Hewlett Packard Enterprise Company

HPE separated from HP in 2015 to specialize on the enterprise side of the business (not PCs or printers) which can be summed up in their reporting segments: Servers, Hybrid Cloud, Networking, and Financial Services. The company believes their strategy of offering edge-to-cloud solutions offers a comprehensive portfolio which is enhanced by the acquisition of Juniper Networks to better serve diverse needs in the growing and competitive data center market.

Net Debt/Cap includes cash, financing receivables, short and long-term debt, and deferred revenues.

Quarterly EPS are as reported non-GAAP EPS to HPE but my trailing EPS is to common shareholders (after preferred dividends).   

Ests       4Q25    1Q26    FY25     FY26

Revs      9.9b       9.9b       34.5b    40.3b

EPS        .58          .58          1.90       2.41

y/y           0%          +18%    -5%        +27%

P=22.68, TTM EPS=1.89, D/C=22%, P/E=12X, FY26 P/E=9X

3Q25 .44 vs .50

Sept 3, 2025, P=22.68, TTM EPS=1.89, P/E=12X, FY26 P/E=9X

Revs +19% to 9.1bn (included 1m of JNPR of 480m, +11% ex JNPR), GM 29.9% vs 31.8%, OM 8.5% vs 10%

Server +16% to 4.9bn, OM 6.4% vs 10.8%, Networking +54% to 1.7bn (+11% ex JNPR), OM 20.8% vs 22.4%, Hybrid Cloud +12% to 1.5bn, OM 5.9% vs 5.2%, FinSvcs +1% to 886m, OM 9.9% vs 9%

Margins in server and hybrid cloud improved q/q as pricing/discounting changes take effect but a large AI program was dilutive, Juniper should contribute to growth and higher margins

Booked 2.1bn net new orders in AI systems

4Q Outlook: Revs +15-19% to 9.7-10.1bn, EPS .56-.60 (vs .58), guidance factors HSD q/q decline in Server with OM approx. 10% due to absence of large AI deal in 3Q, mgmt. affirms pricing/discounting issues are behind them  

2Q25

Revs +5.9%

Server +5.6% to 4.06bn, OM 5.9% vs 11%, Hybrid Cloud +13.3% to 1.45bn, OM 5.4% vs 1%, Networking +7% to 1.16bn, OM 22.7% vs 21.8%, FinSvcs -1.3% to 856m, OM 10.4% vs 9.3%