Dive Brief:

• Dell Technologies CFO Yvonne McGill is resigning from the tech company where she has worked for nearly 30 years and stepping down from the finance chief seat she has held for about two years, according to a Monday securities filing.   
• The Round Rock, Texas-based company, which said it has begun a search for McGill’s permanent successor, appointed David Kennedy, senior vice president of Dell Global Business Operations, Finance, to serve as interim CFO, effective Tuesday, according to a release. Like McGill, Kennedy, 48, is a long-time Dell executive, having worked there since 1998.
• Michael Dell, the CEO and founder of the company originally known as PC’s Limited — which he started while a student at the University of Texas in 1984 — said in a statement in the release that McGill has been a “tremendous contributor” as finance chief and in her prior leadership roles including as corporate controller, ISG CFO and chief accounting officer. “Yvonne’s leadership has made a lasting mark, and we wish her all the best in what’s next,” Dell said. 

Dive Insight:

Back in 2023 McGill, then the company’s corporate controller, was tapped to succeed Dell’s longest-serving CFO, Tom Sweet. At the time, Dell and other players in the technology space were already grappling with waning customer demand for electronic products such as PCs and uncertainty stemming from recent breakthroughs in generative artificial intelligence. 

Given that Dell hired McGill from within for the post, Josh Crist, co-managing partner of the executive search firm Crist Kolder Associates, said the company appears to have strong succession planning and will likely tap an insider for the CFO role this time around too. “I’d be shocked if they don’t promote from within, but maybe they have lost talent,” Crist said in an email. 

As CFO, McGill has drawn attention for her work related to AI. “I echo Michael’s gratitude for Yvonne’s notable leadership during her time at Dell, most recently as CFO helping us rapidly scale our AI business,” said Jeff Clarke, vice chairman and COO, in a statement included in the release. McGill also was named “CFO AI-Champion of the Year” by the consulting firm Gartner, awarded for demonstrating “exceptional leadership and innovation in integrating artificial intelligence into the finance function and across the enterprise.”  

But despite signs of strength in the company’s AI server space, Dell still faces financial pressures, according to an Aug. 29 Morningstar report on Dell’s fiscal second quarter earnings. “While Dell is generating solid sales momentum within AI servers, the dip in margins calls into question exactly how much will fall to the bottom line,” analysts led by Morningstar Director Eric Compton wrote. 

In the latest fiscal quarter ended Aug. 1, the company reported record revenue of $29.8 billion, up 19% year-over-year, driven by AI server shipments; however, gross margins declined to 18.3% in the quarter from 21.4% in the year-earlier period, according to a company presentation and earnings material. 

Looking ahead, McGill said on a recent company earnings call that fiscal year 2026 revenue is expected to be between $105 billion and $109 billion, up 12% YOY at the midpoint of $107 billion. “We expect the demand environment we saw in the second quarter for traditional servers and storage to persist into the second half,” McGill said on the Aug. 28 call, according to a transcript. “In CSG, as the PC refresh cycle continues, we are focused on improving our execution to grow revenue and gain share. Overall, we expect profitability to improve in the second half across CSG and ISG and specifically within AI servers.” 

McGill’s decision to resign was not a result of any disagreements with the company on any matter relating to its financial statements, internal control over reporting, operations or practices, the securities filing states. The company, which declined to comment on the reason for McGill’s move, has reaffirmed its guidance for fiscal Q3 and the full year that it gave last month.

McGill, who will remain a full-time employee at the company through Oct. 31, entered into a separation agreement that provides a waiver of claims against the company and other matters relating to the termination of her employment, according to the filing. Subject to the conditions in that agreement, McGill will receive a cash payment with a pro rata bonus for fiscal 2026 of about $562,500.  

McGill’s compensation totaled $7.16 million in fiscal 2025, including $692,308 in salary and $5.6 million in stock awards, according to Dell’s May proxy filing.