Thank of much, quarter second I XXXX. a you financial will the summary with start of very Antonio. fiscal our year results for
X. As usual, on our QX guide earnings presentation through will I discussed from slides key Antonio highlights Slide performance. reference our for you to XXXX
Let our Slide X. starting with discuss performance me details, QX
performance business overall in this Edge Compute, characterize uneven our would I in as portfolio, demand with outstanding particularly the standout. indicators solid across a demand continued our as Intelligent despite and quarter
business that solutions. towards higher-growth, Edge, We pleased are Intelligent of higher-margin and & of successfully AI, our driving mix very are HPE further diversification portfolio our we GreenLake HPC
the gross HPC HPE of AI, net revenues in higher-growth, towards grew portfolio & is strategy XX% our margins all year-over-year and is Edge, grew constant in the year-over-year, GreenLake of higher-margin visible quarter, XX% The in clearly pivot the in markets and XX% During currency. ARR working. our year-over-year expansion
realistic. remain are confident and about we we While fiscal year beyond, XXXX our also
our Compute, which fiscal XXXX through of the XXXX by XXXX from our the year fiscal Demand in throughout over above growing was to and past QX uneven in much our and to is across attested year shifted Demand even business, very order in been nature. cyclical more book trend period as QX two portfolio. has uneven including years
revenues While constant growth of $X equates billion of $X.X a billion. year-over-year prior currency, to healthy range our $X.X QX year-over-year below growth X% to billion revenue in guidance and were X%
in and manufacturing confidence in sector. This North pronounced lesser a years. as velocity has Deal in part slowed, verticals over their North two America America, extent Deal to primarily particularly in the particularly of the as trend elongated for the and loss financial are compute and has customers larger a been in customers cycles services Storage. of in compute digest the banking Compute, have past in result investments
affected out & HPC addition, by In QX. AI several slipped that acceptances was of customer
promising grew business, Despite Intelligent and Aruba. QX Demand HPC in this, Overall enterprise our on the Aruba Compute in Edge and mid-market demand a by direct grow indicators. a see and is year-over-year basis. to AI sequential on continues several we sequentially, channel. & including revenues, led the stable, in both
book X.Xx continue. remains normalized at Our Edge of the expect than QX momentum at start overall and Intelligent a strong order historical elevated in levels, more to we
finally, you materializing More with from in and heard And several is and very that AI our large our deals. as order Antonio, demand solid, very later. on pipeline book
to strengthen portfolio mix to across businesses. shift our inorganically the also We action continue take
assets and HPE. of Security particularly at our of that proud put as for these exercise UNIS are billion. More have We agreement winning an am with OpsRamp of finalized I our sale with XX% acquisitions and that an partners closed Axis deals on amount $X.X we stake broader for our the the of part already through later. a of the have option
to XXXX we Compute and momentum combination of weakness, will adjusting book, gives Meeting Securities outlook and that in ongoing previously guidance & we X% to to in us growth Edge X% X% CAGR our October. to recognition solid remain in confidence constant revenue currency. XXXX and provided XXXX X% strength our revenue are that the order the HPC we X% X% revenue of to FY at growth In XXXX Nevertheless, the Analyst our the AI FY over in of confident communicated deliver FY period
basis and sequentially. high both gross XXX of margin points non-GAAP Our reached watermark a This XX.X%. year-over-year up is
Our the pivot software-intensive reflects margin revenue. to business recurring our and structure of mix higher-margin
QX, revenue a larger Edge business, sequential And Aruba up XX% portion basis revenue Aruba of points XX%, company's represent the of Aruba growth was total the and in in year we Intelligent expect fiscal with at year-over-year. operating by profits Our XXX gross of QX to end XXXX.
