Hewlett Packard Enterprise (HPE) has disclosed its financial results for the fourth quarter of fiscal 2023, reporting total revenue of $7.4 billion. However, this figure reflects a 7 percent decline compared to the same period in the previous year.
Here’s a breakdown of HPE’s segment performance in Q4 fiscal 2023:
Intelligent Edge: Revenue reached $1.4 billion, marking an impressive 41 percent surge from the prior-year period. The segment also witnessed an increase in operating profit margin, rising to 29.5 percent from 13.3 percent in the prior year.
High Performance Computing & Artificial Intelligence (HPC & AI): Generated revenue of $1.2 billion, exhibiting a substantial 37 percent growth compared to the previous year. The operating profit margin increased to 4.7 percent from 3.5 percent in the prior-year period.
Compute: Registered revenue of $2.6 billion, but experienced a notable decline of 31 percent from the prior-year period. The operating profit margin for this segment reduced to 9.8 percent from 14.9 percent in the prior year.
Storage: Recorded revenue of $1.1 billion, demonstrating a decline of 13 percent from the prior-year period. The operating profit margin for this segment decreased to 8.1 percent from 15.4 percent in the prior year.
Financial Services: Garnered revenue of $876 million, exhibiting a modest 2 percent increase from the prior-year period. However, the operating profit margin for this segment declined to 8.9 percent from 11.1 percent in the prior year. Net portfolio assets grew to $13.1 billion, marking a 4.3 percent increase from the prior-year period.
Antonio Neri, HPE’s president and CEO, expressed satisfaction with the company’s performance, citing record achievements across various financial metrics. He highlighted increased revenue, margin expansion, larger operating profit, and record-breaking non-GAAP diluted net earnings per share and free cash flow.
For the first quarter of fiscal 2024, HPE anticipates revenue in the range of $6.9 billion to $7.3 billion. Moreover, the company reiterated its fiscal 2024 revenue growth projection to be between 2 percent to 4 percent in constant currency.
Additionally, HPE outlined its expectations for Annual Recurring Revenue (ARR) growth, projecting a Compounded Annual Growth Rate (CAGR) between 35 percent to 45 percent from fiscal 2022 to fiscal 2026. These forward-looking insights reflect HPE’s strategic focus and aspirations for sustained growth and expansion in the upcoming fiscal years.
