🔹 Adj. EPS: $0.49 (Est. $0.49) 🟡; UP +2% YoY
🔹 Revenue: $7.9B (Est. $7.81B) 🟢; UP +16% YoY
🔹 ARR: $2.1B; UP +45% YoY
Q2'25 Guidance:
🔹 Revenue: $7.2B-$7.6B (Est. $7.98B) 🔴
🔹 Adj. EPS: $0.28-$0.34 (Est. $0.51) 🔴
🔹 GAAP EPS: $0.08-$0.14
Full-Year Fiscal 2025 Outlook:
🔹 Revenue Growth: 7%-11% (Est. $32.57B) 🟡
🔹 Adj. EPS: $1.70-$1.90 (Est. $2.14) 🔴
🔹 GAAP EPS: $1.15-$1.35
🔹 Free Cash Flow: ~$1B
Segment Performance (Q1 FY25):
🔹 Servers: $4.3B; UP +29% YoY; Operating Margin: 8.1% (Prev. 11.4%)
🔹 Intelligent Edge: $1.1B; DOWN -5% YoY; Operating Margin: 27.4% (Prev. 29.4%)
🔹 Hybrid Cloud: $1.4B; UP +10% YoY; Operating Margin: 7.0% (Prev. 4.0%)
🔹 Financial Services: $873M; Flat YoY; Operating Margin: 9.4% (Prev. 8.5%)
Key Metrics:
🔹 Gross Margin: 29.4% (Prev. 36.2%)
🔹 Operating Cash Flow: -$390M; DOWN $454M YoY
🔹 Free Cash Flow: -$877M; DOWN $395M YoY
🔹 Capital Returns: $223M (Dividends & Buybacks)
Dividend Update:
🔹 Declared quarterly dividend of $0.13/share, payable April 18, 2025
Strategic & Legal Updates:
🔸 U.S. DOJ filed a complaint to block HPE-Juniper Networks merger; trial set for July 9, 2025
🔸 HPE to vigorously defend the merger, emphasizing competition benefits
Management Commentary:
🔸 CEO Antonio Neri: "HPE delivered strong revenue growth for the fourth consecutive quarter, though execution could have been better. We remain confident in driving shareholder returns."
🔸 CFO Marie Myers: "We met our revenue guidance while implementing cost streamlining efforts to offset profitability challenges. Our strategy remains aligned with long-term growth trends."
