Hewlett Packard Enterprise Q1 2025 Earnings Report
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.
Hewlett Packard Enterprise
Hewlett Packard Enterprise
Hewlett Packard Enterprise 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.
- Competitive pressures in cloud and AI infrastructure markets.
- Supply chain constraints may impact product delivery timelines.
Revenue & Expenses
Visualization of income flow from segment revenue to net income