HPE boasts 'strong response' to GreenLake in Q3 results

The technology giant has posted its fiscal 2022 Q3 results ending 31 July

Hewlett Packard Enterprise (HPE) has said it is "pleased" with its latest gross margins amid ongoing supply chain constraints and inflation.

The technology giant has posted its Q3 results for the three months ending 31 July in a trading update, which saw the company increase its revenue by one per cent year on year to $7bn.

It also secured an annualised revenue run rate of $858m - up 22 per cent - while total as-a-service orders were up 39 per cent from the prior-year period.

Antonio Neri, CEO of HPE, said its growth in recurring revenue indicates customers are showing a "strong response" to its GreenLake platform.

"Our continued innovation and focus on execution resulted in revenue and profit growth, which are particularly noteworthy in such a dynamic market," he said.

"Customers continue to prioritise investments in IT and are finding HPE's industry-leading edge-to-cloud portfolio to be particularly relevant in today's complex macroeconomic environment, where technology innovation is critical to accelerate business transformation and deliver important business outcomes."

HPE also said its gross margins remain resilient despite economic headwinds.

Figures show it achieved a GAAP of 34.5 per cent, flat from the prior-year period and up 210 basis points sequentially.

Non-GAAP also remained flat at 34.7 per cent and was up 50 basis points sequentially.

"We executed well in Q3, delivering revenue above our guidance while growing backlog sequentially to another record level," said Tarek Robbiati, EVP and CFO of HPE.

"We are also pleased with the expansion of our gross margins despite the inflationary headwinds and challenged supply environment. We are driving operating leverage expansion through strong pricing discipline and shifting our mix towards higher-margin, software-rich offerings through the HPE GreenLake platform."

The company is forecasting revenue growth of three to four per cent - adjusted for currency - for fiscal year 2022.