Hewlett Packard Enterprise (HPE), a leading technology company based in Texas, United States, exceeded Wall Street’s revenue and profit expectations for the second quarter ended April 30, 2025. This performance was fueled by strong demand for its AI-optimized servers and growth in its hybrid cloud segment. The company also reported an impairment charge of USD 1.36 billion but raised investor confidence with a narrowed full-year revenue outlook.
Hewlett Packard Enterprise (HPE), a global IT company headquartered in Texas, United States, reported stronger-than-expected results for the second quarter ended April 30, 2025, supported by booming demand for its artificial intelligence (AI)-driven servers and hybrid cloud offerings.
The company posted revenue of USD 7.63 billion, exceeding analysts’ average estimate of USD 7.45 billion, according to LSEG data. HPE’s adjusted earnings per share stood at 38 cents, outperforming the forecast of 32 cents.
AI infrastructure proved a key growth driver, as enterprise investment in generative AI continues to rise. Hewlett Packard’s AI-optimized servers, built using Nvidia processors, saw a 5.7% increase in server revenue to USD 4.06 billion. Its hybrid cloud segment also delivered a strong performance, growing by 13% to USD 1.45 billion.
Despite this momentum, HPE recorded an impairment charge of USD 1.36 billion in the quarter. Still, investor sentiment remained positive, with shares gaining 3.2% in after-hours trading.
HPE’s Chief Financial Officer, Marie Myers, stated during the earnings call that the company resolved prior quarter’s execution issues, leading to better margin performance. She added that no major gains were observed from tariff-related demand shifts.
Looking ahead, Hewlett Packard narrowed its annual revenue growth forecast to 7%–9%, compared to its earlier projection of 7%–11%. The company expects third-quarter revenue in the range of USD 8.2 billion to USD 8.5 billion, higher than analysts’ estimate of USD 8.17 billion.
We continue to navigate a complex macroeconomic and geopolitical landscape and remain prepared to take additional action in the back half of the year to deliver against our fiscal 2025 outlook.”
Marie Myers, HPE’s Chief Financial Officer
