Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

1ef055483dc1bccd05d629e3594bfb1e25632c244eefe00db546147bbfda87a0

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

a1fe32792ca9801b02c367e85252bf018c3107f295c776dacff1b5d99451d1d4

Annualized Revenue Run-rate (USD millions)

Year-over-year growth rate for Annualized Revenue Run-rate (percentage)

Financing volume (USD millions)

409ab31bd55c25fbfcc88281fb3011c19fa56ec3ef3cd1b657dd6a338dfcfb8d

2df7d04fb5547d3cd2056dfcf8ebb0052994fd3e54d78b37bdc3d63ba2eb2d92

Products Net Revenue (USD, millions)

Services Net Revenue (USD, millions)

Financing income Net Revenue (USD, millions)

Total Net Revenue (USD, millions)

Cost of products (USD, millions)

Cost of services (USD, millions)

Financing cost (USD, millions)

Research and development (USD, millions)

Selling, general and administrative (USD, millions)

Amortization of intangible assets (USD, millions)

Transformation costs (USD, millions)

Acquisition, disposition and other related charges (USD, millions)

Total costs and expenses (USD, millions)

Earnings from operations (USD, millions)

Interest and other, net (USD, millions)

Earnings from equity interests (USD, millions)

Earnings before provision for taxes (USD, millions)

Provision for taxes (USD, millions)

Net earnings attributable to HPE (USD, millions)

Preferred stock dividends (USD, millions)

Net earnings attributable to common stockholders (USD, millions)

Basic Net Earnings Per Share Attributable to Common Stockholders (USD)

Diluted Net Earnings Per Share Attributable to Common Stockholders (USD)

Weighted-average Shares Used to Compute Basic Net Earnings Per Share (Millions)

Weighted-average Shares Used to Compute Diluted Net Earnings Per Share (Millions)

b6f8cc31ed3c7533e8369cd22e1a4dd5813b2a42597f5a5a2b459b8af88c7a47

Cash and cash equivalents (USD, millions)

Accounts receivable, net of allowances (USD, millions)

Financing receivables, net of allowances (USD, millions)

Inventory (USD, millions)

Assets held for sale (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Long-term financing receivables and other assets (USD, millions)

Investments in equity interests (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Total assets (USD, millions)

Notes payable and short-term borrowings (USD, millions)

Accounts payable (USD, millions)

Employee compensation and benefits (USD, millions)

Taxes on earnings (USD, millions)

Deferred revenue (USD, millions)

Accrued restructuring (USD, millions)

Liabilities held for sale (USD, millions)

Other accrued liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Other non-current liabilities (USD, millions)

Common stock, $ 0.01 par value (USD, millions)

Additional paid-in capital (USD, millions)

Accumulated deficit (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total HPE stockholders' equity (USD, millions)

Non-controlling interests (USD, millions)

Total stockholders' equity (USD, millions)

Total liabilities and stockholders' equity (USD, millions)

6beec98edff60d95edc665de5b04079c3fd3342a224e2b85f423d9cba6692a54

The surge in **cash and cash equivalents** in Q4 2024 was primarily driven by a significant increase in overall cash reserves. This increase was largely due to the rise in **cash, cash equivalents, and restricted cash** by **$10.5 billion** year-over-year, bolstered by strong **operating cash flow** of **$2 billion** and a **free cash flow** contribution of **$1.5 billion**. Additionally, proceeds of **$370 million** from the sale of property, plant, and equipment further supported the increase, despite a minor negative impact of **$47 million** from exchange rate changes.  **[0001645590-24-000139_hpe-20241031.htm:95]** **[HPE_3411067_6]** **[0001645590-24-000132_ex-991x1252024x8k.htm:0]** **[0001645590-24-000132_ex-991x1252024x8k.htm:9]** 

Why did Cash and cash equivalents surge in Q4 2024?

The jump in **Total assets** for Q4 2024 was driven by several key factors. **Cash and cash equivalents** increased sharply, jumping from **$4,270 million** to **$14,846 million**, which reflects robust cash flow generation. In addition, there was a significant increase in **inventory** (from **$4,607 million** to **$7,810 million**) and in **long-term financing receivables and other assets** (from **$11,377 million** to **$12,616 million**). Finally, a notable reduction in **investments in equity interests** (from **$2,197 million** to **$929 million**)—likely due to the partial sale of the H3C investment—also contributed to the overall growth in total assets.  **[0001645590-24-000132_ex-991x1252024x8k.htm:9]** **[HPE_3411067_6]** **[HPE_3411067_4]** 

What drove the jump in Total assets in Q4 2024?

HPE’s spike in long-term debt in Q4 2024 was driven by several key factors. **Issuance of new unsecured senior notes totaling approximately $8.97 billion**—across multiple maturities and interest rates—played a significant role. Additionally, **reclassification and refinancing of some short-term debt into long-term debt** contributed to the increase. The company also raised capital through **asset-backed debt securities (with issuances of $818 million in June 2024 and $796 million in January 2024)**. These measures supported HPE’s operational and investment needs, including its pending Juniper Networks acquisition.  **[0001645590-24-000139_hpe-20241031.htm:200]** **[HPE_3411067_1]** 

What factors contributed to the spike in Long-term debt in Q4 2024?

Investments in equity interests dropped significantly in Q4 2024 primarily because HPE recorded a **$733 million gain on the sale of an equity interest**, which positively impacted its earnings, while also accounting for a **$43 million cash dividend** received from its investment in H3C that reduced the carrying balance of the investment.  **[0001645590-24-000132_ex-991x1252024x8k.htm:9]** **[0001645590-24-000132_ex-991x1252024x8k.htm:10]** **[0001645590-24-000132_ex-991x1252024x8k.htm:6]** **[0001645590-24-000139_hpe-20241031.htm:214]** 

Why did Investments in equity interests drop significantly in Q4 2024?

