The Company offers or arranges a portfolio of payment and consumption solutions and services for its customers globally, including utility, subscription, as-a-Service, leases, and loans, designed to match customers' consumption and financing preferences and to provide operational and financial flexibility.

To support financing solutions and services as part of the Dell Technologies portfolio, Dell Financial Services and its affiliates (“DFS”) originate, collect, and service customer financing arrangements primarily related to the purchase and use of Dell Technologies products and services. In some cases, the Company also offers financing for the purchase of third-party technology products that complement the portfolio of the Company’s products and services. New financing originations were $2.8 billion and $1.6 billion for the three months ended May 1, 2026 and May 2, 2025, respectively.

Leases — The Company enters into fixed-term financing arrangements with customers who seek lease financing for equipment. Leases are generally classified as sales-type leases or operating leases. Additionally, utility, subscription, and as-a-Service flexible consumption models may result in identification of embedded lease arrangements that require the recognition of sales-type leases or operating leases. Leases with business customers generally have fixed terms of two to five years.

Loans — The Company also offers fixed-term loans to qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers. These loans are repaid in periodic payments including interest and have defined terms typically ranging from one to five years. The fair value of the fixed-term loan portfolio is determined using market observable inputs. The carrying value of these loans approximates fair value.


	May 1, 2026		January 30, 2026


	(in millions)

Customer receivables, gross (a)	$	13,966	$	14,295
Allowance for losses	(212)		(213)
Customer receivables, net	13,754		14,082
Residual interest	196		198
Financing receivables, net	$	13,950	$	14,280
Short-term	$	8,237	$	8,458
Long-term	$	5,713	$	5,822


	Three Months Ended
		May 1, 2026		May 2, 2025


		(in millions)

Balances at beginning of period		$	213	$	153
Charge-offs, net of recoveries		(10)		(10)
Provision charged to income statement		9		1

Balances at end of period		$	212	$	144

The Company recognizes an allowance for financing receivable losses, including both the lease receivable and unguaranteed residual, in an amount equal to the expected credit losses, net of recoveries. The allowance for financing receivable losses on the lease receivable is determined based on various factors, including lifetime expected losses determined using macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios as well as past due receivables, receivable type, and customer risk profile. The Company continues to monitor broader economic indicators and their potential impact on future credit loss performance.

Aging is likely to fluctuate as a result of the variability in volume of large transactions entered into over the period, and the administrative processes that accompany those transactions. Aging is also impacted by the timing of the Company’s fiscal period end date relative to calendar month-end customer payment due dates. As a result of these factors, fluctuations in aging from period to period do not necessarily indicate a material change in the collectibility of the portfolio.

Customer receivables are placed on non-accrual status if principal or interest is past due and considered delinquent, or if there is concern about the collectibility of a specific customer receivable. The receivables identified as doubtful for collectibility may be classified as current for aging purposes.


	May 1, 2026
	Fiscal Year of Origination
	2027		2026		2025		2024		2023		Years Prior		Total

	(in millions)
Higher	$	980	$	2,378	$	1,508	$	1,185	$	420	$	54	$	6,525
Mid	705		3,492		962		299		89		11		5,558
Lower	356		992		268		163		88		16		1,883
Total	$	2,041	$	6,862	$	2,738	$	1,647	$	597	$	81	$	13,966


	January 30, 2026
	Fiscal Year of Origination
	2026		2025		2024		2023		2022		Years Prior		Total

	(in millions)
Higher	$	2,671	$	1,683	$	1,430	$	564	$	84	$	14	$	6,446
Mid	4,077		1,354		419		163		22		1		6,036
Lower	1,153		321		209		109		11		10		1,813
Total	$	7,901	$	3,358	$	2,058	$	836	$	117	$	25	$	14,295

The categories shown in the tables above segregate customer receivables, gross, based on the relative degrees of credit risk. Credit quality indicators are updated on a periodic basis. An internal grading system is utilized that assigns a credit level score based on a number of considerations, including liquidity, operating performance, and industry outlook.


	Three Months Ended
		May 1, 2026		May 2, 2025

		(in millions)
Interest income — products		$	86	$	93

Net revenue — products		$	534	$	119
Cost of net revenue — products		525		131
Gross margin — products		$	9	$	(12)

The following table presents the future maturity of the Company’s customer leases and associated financing payments, and reconciles the undiscounted cash flows to the customer receivables, gross recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated:


	May 1, 2026

	(in millions)
Fiscal 2027 (remaining nine months)	$	2,382
Fiscal 2028	2,090
Fiscal 2029	1,373
Fiscal 2030	645
Fiscal 2031 and thereafter	328

Total undiscounted cash flows	6,818
Loans	8,337
Less: Unearned income	(1,189)
Total customer receivables, gross	$	13,966


	May 1, 2026		January 30, 2026

	(in millions)
Equipment under operating lease, gross	$	4,946	$	4,651
Less: Accumulated depreciation	(2,215)		(2,192)
Equipment under operating lease, net	$	2,731	$	2,459

The Company maintains programs that facilitate the funding of leases, loans, and other alternative payment structures in the capital markets. The majority of DFS debt is non-recourse to Dell Technologies and represents borrowings under securitization programs and structured financing programs for which the Company’s risk of loss is limited to transferred lease and loan payments and associated equipment.

