Hewlett Packard Enterprise Company · NYSE:HPE
Hewlett Packard Enterprise — Q3 2025 Earnings Presentation
28 slides from Hewlett Packard Enterprise's earnings presentation, Sep 3, 2025
Slide 1: HPE Q3 FY25 Earnings
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 or
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-GAAP
Slide 4: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 5: Q3 FY25 financial results
Q3 FY25 financial results + Net revenue of $9.1 billion is up 18%! from the prior-year period, up 18%! sequentially and above the high end of our Q3 FY25 outlook range * ARR? of $3.1 billion, up 75%! from the prior-year period and up 35%! sequentially * Non-GAAP gross margin’ of 29.9% was down 1.9 p
Slide 6: Q3 FY25 business segment results
Q3 FY25 business segment results Year-over-Year 5 7 5 7 Year-over-Year Sequential NetReverue "Revenue OParatngPratS Opeatngraft Ychangein.” change Growth! ° OP%Revenue OP % Revenue Networking? $1,730 5A% $360 20.8% (1.6) pts (2.8) pts Intelligent Edge $1,250 11% $284 22.7% 0.3 pts (0.9) pts Server $
Slide 7: AI orders nearly doubled sequentially, resulting in record backlog
Al orders nearly doubled sequentially, resulting in record backlog Enterprise and sovereign account for >50% of cumulative orders since Q1 FY23 $ in billions Cumulative Al orders! $inbillions Al revenue $1.6 $14.0 Tw services sms $1.6 Services $12.0 Products $10.0 $8.0 $6.0 $4.0 $2.0 $- m Products 2
Slide 8: ARR exceeds $3 billion including Juniper
ARR' exceeds $3 billion including Juniper GreenLake Customers Annualized Revenue Run-Rate! Qi24 Q2'24- Q3'24- 424 Q1'25- Q2'25)Q3'25 $ in billions $3.5 lm Networking $3 1 $3.0 -| mmm Hybrid Cloud & Server _ ——Software & Services $2.5 1 i $1.9 $2.0 $1.5 $1.0 $0.5 $0.0 $1.7 Q1'24 Q2'24Q3'24 aa'24 Q1'2
Slide 9: Expect to generate FY25 free cash flow of ~$0.7B
Expect to generate FY25 free cash flow’ of ~$0.7B Cash Flow Common Shareholder Return Sinbillns Cash flow from operations lm Free cash flow m Impact of closing Juniper —_$inmillons ™ Dividend payment m™ Share repurchase Xo oo a $800 $1.5 $1.0 $600 $0.5 $0.7 $400 $- $(0.5) $200 $(1.5) a $- - 2 Ql25 Q
Slide 10: Outlook
Outlook Q4 FY25 Full Year FY25 Revenue $9.7 - $10.1 billion Revenue growth'67 14-16% (in constant currency) GAAP diluted net EPS $0.50 - $0.54 GAAP operating profit growth (112) - (109)% Non-GAAP diluted net EPS'2 $0.56 - $0.60 Non-GAAP operating profit growth! 4-T% GAAP diluted net EPS $0.42 to $0.
Slide 11: Supplemental
Supplementa
Slide 12: Networking - Q3 FY25
Networking! - Q3 FY25 Revenue? Operating profit* m Americas 52% $1,730 million $360 million Revenue m EMEA _ 32% 54% y/y 448% q/q CC8 20.8% of revenue ™ Asia Pacific 16% A54% y/y CCS $ in billions Overview . om + Revenue up 54% y/y CC? and up 48% q/q CC® a 2% o + Intelligent Edge revenue? of $1,250
Slide 13: Server - Q3 FY25
Server - Q3 FY25 Revenue’ Operating profit? , m_ Americas 56% m EMEA 26% $4, 940 million $31 7 million Revenue EH Asia Pacific 18% A16% y/y 421% q/q CC2 6.4% of revenue A16% y/y CC2 $ in billions Overview $5.0 20% + Revenue up 16% y/y CC? and up 21% q/q CC2 ° + Operating margin of 6.4%, down 440 bps
Slide 14: Hybrid Cloud - Q3 FY25
Hybrid Cloud - Q3 FY25 Revenue’ Operating profit? m@ Americas 40% $1,484 million $87 million Revenue m EMEA _ 40% A12% y/y 41% q/q CC? 5.9% of revenue ™ Asia Pacific 20% AN% y/y CC? H $ in billions Overview meen we 16% + Revenue up 11% y/y CC? and up 1% q/q CC? $14 “ue @ + Operating margin of 5.9%,
Slide 15: Financial Services - Q3 FY25
Financial Services - Q3 FY25 Revenue’ Operating profit? = Americas 53% $886 million $88 million Revenue m EMEA 32% A1% y/y, flat q/q CC? 9.9% of revenue ™ Asia Pacific 15% ‘W1% y/y CC2 ‘ $ in billions Overview so om + Financing volume was up 2% y/y CC? and revenue was down 10% @ 1% y/y CC? $0.8 g +
Slide 16: Q3 FY25 balance sheet
