HPE Delivers Record Q1 Performance; Raises Guidance

In its first fiscal quarter of 2023, Hewlett Packard Enterprise achieved record revenue for the first period of the year. The company has also raised its outlook for the 2023 FY.

The revenue reached $7.8 billion, up 12% compared with the same quarter in 2022, and was above guidance. Annualized revenue run-rate for the first time exceeded $1 billion and was up 26% from the prior-year period. A gross margin of 34.0% was up 30 basis points from the prior-year period and up 110 basis points sequentially. Diluted net equity per share of $0,38 was down 3% YoY.

“HPE delivered exceptional results in Q1, posting our highest first-quarter revenue since 2016 and best-ever non-GAAP operating profit margin,“ said Antonio Neri, president and CEO of HPE. “Powered by our market-leading hybrid cloud platform GreenLake, we unlocked an impressive run rate of $1 billion in annualized revenue for the first time. These results, combined with a winning strategy and proven execution, position us well for FY23, and give us the confidence to raise our financial outlook for the full year.“

“In Q1 we continued to out-execute our competition despite uneven market demand and produced more revenues in every one of our key segments, with our Edge business Aruba being a standout,“ said Tarek Robbiati, executive vice president and CFO of Hewlett Packard Enterprise. “We are now focusing our attention and are investing to carry our momentum well into the second half of FY23 and FY24.“

In the second quarter, HPE estimates revenue to be in the range of $7.1 billion to $7.5 billion. For the full FY 2023, the company raised guidance of GAAP diluted net EPS to be in the range of $1.40 and $1.48 and non-GAAP diluted net EPS to be in the range of $2.02 and $2.10.