Hewlett Packard Enterprise Company · NYSE:HPE
Hewlett Packard Enterprise — Investor Day (2025)
76 slides from Hewlett Packard Enterprise's investor day presentation, 2025
Slide 1: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
Slide 2: Forward-looking statements; Use of non-GAAP financial information
Forward -looking statements You’ll hear some forward -looking statements These are based on risks and assumptions that in today’s presentation. may not prove correct. All statements other than statements of historical fact are These risks and assumptions are described in our latest statements that c
Slide 3: Antonio Neri, President & Chief Executive Officer
ANTONIO NERI PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 4: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
Slide 5: HPE's transformation has delivered shareholder value and positioned us for the future
HPE’s transformation has delivered shareholder value and positioned us for the future +15% +70 % +13 % +10 % +120 % REVENUE NON -GAAP DILUTED NON -GAAP GROSS NON -GAAP OPERATING TOTAL SHAREHOLDER GROWTH 1, 2 NET EPS GROWTH 1,3 PROFIT GROWTH 1,3 PROFIT GROWTH 1,3 RETURN 4 5 Since FY17, we have return
Slide 6: HPE's three-year strategic priorities to accelerate shareholder value
HPE’s three -year strategic priorities to accelerate shareholder value • Build a new networking industry leader WIN IN • Capture AI infrastructure growth, profitably, with a focus on sovereign and THE MARKET enterprise customers • Accelerate our high -margin software and services growth through Gree
Slide 7: HPE TAM growing to $1T+ by 2028
HPE TAM growing to $1T+ by 2028 Networking Cloud AI 1.3x 1.1x 1.9x $692B $169B $246B $215B $129B $364B 2025 2028 2025 2028 2025 2028 Note: Market shown for worldwide market, including hyper -scalers. Charts shown are not to scale. All data and projections are ba sed on currently available data and H
Slide 8: Networking for the AI Era
NETWORKING FOR THE AI ERA
Slide 9: Rami Rahim, HPE Networking
RAMI RAHIM HPE NETWORKING
Slide 10: Disrupting the networking industry
Disrupting the networking industry HPE will lead We have the We have as networking right strategy competitive We are poised becomes to build a new advantages to to deliver mission critical networking accelerate strong results in the AI era industry leader value
Slide 11: HPE has all the building blocks for modern IT
HPE has all the building blocks for modern IT NETWORKING CLOUD AI
Slide 12: Networking for the AI Era
NETWORKING FOR THE AI ERA
Slide 13: Networking market growth is accelerating
Networking market growth is accelerating 1.3x CAGR $169B 9% $129B Security 10% Data Center 15% Networks WAN/Routing 5% Campus & Branch 4% 2025 2028 Note: Market shown for worldwide market, including hyper -scalers. Charts shown are not to scale. All data and projections are ba sed on currently avail
Slide 14: Our vision is to deliver the best secure AI-native networks
Our vision is to deliver the best secure AI -native networks AI FOR NETWORKS NETWORKS FOR AI CONVERGENCE OF NETWORKS AND SECURITY
Slide 15: Campus & Branch market
Campus & Branch market 1.3x CAGR KEY TRENDS Cloud managed & $169B AI -native networks | Refresh cycles $129B Campus & Branch Switching Enterprise WLAN Campus & Branch 4% Private 5G 2025 2028
Slide 16: Routing Infrastructure Solutions (RIS) market
Routing Infrastructure Solutions (RIS) market 1.3x CAGR KEY TRENDS AI buildouts driving growth in routing | $169B Service Provider refresh cycles $129B Core Routing Metro Routing Edge Routing Enterprise Routing WAN/Routing 5% Data Center Interconnect 2025 2028
Slide 17: Data Center Networking market
Data Center Networking market 1.3x CAGR KEY TRENDS AI data center buildouts | Front -end and $169B back -end ethernet fabrics | Liquid cooling $129B Data Center Automated Secure Data Center Networks 15% AI Data Center 2025 2028
Slide 18: Networking Security market
