Hewlett Packard Enterprise (HPE) reported a solid Q3 2024 (QQ3 2024) with revenue of USD 7.71 billion and a healthy gross margin of 31.6%, delivering an operating margin of 7.1% and net margin near 6.6%. Year-over-year revenue growth of 10.1% and quarter-over-quarter growth of 7.35% reflect continued demand for data center modernization, AI-enabled workloads, and hybrid IT solutions, supported by strength in HPE’s portfolio of ProLiant servers, HPC/Cray offerings, and Aruba networking. Operating cash flow of USD 1.15 billion and free cash flow of USD 0.61 billion underline robust cash generation, enabling discretionary capital allocation including modest buybacks and sustained dividend policy, while leaving room to fund ongoing strategic initiatives.
Balance sheet and liquidity remain solid: total assets USD 60.85 billion, cash and cash equivalents USD 3.64 billion, and total debt USD 11.80 billion (net debt USD 8.16 billion). The company posted a positive net cash delta in the quarter (USD 0.98 billion), supported by operating cash flow and disciplined capital expenditure (USD 0.54 billion). The reported metrics imply a business that is navigating a competitive, cyclical market with a focus on high-margin, high-value solutions and coherent capital allocation.
Going forward, management commentary (when available) would likely emphasize continued demand for data center modernization, AI-ready infrastructure, and Aruba edge networking, along with potential monetization of as-a-service offerings (e.g., GreenLake). The primary factors to monitor are demand visibility in server and HPC markets, supply chain normalization, currency effects, and the pace of diversification into software and as-a-service recurring revenue streams.