Q3 FY25 balance sheet Operating Company'5 Net Cash $(8.2B)? $12.2B $13.2B Financing Company" $11.4B Cash Debt Net Portfolio Assets® Capital Structure FS Gross Debt* mFS Cash Committed to investment grade rating and healthy balance sheet 1. Operating Company = Total HPE excluding Financial Services (
Slide 17: Appendix
Appendix
Slide 18: Q3 FY25 GAAP to non-GAAP bridge
Q3 FY25 GAAP to non-GAAP bridge’ {nmilions,excepttaxrateand per share cempeneation iRmortiatonct — Gostreduction Lesson investments, Other? Non-GAAP Revenue $ 9,136 $ 9,136 Cost of sales 6,464 (60) (10) 6,404 Gross profit 2,672 50 10 2,732 Total operating expenses 2,425 (175) (167) (126) (2) 1,955 R
Slide 19: Q2 FY25 GAAP to non-GAAP bridge
Q2 FY25 GAAP to non-GAAP bridge’ Stock-based Amortization of H3C divestiture tpmitons:exceptaxratoandper nap Taretomaigy maize Cosredutoncispeation and comoneaion "Tntangile talaedinyegp ct Non-onaP Revenue 7,627 7,627 Cost of sales 5,A58 (46) - (13) 5,383 Gross profit 2,169 46 - 13, 2,244 Total ope
Slide 20: Q1 FY25 GAAP to non-GAAP bridge
Q1 FY25 GAAP to non-GAAP bridge’ ns, except tax rate and per share Ganp Transformation gisreticntion compensation Amortization of H3C divestiture Other Non-GAAP amounts costs "other charges expense intangibleassets severancecosts Revenue $ 7,854 $ 7,854 Cost of sales 5,559 3 ) O) 5,544 Gross profit
Slide 21: FY24 GAAP to non-GAAP bridge
FY24 GAAP to non-GAAP bridge’ Losson Inmillons, excepttax rate and per share aap Transformation comporeaion velar ivestture investments “my Other! Non-GAAP Revenue $ 30,127 $ Cost of sales 20,249 43 (49) (9) 20,234 Gross profit 9,878 (43) 49 9 9,893 Total operating expenses 7,688 (93) 8 (204) (381)
Slide 22: Q4 FY24 GAAP to non-GAAP bridge
Q4 FY24 GAAP to non-GAAP bridge’ Stock-based Sseegt erect ont terso comganten Amst imesmesnat amines’ Other’ Non oaRP Revenue $ $ 8,458 Cost of sales (10) 5,846 Gross profit 10 2,612 Total operating expenses 1,913 (26) 8 (78) (79) (69) 1.674 R&D 527 (35) 492 SG&A 1211 15 (44) 1,182 Others? 175 (26)
Slide 23: Q3 FY24 GAAP to non-GAAP bridge
Q3 FY24 GAAP to non-GAAP bridge’ rane 7 aio Acauisition, cod A Gainon ransformatio isaster disposition, a ivestiture investments except tax rate and per share amounts GAAP neosts recovery otherrelated COMPENsation reiatedexitcost °F intangible net? Other! Non-GAAP expense: assets: Revenue $7,710 $7,
Slide 24: Q2 FY24 GAAP to non-GAAP bridge
Q2 FY24 GAAP to non-GAAP bridge’ Transformation py, is ation, Amortization of, except tax rate and per share amounts aap costs Disssterrecovery | disposition.and compensation intangible assets Other = Non-GAAP Revenue 7204 ‘$7,204 Cost of sales 4828 7 (14) 4,821 Gross profit 2376 0) “4 2,383 Total o
Slide 25: Q1 FY24 GAAP to non-GAAP bridge
Q1 FY24 GAAP to non-GAAP bridge’ Acquisition, ion Di i , _ Stock-based cat Losson Transformation Disaster(recovery) _disposition, and sed amortizationof —, except tax rate and per share amounts GAAP costs charges otherrelated —COMPensation intangibleassets _‘*VES*MENKS equity interests? Other! Non-G
Slide 26: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow' Qi24 Q2'24 Q3'24 Q4'24 QT25 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) (660) (643) (608) (628) (647) (676)
Slide 27: Reconciliation of Segment Operating Profit to GAAP & Non-GAAP Operating Profit
Reconciliation of Segment Operating Profit to GAAP & Non-GAAP Operating Profit Qr23 Q2'23 93°23 Q4'23 Qr24 92°24 93°24 424 ar25 Q2'25 Q3'25 Networking Solutions $227 $332 $402 $382 $353, $237 $251 $274 $314 $274 $360 Server) 675 467 37 356 379 423 461 541 348 241 37 Hybrid Cloud” 83 32 7 55 51 3 69
Slide 28: Reconciliation of TTM Operating Profit to Non-GAAP Operating Profit and EBITDA
Reconciliation of TTM' Operating Profit to Non-GAAP Operating Profit and EBITDA HPE Juniper Networks ProForma Q3'25TTM Q3'25TTM 1™ $264 $399 $663 Acquisition, disposition and other charges 404 7 481 Stock-based compensation expense 536 244 780 Amortization of intangible assets 270 39 309 Cost reduct
Hewlett Packard Enterprise Company — Q3 2025 Earnings Presentation on 6ix