HPE Announces Fiscal 2025 Fourth Quarter Earnings Results

Hewlett Packard Enterprise Company (HPE) today announced its financial results for the fiscal quarter, revealing a challenging performance. The company reported earnings per share of $0.11, significantly missing the estimated $0.58, while revenue totaled $9.68 billion, falling short of expectations by approximately $222 million. This marks a notable deviation from analysts’ forecasts, highlighting ongoing challenges in the current market landscape.

Key Highlights:

• HPE reported Q4 fiscal 2025 revenue of $9.7 billion, a 14% increase year-over-year.
• Annualized revenue run-rate (ARR) reached $3.2 billion, up 63% from the prior year.
• GAAP gross margins improved to 33.5%, with non-GAAP gross margins at 36.4%.
• Non-GAAP diluted EPS was $0.62, exceeding the outlook range of $0.56 - $0.60.
• Free cash flow for the quarter was $1.9 billion, an increase of $420 million from the previous year.
• HPE raised its FY26 diluted net EPS guidance to a range of $0.62 to $0.82.
• The company completed the acquisition of Juniper Networks and scaled its AI and Cloud businesses.

Summary: Hewlett Packard Enterprise (HPE) announced strong financial results for the fourth quarter of fiscal 2025, showcasing a revenue increase of 14% year-over-year, totaling $9.7 billion. The company achieved a significant annualized revenue run-rate (ARR) of $3.2 billion, reflecting a 63% growth compared to the previous year. HPE’s gross margins also saw notable improvements, with GAAP gross margins at 33.5% and non-GAAP gross margins at 36.4%. Non-GAAP diluted earnings per share (EPS) reached $0.62, surpassing the company’s prior outlook range. CEO Antonio Neri highlighted the transformative year for HPE, stating, “HPE finished a transformative year with a strong fourth quarter of profitable growth and disciplined execution.”

Looking ahead, HPE raised its fiscal 2026 guidance, projecting diluted net EPS between $0.62 and $0.82, and emphasized its focus on operational discipline and strategic priorities moving forward. CFO Marie Myers noted that the company’s disciplined spending and ongoing cost management initiatives have contributed to its robust financial performance, allowing for an increase in free cash flow to $1.9 billion for the quarter. The management’s confidence in future growth is reflected in their guidance and strategic focus on enhancing product offerings and expanding market reach, particularly in the AI and Cloud sectors.

Hewlett Packard Enterprise Company (HPE) has experienced a rollercoaster of price changes recently, with a notable 3.39% increase over the past week, suggesting a potential rebound after a challenging month where the stock fell by 9.14%. Over the last three months, HPE has seen a slight decline of 1.94%, but the six-month outlook is much more promising, with a robust 27.42% increase, indicating strong investor confidence in the company’s long-term prospects. The company’s fundamentals also paint a positive picture, with a two-year compound annual growth rate (CAGR) for revenue at an impressive 5.61% and free cash flow at an even more remarkable 13.05%. Despite a price-to-earnings ratio of 27.80, which may seem high, the earnings per share (EPS) CAGR of 32.57% suggests that HPE is effectively translating its revenue growth into profitability. Additionally, the net profit margin of 3.41% and a return on invested capital of 3.90% indicate that the company is managing its resources efficiently. Overall, while HPE’s stock has faced some volatility, its strong financial metrics suggest a solid foundation for future growth.

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem and HPE Synergy; and solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products; and HPE Superdome Flex, HPE Nonstop, HPE Integrity, and HPE Edgeline products. In addition, the company provides HPE Aruba product portfolio that includes wired and wireless local area network hardware products, such as Wi-Fi access points, switches, routers, and sensors; HPE Aruba software and services comprising cloud-based management, network management, network access control, analytics and assurance, and location; and professional and support services, as well as as-a-service and consumption models for the intelligent edge portfolio of products. Further, it offers various leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. Additionally, the company invests in communications and media solutions. It has a partnership with Striim, Inc. to offer high performance and mission-critical solutions with real-time analytics. It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Houston, Texas.