operating XX.X%. basis down XXXX a non-GAAP from in XXXX. As This QX QX record our points margin a just basis performance and of [XX XXX result, points] reached ahead QX [ph] XXXX is
we OpEx the grow remain Antonio to shift determined addition In portfolio time. and mix maintain and cost to on revenues businesses, productivity. faster towards focus focused I and remain control than over to high-margin this
EPS of net drove free $X.XX, QX Our strength our $X.XX to of guidance high-end QX range to of diluted was billion $XXX XXXX margin and GAAP to $XXX at net XXXX. diluted an over QX and $X.XX EPS non-GAAP million over improvement positive the nearly QX $X.XX. $X.X XXXX cash flow million,
track fiscal We later. remain discuss in cash billion flow to we $X.X and cash generate $X.X said details in this billion flow Having will more on year. that, free between
million least stock of in worth to back return shareholders. to this in repurchased our Finally, capital $XXX dividends paid continuing quarter are fiscal year $XXX buy are $XXX at XXXX. million track in on we substantial to million We and and shares
our which in generation. million] future flow total returns year-to-date [ph], [$XXX Our confidence reflects are cash capital
Moving X. to Slide
now our XX% revenue QX currency continues XXXX We are surpassed pleased as-a-service $X.X appearing our XXXX. challenges QX constant easing to to QX and as supply in benefits in pivot in strong billion XX% growth to XXXX of announce momentum XXXX. show as very are The to XX% in from QX accelerated in results ARR in ARR
growth of edge storage are offerings Our fastest portfolio. and components SaaS the as-a-service our
strength grew function compare large deals. X% a orders Our QX XXX% order in to several of QX tough as-a-service is XXXX decline in XXXX, a of on which of
XX% XX% year recently with includes wins from are large ARR AI fiscal fiscal to comfortable We of three-year which year reiterate closed to XXXX target and pipeline, CAGR our a very XXXX. our we robust enterprise
XXXX, to excess attained our continue TCV a services software revenue. to we points billion. as-a-service software with importantly, higher-margin our valuable growing Most business $XX make total XXX QX increased mix in services we have recurring and And more a another year-over-year of and well of basis XX%. of mix In
highlights we delivered currency. would grew Intelligent XX% consecutive of constant rates in like that sequentially exceeded revenue to this importantly, second XX% our growth slide. turn quarter. revenues next the on segment are In a quarter. consecutive and the remind revenues our for revenue record now and the we for on Edge, XX fourth a you I Rule Most slide Let's to year-over-year grew all
Central Edge We are taking platform. outgrowing the and Aruba Connect and our our are main some competitors largest adopting who solutions such share software enterprise of as customers in increasingly software-centric our management are SD-WAN
We have acquisition SD-WAN Axis now our in closed wins combination. SASE Security and and generating already of are
of contributing of private already Our to but Athonet still is pipeline our XG pending, business. acquisition player
operating more are basis year year-over-year our from fiscal basis order and beyond. Our scale Edge margin we benefiting sequentially. prospects And a points XXXX continues X,XXX that the as book to XXX result, solid of We're was business about points a optimistic up XX.X% grow. of than and and Intelligent in
In & AI, which customer inquiries has emergence pipeline wins grew the quarter, In deals the The base AI as-a-service large multiple prompted generative model. counting. models have are past enterprise revenue XX% AI and and the totaling our AI large few includes during language GreenLake than of from many into year-over-year. HPC $XXX This more turning million past under large we months, orders. and
great well positioned operating silicon AI capabilities, HPC and requires AI supercomputers and models and computational unique building are believe that to solutions large We including & our software enable. extremely
