HPE cuts 2,500 jobs, expects Juniper buy to close year-end ’25, faces tariff issues

AI systems backlog rose 29% quarter over quarter to $3.1 billion and total server revenue totaled $4.29 billion, Myers said.

The company reported Intelligent Edge revenue was down 5% from the prior-year period to $1.1 billion, but Hybrid Cloud revenue was $1.4 billion, up 10% from the prior-year period.

Then there’s the matter of HPE’s proposed $14 billion buy of Juniper Networks that is now being held up by the U.S. Justice Department. A trial has been set for July 9, Neri said.

“The DOJ analysis of the market is fundamentally flawed. We strongly believe this transaction will positively change the dynamics in the networking market by enhancing competition, HPE and Juniper remain fully committed to the transaction, which we expect will deliver at least $450 million in gross annual run rate synergies to shareholders within three years of the deal closing,” Neri said. 

“We believe we have a compelling case and expect to be able to close the transaction before the end of fiscal 2025.”

Like other industry players, HPE is trying to negotiate the tariffs that the U.S. has threatened to or implemented against China, Mexico, and other countries.