December 4, 2025 | Hewlett Packard Enterprise Co. (HPE) announced its financial results for the fourth quarter of fiscal 2025, showcasing robust growth and operational efficiency. The results reflect a transformative year marked by strategic acquisitions, notably the acquisition of Juniper Networks, and a continued expansion in the AI and Cloud sectors.

1. A Transformative Year

Antonio Neri, President and CEO of HPE, expressed optimism regarding the company's performance, stating, "HPE finished a transformative year with a strong fourth quarter of profitable growth and disciplined execution." This sentiment was echoed by Marie Myers, Executive Vice President and CFO, who highlighted the operational discipline that resulted in record gross profits and free cash flow generation exceeding expectations.

2. Fourth Quarter Financial Highlights

HPE's financial performance for the fourth quarter ending October 31, 2025, is summarized as follows:

Revenue: $9.7 billion, a 14% increase compared to the prior-year period.

Annualized Revenue Run-Rate (ARR): $3.2 billion, demonstrating a remarkable 63% increase year-on-year.

Gross Margins:

GAAP: 33.5%, up 270 basis points from the previous year.

Non-GAAP: 36.4%, an increase of 550 basis points from the prior year.

Diluted Net Earnings Per Share (EPS):

GAAP: $0.11, down from $0.88 in the prior-year period.

Non-GAAP: $0.62, representing a $0.04 increase from the prior-year period and surpassing the company's outlook.

Cash Flow from Operations: $2.5 billion, an increase of $435 million year-on-year.

Free Cash Flow: $1.9 billion, up $420 million from last year.

Capital Returns to Common Shareholders: $271 million in dividends and share repurchases.

Segment Performance

HPE's fourth-quarter results were driven by performance across key business segments:

Server Revenue: $4.5 billion, down 5% from the prior year, with a 9.8% operating profit margin.

Networking Revenue: $2.8 billion, soaring 150% year-on-year, with a 23% operating profit margin.

Hybrid Cloud Revenue: $1.4 billion, a 12% decline from last year, with a 5% operating profit margin.

Financial Services Revenue: $889 million, flat year-on-year, with an 11.5% operating profit margin.

3. Dividend Declaration

The HPE Board of Directors declared a regular cash dividend of $0.1425 per share on the company’s common stock, scheduled to be paid on January 16, 2026, to stockholders of record as of December 19, 2025.

4. Fiscal 2026 Outlook

Looking ahead, HPE has provided optimistic guidance for the first quarter of fiscal 2026, estimating revenue to be between $9 billion and $9.4 billion. Expected GAAP diluted net EPS is projected to be in the range of $0.09 to $0.13, while non-GAAP diluted net EPS is anticipated to be between $0.57 and $0.61.

For the full fiscal year 2026, HPE reaffirmed its revenue outlook of 17% to 22% growth and raised its diluted net EPS guidance to a range of $0.62 to $0.82 for GAAP and $2.25 to $2.45 for non-GAAP. Furthermore, the midpoint of the free cash flow guidance has been raised to an expected range of $1.7 billion to $2 billion.

5. Conclusion

Hewlett Packard Enterprise's results for the fourth quarter of fiscal 2025 highlight the company's successful year of transformation and growth, driven by strategic acquisitions and a focus on operational efficiency. With an optimistic outlook for the upcoming year, HPE is positioned to continue its momentum in the competitive technology landscape.

Original press release