Financial Data and Key Metrics Changes - Net revenue for Q3 2024 was $7.7 billion, representing a 10% year-over-year increase and at the high end of guidance [7] - Non-GAAP diluted net earnings per share rose to $0.50, $0.02 above the high end of guidance [7] - Free cash flow exceeded $660 million, with a dividend of $0.30 per share announced [7][26] - Non-GAAP gross margin was 31.8%, down 410 basis points year-over-year due to a lower mix of Intelligent Edge revenue [30] Business Line Data and Key Metrics Changes - Server segment revenue reached $4.3 billion, up 35% year-over-year and 11% sequentially, driven by AI systems and traditional servers [32] - Hybrid Cloud segment revenues were $1.3 billion, down 7% year-over-year but up 4% sequentially [36] - Intelligent Edge revenues were $1.1 billion, down 23% year-over-year but up 3% sequentially [39] - Financial Services revenue was $879 million, up 1% year-over-year [41] Market Data and Key Metrics Changes - Demand improved in North America, Asia-Pacific, Japan, and India, while Europe and the Middle East lagged [8] - AI systems revenue conversion reached $1.3 billion, a 39% increase from Q2 [12] - HPE GreenLake cloud platform saw almost 37,000 unique customers, driving annualized revenue run rate subscription growth [8] Company Strategy and Development Direction - The company is focused on its edge-to-cloud vision, emphasizing AI, hybrid cloud, and networking [8][10] - A pending acquisition of Juniper Networks is expected to enhance the company's networking capabilities and margin profile [9][23] - The introduction of HPE Private Cloud AI aims to accelerate enterprise AI adoption [19][27] Management's Comments on Operating Environment and Future Outlook - Management noted an improved demand environment and strong enterprise interest in generative AI [8][26] - The company is optimistic about the recovery in enterprise demand and the potential for AI systems to drive future growth [26][27] - Management expects to close the Juniper acquisition by late 2024 or early 2025, which will significantly impact margins [43][46] Other Important Information - The company received $2.1 billion from the partial sale of its H3C equity position [7][26] - The cash conversion cycle improved to a positive four days, a reduction of 19 days from the previous year [42] Q&A Session Summary Question: Insights on Server margins and AI revenue contribution - Management indicated that server margins were supported by the shift to Gen11 products with richer configurations and effective cost management [49][50] Question: Factors impacting gross margins - Management highlighted that the lower contribution from networking revenue and the AI server mix affected gross margins, but operational discipline is expected to improve profitability [52][54] Question: Free cash flow trends and expectations - Management explained that working capital timing and seasonality impacted Q3 free cash flow, but improvements are expected in Q4 [58][59] Question: AI backlog composition and enterprise demand projects - Management noted that the AI backlog is strong, with enterprise demand spanning various verticals, including healthcare and financial services [72][73] Question: Trends in traditional servers versus AI platforms - Management stated that there are no signs of cannibalization of traditional servers by AI platforms, as demand remains strong across different segments [68][70]

For the quarter ended July 2024, Hewlett Packard Enterprise (HPE) reported revenue of $7.71 billion, up 10.1% over the same period last year. EPS came in at $0.50, compared to $0.49 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $7.67 billion, representing a surprise of +0.56%. The company delivered an EPS surprise of +8.70%, with the consensus EPS estimate being $0.46.While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Financial Performance - HPE's net revenue reached $7.7 billion, a 10% year-over-year increase, driven by a 39% quarter-over-quarter rise in AI systems revenue, which amounted to $1.3 billion[4] - Non-GAAP diluted net earnings per share (EPS) stood at $0.50, exceeding guidance by $0.02, leading to an increase in full fiscal year GAAP and Non-GAAP diluted net EPS guidance[4] - The company's Q3 free cash flow was $669 million, with a cash conversion cycle of 4 days[4] - HPE's ARR (Annualized Revenue Run-Rate) grew by 39% year-over-year to $1.7 billion[4, 10] Orders and Backlog - AI systems orders increased by $1.6 billion quarter-over-quarter, reaching a cumulative total of $6.2 billion[4] - HPE received $2.1 billion in proceeds from the partial sale of its H3C equity position in Q4[4] Segment Performance - Server revenue increased by 35% year-over-year to $4.28 billion, with an operating profit of $464 million, representing 10.8% of revenue[11, 17] - Intelligent Edge revenue decreased by 23% year-over-year to $1.121 billion, with an operating profit of $251 million, or 22.4% of revenue[11, 18] - Hybrid Cloud revenue decreased by 7% year-over-year to $1.3 billion, with an operating profit of $66 million, or 5.1% of revenue[11, 19] Customer Adoption - The HPE GreenLake cloud platform is used by 37,000 customer organizations, an increase of almost 3,000 quarter-over-quarter and 10,000 year-over-year[4]

