HPE Reports Fiscal 2023 Q1 Results 

HOUSTON, March 2, 2023 -- Hewlett Packard Enterprise (HPE) today announced financial results for the first quarter ended January 31, 2023.

“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 Hewlett Packard Enterprise. “Powered by our market-leading hybrid cloud platform HPE 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 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.”

First Quarter Fiscal 2023 Segment Results

Intelligent Edge revenue was $1.1 billion, up 25% from the prior-year period in actual dollars and 31% when adjusted for currency, with 21.9% operating profit margin, compared to 17.4% in the prior-year period. Revenue performance hit a quarterly record, and the business exceeded the Rule of 40 for the quarter

High Performance Computing & Artificial Intelligence (“HPC & AI”) revenue was $1.1 billion, up 34% from the prior-year period in actual dollars and 37% when adjusted for currency, with 0.1% operating profit margin, compared to (0.9%) from the prior-year period. Revenue for the quarter marked a new record for the business

Compute revenue was $3.5 billion, up 14% from the prior-year period in actual dollars and 19% when adjusted for currency, with 17.6% operating profit margin, compared to 14.0% from the prior-year period

Storage revenue was $1.2 billion, up 5% from the prior-year period in actual dollars and 10% when adjusted for currency, with 12.0% operating profit margin, compared to 13.9% from the prior-year period. HPE Alletra revenue growth was up triple-digits from the prior-year

Financial Services revenue was $873 million, up 4% from the prior-year period in actual dollars and up 8% when adjusted for currency, with 9.4% operating profit margin, compared to 12.4% from the prior-year period. Net portfolio assets of $13.2 billion, up 2% from the prior-year period and up 4% when adjusted for currency. The business delivered return on equity of 16.7%, down 3.1 points from the prior-year period

Dividend:

The HPE Board of Directors declares a regular cash dividend of $0.12 per share on the company’s common stock, payable on April 14, 2023, to stockholders of record as of the close of business on March 17, 2023.

Fiscal 2023 Second Quarter Outlook:

HPE estimates revenue to be in the range of $7.1 billion to $7.5 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.27 to $0.35 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.52. Fiscal 2023 second quarter non-GAAP diluted net EPS estimates exclude after-tax adjustments of $0.17 per diluted share, primarily related to stock-based compensation expense, transformation costs, and amortization of intangible assets.

Fiscal 2023 Outlook:

HPE raises 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. Fiscal 2023 non-GAAP diluted net EPS estimates exclude after-tax adjustments of $0.62 per diluted share, primarily related to stock-based compensation expense, amortization of intangible assets, and transformation costs.

Fiscal 2023 free cash flow: Reiterates guidance of $1.9 billion to $2.1 billion.

Fiscal 2023 capital returns to shareholders: Returning approximately 60% of free cash flow to shareholders in dividends and share repurchases.

Download the Q1 FY23 earnings infographic here.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (NYSE: HPE) is the global edge-to-cloud company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way people live and work, HPE delivers unique, open and intelligent technology solutions as a service.  With offerings spanning Cloud Services, Compute, HPC & AI, Intelligent Edge, Software, and Storage, HPE provides a consistent experience across all clouds and edges, helping customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.

Source: HPE