HPE Releases 10-K Report with 3.4% Revenue Increase

By Tamara Parker • Thursday, December 19 10:31 • Permanent Link

Hewlett Packard Enterprise (HPE) has recently released its 10-K report, providing an in-depth look into the company's financial performance and operations. HPE operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. The company offers a wide range of products and services including servers, storage products, networking software, and professional and support services.

In its 10-K report, HPE discussed several important factors impacting its financial condition and results of operations. These included technological advancements such as AI, hybrid cloud, and edge computing driving market trends and demand. The company also highlighted the impact of the evolving macroeconomic environment on industry-wide demand, supply chain constraints, and the increasing demand for flexible consumption models.

In terms of financial results, HPE reported a 3.4% increase in net revenue, reaching $30.1 billion for the fiscal year ended October 31, 2024. The gross profit margin decreased by 2.3 percentage points to 32.8%, primarily due to a decline in revenue in the Intelligent Edge segment and a higher mix of lower-margin products in the Server segment. The operating profit margin remained relatively flat at 7.3% compared to the prior year.

On a non-GAAP basis, HPE reported a 3.3% increase in net revenue in constant currency, reaching $30.1 billion. The non-GAAP gross profit margin decreased by 2.5 percentage points to 32.8%, and non-GAAP earnings from operations increased by 0.7% to $3.2 billion. The company's non-GAAP net earnings attributable to common stockholders decreased by 7.1% to $2.6 billion.

HPE also highlighted its pivot to as-a-service (aaS) models, with the addition of HPE GreenLake cloud services contributing to the company's Annualized Revenue Run-rate (ARR). The company aims to continue investing in HPE GreenLake cloud services to provide a true cloud experience and operating model across multiple environments.

The market has reacted to these announcements by moving the company's shares 1.4% to a price of $20.88. For the full picture, make sure to review Hewlett Packard Enterprise's 10-K report.

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