Hewlett Packard Enterprise Reports Strong Q1 2025 Results with 16% Revenue Growth
HOUSTON – March 6, 2025 – Hewlett Packard Enterprise (NYSE: HPE) reported strong first-quarter fiscal 2025 results, delivering 16% revenue growth year-over-year, driven by robust performance across key segments.

Key Q1 2025 Financial Highlights
Revenue: $7.9 billion, up 16% YoY (17% in constant currency)
Annualized Revenue Run-Rate (ARR): $2.1 billion, up 45% YoY
GAAP Gross Margin: 29.2%, down 720 basis points YoY
GAAP EPS: $0.44, up 52% YoY, exceeding guidance range of $0.31 to $0.36
Non-GAAP EPS: $0.49, up 2% YoY, within guidance of $0.47 to $0.52
Cash Flow from Operations: $(390) million, a decrease of $454 million YoY
Free Cash Flow (FCF): $(877) million, down $395 million YoY
Capital Returns: $223 million in dividends and share repurchases
Segment Performance
Server Revenue: $4.3 billion, up 29% YoY
Operating profit margin: 8.1%, compared to 11.4% YoY
Hybrid Cloud Revenue: $1.4 billion, up 10% YoY
Operating profit margin: 7.0%, up from 4.0% YoY
Intelligent Edge Revenue: $1.1 billion, down 5% YoY
Operating profit margin: 27.4%, down from 29.4% YoY
Financial Services Revenue: $873 million, flat YoY
Operating profit margin: 9.4%, up from 8.5% YoY
Dividend Declaration
HPE Board declared a cash dividend of $0.13 per share, payable on April 18, 2025, to stockholders of record as of March 21, 2025.
Outlook for Q2 and Full-Year 2025
Q2 2025 Revenue: $7.2 billion to $7.6 billion
Q2 GAAP EPS: $0.08 to $0.14
Q2 Non-GAAP EPS: $0.28 to $0.34
Full-Year Revenue Growth: 7% to 11%
Full-Year GAAP EPS: $1.15 to $1.35
Full-Year Non-GAAP EPS: $1.70 to $1.90
Full-Year Free Cash Flow: ~$1 billion
Juniper Networks Acquisition Update
U.S. Department of Justice filed a lawsuit to block the HPE-Juniper merger.
Trial scheduled for July 9, 2025.
HPE remains committed to completing the transaction, citing benefits for competition and innovation.
CEO & CFO Comments
Antonio Neri, CEO:

"HPE delivered another quarter of strong revenue growth, demonstrating our execution and innovation. While we could have executed better in some areas, we remain confident in our long-term strategy and ability to drive shareholder value."

Marie Myers, CFO:

"We met our revenue targets while implementing cost optimization measures. We remain focused on aligning strategy with long-term growth trends."

Hewlett Packard Enterprise (HPE) and Juniper Networks have strongly opposed the U.S. Department of Justice’s (DOJ) lawsuit seeking to block HPE’s proposed acquisition of Juniper. In a joint statement, the companies argued that the DOJ’s antitrust concerns are misguided and that the merger would enhance competition, drive innovation, and strengthen the U.S. networking sector.

HPE and Juniper emphasized that the Wireless Local Area Network (WLAN) market, which is central to the DOJ’s case, remains highly competitive with multiple players. They noted that the merger has already been approved by regulators in 14 jurisdictions, including the European Union and the UK, with the U.S. and Israel being the only holdouts. The companies also highlighted that no customer complaints have been cited as a basis for the DOJ’s opposition.

Beyond the immediate business implications, HPE and Juniper positioned the acquisition as a strategic move to bolster the American “core tech” sector, which includes critical networking infrastructure. They stressed that the deal would help the U.S. maintain its technological edge in areas like 6G and quantum-secure communications, which are vital for national security.

Despite the DOJ’s lawsuit, both companies remain fully committed to the transaction and plan to fight the case in court. They believe they will ultimately prevail and finalize the acquisition to deliver its promised benefits to customers.

For more details, the full press release is available as Exhibit 99.1.

On January 14, 2025, Hewlett Packard Enterprise Company (HPE) announced that its Board of Directors approved a dividend of $0.953125 per share on its 7.625% Series C Mandatory Convertible Preferred Stock. The dividend is payable on March 1, 2025, to shareholders of record as of February 15, 2025. If March 1 is not a business day, the dividend will be paid on the next business day without any interest or additional payments due to the delay. This declaration by HPE's Board is contingent on legal availability of funds and Board approval prior to payment.