Hewlett Packard Enterprise Company · NYSE:HPE
Hewlett Packard Enterprise — Q4 2025 Earnings Presentation
41 slides from Hewlett Packard Enterprise's earnings presentation, Dec 4, 2025
Slide 1: HPE Q4 FY25 Earnings
HPE Q 4 FY2 5 Earnings December 4, 2025 1
Slide 2: 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 3: 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 4: HP
HP
Slide 5: 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 enterprise customers THE MARKET • Accelerate our high -margin software and services growth through Gree
Slide 6: FY25 was a transformative year
FY25 was a transformative year HPE Networking Server Hybrid Cloud • Revenue of $34.3 billion , up • Delivered revenue of $6.9 • S igned ~$ 6.8 billion in AI • Added ~7,000 new customers 14% 1 year -over -year. Delivered billion, up 51% 1 year -over -year, orders, with sovereign and to GreenLake , en
Slide 7: HPE's innovation driving market leadership
HPE’s innovation driving market leadership Networking Cloud & AI Introduced new AIOps capabilities with common Wi -Fi 7 solutions delivering a consistent, self -driving experience across HPE Aruba Introduced new HPE Alletra Storage MP X10000 Data Intelligence Networking Central and HPE Juniper Netwo
Slide 8: FY25 financial results
FY25 financial results • Net revenue of $34.3 billion is up 14% 1 from the prior -year period • ARR 2 of $3.2 billion , up 62% 1 from the prior -year period • Non -GAAP gross margin 3 of 31.5% was down 1.3 pts from the prior -year period • Non -GAAP operating profit 3 of $3.4 billion was up 6% from
Slide 9: Q4 FY25 financial results
Q4 FY25 financial results • Net revenue of $9.7 billion is up 14% 1 from the prior -year period, up 6% 1 sequentially • ARR 2 of $3.2 billion , up 62% 1 from the prior -year period and up 3% 1 sequentially • Non -GAAP gross margin 3 of 36.4% was up 5.5 pts from the prior -year period and up 6.5 pts
Slide 10: Q4 FY25 business segment results
Q4 FY25 business segment results Year -over -Year Sequential Net Revenue Year -over -Year Operating Profit $ Operating Profit change in change in (in millions) Revenue Growth 1 (in millions) % Revenue OP % Revenue OP % Revenue Networking $2,812 150% $648 23.0% (1.4) pts 2.2 pts Server $4,457 (5)% $4
Slide 11: Growing sovereign demand contributing to record backlog
Growing sovereign demand contributing to record backlog $ in billions Cumulative AI orders 1 $ in billions AI revenue $1.6 $16.0 $1.5 Services $13.4 $1.6 Services $14.0 $1.3 Products $11.5 $12.0 Products $9.3 $1.2 $1.0 $1.0 $10.0 $8.3 $0.9 $0.9 $8.0 $6.2 $6.7 $0.8 $6.0 $4.6 $0.5 $3.5 $4.0 $0.4 $0.4
Slide 12: ARR up >60% in FY25
ARR 1 up >60% in FY25 GreenLake Customers Annualized Revenue Run -Rate 1 in thousands $ in billions $3.5 100% Networking 50 Thousands $3.2 95% Hybrid Cloud and Server $3.1 $3.0 Software/Services 90% 45 46K $2.5 44K 85% $2.2 40 42K $2.1 41K 80% $2.0 $1.9 81% 39K $1.7 81% 75% 35 37K $1.5 $1.5 $1.4 75%
Slide 13: Exceeded FY25 free cash flow guidance
Exceeded FY25 free cash flow 1 guidance Cash Flow Common Shareholder Return $ in billions Cash flow from operations Free cash flow Dividend payment Share repurchase $ in millions $3.5 $1,000 $2.9 $3.0 $2.5 $2.5 $800 $202 $1.9 $2.0 $1.5 $1.3 $600 $1.0 $1.0 $0.8 $0.5 $400 $- $684 $(0.5) ($0.4) $200 $1
Slide 14: De-levering on track; committed to investment grade rating
De -levering on track; committed to investment grade rating Targeting ~2x net debt to adjusted On track to reduce net leverage to ~2x through adjusted $ in billions EBITDA 1 by FY27 EBITDA 1 improvement and debt pay down. $25 3.5x 3.1x 2.7x 3.0x $20 Targeting FY26 free cash flow of $1.7 – $2.0B 2 su
Slide 15: Outlook
Outlook Q1 FY26 Full Year FY26 17 – 22% as reported Revenue $9.0 – $9.4 billion Revenue growth 5 – 10% pro forma 6 GAAP diluted net EPS $0.09 – $0.13 GAAP operating profit growth 455 – 520% as reported 1,3 32 – 40% as reported Non -GAAP diluted net EPS 1, 2 $0.57 – $0.61 Non -GAAP operating profit g
Slide 16: Outlook Details