Networking Security market 1.3x CAGR KEY TRENDS Convergence of networks & security | $169B uZTNA (universal zero trust network access) $129B Security 10% SASE (SD -WAN + SSE) NAC (Network Access Control) Firewalls AIOps 2025 2028
Slide 19: HPE Networking market recognition
HPE Networking market recognition 10 10 of top 20 of top 20 20 of top 20 20 of top 20 GLOBAL GLOBAL SERVICE CLOUD UNIVERSITIES BANKS PROVIDERS PROVIDERS HPE and Juniper Networks both named Leaders 47,000+ Global Partners in the Gartner® Magic Quadrant TM for Wired and Wireless 1 1. Gartner, Magic Qu
Slide 20: Networking value creation strategy
Networking value creation strategy Accelerated Market Revenue Growth & Adoption Leadership Margin Expansion AI -native networking Grow leadership in key Moving from ~50% of HPE’s non -GAAP solutions across every segments: WLAN and consolidated operating profit 1 major industry data center networking
Slide 21: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
Slide 22: Cloud & AI
CLOUD & AI
Slide 23: Cloud & AI value creation strategy
Cloud & AI value creation strategy Capture AI Accelerate Drive enterprise Capitalize on infrastructure high -margin transition to unstructured profitable growth GreenLake software next -generation data market with focus on and services growth , server platforms growth with our sovereign and includin
Slide 24: Profitably capturing explosive AI growth opportunity
Profitably capturing explosive AI growth opportunity with compelling value proposition across customer segments
Slide 25: Winning the sovereign market with unique IP, manufacturing, and services capabilities
WINNING THE SOVEREIGN MARKET WITH UNIQUE IP, MANUFACTURING, AND SERVICES CAPABILITIES 250 % Sovereign and enterprise customers represent more than 50% of our cumulative AI orders 2 More than 50% of organizations in Europe are already using ORDERS GROWTH 1 sovereign cloud to build AI solutions or pla
Slide 26: Using our supercomputing leadership as a distinct advantage to capture AI growth
USING OUR SUPERCOMPUTING LEADERSHIP AS A DISTINCT ADVANTAGE TO CAPTURE AI GROWTH Top 3 Six of the top 10 fastest supercomputers in the world 1 FASTEST SUPERCOMPUTERS Four of the top 10 Green500 2 most energy efficient systems Industry -first 100% fanless Direct Liquid Cooling system AI convergence w
Slide 27: Delivering enterprise AI-at-scale offering and private cloud AI solutions
DELIVERING ENTERPRISE AI - AT - SCALE OFFERING AND EASY - TO - DEPLOY PRIVATE CLOUD AI SOLUTIONS Leader PRIVATE AI Private Cloud AI (PCAI) is a turnkey AI factory ready to run in a few steps INFRASTRUCTURE SYSTEMS 1 PCAI includes comprehensive software and storage integration AI factories at scale g
Slide 28: HPE is the #1 Enterprise Hybrid Cloud Provider
HPE is the #1 Enterprise Hybrid Cloud Provider
Slide 29: Attracting new logos and expanding GreenLake cloud share of wallet
ATTRACTING NEW LOGOS AND EXPANDING GREENLAKE CLOUD SHARE OF WALLET Modernize, simplify, and accelerate adoption of AI Cloud -native, AI -driven orchestration to every 7,000 + layer in the IT operations stack NEW LOGOS SINCE Q3 FY24 AI -native networking with Juniper Networks
Slide 30: Growing profitable hybrid cloud software business
GROWING PROFITABLE HYBRID CLOUD SOFTWARE BUSINESS AI Observability Cloud management and orchestration, Platform of the Year observability, data protection, and runtime software for full lifecycle BY AI BREAKTHROUGH management with HPE Cloud Ops Suite True multi -cloud and multi -vendor unified cloud
Slide 31: Leveraging the great VM reset to offer a better way to virtualize
LEVERAGING THE GREAT VM RESET TO OFFER A BETTER WAY TO VIRTUALIZE OF GARTNER PEER INSIGHTS COMMUNITY 74 % Enhanced private cloud offerings with integrated Morpheus software MEMBERS POLLED ARE ACTIVELY LOOKING Seamless multi -cloud orchestration 1 between public and private clouds AT VMWARE ALTERNATI
Slide 32: Capitalizing on unstructured data market growth with our own IP through Alletra MP