23a42dfa71284812b33da067ae7e1fa54a6a43ee7d074c68ac5646d5063f2756

Products Net Revenue was low in Q1 2024 primarily due to a significant decline in the server segment—stemming from lower server unit volumes and decreased Average Unit Prices—and a sharp drop in Hybrid Cloud revenue driven by lower AUPs (notably in storage products). Additionally, the overall networking market weakness and tight GPU supply further impacted revenue conversion, especially in the AI server category. These combined factors contributed to a 14% year-over-year revenue decline in Q1 2024.  **[0001645590-24-000069_hpe-20240131.htm:50]** **[HPE_3376183_1]** **[0001645590-24-000058_ex-991x2292024x8k.htm:0]** 

Why was Products Net Revenue so low in Q1 2024?

In Q4 2024, the sharp increase in net earnings was driven by a combination of factors. **First,** HPE recognized a **$733 million gain** from the partial sale of its equity interest in H3C Technologies, which had a major impact on the bottom line.  **[0001645590-24-000132_ex-991x1252024x8k.htm:6]** **[0001645590-24-000132_ex-991x1252024x8k.htm:10]**  **Second,** the company achieved record quarterly revenue of **$8.5 billion**—a **15% year-over-year increase**—thanks to robust growth in AI systems, Hybrid Cloud, and server segments.  **[HPE_3411067_4]** **[HPE_3411067_1]**  Additionally, **disciplined cost management** (with non-GAAP operating expenses decreasing by **9% year-over-year**), favorable tax benefits, and a notable **16% sequential growth in AI systems revenue** to **$1.5 billion** further contributed to the significant improvement in net earnings.  **[HPE_3411067_4]** **[HPE_3411067_1]** 

What drove the sharp increase in net earnings in Q4 2024?

In Q4 2024, HPE's higher EPS was driven by several key factors. **Record quarterly revenue** of **$8.5 billion**—up **15%** year-over-year—was fueled by strong performances in AI systems, traditional compute refreshes, and robust outcomes in Hybrid Cloud and networking.  **[0001645590-24-000132_ex-991x1252024x8k.htm:0]** **[HPE_3411067_1]**  **Profitability improvements** also played a crucial role, with the company achieving a **non-GAAP operating margin** of **11.1%**, an increase of **140 basis points** due to disciplined cost management and a streamlined cost structure.  **[HPE_3411067_4]**  Moreover, the **GAAP net earnings** increased to **$1,341 million**, further boosted by lower-than-expected tax expenses, and a **gain on the sale of an equity interest** provided additional support to net earnings.  **[0001645590-24-000132_ex-991x1252024x8k.htm:13]** **[HPE_3411067_4]** **[0001645590-24-000132_ex-991x1252024x8k.htm:8]** 

What factors contributed to the higher EPS in Q4 2024?

5744b7c67bae7dfdc0048652a07fed4bea01b8c52bee50f7288c19184654131d

Net Earnings Attributable to HPE (USD, millions)

Depreciation and Amortization (USD, millions)

Impairment of Goodwill (USD, millions)

Stock-Based Compensation Expense (USD, millions)

Provision for Inventory and Credit Losses (USD, millions)

Restructuring Charges (USD, millions)

Deferred Taxes on Earnings (USD, millions)

Earnings from Equity Interests (USD, millions)

Restructuring (Changes in Operating Assets and Liabilities) (USD, millions)

Net Cash Provided by (Used in) Operating Activities (USD, millions)

Investment in Property, Plant and Equipment and Software Assets (USD, millions)

Proceeds from Sale of Property, Plant and Equipment (USD, millions)

Purchases of Investments (USD, millions)

Proceeds from Maturities and Sales of Investments (USD, millions)

Net Cash Used in Investing Activities (USD, millions)

Proceeds from Debt, Net of Issuance Costs (USD, millions)

Payment of Debt (USD, millions)

Net Payments Related to Stock-Based Award Activities (USD, millions)

Repurchase of Common Stock (USD, millions)

Cash Dividends Paid to Non-Controlling Interests, Net of Contributions (USD, millions)

Cash Dividends Paid to Shareholders (USD, millions)

Net Cash Provided by (Used in) Financing Activities (USD, millions)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash (USD, millions)

Change in Cash, Cash Equivalents and Restricted Cash (USD, millions)

Financial Collateral Posted (USD, millions)

Financial Collateral Received (USD, millions)

Short-Term Borrowings with Original Maturities Less Than 90 Days, Net (USD, millions)

Cash, Cash Equivalents and Restricted Cash at Beginning of Period (USD, millions)

Cash, Cash Equivalents and Restricted Cash at End of Period (USD, millions)

ad2d73d85137ca81f841a81932bae70ee51cfd50974aa2f8e449840380a56642

Server

Compute

- Intersegment

Hybrid Cloud

HPC & AI

Storage

Intelligent Edge

Financial Services

Corporate Investments and Other

Products

Services

Financing Income

Total Revenue

a565d412a97792626def2ee8d93482393a2224e9a5acb9e0527ea8a44c866c95

Americas

- United States

- Americas excluding U.S.

Europe, Middle East and Africa

Asia Pacific and Japan

Other Countries

56ca6c65be04de83dec72f635c12431b34e6c1a00df29dce465c62a39bf6d00c

Hewlett Packard Enterprise Co (HPE)

Financials