Bloomberg Talks HPE President & CEO Antonio Fabio Neri Talks Tariffs and Earnings
Jun 4, 2025
The discussion centers on the influence of tariffs on tech sales and earnings, highlighting strategic measures that enhance revenue. A notable collaboration between HPE and NVIDIA showcases how their integrated systems are driving growth across market segments. The conversation also navigates financial performance, emphasizing key order bookings and effective working capital management while tackling the complexities of revenue recognition in major deals.
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Tariffs Impact Greatly Mitigated
- HPE has successfully mitigated the impact of tariffs through a diversified supply chain and trade agreements like USMCA.
- This has significantly lowered the expected negative financial impact from tariffs on HPE's sales and earnings guidance.
HPE's Growing NVIDIA Collaboration
- HPE has a strong partnership with NVIDIA covering all market segments from enterprise to large service providers.
- Their AI private cloud offerings with NVIDIA are growing quickly, with one-third of net new orders in Q2 from enterprise.
Disciplined AI Growth Strategy
- AI-related revenues at HPE show variability due to large, lumpy deals that affect quarterly results.
- Balancing revenue growth with profit and cash flow discipline is essential for sustainable AI business expansion.