$HPE (+4,02 %)

🔹 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."

Hewlett Packard Enterprise ($HPE (+4,02 %) ) has reportedly clinched a contract worth over $1 billion with Elon Musk’s social media platform, X, to deliver AI-optimized servers. This landmark agreement, finalized late last year, cements HPE’s role as a rising force in the booming AI infrastructure market, edging out rivals Dell Technologies ($DELL ) and Super Micro Computer ($SMCI (+11,41 %) ).

HPE will provide advanced AI servers, powered by Nvidia chips, to support X’s operations, while data center infrastructure spending soared by 34% in 2024, reaching $282 billion globally 🌐.

📈 Implications for HPE

HPE’s victory in securing this deal signals growing confidence in its AI server capabilities, long viewed as trailing behind Dell and Super Micro. This agreement could redefine HPE’s standing in the competitive AI market, positioning it for accelerated growth.

Marie Myers, HPE’s CFO, highlighted in a December earnings call the surging adoption of AI systems across industries, though she noted that the competitive environment remains fierce. This deal underscores HPE’s readiness to compete and innovate in the AI space.

💼 Market and Strategic Impacts

HPE shares jumped over 3% following the announcement, reflecting investor optimism.

Outmaneuvering Dell and Super Micro for this deal could strengthen HPE’s market position in AI infrastructure.

⚡ Looking Ahead

This landmark agreement marks a significant step forward for HPE in the rapidly growing AI market. With demand for high-powered computing solutions surging, HPE is well-positioned to leverage its enhanced reputation and capitalize on future opportunities.

As enterprises and sovereigns increasingly adopt AI systems, HPE’s strategic advancements could pave the way for sustained growth and innovation in this dynamic industry.

🚀 Let's Engage Together

What’s your take on this milestone deal and its potential impact on the AI server market? Share your thoughts in the comments below! Don’t forget to like this post and share it with your network to keep the conversation going ! 👍🏻

$HPE (+4,02 %) Hewlett Packard Enterprise reported earnings

Q4 FY2024 results ended on October 31st 2024

- Revenue: $8.5B, +15% YoY

- Net earnings: $1.37B, up from $642M YoY

- GAAP EPS: $0.99, +102% YoY

- Annualized revenue run-rate (ARR): $1.9B, +49% YoY

CEO Antonio Neri: "HPE delivered an exceptional fourth quarter with record quarterly revenue, capping off a strong FY 2024. We exceeded our full-year commitments for revenue, EPS, and free cash flow."

🌱Revenue & Growth

- Server: $4.7B, +32% YoY

- Hybrid Cloud: $1.6B, +18% YoY

- Intelligent Edge: $1.1B, -20% YoY

- Financial Services: $893M, +2% YoY

💰Profits & Financials

- Operating income: $693M, +37% YoY

- Non-GAAP operating margin: 11.1% vs 9.7% YoY

- Free cash flow: $1.5B vs $2.3B YoY

- Cash and investments: $14.8B as of October 31st

📌Business Highlights

- Server operating margin improved to 11.6% from 10.1% YoY

- Hybrid Cloud operating margin up to 7.7% from 3.8% YoY

- Declared quarterly dividend of $0.13 per share

- Juniper Networks acquisition on track to close early 2025

- Received regulatory approvals from EU, UK, India and others

🔮Future Outlook

- Q1 FY2025 revenue expected to grow mid-teens YoY

- Q1 GAAP EPS guidance: $0.31-$0.36

- Q1 Non-GAAP EPS guidance: $0.47-$0.52

- Expected to close Juniper Networks acquisition in early 2025