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Jul 31, 2023

Hewlett Packard Enterprise Q3 2023 Earnings Report

Edge momentum and portfolio mix shift drove revenue growth and gross margin expansion.

Key Takeaways

Hewlett Packard Enterprise (HPE) reported solid Q3 2023 results, driven by strong performances in Intelligent Edge and HPE GreenLake. Revenue increased by 1% year-over-year to $7.0 billion, and non-GAAP diluted net EPS was $0.49, above the guidance range.

Revenue was $7.0 billion, up 1% year-over-year.

ARR was $1.3 billion, up 48% year-over-year.

GAAP EPS was $0.35, up 13% year-over-year.

Free cash flow was $955 million, up $368 million year-over-year.

Total Revenue
$7B
Previous year: $6.95B
+0.7%
EPS
$0.49
Previous year: $0.48
+2.1%
ARR
$1.3B
Previous year: $858M
+51.5%
Gross Margin
35.8%
Previous year: 34.5%
+3.8%
Non-GAAP Gross Margin
35.9%
Gross Profit
$2.51B
Previous year: $2.4B
+4.8%
Cash and Equivalents
$2.92B
Previous year: $3.76B
-22.4%
Free Cash Flow
$955M
Previous year: $587M
+62.7%
Total Assets
$56.4B
Previous year: $57.7B
-2.2%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

HPE estimates Q4 fiscal 2023 revenue to be in the range of $7.2 billion to $7.5 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.36 to $0.40 and non-GAAP diluted net EPS to be in the range of $0.48 to $0.52.

Positive Outlook

  • Estimates Q4 fiscal 2023 revenue to be in the range of $7.2 billion to $7.5 billion
  • Estimates fiscal 2023 revenue growth to be in the range of 4% to 6% in constant currency
  • Reiterates our 2022 HPE Securities Analyst Meeting ARR guidance of 35% to 45% Compounded Annual Growth Rate from fiscal 2022 to fiscal 2025
  • Estimates Q4 fiscal 2023 GAAP diluted net EPS to be in the range of $0.36 to $0.40 and non-GAAP diluted net EPS to be in the range of $0.48 to $0.52
  • Reiterates fiscal 2023 GAAP diluted net EPS to be in the range of $1.42 to $1.46 and raises non-GAAP diluted net EPS guidance to be in the range of $2.11 to $2.15

Revenue & Expenses

Visualization of income flow from segment revenue to net income