Revenue and Earnings Exceed Guidance
HPE's Q2 revenue was $7.6 billion, up 7% year-over-year, and non-GAAP diluted net earnings per share were $0.38, both above the high end of guidance.
Strong AI and Hybrid Cloud Performance
AI systems revenue increased, with $1.1 billion in net new orders and $1 billion converted into revenue. Hybrid cloud revenue grew 15% year-over-year, with Alletra MP platform showing triple-digit growth.
GreenLake and Intelligent Edge Growth
GreenLake's annualized revenue run rate increased 47% year-over-year to $2.2 billion. Intelligent Edge revenue grew 8% year-over-year, marking a return to growth after five quarters.
Cost Reduction and Operational Improvements
HPE made significant progress in its cost reduction program, leading to improved margins and operational efficiency with a workforce reduction of 5% expected by year-end.
Positive Developments in Networking
Networking orders grew high single digits year-over-year, driven by Wi-Fi 7 demand and enhanced capabilities in HPE Aruba Central.