The following table presents DFS debt as of the dates indicated and excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business:


	May 1, 2026		January 30, 2026

	(in millions)
DFS U.S. debt:
Asset-based financing facility	$	2,901	$	3,146
Fixed-term securitization offerings	3,033		2,648

Total DFS U.S. debt, principal amount	5,934		5,794
DFS international debt:
Securitization facility	656		698
Other borrowings	928		851

Dell Bank senior unsecured eurobonds	1,760		1,796
Total DFS international debt, principal amount	3,344		3,345
Total DFS debt, principal amount	$	9,278	$	9,139
Short-term	$	5,775	$	5,719
Long-term	$	3,503	$	3,420

Asset-Based Financing Facility — The Company maintains an asset-based financing facility in the United States, which is a revolving facility for fixed-term leases and loans. This debt is collateralized solely by the U.S. lease and loan payments and associated equipment in the facility. The asset-based financing facility consists of two tranches, with effective dates through July 7, 2026 and July 7, 2027, respectively. As of May 1, 2026, the total debt capacity related to the asset-based financing facility was $4.6 billion. The debt has a variable interest rate, and the duration of the debt is based on the terms of the underlying lease and loan payment streams. The Company enters into interest rate swap agreements to economically convert a portion of this debt from a floating rate to a fixed rate. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s interest rate swaps.

The asset-based financing facility contains standard structural features related to the performance of the funded receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the facility, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of May 1, 2026, these criteria were met.

Fixed-Term Securitization Offerings — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. The asset-backed debt securities are collateralized solely by the U.S. fixed-term lease and loan payments and associated equipment, which are held by Special Purpose Entities (“SPEs”), as discussed below. The interest rate on these securities is fixed and ranges from 4.01% to 6.75% per annum as of May 1, 2026, and the duration of these securities is based on the terms of the underlying lease and loan payment streams.

Securitization Facility — The Company maintains a securitization facility in Europe for fixed-term leases and loans. The debt under this facility has a variable interest rate, and the duration of the debt is based on the terms of the underlying lease and loan payment streams. This facility is effective through December 22, 2026 and had a total debt capacity of $938 million as of May 1, 2026.

The securitization facility contains standard structural features related to the performance of the securitized receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the program, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of May 1, 2026, these criteria were met.

Other Borrowings — In connection with the Company’s international financing operations, the Company has entered into revolving structured financing debt programs related to its fixed-term lease and loan products sold in Canada, Europe, the Middle East, Australia and New Zealand, and Singapore. The debt under these programs has a variable interest rate.

The duration of the debt in Canada, Europe, the Middle East, and Australia and New Zealand is based on the terms of the underlying lease and loan payment streams. These facilities are collateralized solely by the lease and loan payments and associated equipment in their respective region or country.

The Company also has two unsecured Singapore facilities, which had a total debt capacity of $259 million as of May 1, 2026 and are effective through July 12, 2026 and July 3, 2027, respectively. Subsequent to the close of the three months ended May 1, 2026, the Company extended the term of the July 12, 2026 facility to be effective through July 12, 2027.

Dell Bank Senior Unsecured Eurobonds — On October 27, 2021, Dell Bank issued €500 million of 0.5% senior unsecured five-year eurobonds due October 2026. On October 18, 2022, Dell Bank issued €500 million of 4.5% senior unsecured five-year eurobonds due October 2027. On June 24, 2024, Dell Bank issued €500 million of 3.6% senior unsecured five-year eurobonds due June 2029. The issuances of the senior unsecured eurobonds support the expansion of the financing operations in Europe.

In connection with the asset-based financing facility, fixed-term securitization offerings, and securitization facility discussed above, the Company transfers certain U.S. and European lease and loan payments and associated equipment to SPEs that meet the definition of a VIE and are consolidated, along with the associated debt described above, into the Condensed Consolidated Financial Statements, as the Company is the primary beneficiary of the VIEs. The SPEs are bankruptcy-remote legal entities with separate assets and liabilities. The purpose of the SPEs is to facilitate the funding of customer lease and loan payments and associated equipment in the capital markets.

Some of the SPEs have entered into financing arrangements with multi-seller conduits that, in turn, issue asset-backed debt securities in the capital markets. DFS debt outstanding held by the consolidated VIEs is collateralized by the lease and loan payments and associated equipment. The Company’s risk of loss related to securitized receivables is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The Company provides credit enhancement to the securitization offerings in the form of over-collateralization.

The following table presents the assets and liabilities held by the consolidated VIEs as of the dates indicated, which are included in the Condensed Consolidated Statements of Financial Position:


	May 1, 2026		January 30, 2026

	(in millions)
Assets held by consolidated VIEs:
Other current assets	$	174	$	176
Financing receivables, net of allowance:
Short-term	$	3,143	$	3,280
Long-term	$	2,945	$	2,704
Property, plant, and equipment, net	$	964	$	984
Liabilities held by consolidated VIEs:
Debt, net of unamortized debt issuance costs:
Short-term	$	4,373	$	4,548
Long-term	$	2,204	$	1,933

Lease and loan payments and associated equipment transferred via securitization through SPEs were $1.3 billion and $1.2 billion for the three months ended May 1, 2026, and May 2, 2025, respectively.

To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term customer receivables to unrelated third parties on a periodic basis, without recourse. The amounts of customer receivables sold for this purpose were immaterial for both the three months ended May 1, 2026 and May 2, 2025. The Company’s continuing involvement in these customer receivables is primarily limited to servicing arrangements.