Hewlett Packard Enterprise posted $7.6 billion in revenue for its second fiscal quarter ended April 30, 2025, marking a 6% year-over-year increase in reported dollars. Growth was seen across its Server, Intelligent Edge, and Hybrid Cloud segments. Despite the top-line gains, HPE reported a GAAP net loss per share of $0.82, primarily due to a $1.03 non-cash impairment of legacy goodwill. On a non-GAAP basis, earnings per share came in at $0.38, above its guidance range.
Annualized revenue run-rate (ARR) rose sharply to $2.2 billion, a 46% jump from the year-ago quarter, reflecting the company’s shift toward as-a-service and subscription models. However, operating cash flow turned negative at $(461) million and free cash flow dropped to $(847) million—both down significantly from last year. HPE returned $221 million to shareholders through dividends and share buybacks during the quarter.
By segment, Server revenue rose 6% to $4.1 billion, though margins compressed from 11.0% to 5.9%. Hybrid Cloud revenue increased 13% to $1.5 billion, with a notable rise in profitability. Intelligent Edge revenue grew 7% to $1.2 billion, achieving a strong 23.6% operating margin. Financial Services saw a slight decline in reported revenue to $856 million, but return on equity remained strong at 17.5%.
• Total Q2 revenue: $7.6B, up 6% YoY
• ARR: $2.2B, up 46% YoY
• Non-GAAP EPS: $0.38 (above guidance)
• Free cash flow: $(847)M, down $1.46B YoY
• Server revenue: $4.1B, margin down to 5.9%
• Intelligent Edge: $1.2B revenue, 23.6% margin
• Hybrid Cloud: $1.5B revenue, 5.4% margin
• Q3 outlook: revenue between $8.2B–$8.5B, non-GAAP EPS $0.40–$0.45
• FY25 revenue guidance: +7% to +9% in constant currency
“We delivered a solid performance, achieving yet another quarter of year-over-year revenue growth with strength in each of our product segments,” said Antonio Neri, HPE President and CEO. “In a very dynamic macro environment, we executed our strategy with discipline.”