this will continue to certain of as the stage in AI means in organically operating and to healthy tightness in key and grasp that market, fluctuate. and components demand the unit times non-linked opportunity attest. business acquisitions AI future in the growth this invest and Pachyderm early The margins to business of the revenue to inorganically expect We our fully drive intend AI Determined
for grew in consecutive to revenue growth is fourth all-flash total quarter, mix higher-margin, year-over-year. array to as-a-service HPE shift revenue. XX% triple lifting grew a Alletra QX revenue Alletra our HPE year-over-year. X% digits the long-term driving Storage software-intensive
We IP for business products in offerings. in this file-as-a-service our will continue new our own as such R&D to and Alletra invest unit MP
operating financial America, X% basis I manufacturing recent migrate billion demand prevalent down Compute and [indiscernible] the is demand our of $X.X revenue they significant particularly component sequentially. SaaS have in was to Alletra, as down Compute previously in services points ratable to revenue. a The QX North includes years. and margin uneven XXX Our in most down of made software-defined customers, and year-over-year softness was investments X.X% navigate we XXXX HPE our and year-over-year business as XX% large discussed digest the in which
Our Compute long-term outlook attests exceeded XX% our to our to historical operating margin XX% of which XX.X% of the the of sixth quality business. consecutive book of for quarter,
are we should price leading time. While a GenXX+, three to market, commodities of pressure, selling seeing allow are GenXX, decreasing and in competitive costs GenXX, platforms we which margins gradual the increased over management differentiated
AI & by In HPE and $X.X HPE Financial year-over-year. within down Services, financing constant HPC year-over-year currency, X% revenues orders our low grew digits GreenLake. single rose billion which in Storage segments and were HPE volume and revenues HPE driven is and XX% excluding Compute, flat of GreenLake, Services were
Our time rate pricing. operating that funds margins points were offset and cost we through over interest down gradually XXX of reflecting rapid higher will year-over-year, basis hikes
thanks has a of the X%. to proven time and loss the resilient never ratio this quality pandemic, exceeded again, of annual Throughout our downturn, the the of underlying business. Time book business in
pre-pandemic points QX XXXX full-year Our was basis levels. below XX of ratio or loss
X our net EPS and non-GAAP Slide revenue performance. highlights diluted
making delivered we strategy and the with lines. progress are edge-to-cloud top have against results We is we both our financial the in bottom pleased the on evident are very
non-GAAP rates despite XXXX diluted transition a headwind by uneven growth an impacted spending model, revenue our again remaining points a year-over-year, have QX and and net environment grown significant FX both towards XXX revenue We QX that our basis in XXXX. in recurring EPS revenue
Slide the made we our structure. gross X in margin illustrates progress have
XXX Our year-over-year. up QX XXXX non-GAAP gross basis margin is points
points we in growing was business taken. XX% of pricing portfolio gross is the growth margin of from now total XXXX, a year-over-year sales our year have are profit our basis XXX ago. XX% in the QX success of Our pivot up Edge testament With and and and Intelligent a constant a currency, strategic actions to standout the representing
operating our XXXX. a represented in for high our shift, The which margin also are expansion. of did and quarter of XXX watermark it portfolio but non-GAAP not represents up operating Intelligent a Again, focus profit so primary illustrates mix revenue only XX operating year. is operating Edge margin Slide non-GAAP productivity with record in XX.X% QX strategies, reached for and points the margin pricing a business XX% XX.X% drivers in the progress, QX This any basis year-over-year, our margin.
