Citing robust demand for AI servers, HPE reported revenue of $7.2 billion for its 2nd quarter ended April 30, 2024, up 3% from the prior-year period in actual dollars and 4% in constant currency.
Non-GAAP earnings per share amounted to $0.42, down 19% from the prior-year period and down 13% sequentially, above the company’s guidance range of $0.36 to $0.41.
“HPE delivered very solid results in Q2, exceeding revenue and non-GAAP EPS guidance. AI systems revenue more than doubled from the prior quarter, driven by our strong order book and better conversion from our supply chain,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “Our deep expertise in designing, manufacturing, and running AI systems at scale fueled growth of cumulative AI systems orders to $4.6 billion, with enterprise AI orders representing more than 15%. HPE’s AI advantage, increased HPE GreenLake adoption, and leading infrastructure portfolio, as well as an improved supply chain environment, set us up very well to deliver a strong second half.”
“Stronger AI systems order conversion, prudent cost discipline, and higher-than-expected free cash flow drove a very solid performance in Q2. Because of our robust AI systems order momentum and disciplined execution across our entire portfolio, we are raising our revenue and non-GAAP EPS guidance for the full year,” said Marie Myers, executive vice president and CFO of Hewlett Packard Enterprise.
Highlights
- Server revenue was $3.9 billion, up 18% from the prior-year period in actual dollars and in constant currency, with 11.0% operating profit margin, compared to 14.4% from the prior-year period.
- Intelligent Edge revenue was $1.1 billion, down 19% from the prior-year period in actual dollars and in constant currency, with 21.8% operating profit margin, compared to 24.7% in the prior-year period.
- Hybrid Cloud revenue was $1.3 billion, down 8% from the prior-year period in actual dollars and 9% in constant currency, with 0.8% operating profit margin, compared to 1.9% from the prior-year period.
- Financial Services revenue was $867 million, up 1% from the prior-year period in actual dollars and in constant currency, with 9.3% operating profit margin, compared to 8.9% from the prior-year period.
