HPE delivers double-digit year-over-year revenue growth in Q1 as the company continues to bring bold innovation to market
Our consistent growth reflects the strength of our strategy across networking, hybrid cloud and AI
- In Q1, we marked our fourth consecutive quarter of year-over-year revenue growth, with a double-digit year-over-year revenue increase in Q1
- We met our revenue and earnings-per-share commitments to our shareholders but saw margin pressure in our Server segment
- Customer demand across our portfolio is strong
HPE announced earnings results today that marked our fourth consecutive quarter of year-over-year revenue growth, with a double-digit year-over-year revenue increase in Q1. Our consistent growth reflects the progress we have made in aligning our strategy to the megatrends that are defining customer expectations.
While we met our revenue and earnings-per-share commitments to our shareholders, we saw margin pressure in our Server segment, and we could have done better in certain areas of our business. However, I am pleased to see the strong double-digit demand across our portfolio continued in the quarter, which illustrates customer excitement for our unique and differentiated innovation.
“I am pleased to see the strong double-digit demand across our portfolio continued in the quarter, which illustrates the excitement for our unique and differentiated innovation.”
Leadership in AI systems
AI is reshaping industries and redefining what is possible. And HPE is at the center of the AI era, pioneering new technologies and enabling our customers to do things they have never done before.
For many decades, HPE has been a world leader at the forefront of designing and building fully integrated, powerful large-scale systems. AI model builders and service providers are increasingly demanding solutions that offer scalability, extreme performance, and fast time-to-deployment. Last month, we announced the shipment of our first NVIDIA Blackwell family-based solution, the NVIDIA GB200 NVL72. This rack-scale system by HPE will enable service providers and enterprises to deploy large, complex AI clusters with advanced, direct liquid cooling solutions to train trillion-parameter models quickly and efficiently.
HPE continues to expand its leadership in supercomputing and direct liquid cooling solutions by engineering AI systems that achieve 90% reduction in cooling power consumption (versus traditional air-cooling systems) to deliver exceptional efficiency, sustainability and performance for the most demanding AI workloads. From delivering the world’s fastest supercomputer with El Capitan to our most recent collaboration with the Leibniz Supercomputing Center at the Bavarian Academy of Sciences and Humanities to build its new supercomputer “Blue Lion,” we are not slowing down our progress to help our global customers advance their most ambitious goals in the AI era.
HPE has been a pioneer in the server market by delivering multiple, industry-first innovations over the past 30 years. With the new HPE ProLiant Gen12, we have raised the bar and set another industry first—quantum-resistant security with enhanced Silicon Root of Trust and predictive AI insights for forecasting energy costs and carbon emissions. With sustainability as a critical focus for many of our customers, this latest generation also offers the most sustainable and secure cost per core performance. Just one Gen12 server can replace up to 26 Gen9 servers and up to 14 Gen10 servers, allowing customers to curb their power consumption by at least 65%.
Simplification through HPE GreenLake
In Q1, HPE continued to innovate HPE GreenLake, aiming to help customers to optimize their hybrid IT strategies. HPE GreenLake cloud’s latest innovations, including HPE VM Essentials, OpsRamp enhancements, and new private cloud solutions – help enterprises modernize IT, cut virtualization and public cloud costs, while accelerating AI adoption. With unified VM management, hybrid cloud automation, AI-driven observability, and disconnected private cloud capabilities, HPE is delivering a more flexible, cost-efficient hybrid cloud operating model for faster time to ROI.
Enhanced experience at the edge
Customers are focusing their networking priorities on core connectivity, enhanced security, and expanded wireless access. They are turning to HPE to help incorporate AI solutions to improve customer experience and achieve greater efficiency, with the connectivity and high-performance edge computing required to modernize environments.
HPE Aruba Networking is enhancing enterprise connectivity for our telecommunications customers, and earlier this week we spoke at Mobile World Congress about how we are gearing telcos up to take advantage of AI to deliver new revenue streams and services. HPE is leading the way in redefining the network's role in delivering business value for the telco industry – and that includes finding new ways to drive innovation and enhance the user experience for customers.
And finally, we strongly believe we will enhance competition in the networking market with our pending acquisition of Juniper Networks. HPE and Juniper remain fully committed to the deal and we expect to be able to close the transaction before the end of fiscal year 2025. I invite you to visit our dedicated website to stay up to date on the status of the transaction.
Ushering in the next decade of innovation
This year, HPE will turn 10 years old as a stand-alone company. I am proud of the remarkable transformation we have undergone during that time and of how our bold moves have translated into game changers for the companies and communities counting on us.
Every quarter, we have the chance to take stock of our performance and of where we will go next. After an incredible finish to 2024, the first quarter of FY2025 did pose challenges for us in executing with discipline in some areas that are consistent with our track record. There were also some compelling reminders that we are delivering important, differentiated technology the market needs and expects. We consider it a privilege to be the partner who unlocks and powers our customers’ ambitions that are changing the world. And that is exactly what we will keep doing.