Turning next the slide. to
you HXC. our chosen options exercise our we put have on know, As shares to in
to and USD pleased agreement stake are our earlier X.X to necessary we complete share purchase signed have have in next come necessary certain and the values step process We conditions HXC announced agreement our regulatory in put an obtain to The and that Unisplendour, the is approvals a at billion. partner, that closing. XX% to for
the to complete. XX We will that to require X anticipate a months to process further close
intend However, of proceeds agreement. the to the for plans of use this to We time our the closes. our transaction be once pursuant line update could extended further terms
You credit return-based outlined the and that same for in framework an rating will past. have use can capital the investments, we we assume evaluating investment-grade returns, maintaining disciplined
but organic outstanding to this and and a strategic and/or shareholders, activities, framework, investments, As we both range redemption not including consider of allocation of to, corporate repayment of of general limited capital debt part purposes. may return
commercial have negotiated committed and our sales, agreement go-forward We new the to business through to sale customers terms a with the companies. entered both in service, We're to strategic the that also China of and firmly continuing between reseller partner, HXC and our direct to sales covers into do HXC. arrangements be serving
our HXC this benefit as XXXX a in to we'll to SAM update at area. expectations you from year dividends detailed fiscal Finally, we as more go-forward in XXXX provide and are this on in see continuing slide, October
million in are have positive $XXX generated XXXX, free QX $XXX we In cash million a flow operations cash pleased and to in flow. from
cash and sequentially QX was our nearly XXXX XXXX million free from QX also above flow cash flow. improved billion by $XXX free seasonally a low Our $X.X
fiscal to to generate year of the free cash XXXX remainder flow significant in billion. our guidance of billion expect reiterate $X.X and $X.X We
continued was in our driver flow. continuing positive have days free cash and receipts to XXXX. XX primary the quarter. timing inventory investments The cash to a QX of capital cash plus be use income Net payments Working in of the positive a conversion our cycle of lifted
expect exit to growth CapEx neutral a with made year drive revenue we significant the to in please cycle. We conversion cash remember subsequent Also, volumes quarters. in HPFS investments have future
let's XX. our Now, to outlook on Slide turn
we such mentioned, than and customer As XXXX services across end XXXX. products demand business our have affecting to for pre-pandemic of carrying XXXX Macro was HPC uncertainty more & market yet markets, levels. uneven still continue is is differentiation substantial book AI. in gains our We're to in some in key end entering our a We believe other QX QX as was QX markets. rising will share our investment portfolio it order markets in also Edge drive relative and
revenue basis headwind on and indicated picture, performance pressure, which year risk, in our foreign is that typical. XXXX. revenue is is be that incorporates the earnings our the our reiterate our year inflationary point XXXX like macroeconomic first the of guidance that We thinking current a likely half in me more fiscal would to generated of I QX FX had than to weighted to XXX financial at you announcement XX% currencies. to last remind Let approximately represented our in growth
as proper that year lens view for XXXX. to the We fiscal continue
$X.X that midpoint billion. For range stable this year-over-year of revenues the to QX are in At importantly, reported the the of $X.X expect sequentially dollars. billion most and represents flat in XXXX, revenues we range,
We outlook the we remain been FX net This our make $X.XX of progress relatively demand no to delivery and $X.XX. that diluted further unchanged, continue experiencing expect deterioration $X.XX order rates. $X.XX levels from book of the diluted current of non-GAAP EPS GAAP EPS assumes net we have to and to of on
to from to parallel, Given expect previously a X% shift fiscal and XXX the non-GAAP In XXXX demand, growth view. in adjusting XXX to revenue currency basis deliver growth from is constant in X% profit point communicated our of to year also basis point we be headwind. margin to up weakness are guidance we X% of expect X% X% prior FX mix Compute X% our revenue to which X% portfolio strength to X%, operating to our
diluted lifting a net guidance guidance a to We $X.XX to our $X.XX. We and $X.XX our GAAP $X.X to are $X.XX $X.XX our $X.XX EPS new new net to cash range EPS to billion. free range from $X.XX raising non-GAAP $X.XX from billion flow guidance of of of to reiterate to diluted $X.X for
a million $XX benefited plus I&E, combination The For million anticipated expense. from on to to in have than be expect we lower $XX a of hedging first half to we versus to costs I forecasted. FX prior originally the XXXX us now second other this XXXX in of leads year neutral benefits full why the basis need half our expectation of
year we cash via shares and expect $XXX repurchases. repurchase free worth approximately XX% flow XXXX. of expect to and to returns, are maintaining we our shareholders million And to of terms of dividends capital return fiscal at least In dividend in
revenues. to continuing an FY to the for our higher-margin our end look HPE pivot So to conclude, as through momentum accelerate fiscal and to in year recurring forward growth, market portfolio we beyond. faster Antonio uneven demand XXXX opportunity see execution XXXX and I
with Now it for questions. that, up open let's
