Hewlett Packard (0J51.L) Q1 2025 Earnings Report

Hewlett Packard Enterprise (HPE) reported Q1 2025 results with solid topline growth and a favorable net income trajectory, underscoring ongoing demand for data-center hardware and hybrid IT solutions. Revenue reached $7.81 billion, up 16.0% year over year, while gross margins stood at 28.33% and operating margins at 6.02%, signaling a healthier mix of high-value offerings even as the quarter faced sequential headwinds. Net income totaled $627 million (EPS diluted $0.44), aided by non-operating income and tax effects that helped offset pressure in operating profitability. However, free cash flow remained negative at $(918) million, driven largely by working capital dynamics and ongoing capital expenditure, with cash from operations negative by $(390) million. The company finished the period with a substantial cash balance of ~$13.85 billion and a manageable net debt position (~$4.45 billion), reinforcing a strong liquidity cushion to fund strategic initiatives and shareholder returns. The results imply a constructive longer-term trajectory supported by HPC/Cray, data-center refresh cycles, Aruba networking, and as-a-service opportunities, even as near-term cash flow normalization and margin discipline remain critical to unlocking sustainable profitability.