DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

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

Three Months Ended

Six Months Ended

July 29, 2022

July 30, 2021

Change

July 29, 2022

July 30, 2021

Change

Net revenue

$             26,425

$             24,191

9 %

$             52,541

$             46,781

12 %

Non-GAAP adjustments:

Impact of purchase accounting

—

8

—

16

Non-GAAP net revenue

$             26,425

$             24,199

9 %

$             52,541

$             46,797

12 %

Gross margin

$                5,439

$                5,475

(1) %

$             11,223

$             10,739

5 %

Non-GAAP adjustments:

Amortization of intangibles

105

150

209

300

Impact of purchase accounting

—

9

2

18

Stock-based compensation expense

37

32

75

60

Other corporate expenses

69

7

82

20

Non-GAAP gross margin

$                5,650

$                5,673

— %

$             11,591

$             11,137

4 %

Operating expenses

$                4,169

$                4,458

(6) %

$                8,403

$                8,735

(4) %

Non-GAAP adjustments:

Amortization of intangibles

(139)

(292)

(278)

(587)

Impact of purchase accounting

(3)

(6)

(10)

(17)

Transaction-related expenses

(3)

(37)

(8)

(66)

Stock-based compensation expense

(199)

(174)

(393)

(318)

Other corporate expenses

(127)

(144)

(210)

(248)

Non-GAAP operating expenses

$                3,698

$                3,805

(3) %

$                7,504

$                7,499

— %

Operating income

$                1,270

$                1,017

25 %

$                2,820

$                2,004

41 %

Non-GAAP adjustments:

Amortization of intangibles

244

442

487

887

Impact of purchase accounting

3

15

12

35

Transaction-related expenses

3

37

8

66

Stock-based compensation expense

236

206

468

378

Other corporate expenses

196

151

292

268

Non-GAAP operating income

$                1,952

$                1,868

4 %

$                4,087

$                3,638

12 %