Hewlett Packard Enterprise (HPE) came out with quarterly earnings of $0.50 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.70%. A quarter ago, it was expected that this information technology products and services provider would post earnings of $0.38 per share when it actually produced earnings of $0.42, delivering a surpr ...

Exhibit 99.1 "We delivered a strong third quarter, with impressive revenue growth, especially from our AI system conversion, and we improved profitability," said Antonio Neri, president and CEO of Hewlett Packard Enterprise. "These results reflect our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI. We have driven meaningful innovation throughout our portfolio, which increases our relevancy with customers and positions us to continue to deliver profitable growth ...

Investors interested in stocks from the Computer - Integrated Systems sector have probably already heard of Hewlett Packard Enterprise (HPE) and ZoomInfo (ZI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Ra ...

Wall Street expects Hewlett Packard Enterprise Co HPE to report 47 cents in earnings per share (EPS) and $7.66 billion in revenues when the company reports third-quarter earnings on Thursday after market hours.The stock is up 7.19% over the past year, 12.76% year-to-date.Let’s look at what the charts indicate for Hewlett Packard’s stock and how it currently maps against Wall Street estimates.Hewlett Packard Stock’s Outlook Mixed Ahead Of Q3 Earnings Hewlett Packard’s stock chart is showing a mixed technical ...

Group 1 - Hewlett Packard (HP) will continue its lawsuit against the family of the late Mike Lynch for up to $4 billion following his death in a yacht sinking incident [1][4] - The lawsuit has been ongoing for 13 years, stemming from HP's acquisition of Lynch's company, Autonomy, in 2011, where HP accused Lynch of misrepresenting the company's value [3][4] - Angela Bacares, Lynch's wife, is expected to inherit the legal battle against HP, as the company intends to pursue the lawsuit to its conclusion [4] Group 2 - An English High Court judge ruled in 2022 that HP had substantially succeeded in its civil fraud claims against Lynch and his former vice president of finance, Stephen Chamberlain [4] - A damages hearing related to the case was held in February 2024, with a decision on damages expected to be announced soon [4] - The yacht tragedy occurred shortly after Lynch and Chamberlain were acquitted of charges related to falsifying financial documents and misleading auditors [5]

Core Points - Hewlett Packard is pursuing legal action to claim up to $4 billion in damages from the estate of Mike Lynch in the UK [1] - The lawsuit stems from HP's acquisition of Autonomy, which was valued at $11.1 billion in 2011, amid allegations of fraud by Lynch to inflate the company's worth [2] - HP had previously won a civil case against Lynch in 2022, but the High Court indicated that any awarded damages would be less than the $5 billion initially sought by HP [2] Company Actions - The company continues legal proceedings against both Mike Lynch and Autonomy's former CFO, Sushovan Hussain [3] - HP's claims are based on findings of a significant accounting scandal at Autonomy discovered in late 2012 [2] Background Information - Mike Lynch, co-founder of Autonomy, passed away in August 2023 when his yacht sank off the coast of Sicily, and he had denied any wrongdoing related to the allegations [1]

Wall Street analysts expect Hewlett Packard Enterprise (HPE) to post quarterly earnings of $0.46 per share in its upcoming report, which indicates a year-over-year decline of 6.1%. Revenues are expected to be $7.64 billion, up 9.1% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Ahead of a company' ...