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DELL · Forward model · Corporate and other · Clarke case

What has to happen in Corporate and other

Model as of

This page changes Corporate and other inside the complete DELL model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

DELL forward model
Horizon
Consolidated fair value $282.57 all other verticals held in this portfolio case
Final-quarter revenue $103M 0% of company revenue
Explicit segment contribution $93M EBITDA less segment capex, before corporate items

Jeff Clarke's framing that this has stopped being a spot market. Customers are negotiating multi-year supply arrangements with Dell running up to five years, which is exactly the twenty-quarter horizon of this model. If those convert into contracted volume rather than pipeline, the AI line stops being a backlog being drained and becomes an annuity - a different valuation object from the one 0.9x terminal revenue prices. What this case does NOT do is raise the near-term shipment path above Dell's own guidance: the constraint is still memory, and the case is an argument about durability and multiple, not about Q2.

Corporate and other

Basis quarter$224M
Final quarter$103M
Implied CAGR−14%
Final revenue mix0%

A runoff line, not a business: VMware resale plus divested and non-reportable offerings that Dell no longer actively sells. It has declined in every single quarter of the disclosed history, from $1,050M to $224M in nine quarters, and it is carried here only so the vertical total reconciles exactly to reported consolidated revenue.

Last four quarters
2026 Q2 $473M Reported
2026 Q3 $420M Reported
2026 Q4 $283M Reported
2027 Q1 $224M Reported
VMware resaleDivested and non-reportable offerings (Secureworks and Virtustream legacy)
Sequential growth −8.0%/qtr decaying toward −3.0% Nine consecutive quarters of decline averaging about 18% sequentially; -8% is a deliberately gentle runoff.
Corporate and other

Latest: $103M (2032Q1E)

Period Value
2025Q1 $1.05B
2025Q2 $966M
2025Q3 $867M
2025Q4 $698M
2026Q1 $552M
2026Q2 $473M
2026Q3 $420M
2026Q4 $283M
2027Q1 $224M
2027Q2E $207M
2027Q3E $193M
2027Q4E $182M
2028Q1E $172M
2028Q2E $163M
2028Q3E $156M
2028Q4E $150M
2029Q1E $144M
2029Q2E $139M
2029Q3E $134M
2029Q4E $130M
2030Q1E $126M
2030Q2E $123M
2030Q3E $120M
2030Q4E $116M
2031Q1E $114M
2031Q2E $111M
2031Q3E $108M
2031Q4E $106M
2032Q1E $103M

Assumptions & reasoning

  • Its only job in this model is reconciliation: reportable segment revenue of $43,618M plus $224M equals the $43,842M consolidated revenue Dell reported. Drop it and the six lines no longer tie to the income statement.
  • Corporate and other operating income was $10M on $224M of revenue in the basis quarter, so the line is close to margin-neutral and far too small for its margin assumption to change any answer on this page.
  • The runoff is modelled at 8% sequential decline against an actual nine-quarter average of roughly 18%. That is deliberately gentle: driving the line to zero inside the horizon would flatter consolidated growth rather than describe it.
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