Hewlett Packard Enterprise Co (HPE) Earnings History

Hewlett Packard Enterprise Co - Q4 FY2025 Earnings

Filed at: Dec 4, 2025, 4:07 PM EST|Read from source

EXECUTIVE SUMMARY

HPE concluded fiscal year 2025 with a strong fourth quarter, demonstrating profitable growth and disciplined execution, driven by strategic acquisitions and accelerated innovation in AI and cloud businesses.

POSITIVE HIGHLIGHTS

  • •

    Revenue increased 14% to $9.7 billion in actual dollars and constant currency.

    positive
  • •

    Non-GAAP gross margin expanded significantly by 550 basis points year-over-year to 36.4%.

    positive
  • •

    Non-GAAP diluted EPS of $0.62 exceeded outlook, up $0.04 from the prior year.

    positive
  • •

    Free cash flow increased by $420 million to $1.9 billion.

    positive
  • •

    Networking revenue surged 150% year-over-year.

    positive

CONCERNS & RISKS

  • •

    Server revenue declined 5% year-over-year.

    attention
  • •

    Hybrid Cloud revenue decreased 12% year-over-year.

    attention
  • •

    Networking segment operating profit margin decreased to 23% from 24.4% in the prior year.

    attention
  • •

    GAAP diluted EPS was $0.11, a significant decrease of $0.88 from the prior year, impacted by impairment charges and other items.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$9.68B
+14.4%
Prior year: $8.46B
Annual (YTD)
$34.30B
N/A
Prior year: $30.13B
Net Income
Quarterly
$146.00M
-89.1%
Prior year: $1.34B
Annual (YTD)
$-59.00M
N/A
Prior year: $2.55B
EPS (Diluted)
Quarterly
$0.11
-88.9%
Prior year: $0.99
Annual (YTD)
$-0.04
N/A
Prior year: $1.93
Operating Income
Quarterly
$-8.00M
-101.2%
Prior year: $693.00M
Annual (YTD)
$-437.00M
N/A
Prior year: $2.19B
EPS (Basic)
Quarterly
$0.11
-89.2%
Prior year: $1.02
Annual (YTD)
$-0.04
N/A
Prior year: $1.95

MARGIN ANALYSIS

Gross Margin
Current Quarter
33.5%
Prior Year
30.8%
YoY Change
+270 bps
Operating Margin
Current Quarter
-0.1%
Prior Year
8.2%
YoY Change
-830 bps
Net Margin
Current Quarter
1.5%
Prior Year
15.9%
YoY Change
-1440 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Server
45.7%
$4457000.0B
Prior year: $4681000.0B
Networking
28.8%
$2812000.0B
Prior year: $1124000.0B
Hybrid Cloud
14.5%
$1412000.0B
Prior year: $1607000.0B
Financial Services
9.1%
$889000.0B
Prior year: $893000.0B
Corporate Investments and other
2.0%
$191000.0B
Prior year: $262000.0B

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Server
$4457000.0B$4681000.0B—45.7%
Networking
$2812000.0B$1124000.0B—28.8%
Hybrid Cloud
$1412000.0B$1607000.0B—14.5%
Financial Services
$889000.0B$893000.0B—9.1%
Corporate Investments and other
$191000.0B$262000.0B—2.0%
Total Revenue$9761000.0B——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

eps_diluted
$2.25—$2.45
Mid-point: $2.35
"Non-GAAP estimate excludes net after-tax adjustments of approximately $1.63 per diluted share. Guidance range raised."
operating_profit_growth
32—40
Mid-point: 36
"Non-GAAP operating profit growth. Guidance range raised."
free_cash_flow
1,700,000,000—2,000,000,000
Mid-point: 1,850,000,000
"Midpoint of guidance raised."

Q1 FY2026

revenue
$9000000.0B—$9400000.0B
Mid-point: $9200000.0B
eps_diluted
$0.09—$0.13
Mid-point: $0.11
"Non-GAAP estimate excludes net after-tax adjustments of approximately $0.48 per diluted share."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 FY2025
Impairment charges
Impacted GAAP earnings and operating income.
+$260M
$0.19 per share
Q4 FY2025
Amortization of intangible assets
Non-GAAP adjustments exclude this item.
+$310M
$0.23 per share
FY2025
Impairment charges
Significantly impacted full-year GAAP earnings.
+$1,621M
$1.22 per share
FY2025
Acquisition, disposition and other charges
Includes non-cash amortization of fair value adjustment for Juniper Networks acquisition.
+$458M
$0.49 per share
Total Impact
+$2,649M$2.13 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

HPE finished a transformative year with a strong fourth quarter of profitable growth and disciplined execution.

— Hewlett Packard Enterprise Co, Q4 FY2025 2025 Earnings Call

Completed the Juniper Networks acquisition, scaled AI and Cloud businesses, and accelerated innovation.

— Hewlett Packard Enterprise Co, Q4 FY2025 2025 Earnings Call

Focus on disciplined spending, portfolio simplification, and structural cost management provides confidence to raise FY26 guidance.

— Hewlett Packard Enterprise Co, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Annualized Revenue Run Rate
3200.0M
+62.9% YoY
Prior year: 1963.0M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.