Hewlett Packard Enterprise delivers record-setting results for Q1

antonio_neri | HPE first-quarter

Hewlett Packard Enterprise has revealed its highest first-quarter performance since 2016 with reported revenue of $7.8bn up 12 percent, 18 percent for adjusted currency.

The earnings were boosted by record performances from Intelligent Edge and High Performance Computing and AI, which each reached $1.1bn in revenues in Q1, a 25 and 34 percent respective increase year-on-year. Compute revenue also rose 14 percent YoY, bringing in $3.5bn for the quarter.

Additionally, the HPE GreenLake hybrid cloud platform powered a 26 percent rise in annual recurring revenue for the firm, which exceeded $1bn for the first time.

GAAP earnings per share (EPS) of $0.38 were down three percent from the prior-year period and up 265 percent sequentially, whereas non-GAAP EPS of $0.63 was up 19 percent from the prior-year period and up 11 percent sequentially, exceeding the company’s guidance range of $0.50-$0.58 and marking a quarterly record.

$299m in the form of dividends and share repurchases has been returned to shareholders.

The HPE board of directors also declared a regular cash dividend of $0.12 per share on the company’s common stock, payable on 14 April 2023, to stockholders of record as of the close of business on 17 March 2023.

The company estimates Q2 fiscal 2023 revenue to be in the range of $7.1bn – $7.5bn, raising fiscal 2023 revenue growth estimate to be in the range of 5-7 percent adjusted for currency.

Antonio Neri, president and CEO of Hewlett Packard Enterprise, said: “HPE delivered exceptional results in Q1, posting our highest first-quarter revenue since 2016 and best-ever non-GAAP operating profit margin.

“Powered by our market-leading hybrid cloud platform HPE GreenLake, we unlocked an impressive run rate of $1bn in annualized revenue for the first time. These results, combined with a winning strategy and proven execution, position us well for FY23, and give us confidence to raise our financial outlook for the full year.”

Tarek Robbiati, executive vice president and CFO of HPE, said: “In Q1 we continued to out-execute our competition despite uneven market demand and produced more revenues in every one of our key segments, with our Edge business Aruba being a standout.

“We are now focusing our attention and are investing to carry our momentum well into the second half of FY23 and FY24.”