Hewlett Packard Enterprise reported net revenue of $7.0 billion for its third quarter, ended July 31, 2022, up 1% and 4% adjusted for currency compared to a year earlier. GAAP diluted net EPS was $0.31, up 7% from the prior-year period and up 63% sequentially. Non-GAAP diluted net EPS was $0.48, up 2% from the prior-year period and up 9% sequentially.
“Our continued innovation and focus on execution resulted in revenue and profit growth, which are particularly noteworthy in such a dynamic market. Our growth in recurring revenue this fiscal year is evidence of customers’ strong response to our HPE GreenLake platform,” said Antonio Neri, president, and CEO of Hewlett Packard Enterprise. “Customers continue to prioritize investments in IT and are finding HPE’s industry-leading edge-to-cloud portfolio to be particularly relevant in today’s complex macroeconomic environment, where technology innovation is critical to accelerate business transformation and deliver important business outcomes.”
“We executed well in Q3, delivering revenue above our guidance while growing backlog sequentially to another record level,” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “We are also pleased with the expansion of our gross margins despite the inflationary headwinds and challenged supply environment.”
Highlights:
- Intelligent Edge revenue was $941 million, up 8% from the prior-year period in actual dollars and 12% when adjusted for currency, with 16.5% operating profit margin, compared to 16.1% in the prior-year period. Aruba Services revenue was up double-digits from the prior-year period and Intelligent Edge as-a-Service ARR(3) was up more than 60% from the prior-year period.
- High Performance Computing & Artificial Intelligence (“HPC & AI”) revenue was $830 million, up 12% from the prior-year period in actual dollars and 15% when adjusted for currency, with 3.4% operating profit margin, compared to 3.8% from the prior-year period. HPC market share expanded to 39% and includes four of the global top 10 supercomputers.
- Compute revenue was $3.0 billion, down 3% from the prior-year period in actual dollars and down 1% when adjusted for currency, with 13.3% operating profit margin, compared to 11.2% from the prior-year period. Margin expansion was driven by strategic pricing actions, more than offsetting input cost increases.
- Storage revenue was $1.2 billion, down 2% from the prior-year period in actual dollars and up 1% when adjusted for currency, with 14.7% operating profit margin, compared to 15.1% from the prior-year period, and up 210 basis points sequentially, with favorable mix shift.
- Financial Services revenue was $817 million, down 3% from the prior-year period in actual dollars and up 1% when adjusted for currency, with 11.8% operating profit margin, compared to 11.1% from the prior-year period.