Hewlett Packard Enterprise Stock Rises On Q2 Earnings, Company Sees Stronger EPS Than Previously Forecasted

Zinger Key Points

Hewlett Packard Enterprise Co HPE reported second-quarter financial results after the market close on Tuesday. Here’s a look at the key metrics from the quarter.

  • Q2 Revenue: $7.63 billion, versus estimates of $8.17 billion
  • Q2 Adjusted EPS: 38 cents, versus estimates of 41 cents

Total revenue was up 6% on a year-over-year basis. Annualized revenue run-rate increased 46% year-over-year to $2.2 billion. The company reported negative free cash flow of $847 million and ended the period with $11.67 billion in cash and cash equivalents.

“We delivered a solid performance, achieving yet another quarter of year-over-year revenue growth with strength in each of our product segments,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise.

“In a very dynamic macro environment, we executed our strategy with discipline. We remain focused on bringing breakthrough innovation to our customers while increasing profitability and enhancing shareholder value.”

Hewlett Packard Enterprise’s board declared a regular cash dividend of 13 cents per share, payable on July 17 to shareholders of record as of June 18.

Guidance: Hewlett Packard Enterprise sees third-quarter revenue of $8.2 billion to $8.5 billion versus estimates of $8.85 billion. The company expects third-quarter adjusted earnings in the range of 40 cents to 45 cents per share versus estimates of 56 cents per share.

Hewlett Packard Enterprise expects full-year revenue growth of 7% to 9%. The company also raised the low end of its guidance for full-year 2025 adjusted earnings. Hewlett Packard Enterprise now expects full-year earnings of $1.78 to $1.90 per share, up from prior guidance of $1.70 to $1.90 per share. Analysts are forecasting full-year earnings of $1.79 per share, according to Benzinga Pro.

HPE Price Action: Hewlett Packard Enterprise shares were up 3.17% in Tuesday’s after-hours session, trading at $18.25 at the time of publication, according to Benzinga Pro.

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