HPE Announces Fiscal Year 2017 Outlook

SAN FRANCISCO, CA--(Marketwired - Oct 18, 2016) - Hewlett Packard Enterprise (NYSE: HPE)

• Reaffirms FY16 non-GAAP EPS outlook of $1.90-$1.95
• Provides FY17 combined company non-GAAP EPS outlook of $2.00-$2.10
• Commits to returning $3 billion to shareholders in FY17
• Anticipates ending FY17 with an operating company net cash balance of approximately $8 billion
• Expects normalized free cash flow for the future HPE to be $2.1-$2.4 billion
  
  

Today, at Hewlett Packard Enterprise's (HPE) 2016 Securities Analyst Meeting, the company's leadership team provided a strategy update and the financial outlook for fiscal year 2017.

Meg Whitman, President and CEO of HPE, reiterated HPE's vision of being the industry's leading provider of hybrid IT, built on the secure, next-generation, software-defined infrastructure that will run customers' data centers today, bridge them to multi-cloud environments tomorrow, and power the emerging Intelligent Edge that will run campus, branch and Industrial IoT applications for decades to come. All of this is delivered through a world-class services capability.

Following a number of strategic portfolio moves, including the spin-offs and mergers of the Enterprise Services and Software businesses, the future HPE will have the right assets to achieve this vision, including core software and services capabilities that differentiate HPE from its competitors and deliver the company's infrastructure solutions. 

Market Opportunity for the Future HPE
The company will be well-positioned to address a market of more than $250 billion that is growing at 2-3% annually. This market opportunity includes:

• Data Center and Cloud, representing a $100 billion opportunity growing at 1-2% CAGR, with areas of high growth like High Performance Compute, Private Cloud, all-flash arrays and hyperconverged. 
• The Intelligent Edge, including the $23 billion campus and branch market, growing at 2-4% each year, and a new category called Converged Infrastructure for the Edge, which will power the emerging $14B market of Industrial IoT applications, growing at around 15% per year.
• Services, which represents a $116 billion opportunity growing at 3-4% each year, driven by growing customer needs for consulting and support across hybrid infrastructure and demand for flexible IT consumption models.