CAPITALIZING ON UNSTRUCTURED DATA MARKET GROWTH WITH OUR OWN IP THROUGH ALLETRA MP 3 pts MARKET SHARE GAIN IN BLOCK STORAGE FROM Q2 CY24 TO Q2 CY25 1 Extraordinary data efficiency and speed HPE Alletra Storage MP integration with private 7x GROWTH OVER cloud solutions, providing a unified and effici
Slide 33: Driving profitable growth in core servers
DRIVING PROFITABLE GROWTH IN CORE SERVERS 36 ,000 10,000+ active resellers Platform upgrades driving AUP expansion CUSTOMERS USING HPE COMPUTE 65% power savings per year and a 7:1 reduced OPS MANAGEMENT WITH AI OPS data center footprint HPE Integrated Lights -Out (iLO ) security that builds in prote
Slide 34: Capturing demand for processing mission-critical workloads with HPE Nonstop
CAPTURING DEMAND FOR PROCESSING MISSION - CRITICAL WORKLOADS WITH HPE NONSTOP 99 .999 % UPTIME 1 Six of the top 10 full -service global retail banks use HPE Nonstop New next -gen HPE Nonstop servers, doubling memory and bandwidth Growth from digital payments globally 1. IDC's Worldwide Computing Pla
Slide 35: Unlocking quantum computing at scale
UNLOCKING QUANTUM COMPUTING AT SCALE + + NETWORKING HPC QUANTUM DEV ENVIRONMENT
Slide 36: HPE Financial Services accelerates adoption of enterprise cloud & AI through financing
HPE FINANCIAL SERVICES ACCELERATES ADOPTION OF ENTERPRISE CLOUD & AI THROUGH FINANCING AND IT LIFECYCLE SERVICES CONSUMPTION & USE REFURBISH & RE -USE RECYCLING
Slide 37: Driving efficiencies through Catalyst to improve our operating leverage
Driving efficiencies through Catalyst to improve our operating leverage
Slide 38: HPE's three-year strategic priorities to accelerate shareholder value
HPE’s three -year strategic priorities to accelerate shareholder value • Build a new networking industry leader WIN IN • Capture AI infrastructure growth, profitably, with a focus on sovereign and THE MARKET enterprise customers • Accelerate our high -margin software and services growth through Gree
Slide 39: Marie Myers, Chief Financial Officer
MARIE MYERS CHIEF FINANCIAL OFFICER
Slide 40: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
Slide 41: Reaffirming our FY25 non-GAAP outlook
Reaffirming our FY25 non -GAAP outlook REVENUE GROWTH 1,5 14 -16% (in constant currency) NON -GAAP OPERATING PROFIT 2 4 -7% growth NON -GAAP DILUTED NET EPS 3 $1.88 – $1.92 FREE CASH FLOW 4,5 ~$0.7B (including impacts of closing Juniper) 1. In constant currency. Excludes foreign currency negative im
Slide 42: Driving ~$1 billion in structural cost savings
Driving ~$1 billion in structural cost savings
Slide 43: At least $600M of Juniper annualized synergies by FY28
At least $600M of Juniper annualized synergies by FY28 Corporate function Portfolio Supply chain Sales and services rationalization simplification integration optimization • Rationalizing • Product roadmap • Leveraging scale • Rationalizing sales function costs convergence • Vendor coverage • Consol
Slide 44: At least $350M of Catalyst annualized savings by FY27
At least $350M of Catalyst annualized savings by FY27 Workforce Portfolio Operational Artificial transformation optimization excellence Intelligence • Right -sizing the • Eliminating • Services delivery • Content creation workforce non -core assets • Vendor • Function • Reducing spans • Smaller cons
Slide 45: Simplifying our segment reporting
Simplifying our segment reporting
Slide 46: New FY26 segmentation framework
New FY26 segmentation framework Corporate Networking Cloud & AI Investments & Other SERVICE 2 FINANCIAL ENTERPRISE 1 SERVER STORAGE OTHER Quarterly PROVIDER SERVICES Revenue Disclosures • Campus & Branch • Routing • Data Center Networking • Security AI Other • AI orders • Alletra MP • Return on Quar
Slide 47: Strategic framework for value creation
Strategic framework for value creation
Slide 48: Focusing on free cash flow growth
Focusing on free cash flow 1 growth OPERATING BALANCE SHEET GROW REVENUE PROFIT EXPANSION EFFICIENCY Free Cash Flow ACCELERATE SHARE PAY DOWN DEBT GROW DIVIDENDS REPURCHASE 1. For the definition of free cash flow see slide 67 . A description of HPE's use of non -GAAP financial information is provide
