Annualized Revenue Run-rate (ARR) increased 49% YoY, driven by growth in Hybrid Cloud, Server, and Intelligent Edge segments. This reflects the company's focus on delivering its portfolio through subscription and consumption-based models.

The pending acquisition of Juniper Networks is highlighted as a strategic move to deliver secure, AI-driven networking solutions and fully integrated hybrid cloud and AI solutions.

The company completed the divestiture of its Communications Technology Group (CTG) business to HCLTech, receiving net proceeds of $210 million and expecting to recognize a gain of approximately $230 million.

Transformation costs decreased 67.1% YoY to $93 million, as the primary elements of the Cost Optimization and Prioritization Plan and the HPE Next Plan have been substantially completed by the end of fiscal 2023.

The company continues to invest in R&D, with expenditures of $2.2 billion in fiscal 2024, focusing on areas such as high-performance computing, AI, and cloud technologies.

The company notes improvements in the supply chain, resulting in a more balanced supply-and-demand environment. However, elevated inventory levels persist due to the transition to next-generation GPUs, requiring close monitoring.

The company acknowledges the increasing frequency and sophistication of cyberattacks, including those potentially leveraging AI, and the potential for these attacks to disrupt operations, expose information, and damage reputation.

The 10-K highlights the potential impact of macroeconomic trends, geopolitical events, and public health crises on the company's business, operations, and financial performance.

The company relies on third-party suppliers for components, products, and services, and disruptions or failures in managing these relationships could adversely affect financial results.

The company operates in highly competitive markets, including server, hybrid cloud, and intelligent edge, facing competition from major corporations and rapidly growing firms.

HPE believes its edge-to-cloud strategy, comprehensive portfolio of solutions, and differentiated consumption-based IT solutions provide competitive advantages.

The company acknowledges the need to develop new products and services and continuously enhance existing offerings to meet customer needs and respond to emerging technological trends.

The company relies on proactive inventory buffering measures to position itself well for component availability and intends to take additional inventory actions as appropriate in alignment with market demand.

The company is focused on driving the depth and breadth of its coverage, in addition to identifying efficiencies and productivity gains, in both its direct and indirect businesses.

The company utilizes a significant number of outsourced and contract manufacturers around the world to manufacture products that it designs, intending to generate cost efficiencies and reduce time to market.

Hewlett Packard Labs is focused on disruptive innovation and applied research in collaboration with other HPE business groups to deliver differentiated intellectual property in areas such as system architecture, networking, AI, sustainability, edge-to-cloud, quantum computing, and sustainability.

R&D efforts in Server are focused on developing high-quality next-generation compute solutions, advancing SaaS capabilities, and pioneering leadership computing solutions for high performance computing and AI.

In Hybrid Cloud, the company is investing in a comprehensive portfolio of storage and private cloud technologies and capabilities focused on enabling customers to transform through the power of data and AI, modernize their IT infrastructure and simplify hybrid operations.

The company repurchased and settled $150 million of shares during fiscal 2024, with approximately $0.8 billion remaining authorized for future repurchases.

The company paid a quarterly dividend of $0.13 per share of common stock during fiscal 2024, demonstrating a commitment to returning capital to shareholders.

The company is investing in the acquisition of Juniper Networks, funded through debt, proceeds from the sale of H3C shares, and cash, to accelerate its edge-to-cloud vision.

HPE aims to become a net-zero enterprise by 2040, with interim targets set across the value chain for 2030. These climate targets are approved by the Science Based Target initiative.

The company is committed to delivering products and solutions that empower customers to reduce the carbon footprints of their IT estates while also gaining maximum productivity and reducing costs.

The company is committed to the responsible and ethical development and deployment of new technologies, particularly in relation to AI, and has an executive level AI Ethics Responsibility Committee and an operational AI Ethics Working Group.

The company notes a mixed macroeconomic environment with easing supply chain constraints, but also uneven demand across its portfolio and conservative customer spending.

The company is focusing on AI and related technologies, which are expected to have a significant impact on customer preferences and market dynamics.

The company acknowledges that political or economic changes and the laws and regulatory regimes applying to international transactions could harm its future revenue, costs, and financial condition.