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Jan 31, 2025
Hewlett Packard Enterprise Q1 2025 Earnings Report
Hewlett Packard Enterprise reported strong revenue growth and improved earnings for Q1 2025.
Key Takeaways
Hewlett Packard Enterprise (HPE) reported Q1 2025 revenue of $7.9 billion, up 16% year-over-year. The company saw a significant increase in its annualized revenue run-rate (ARR) to $2.1 billion, up 45%. GAAP diluted EPS rose 52% to $0.44, while non-GAAP EPS increased to $0.49. However, free cash flow declined to -$877 million. The Server and Hybrid Cloud segments performed well, while Intelligent Edge revenue declined slightly. HPE reaffirmed its fiscal 2025 outlook, expecting continued revenue growth.
Revenue increased 16% year-over-year to $7.9 billion.
GAAP EPS rose 52% to $0.44, while non-GAAP EPS increased to $0.49.
Annualized revenue run-rate (ARR) grew 45% to $2.1 billion.
Free cash flow declined to -$877 million, impacted by operational expenses.
Revenue by Segment
Forward Guidance
HPE expects revenue growth of 7% to 11% for fiscal 2025, with GAAP EPS projected to be between $1.15 and $1.35, and non-GAAP EPS between $1.70 and $1.90. Free cash flow is expected to reach approximately $1 billion. The company remains focused on cost reduction and innovation to drive long-term growth.
Positive Outlook
- Revenue growth expected to be between 7% and 11% in fiscal 2025.
- Non-GAAP EPS projected between $1.70 and $1.90.
- Continued investment in innovation across cloud and edge solutions.
- Maintained financial flexibility with strong cash reserves.
- Improving operating efficiencies to enhance profitability.
Challenges Ahead
- Potential macroeconomic headwinds affecting IT spending.
- Declining free cash flow due to operational investments.
- Regulatory challenges regarding the Juniper Networks acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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