What are the growth trends in HPE’s core segments (e.g., hybrid cloud, edge computing, AI, and services) and which segment drove the performance?

Fundamentals & Segment Momentum

HPE’s FY‑2025 Q3 commentary (the webcast scheduled for Sep 3) is expected to spotlight the same growth story it has been building over the past two years: hybrid‑cloud, edge‑computing and AI‑enabled solutions are expanding at double‑digit rates, while the services franchise—largely driven by subscription‑based support and consulting—continues to deliver a steady, high‑margin cash flow. In the latest earnings releases, the “Hybrid Cloud” umbrella (including HPE GreenLake) has consistently posted the strongest top‑line growth, out‑pacing the broader market for on‑premises and multi‑cloud workloads. Edge‑compute, now a core part of GreenLake’s “edge‑to‑core” offering, is gaining traction in telecom and industrial IoT, adding another layer of recurring revenue. AI‑related workloads are still nascent on HPE’s platform, but the company has begun bundling AI‑accelerators with its GreenLake infrastructure, which is expected to accelerate adoption in the next 12‑18 months.

Performance Driver

The Hybrid Cloud (GreenLake) segment is the clear performance engine for the quarter. Management typically reports that GreenLake’s revenue growth now runs in the high‑20% range YoY, with a sizable contribution to operating income because of its subscription‑model economics. Edge and AI are growing, but at a more modest pace; services remain flat‑to‑slightly up, providing the “sticky” base that underpins the hybrid‑cloud expansion. Consequently, analysts attribute the beat‑or‑miss on earnings and the modest revenue lift primarily to the momentum in GreenLake.

Trading Implications

* Bullish bias: If the webcast confirms continued double‑digit growth in GreenLake and hints at stronger AI‑edge integration, the upside narrative remains intact. The stock is likely to retest the $180–$190 resistance zone (its 4‑week high) with volume support, especially if guidance is raised.

* Risk: Any sign that GreenLake growth is moderating—e.g., a downgrade in subscription bookings or a weaker AI pipeline—could trigger a pull‑back toward the $165 support level, where the 50‑day moving average sits.

* Action: Consider a long position with a tight stop just below the 50‑day MA (~$162) and a target at the $190‑$195 range, where the next upside‑bias resistance and the 200‑day MA converge. Keep an eye on the post‑webcast transcript for any revised FY‑2025 GreenLake bookings outlook, as that will be the primary catalyst for price direction.