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Apr 30, 2021

Hewlett Packard Enterprise Q2 2021 Earnings Report

Reported revenue growth, strong profitability, and cash flow, raised FY21 EPS and FCF outlook.

Key Takeaways

Hewlett Packard Enterprise announced strong Q2 2021 results, marked by revenue growth of 11% year-over-year, strong profitability, and free cash flow generation. The company raised its full-year EPS and free cash flow outlook, reflecting continued momentum in the demand environment and strong operational performance.

Revenue was $6.7 billion, up 11% year-over-year.

Annualized revenue run-rate (ARR) was $678 million, up 30% year-over-year.

GAAP EPS was $0.19, and non-GAAP EPS was $0.46, up 70% year-over-year.

Free cash flow was $368 million, up $770 million from the prior-year period.

Total Revenue
$6.7B
Previous year: $6.01B
+11.5%
EPS
$0.46
Previous year: $0.22
+109.1%
Annualized Revenue
$678M
Previous year: $520M
+30.4%
Gross Margin
34.1%
Previous year: 31.9%
+6.9%
Adj. Gross Margin
34.3%
Previous year: 32%
+7.2%
Gross Profit
$2.29B
Previous year: $1.91B
+19.5%
Cash and Equivalents
$4.63B
Previous year: $5.13B
-9.9%
Free Cash Flow
$368M
Previous year: -$402M
-191.5%
Total Assets
$54.1B
Previous year: $54.5B
-0.7%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

Hewlett Packard Enterprise provided the following outlook: Fiscal 2021 Third quarter: Estimates GAAP diluted net EPS to be in the range of $0.04 to $0.10 and non-GAAP diluted net EPS to be in the range of $0.38 to $0.44 and Fiscal 2021: Raises GAAP diluted net EPS outlook to $0.60 to $0.72 and non-GAAP diluted net EPS outlook to $1.82 to $1.94 and Raises free cash flow guidance to $1.2 to $1.5 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income