Hewlett Packard Enterprise (HPE) is increasingly positioning itself as a key player in AI infrastructure, and its growing focus on AI is now directly contributing to revenue momentum.
HPE has reported solid financial results for the second quarter ended April 30, 2025, with revenue rising 6 percent year-over-year to $7.6 billion. The company saw growth across key business segments — Servers, Intelligent Edge, and Hybrid Cloud — demonstrating successful execution of its AI-driven strategy.
The company’s annualized revenue run-rate (ARR) surged 46 percent to $2.2 billion, reflecting the growing momentum in its as-a-service offerings.
HPE’s revenue of $7.2 billion in Q2-2025 was driven by strong demand for AI-native infrastructure and high-performance computing (HPC). HPE’s AI systems revenue more than doubled year-over-year, underscoring how central AI workloads have become to enterprise computing strategies. The company credited this growth to ramped-up shipments of large-scale AI systems, including those deployed by hyperscalers and enterprises investing in generative AI.
HPE’s AI Infrastructure segment, built on its Cray supercomputing technology and new modular systems, is now a core revenue generator. Its GreenLake platform — which offers a flexible, as-a-service model — also continues to scale AI deployments for customers seeking on-premises control with cloud-like flexibility. This combination is proving attractive across industries.
CEO Antonio Neri highlighted that HPE’s AI orders and pipeline remain strong, and the company is investing in innovation across both software and hardware to maintain leadership. These moves align with a broader strategy to drive high-margin, long-term recurring revenue from AI-driven digital transformation.
HPE’s Server revenue increased 6 percent to $4.1 billion, though operating profit margin declined to 5.9 percent from 11.0 percent a year earlier.
HPE’s Intelligent Edge revenue grew 7 percent to $1.2 billion, with margins expanding to 23.6 percent.
HPE’s Hybrid Cloud business posted the highest growth, up 13 percent to $1.5 billion, with operating profit margin improving significantly to 5.4 percent from 1.0 percent.
HPE’s Financial Services revenue declined slightly by 1.3 percent to $856 million, but operating profit margin improved to 10.4 percent. Return on equity stood at 17.5 percent, down modestly from the prior year.
Rajani Baburajan
