Hewlett Packard Enterprise (HPE) Company Report

Post-Juniper, HPE is now an AI-led networking company with 50% of operating profit and 30% of revenue from networking, guiding to $11 billion in networking revenue for FY 2026 with mid-single-digit growth.
HPE has identified $600 million in near-term cost synergies from the Juniper deal and Catalyst integration, and will launch an integrated sales force in January as a key integration milestone.
The AI server strategy prioritizes profit and cash flow, targeting sovereign and enterprise customers, which now represent over 50% of its AI order backlog, with the majority of revenue expected in H2 2026.
HPE’s ARR reached $3.2 billion in FY 2025 and is expected to grow to $3.5 billion by year-end, driven by SaaS/software (80%+ of ARR), supporting higher gross margins.
Facing volatile DRAM and NAND prices, HPE plans to pass through commodity cost increases, leverage pricing war rooms, shape demand, and benefits from a higher-margin networking mix to mitigate impact.

Dec 10, 2025, 5:50 PM

Transcript

HPE outlines networking integration and growth drivers at Barclays conference

HPE

M&A

Guidance Update

HPE is now an AI-led networking company post-Juniper acquisition, with networking representing 50% of operating profit and 30% of revenue; 2026 networking revenue guidance is anchored at $11 billion, implying mid-single-digit growth year-on-year.
Integration milestones include combining HPE and Juniper sales forces in January, with cost synergies of $600 million targeted over the next two years and a combined $1 billion+ synergy plan for Juniper and Catalyst through 2027.
In its AI server business, HPE is focusing on sovereign and enterprise segments (over 50% of current backlog), expecting lumpy revenue with roughly 46% in H1 and the balance in H2, managed under a framework prioritizing profit and cash flow.
HPE’s annualized ARR grew to $3.2 billion in fiscal 2025, driven by SaaS/software (over 80% of ARR), with a target of $3.5 billion by year-end, enhancing gross margins.
Facing volatile DRAM and NAND costs, HPE will largely pass through commodity price increases via repricing, demand shaping, and purchase commitments, with networking less exposed to these pressures.

Dec 10, 2025, 5:50 PM

Transcript

HPE outlines networking growth and AI strategy at Barclays Global Tech Conference

HPE

M&A

Guidance Update

Post-Juniper acquisition, networking accounts for 50% of operating profit and 30% of revenue, with HPE guiding $11 billion in networking revenue for FY2026 (~65–70% growth YoY).
HPE will integrate its and Juniper’s sales forces in early 2026, targeting $1 billion+ in combined cost synergies from Juniper and Catalyst restructurings by 2027.
The AI server strategy focuses on sovereign and enterprise deals—comprising >50% of the current backlog—and anticipates these contracts to be lumpy and skewed toward H2 2026.
HPE’s as-a-service portfolio reached $3.2 billion ARR in FY2025 (with 80%+ from SaaS) and is expected to grow to $3.5 billion by year-end, supported by 40,000+ GreenLake customers.
To offset DRAM and NAND inflation, HPE plans to pass through cost increases, leverage demand-shaping and purchase commitments, with server and storage most impacted and networking relatively insulated.

Dec 10, 2025, 5:50 PM

Transcript

HPE reports Q4 2025 results

HPE

Earnings

Guidance Update

M&A

HPE delivered Q4 revenue of $9.7 billion, up 14% year-over-year, with non-GAAP EPS of $0.62 and free cash flow of $1.9 billion.
For fiscal year 2025, HPE achieved $34.3 billion in revenue (+14% yoy), non-GAAP EPS of $1.94, and free cash flow of $986 million.
In Q4, networking revenue rose 150% to $2.8 billion with a 23% operating margin, while server revenue was $4.5 billion (-5% yoy) at a ~10% margin; hybrid cloud revenue declined 13% to $1.4 billion.
HPE raised its FY26 outlook to 17–22% reported revenue growth, non-GAAP EPS of $2.25–$2.45, and free cash flow of $1.7–$2.0 billion.

Dec 4, 2025, 10:00 PM

Transcript

HPE reports Q4 2025 results

HPE

Earnings

Guidance Update

M&A

HPE delivered Q4 revenue of $9.7 billion (+14% y/y), non-GAAP EPS of $0.62, and free cash flow of $1.9 billion, all exceeding guidance.
Networking revenue in Q4 was $2.8 billion (+150% y/y, +62% sequential) with a 23% non-GAAP operating margin, driven by the first full quarter of Juniper results.
Fiscal 2025 full-year revenue reached $34.3 billion (+14% y/y), while non-GAAP EPS was $1.94 and free cash flow $986 million.
For FY 2026, HPE raised its non-GAAP EPS and free cash flow guidance, reaffirmed revenue growth of 17%–22%, and plans to sell its remaining 19% H3C stake for ~$1.4 billion to reduce leverage.

