As HPE reports our third quarter results for fiscal year 2022 today, I am pleased with our ability to deliver for customers and shareholders in such a dynamic market. HPE grew revenue, increased profit, and strengthened gross margins through steady operational focus and execution – all despite tight supply conditions and unfavorable foreign exchange fluctuations.
This quarter’s results clearly demonstrate demand for our industry-leading portfolio. Customers continue to find HPE’s solutions relevant in today’s complex macroeconomic environment where technology innovation is critical to delivering important business outcomes. This demand validates our strategy and the compelling value proposition we offer our customers. It also enabled us to accelerate our recurring revenue this fiscal year.
Highlights from our Q3 earnings report include:
- Total HPE revenue increased 4% Â year-over-year to $7 billion dollars, which was also above the sequential outlook we had given.
- Profit, measured by non-GAAP diluted net earnings per share2, was 48 cents — a 9 percent sequential rise and 2 percent year-over-year.
- Gross margins remain resilient, expanding to 34.7%2, despite ongoing supply chain constraints and inflationary environment.
- Orders growth rates moderated this quarter, as we had expected they would after an entire year of orders growth at 20% or higher; orders were still robust and exceeded our expectations.
- Customers tell us they need to drive