Updated
Updated · Yahoo Finance · Sep 2
HPE Posts $12.21 Billion Q2 Revenue, Guides Q3 Sales 10.2% Above Estimates
Updated
Updated · Yahoo Finance · Sep 2

HPE Posts $12.21 Billion Q2 Revenue, Guides Q3 Sales 10.2% Above Estimates

3 articles · Updated · Yahoo Finance · Sep 2

Summary

  • $12.21 billion in Q2 revenue beat analysts’ $11.99 billion forecast as HPE’s sales jumped 33.7% from a year earlier.
  • $14.35 billion in Q3 revenue guidance came in 10.2% above Wall Street expectations, while management lifted full-year adjusted EPS guidance 11.8% to $3.80 at the midpoint.
  • $1.11 in adjusted EPS topped the $0.94 consensus, and operating margin widened to 11.4% from 2.7% a year earlier, even as free cash flow margin slipped to 7.8% from 9%.
  • HPE’s latest quarter extends a stronger growth run, with revenue rising at a 20.1% annualized pace over the last two years versus 8.7% over the past five years.

Insights

Despite a massive $5 billion AI networking backlog and raised guidance, why are HPE insiders quietly selling off their shares?
Will ongoing supply constraints choke HPE's explosive networking growth before it can fully deliver on its Oracle AI data center partnership?
Can HPE's aggressive incentives to poach frustrated VMware customers truly sustain its hybrid cloud momentum beyond the current AI hype cycle?