Hewlett Packard Enterprise (HPE) reported revenue of $6.8 billion for its first quarter ended January 31, 2024, down 14% from the prior-year period in actual dollars and in constant currency. Non-GAAP earnings per share was $0.48, down 24% from the prior-year period and down 8% sequentially, at the high end of the guidance range of $0.42 to $0.50.
"HPE exceeded our profitability expectations and drove near-record year-over-year growth in our recurring revenue in the face of market headwinds, demonstrating the relevance of our strategy,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “Despite a mixed quarter, I remain very confident that our focus on customer-centric innovation and our track record of operational discipline will allow us to capitalize on the significant market opportunities in AI as well as across edge and hybrid cloud and to deliver value to our shareholders.”
Highlights
- Server revenue was $3.4 billion, down 23% from the prior-year period in actual dollars and in constant currency, with 11.4% operating profit margin, compared to 15.7% from the prior-year period. The Server business segment combines the previously separately reported Compute and HPC & AI business segments, with adjustments for certain product lines that are now reported in Hybrid Cloud. The merged Server segment more accurately reflects HPE’s position in the market as well as recent organizational and leadership changes that were implemented in Q1 FY24.
- Intelligent Edge revenue was $1.2 billion, up 3% from the prior-year period in actual dollars and 2% in constant currency, with 29.4% operating profit margin, compared to 19.4% in the prior-year period.
- Hybrid Cloud revenue was $1.2 billion, down 10% from the prior-year period in actual dollars and in constant currency, with 3.8% operating profit margin, compared to 5.8% from the prior-year period.
- Financial Services revenue was $873 million, flat from the prior-year period in actual dollars and down 2% in constant currency, with 8.5% operating profit margin, compared to 7.2% from the prior-year period. Net portfolio assets of $13.2 billion, up 0.3% from the prior-year period in actual dollars and up 0.7% in constant currency. The business delivered return on equity of 15.4%, down 2.4 points from the prior-year period.