Slide 49: Non-GAAP operating profit to drive FCF generation
Non -GAAP operating profit to drive FCF generation NON -GAAP OPERATING PROFIT 1 2 FREE CASH FLOW >$3.5B ~$1.8B ~$0.7B FY25 FY26 FY28 FY25 FY26 3 FY28 1. A description of HPE's use of non -GAAP financial information is provided at the end of this presentation. 2. For the definition of free cash flow
Slide 50: Committed to reduce net leverage to ~2x by FY27
Committed to reduce net leverage to ~2x by FY27 NET DEBT TO EBITDA 1 CAPITAL STRUCTURE OBJECTIVES Committed to investment grade credit rating ~3 x Balanced debt maturity profile: ~2x proactive refinancing + term loan repayment Strong liquidity position: growing cash flow + disciplined capital manage
Slide 51: Increasing capital returns
Increasing capital returns INCREASING FY26 ANNUAL DIVIDEND BY 10% TO $0.57 PER COMMON SHARE 1 THROUGH FY27 FY28 AND BEYOND 1 DIVIDENDS Annual increases in the regular dividend SHARE Offset dilution; keep share count Majority of excess FCF after REPURCHASE approximately flat dividends Maintain 2x net
Slide 52: Long-term financial outlook
Long -term financial outlook REVENUE GROWTH 1,2 Networking: Cloud & AI: Overall: (FY25 -28) 5 % to 7% CAGR 4 % to 8 % CAGR 5 % to 7% CAGR Networking margin: Cloud & AI margin: Non -GAAP operating profit 5 dollars: OPERATING PROFIT 1 25 % to 28 % 8 % to 10 % 11% to 17% CAGR NON -GAAP DILUTED NET EPS
Slide 53: FY26 financial outlook
FY26 financial outlook Networking: Cloud & AI: Overall: REVENUE GROWTH 1,2 Low -to-mid single digit Mid -single to low -double digit 5 % to 10 % Networking margin: Cloud & AI margin: Non -GAAP operating profit 3 dollars: OPERATING PROFIT 1 Low 20 %s 7% to 9 % 10 % to 18% y/y NON -GAAP DILUTED NET EP
Slide 54: Driving shareholder value
Driving shareholder value Portfolio Earnings Strong FCF Balanced leadership power expansion capital return Comprehensive, Revenue growth and Profitability and Committed to debt networking -led, AI operating leverage working capital paydown, dividend and cloud company drive at least $ 3 discipline dr
Slide 55: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
Slide 56: HPE is a compelling investment opportunity
HPE is a compelling investment opportunity REVENUE GROWTH 1,2 Networking: Cloud & AI: Overall: (FY25 -28) 5 % to 7% CAGR 4 % to 8 % CAGR 5 % to 7% CAGR Networking margin: Cloud & AI margin: Non -GAAP operating profit 5 dollars: OPERATING PROFIT 1 25 % to 28 % 8 % to 10 % 11% to 17% CAGR NON -GAAP DI
Slide 57: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
Slide 58: Appendix A: Safe Harbor Disclosures
Appendix A Safe Harbor Disclosures
Slide 59: Forward-looking statements
Forward-looking statements This presentation contains forward -looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . Such statements involve risks, uncertainties, and assumptions . If the risks or uncertainties ever materialize
Slide 60: Use of non-GAAP financial information
Use of non -GAAP financial information HPE’s management uses net revenue on a constant currency basis, including at the business segment level as more than half of HPE’s revenue is generated outside of the U.S ., non -GAAP gross profit, non -GAAP gross profit margin, non -GAAP operating profit, non
Slide 61: Appendix B: GAAP to non-GAAP reconciliations
Appendix B GAAP to non -GAAP reconciliations
Slide 62: Q3 FY25 GAAP to non-GAAP bridge
Q3 FY25 GAAP to non -GAAP bridge 1 In millions, except tax rate Acquisition, Stock -based Amortization Loss on Cost reduction GAAP disposition, compensation of intangible investments , Other 2 Non -GAAP and per share amounts program and other charges expense assets net REVENUE $9,136 $9,136 COST OF
Slide 63: Q2 FY25 GAAP to non-GAAP bridge
Q2 FY25 GAAP to non -GAAP bridge 1 In millions, except tax rate Cost Acquisition, Stock -based Amortization H3C divestiture Gain on Transformation Impairment GAAP reduction disposition, and compensation of intangible related severance investments Other 2 Non -GAAP and per share amounts credit of goo
