Which Business Segments Drove HPE’s Revenue in Q4 2018?


Dec. 5 2018, Updated 11:20 a.m. ET

Intelligent Edge led revenue growth for HPE

Hewlett Packard Enterprise (HPE) has three primary business segments: Intelligent Edge, Hybrid IT, and Financial Services. The Intelligent Edge segment experienced sales growth of 17% YoY (year-over-year) in the fourth quarter of fiscal 2018. This segment reported revenue of $814 million and accounted for 10% of total sales.

The operating margin for the Intelligent Edge segment was 11% in the quarter. HPE’s Aruba product revenue rose 17%, while its Aruba services revenue rose 16%.

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Hybrid IT

HPE’s Hybrid IT segment accounted for 79% of its total sales at $6.4 billion in the quarter. The company’s Hybrid IT sales rose 5% YoY, with its compute revenue rising 9% and its storage revenue rising 6%. Its HPE Pointnext sales fell 3%.

The Hybrid IT segment’s operating profit was $764 million, or 12%, in the fourth quarter.

Financial Services

HPE’s Financial Services segment reported sales of $939 million in the fourth quarter and accounted for 11% of total sales. The company’s Financial Services sales fell 7% YoY, but its financing volumes rose 8% in the quarter.

The segment’s operating profit rose 20 basis points to 7.8% in the period.

North America led sales for HPE

The North American region accounted for 42% of HPE’s total sales, a rise of 3%, in the fourth quarter of fiscal 2018. Europe, the Middle East, and Africa saw a sales rise of 11% and accounted for 36% of HPE’s total revenue. The Asia-Pacific region’s revenue was down 5% in the fourth quarter, accounting for 22% of revenue.


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