Hewlett Packard Enterprise HPE is scheduled to report second-quarter fiscal 2025 results on June 3.

For the second quarter of fiscal 2025, management expects non-GAAP earnings per share between 28 cents and 34 cents. The consensus mark is pegged at 34 cents per share, indicating a decrease of 19.05% from the prior-year quarter’s reported figure. The estimate has been revised upward by a penny over the past 30 days.

HPE’s earnings beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, missing the same on one occasion, delivering an average earnings surprise of 5.67%.

For the second quarter of fiscal 2025, HPE expects revenues between $7.2 billion and $7.6 billion. The Zacks Consensus Estimate is pegged at $7.47 billion, suggesting growth of approximately 3.66% from the year-ago quarter’s reported figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Hewlett Packard Enterprise Company Price and EPS Surprise

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Factors to Influence HPE’s Q2 Results

Hewlett Packard Enterprise’s fiscal second-quarter performance is expected to have been supported by a recovering demand environment fueled by artificial intelligence (AI). HPE’s AI-driven networking portfolio is likely to have contributed to the growth of its Intelligent Edge services across campus and branch segments.

AI continues to be a key growth catalyst for HPE. During the second quarter, HPE’s AI systems and sovereign AI cloud offerings are likely to have been driven by strong demand from the customers, particularly through HPE Private Cloud AI, which is expected to have boosted the company’s top line.

The increasing adoption of the Aruba Edge Services Platform and HPE GreenLake is expected to have driven Hewlett Packard Enterprise’s revenues in the to-be-reported quarter. The HPE GreenLake solution is likely to have benefited from the company’s effort to simplify its cloud strategy by including all related products in the hybrid cloud segment. This initiative is expected to have simplified the customer adoption of the solution and added to the top line.

Hewlett Packard Enterprise has been benefiting from persistent growth in sales of its accelerator processing unit, primarily driven by rising demand for HPE Cray EX, Cray XT and HPE ProLiant Gen11 AI-optimized servers.

However, softening IT spending is likely to have impacted overall financial performance in the second quarter. Higher interest rates and inflationary pressures are hurting consumer spending. On the other hand, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.