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Hewlett Packard Enterprise Company (HPE-1.41%) has filed its Form 10-Q for the quarterly period ended January 31, 2025. The filing is available for review filing.
The filing reports net revenue of $7.9 billion, a 16.3% increase from the same period last year. This increase was primarily driven by higher average unit prices in the Server segment and increased unit volume in the Hybrid Cloud segment.
The company reported a gross profit margin of 29.2%, a decrease of 7.2 percentage points from the previous year, primarily due to increased costs in the Server, Hybrid Cloud, and Intelligent Edge segments.
Operating expenses for the quarter included $475 million in research and development and $1,268 million in selling, general, and administrative costs. Acquisition, disposition, and other charges amounted to $66 million.
HPE reported a net income attributable to common stockholders of $598 million, compared to $387 million in the same quarter of the previous year.
The company announced a cost reduction program aimed at reducing structural operating costs, expected to deliver gross savings of approximately $350 million by fiscal year 2027.
HPE's cash flow from operations was negative $390 million for the quarter, compared to $64 million in the previous year, primarily due to unfavorable changes in working capital.
The company completed the disposition of its Communications Technology Group, resulting in a gain of $244 million.
HPE continues to pursue the acquisition of Juniper Networks, Inc., with a trial scheduled to begin on July 9, 2025, following a complaint filed by the U.S. Department of Justice.
The company declared a regular cash dividend of $0.13 per share, payable on April 18, 2025, and a cash dividend of $0.953125 per share of its 7.625% Series C Mandatory Convertible Preferred Stock, paid on March 1, 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hewlett Packard Enterprise Company quarterly 10-Q report dated March 7, 2025. To report an error, please email earnings@qz.com.