Outlook Details Q1 FY26 Full Year FY26 • Revenue growth: 17% - 22% on a reported basis, or 5% - 10% on • Revenue: $9.0 billion to $9.4 billion, sequential revenue 5 a pro forma basis decline in line with historical seasonality • Revenue linearity: 46% 1H / 54% 2H • Non -GAAP operating expenses 1: de
Slide 17: Supplemental slides
Supplemental slides 17
Slide 18: Networking – Q4 FY25
Networking – Q4 FY25 Revenue 1 Operating profit 3 ◼ Americas 58% $2,812 million $648 million Revenue ◼ EMEA ◼ Asia Pacific 28% 14% 150% y/y 62% q/q CC 2 23.0% of revenue 150% y/y CC 2 $ in billions Overview $3.0 32% • Revenue up 150% y/y CC 2 and up 62% q/q CC 2 $2.5 28% 4 up 200% 24% • Networkin
Slide 19: Server – Q4 FY25
Server – Q4 FY25 Revenue 1 Operating profit 3 ◼ Americas 41% $4,457 million $437 million Revenue ◼ EMEA ◼ Asia Pacific 37% 22% 5% y/y 10% q/q CC 2 9.8% of revenue 5% y/y CC 2 $ in billions Overview $5.0 20% • Revenue down 5% y/y CC 2 and down 10% q/q CC 2 $4.0 16% OP % revenue • Operating margin
Slide 20: Hybrid Cloud – Q4 FY25
Hybrid Cloud – Q4 FY25 Revenue 1 Operating profit 3 ◼ Americas 36% $1,412 million $71 million Revenue ◼ EMEA ◼ Asia Pacific 42% 22% 12% y/y 5% q/q CC 2 5.0% of revenue 13% y/y CC 2 $ in billions Overview $1.6 18% 16% • Revenue down 13% y/y CC 2 and down 5% q/q CC 2 $1.4 14% • Operating margin of
Slide 21: Financial Services – Q4 FY25
Financial Services – Q4 FY25 Revenue 1 Operating profit 3 ◼ Americas 53% $889 million 2 $102 million Revenue ◼ EMEA ◼ Asia Pacific 32% 15% flat y/y, flat q/q CC 11.5% of revenue 2% y/y CC 2 $ in billions Overview $1.0 14% • Financing volume was down 29% CC 2 y/y and revenue was 12% down 2% y/y CC 2
Slide 22: Q4 FY25 balance sheet
Q4 FY25 balance sheet Operating Company 1,5 Financing Company 1,5 Net Cash $(5. 6 B) 2 $10.8B $13.2B $11.6B $ 5.2B $0.6B Cash Debt Net Portfolio Assets33 Capital Structure FS Gross Debt4 FS Cash Committed to investment grade rating and healthy balance sheet 1. Operating Company = Total HPE excluding
Slide 23: Appendix
Appendix 23
Slide 24: Restated Financials for New Segmentation
Restated Financials 1 for New Segmentation REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED Three months ended Three months ended YTD Oct. YTD Oct. Oct. 31, Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, 31, 31, 2025 2025 2025 2025 2025 2025 2025 2025 Net revenue: 2025 2025 Cloud & AI
Slide 25: Reconciliation to Earnings Before Taxes
Reconciliation to Earnings Before Taxes 1 REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED Three months ended Three months ended YTD Oct. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, YTD Oct. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Earnings before taxes: 2025 2025 2025 2025 2025 2025 2025 2025 2025 2025 Cl
Slide 26: Historical Combined Company Financials
Historical Combined Company Financials 1 COMBINED COMPANY Three months ended YTD Oct. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, Net revenue: 2025 2025 2025 3 2025 2025 Cloud & AI $26,670 $6,676 $7,212 $6,271 $6,511 Networking 10,654 2 2,722 2 3,088 2,3 2,364 2 2,480 2 Corporate Investments and Other 1
Slide 27: Historical Combined Company Financials Reconciliation to EBT
Historical Combined Company Financials 1 Reconciliation to EBT COMBINED COMPANY Three months ended YTD Oct. 31, Oct. 31, Jul. 31, Apr. 30, Jan. 31, 2: 2025 2025 2025 3 2025 2025 Earnings before taxes Cloud & AI 2,159 582 543 451 583 Networking 2,188 674 540 3 419 555 Corporate Investments and Other
Slide 28: FY25 GAAP to non-GAAP bridge
FY25 GAAP to non -GAAP bridge 1 H3C divestiture Acquisition, Stock -based Amortization of Loss on In millions, except tax rate and per Transformation Impairment related Gain on sale of Cost reduction GAAP disposition, and compensation intangible investments Other 2 Non -GAAP share amounts credit cha
Slide 29: Q4 FY25 GAAP to non-GAAP bridge
Q4 FY25 GAAP to non -GAAP bridge 1 Acquisition, Stock -based In millions, except tax rate and per share Amortization of Impairment Cost reduction Loss on GAAP disposition, and compensation Other 2 Non -GAAP amounts intangible assets charges program investments, net other charges expense Revenue $ 9
