Hewlett Packard Enterprise (HPE) delivered a strong performance in the second quarter of fiscal 2024, with revenue and non-GAAP diluted net earnings per share exceeding expectations, driven by a doubling of AI systems revenue from the previous quarter. AI demand is accelerating, with cumulative AI systems orders reaching $4.6 billion this quarter. The company is optimistic about the future, raising full-year revenue and non-GAAP earnings per share guidance. HPE is focused on translating strong AI customer demand to revenue growth and driving cost discipline to ensure efficient operations and sustained growth.
The company’s lead in AI at scale and across the entire AI life cycle, combined with expertise in direct liquid cooling technologies, manufacturing capacity, and a strong ecosystem of AI partners including NVIDIA, positions HPE as a leader in the AI market. The company is seeing increased demand for AI systems from enterprise customers and expects further acceleration in enterprise AI systems orders through the end of the fiscal year.
HPE’s AI systems revenue growth is driven by improvements in supply chain logistics, including lead times of 6 to 12 weeks for NVIDIA H100 solutions. The company’s differentiated AI portfolio, GreenLake hybrid cloud offering, and networking and storage solutions are attracting new customers and driving revenue growth. HPE’s collaboration with Microsoft and other partners in AI development and deployment is expanding its market reach.
The company’s financial performance in Q2 exceeded expectations, with revenue growth of 4% year-over-year and 7% quarter-over-quarter in constant currency. HPE’s focus on cost discipline, simplicity, and efficiency across the business is improving its cost structure and driving profitability. The company has raised its guidance for full-year revenue and non-GAAP earnings per share, anticipating a stronger second half led by AI systems, traditional servers, storage, networking, and GreenLake.
In conclusion, HPE’s strong performance in Q2, driven by its leadership in AI, hybrid cloud, and networking, positions the company for continued growth and profitability in the evolving technology landscape. With a robust pipeline, growing demand for AI systems, and strategic partnerships, HPE is well-positioned to capitalize on the opportunities presented by rapid innovation in the industry.
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