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Jan 31, 2023

Hewlett Packard Enterprise Q1 2023 Earnings Report

HPE delivered record-setting Q1 performance and raised fiscal 2023 guidance.

Key Takeaways

Hewlett Packard Enterprise (HPE) reported exceptional Q1 results, achieving the highest first-quarter revenue since 2016. The company's annualized revenue run rate (ARR) exceeded $1 billion for the first time, driven by the HPE GreenLake hybrid cloud platform. The company has raised financial outlook for the full year.

Revenue of $7.8 billion was up 12% from the prior-year period.

Annualized revenue run-rate (ARR) for the first time exceeded $1 billion and was up 26% from the prior-year period

Non-GAAP EPS of $0.63 was up 19% from the prior-year period, exceeding guidance.

HPE delivered exceptional results in Q1, posting our highest first quarter revenue since 2016 and best-ever non-GAAP operating profit margin.

Total Revenue
$7.81B
Previous year: $6.96B
+12.2%
EPS
$0.63
Previous year: $0.53
+18.9%
ARR
$1B
Previous year: $798M
+25.3%
Gross Margin
34%
Previous year: 33.7%
+0.9%
Non-GAAP Gross Margin
34.2%
Previous year: 33.9%
+0.9%
Gross Profit
$2.66B
Previous year: $2.34B
+13.4%
Cash and Equivalents
$2.53B
Previous year: $3.86B
-34.5%
Free Cash Flow
-$1.33B
Previous year: -$577M
+129.8%
Total Assets
$55.6B
Previous year: $57.9B
-3.9%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

HPE estimates Q2 fiscal 2023 revenue to be in the range of $7.1 billion to $7.5 billion, and raises fiscal 2023 revenue growth estimate to be in the range of 5%-7% adjusted for currency. HPE raises guidance of fiscal 2023 GAAP diluted net EPS to be in the range of $1.40 to $1.48 and non-GAAP diluted net EPS to be in the range of $2.02 to $2.10. HPE reiterates guidance of $1.9 billion to $2.1 billion free cash flow.

Positive Outlook

  • Estimates Q2 fiscal 2023 revenue to be in the range of $7.1 billion to $7.5 billion
  • Raises fiscal 2023 revenue growth estimate to be in the range of 5%-7% adjusted for currency
  • Estimates Q2 fiscal 2023 GAAP diluted net EPS to be in the range of $0.27 to $0.35 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.52
  • Raises guidance of fiscal 2023 GAAP diluted net EPS to be in the range of $1.40 to $1.48 and non-GAAP diluted net EPS to be in the range of $2.02 to $2.10
  • Reiterates guidance of $1.9 billion to $2.1 billion free cash flow

Revenue & Expenses

Visualization of income flow from segment revenue to net income