Slide 30: Q3 FY25 GAAP to non-GAAP bridge
Q3 FY25 GAAP to non -GAAP bridge 1 Acquisition, Stock -based In millions, except tax rate and per share Amortization of Cost reduction Loss on investments , GAAP disposition, and other compensation Other 2 Non -GAAP amounts intangible assets program net charges expense Revenue $9,136 $9,136 Cost of
Slide 31: Q2 FY25 GAAP to non-GAAP bridge
Q2 FY25 GAAP to non -GAAP bridge 1 Acquisition, Stock -based Amortization of H3C divestiture In millions, except tax rate and per Transformation Impairment of Cost reduction Gain on GAAP disposition, and compensation intangible related Other 2 Non -GAAP share amounts credit goodwill program investme
Slide 32: Q1 FY25 GAAP to non-GAAP bridge
Q1 FY25 GAAP to non -GAAP bridge 1 Acquisition, Stock -based H3C divestiture In millions, except tax rate and per share Transformation Amortization of Gain on sale of a Gain on GAAP disposition, and compensation related Other 2 Non -GAAP amounts costs intangible assets business investments net other
Slide 33: FY24 GAAP to non-GAAP bridge
FY24 GAAP to non -GAAP bridge 1 Acquisition, Loss on Stock -based Amortization Adjustments for In millions, except tax rate and per share Transformation Disaster disposition, and Divestiture investments GAAP compensation of intangible equity Other 4 Non -GAAP amounts costs recovery other related rel
Slide 34: Q4 FY24 GAAP to non-GAAP bridge
Q4 FY24 GAAP to non -GAAP bridge 1 Acquisition, Stock -based In millions, except tax rate and per share Transformation Disaster disposition, and Amortization of Gain on Adjustments for GAAP compensation Other 4 Non -GAAP amounts costs recovery other related intangible assets investments net 2 equity
Slide 35: Q3 FY24 GAAP to non-GAAP bridge
Q3 FY24 GAAP to non -GAAP bridge 1 Acquisition, Gain on Stock -based Amortization Earnings from In millions, Transformatio Disaster disposition, and Divestiture investments GAAP compensation of intangible equity Other 4 Non -GAAP except tax rate and per share amounts n costs recovery other related r
Slide 36: Q2 FY24 GAAP to non-GAAP bridge
Q2 FY24 GAAP to non -GAAP bridge 1 Acquisition, Stock -based In millions, Transformation Amortization of Earnings from GAAP Disaster recovery disposition, and compensation 2 Other 3 Non -GAAP except tax rate and per share amounts costs intangible assets equity interests other related charges expense
Slide 37: Q1 FY24 GAAP to non-GAAP bridge
Q1 FY24 GAAP to non -GAAP bridge 1 Acquisition, Stock -based Loss on In millions, Transformation Disaster (recovery) disposition, and Amortization of Earnings from GAAP compensation investments 3 Other 4 Non -GAAP except tax rate and per share amounts costs charges other related intangible assets eq
Slide 38: 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 Q4'25 Net cash provided by (used in) operating activities $64 $1,093 $1,154 $2,030 ($390) ($461) $1,305 $2,465 Investment in property, plant and equipment and software assets (656) (560) (543) (608) (
Slide 39: Reconciliation of Segment Operating Profit to GAAP & Non-GAAP
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 Q4’25 $227 $332 $402 $382 $353 $237 $251 $274 $314 $274 $360 $648 Networking 675 467 317 356 379 423 461 541 348 241 317 437 Server(1) 83 32 77 55 51 13 6
Slide 40: Reconciliation of TTM Operating Profit to Non-GAAP Operating Profit and Adjusted EBITDA
Reconciliation of TTM 1 Operating Profit to Non -GAAP Operating Profit and Adjusted EBITDA HPE Juniper Networks Pro Forma Q4'25 TTM Q4'25 TTM TTM GAAP Operating (Loss) Profit ($437) $332 ($105) Acquisition, disposition and other charges 641 64 705 Stock -based compensation expense 643 170 813 Amorti
Slide 41: Reconciliation of TTM Operating Profit to Non-GAAP Operating Profit and Adjusted EBITDA
Reconciliation of TTM 1 Operating Profit to Non -GAAP Operating Profit and Adjusted EBITDA HPE Juniper Networks Pro Forma Q3'25 TTM Q3'25 TTM TTM GAAP Operating Profit $264 $399 $663 Acquisition , disposition and other charges 404 77 481 Stock -based compensation expense 536 244 780 Amortization of
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