HPE targets $7.8 bn revenue in current-quarter as it bets on AI business

Hewlett Packard Enterprise (HPE) is targeting revenue of $7.4 billion – $7.8 billion during the current quarter as it bets on new orders from Artificial Intelligence (AI) customers.
HPE AI revenueHPE’s AI systems revenue touched $900 million during the second-quarter ended April 30, 2024 vs $400 million in the previous quarter. HPE has an order backlog of $3.1 billion.

“AI systems revenue more than doubled from the prior quarter, driven by our strong order book and better conversion from our supply chain,” said HPE CEO Antonio Neri.

A report on AI servers from TrendForce says major cloud providers are actively building AI servers. AI server shipment is forecast to achieve an annual growth rate of over 20 percent from 2023 to 2026. AI server shipment has exceeded 1.2 million units in 2023.

HPE rival Dell saw shipments for its AI servers more than double last month but at the cost of weaker margins, Reuters news report said.

HPE’s cumulative orders for AI systems and services have reached $4.6 billion. HPE has nearly tripled the number of AI customers.

“Our expertise in designing, manufacturing, and running AI systems at scale, fueled growth of cumulative AI systems orders to $4.6 billion, with enterprise AI orders representing more than 15 percent,” Antonio Neri said.

“HPE’s AI advantage, increased HPE GreenLake adoption, and leading infrastructure portfolio, as well as an improved supply chain environment set us up very well to deliver a strong second half,” Antonio Neri said.

The company is also witnessing increased demand for their hybrid cloud and data storage segments, helped by the AI integration. HPE added nearly 3,000 news HPE GreenLake customers during the quarter. HPE GreenLake ARR rose 39 percent. HPE GreenLake as-a-service total contract value reached $15 billion.

REVENUE

HPE’s revenue rose 3 percent to $7.2 billion for the second quarter ended April 30, 2024.

HPE’s server revenue was $3.9 billion, up 18 percent. HPE has generated 45 percent of its server revenue from Americas, 32 percent from EMEA and 23 percent from Asia Pacific including China and India.

HPE’s Intelligent Edge revenue was $1.1 billion, down 19 percent. HPE has generated 49 percent of its Intelligent Edge revenue from Americas, 35 percent from EMEA and 16 percent from Asia Pacific.

HPE’s Hybrid Cloud revenue was $1.3 billion, down 8 percent. HPE has generated 34 percent of its Hybrid Cloud revenue from Americas, 44 percent from EMEA and 22 percent from Asia Pacific.

HPE’s Financial Services revenue was $867 million, up 1 percent. HPE has generated 53 percent of its Financial Services revenue from Americas, 31 percent from EMEA and 16 percent from Asia Pacific.

Baburajan Kizhakedath

Related News

Latest News

Latest News