Slide 64: Q1 FY25 GAAP to non-GAAP bridge
Q1 FY25 GAAP to non -GAAP bridge 1 In millions, except tax rate Acquisition, Stock -based Amortization H3C divestiture Gain on Gain on Transformation GAAP disposition, compensation of intangible related severance sale of a investments Other 2 Non -GAAP and per share amounts costs and other charges e
Slide 65: Q4 FY24 GAAP to non-GAAP bridge
Q4 FY24 GAAP to non -GAAP bridge 1 In millions, except tax rate Acquisition, Stock -based Amortization Gain on Adjustments Transformation Disaster GAAP disposition, and other compensation of intangible investments for equity Other 4 Non -GAAP and per share amounts costs recovery related charges expe
Slide 66: FY17 GAAP to non-GAAP bridge
FY17 GAAP to non -GAAP bridge 1 In millions, except tax rate Amortization Stock -based Acquisition, Earnings (loss) Restructuring Separation Transformation Disaster GAAP of intangible compensation disposition and from equity Other 3 Non -GAAP and per share amounts charges costs costs charges assets
Slide 67: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow 1 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Net cash provided by (used in) operating activities $64 $1,093 $1,154 $2,030 ($390) ($461) $1,307 Investment in property, plant and equipment and software assets (656) (560) (543) (608) (528) (547) (5
Slide 68: Reconciliation of Segment Operating Profit to GAAP & Non-GAAP Operating Profit
Reconciliation of Segment Operating Profit to GAAP & Non -GAAP Operating Profit Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Networking $227 $332 $402 $382 $353 $237 $251 $274 $314 $274 $360 Server (1) 675 467 317 356 379 423 461 541 348 241 317 Hybrid Cloud (1) 83 32 77 55 51 1
Slide 69: Reconciliation of TTM Operating Profit to Non-GAAP Operating Profit and EBITDA
Reconciliation of TTM 1 Operating Profit to Non -GAAP Operating Profit and EBITDA HPE Q3'25 TTM Juniper Networks Q3'25 TTM Pro Forma TTM GAAP Operating Profit $264 $399 $663 Acquisition , disposition and other charges 404 77 481 Stock -based compensation expense 536 244 780 Amortization of intangibl
Slide 70: Appendix C: New Segmentation & Combined Historicals
Appendix C New Segmentation & Combined Historicals
Slide 71: Restated Financials For New Segmentation
Restated Financials 1 For New Segmentation REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED Three months ended Three months ended Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, 2025 2025 2025 2024 2024 2024 2024 2025 2025 2
Slide 72: Reconciliation to Earnings Before Taxes
Reconciliation to Earnings Before Taxes REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED Three months ended Three months ended Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Earnings before taxes: 2025 2025 2025 2024 2024 2
Slide 73: Revenue Disaggregation
Revenue Disaggregation DISAGGREGATION OF REVENUE Three months ended Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, 2025 2025 2025 2024 2024 2024 2024 Net revenue: Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Cloud & AI: Server $5,000 16%
Slide 74: Historical Combined Company Financials
Historical Combined Company Financials 1 COMBINED COMPANY Three months ended Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Net revenue: 2025 2 2025 2025 2024 2024 2024 2024 Cloud & AI $7,212 $6,271 $6,511 $7,072 $6,327 $5,866 $5,316 Networking 3,088 2,364 2,480 2,381 2,241 2,163 2,4
Slide 75: Historical Combined Company Financials Reconciliation To EBT
Historical Combined Company Financials 1 Reconciliation To EBT COMBINED COMPANY Three months ended Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, 2: 2025 2025 2025 2024 2024 2024 2024 Earnings before taxes Cloud & AI 543 451 583 790 648 561 546 Networking 540 419 555 446 355 327 570
Slide 76: Securities Analyst Meeting 2025
SECURITIES ANALYST | MEETING 2025
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