Dec 4, 2025, 10:00 PM

Transcript

HPE reports Q4 2025 results and raises FY26 guidance

HPE

Earnings

Guidance Update

M&A

Q4 revenue of $9.7 billion, up 14% year-over-year; non-GAAP EPS of $0.62 and free cash flow of $1.9 billion for the quarter.
FY25 revenue of $34.3 billion (+14% YoY), non-GAAP EPS of $1.94, and free cash flow of $986 million, driven by the Juniper Networks acquisition.
Networking segment revenue of $2.8 billion (+150% YoY) with a 23% operating margin; server revenue declined 5% to $4.5 billion (≈10% margin).
Annualized recurring revenue (ARR) reached $3.2 billion, up 62% YoY, fueled by GreenLake and software subscriptions post-Juniper integration.
FY26 guidance: reported revenue growth of 17–22%, non-GAAP EPS of $2.25–$2.45, and free cash flow of $1.7–$2 billion; networking sales forces to unify on January 1.

Dec 4, 2025, 10:00 PM

Transcript

HPE reports fiscal Q4 2025 results

HPE

Earnings

Guidance Update

Dividends

HPE’s Q4 FY25 revenue was $9.7 billion, up 14% year-over-year, with record quarterly revenue and gross profit; non-GAAP gross margin reached 36.4%.
Q4 diluted non-GAAP EPS was $0.62, up $0.04 y/y and above the outlook of $0.56–$0.60; GAAP diluted EPS was $0.11.
Operating cash flow totaled $2.5 billion and free cash flow was $1.9 billion, both exceeding prior-year and outlook.
Following the completion of the Juniper Networks acquisition, HPE raised its FY26 guidance to non-GAAP EPS of $2.25–$2.45 and free cash flow of $1.7–$2.0 billion.
The Board declared a quarterly dividend of $0.1425 per share, payable January 16, 2026.

Dec 4, 2025, 9:07 PM

8-K

Hewlett Packard Enterprise to sell 9% stake in H3C for $643M

HPE

M&A

On November 28, 2025, HPE’s subsidiary H3C Holdings agreed to sell 9% of H3C’s share capital for approximately USD $643 million to three Chinese investors.
The transaction is governed by three share purchase agreements with Unisplendour International Technology Limited and two equity investment partnerships, and requires PRC governmental approvals and, for one counterparty, Unisplendour Corporation Limited shareholder consent.
Closing is subject to customary conditions, including regulatory consents and accuracy of warranties, with a Long Stop Date 180 days after signing (extendable by 30 days) to satisfy all closing conditions.

Dec 1, 2025, 1:56 PM

8-K

HPE to sell 10% stake in H3C for $714M

HPE

M&A

HPE’s wholly-owned subsidiary H3C Holdings agreed to sell 10% of H3C Technologies’ issued share capital to five Chinese counterparties for approximately USD 714 million in cash.
Completion of the sale transactions is subject to customary conditions, including governmental approvals in China, board resolutions, waiver of certain rights, and a 180-day long-stop date (extendable by 30 days).
A side letter with Unisplendour International Technology Limited waives its pre-emptive first-offer right and allows H3C Holdings and UNIS to exercise remaining put/call option rights on the 9% residual stake up to three times between month 16 and 36 post-closing.

Nov 17, 2025, 12:54 PM

8-K

HPE partners on DOE’s largest AI supercomputers

HPE

New Projects/Investments

The U.S. Department of Energy, Argonne National Laboratory, NVIDIA, Oracle, HPE, and WWT announced a public-private partnership to expand national AI infrastructure and deliver the DOE’s largest AI supercomputer.
The upcoming Solstice system will feature 100,000 NVIDIA Blackwell GPUs, while Equinox will include 10,000 NVIDIA Blackwell GPUs, with Equinox expected in 2026.
Oracle will immediately provide DOE researchers access to AI computing resources running on NVIDIA Hopper and Blackwell architectures, accelerating scientific discovery.
Argonne will also deploy three new AI computing systems through its existing partnership with NVIDIA, HPE, and WWT to enhance AI inference capabilities.

Oct 28, 2025, 11:51 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for Hewlett Packard Enterprise.

Q4 2025

Dec 4, 2025

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Q2 2025

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