HPE reported its first-quarter financial results for the fiscal year 2025 ending in January, with revenue of $7.854 billion, up 16% from the same quarter in the previous year. Net profit according to GAAP accounting was $598 million, and Annual Recurring Revenue (ARR) increased by 45% to $2.1 billion.
The server business generated revenue of $4.29 billion, a 29% increase, with AI server sales reaching $3.1 billion driven by orders for NVIDIA’s Blackwell GPU models. The Intelligent Edge group saw a revenue decline of 5% to $1.146 billion, while Hybrid Cloud revenue increased by 10% to $1.405 billion.
HPE announced cost-cutting plans for the next 18 months, including the elimination of approximately 2,500 positions, expecting to reduce expenses by $350 million. In January, the US Department of Justice filed a complaint against HPE’s acquisition plan of Juniper, citing concerns. Both HPE and Juniper stated their intention to address the issues for a successful deal.
Source: HPE and CNBC
TLDR: HPE reported strong financial performance in the first quarter of fiscal year 2025, with revenue increasing by 16% and net profit of $598 million. The company plans to cut costs by eliminating 2,500 positions to reduce expenses by $350 million. The US Department of Justice has raised concerns about HPE’s acquisition of Juniper, with both companies working to address the issues.
Leave a Comment