The stock is up nearly 1% to $16.39 in the Friday morning session.
Fiscal first-quarter net earnings was $177 million, or 13 cents per share, down 86% from the prior year period. Adjusted net income was $590 million, or 42 cents per share, beating analysts' expectations of 35 cents. Net revenue fell 2% from the prior year period to $7.6 billion, slightly missing FactSet consensus of $7.62 billion.
"We significantly expanded both gross and operating margins and drove 31% growth in non-GAAP earnings per share," HPE President and CEO Antonio Neri said in a statement. "Looking forward, we are confident that HPE's differentiated, software-defined solutions will continue to gain traction with customers looking to harness the explosion of data, driving accelerated revenue growth starting in Q2."
HPE raised its full-year guidance for 2019 and now expects earnings per share between 88 cents and 98 cents and adjusted EPS between $1.56 and $1.66 a share. The company had a prior 2019 adjusted EPS forecast of $1.51 to $1.61. It also reiterated free cash flow to come in between $1.4 billion and $1.6 billion.
HPE's Intelligent Edge segment saw robust growth, rising 5% year-over-year with revenue of $686 million. However, Hybrid IT segment saw revenue fall 3% to $6.0 billion. Financial Services revenue rose 3% year over year to $919 million.
HPE stock is up 20% year-to-date while the S&P 500 index is up over 11%.