Hewlett Packard Enterprise's April-Q Results: Mixed Performance with Growth in HPC and Intelligent Edge

Hewlett Packard Enterprise reported April revenue of $7.0 billion, down 10% quarter-over-quarter but up 9% year-over-year. The company's results were in line with consensus expectations of $7.3 billion.

Server revenue declined 20% Q/Q and 3% Y/Y in constant currency. Storage revenue dropped 12% and 3%. High performance computing revenue declined 20% Q/Q but increased 22% Y/Y. Intelligent Edge (the former Aruba business) increased 15% Q/Q and 56% in CC Y/Y.

For the full fiscal year 2023, HPE expects revenue of $32.5 billion to $33.0 billion, with non-GAAP earnings per diluted share of $3.30 to $3.40.

HPE's April-Q results were mixed, with some areas of strength and others of weakness. The company's server and storage businesses declined, while its HPC and Intelligent Edge businesses grew.

The decline in server revenue is likely due to the ongoing chip shortage, which has made it difficult for HPE to meet demand. The decline in storage revenue is likely due to the fact that businesses are increasingly moving to the cloud, which reduces the need for on-premises storage.

The growth in HPC and Intelligent Edge revenue is a positive sign for HPE. These are two areas where the company is investing heavily, and they are both growing rapidly.