206

238

819

970

Impact of purchase accounting

4

11

14

44

Transaction-related (income) expenses

(5)

(14)

49

(16)

Stock-based compensation expense

203

228

878

931

Other corporate expenses

232

392

744

1,812

Fair value adjustments on equity investments

(83)

9

(47)

206

Aggregate adjustment for income taxes

(105)

(148)

(407)

(642)

Non-GAAP net income

$         1,610

$         1,322

22 %

$         5,245

$         5,727

(8) %