Hewlett Packard Enterprise (HPE) FY2025 results: revenue $34.3 billion, up 13.8% on the year
Hewlett Packard Enterprise Co. (HPE) reported revenue of $34.3 billion for fiscal 2025, the year ended 31 October 2025, up 13.8% on the year before. Net income was $57 million, down 97.8%, and diluted earnings per share $-0.04. The figures are the company's own, from the 10-K it filed with the SEC on 18 December 2025.
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 3 raised, 3 new, 1 kept.
- Revenue up 14% year on year: Net revenue was $9.7 billion, up 14% from the prior-year period in actual dollars and in constant currency.
- ARR up 63% to $3.2 billion: Annualized revenue run-rate, which tracks Consumption Services offerings, was $3.2 billion, up 63% in actual dollars and 62% in constant currency.
- Non-GAAP EPS above estimated range: Non-GAAP diluted EPS was $0.62, up $0.04 from the prior-year period and above the $0.56 to $0.60 range it had estimated.
- Networking revenue up 150%: Networking revenue was $2.8 billion, up 150% from the prior-year period, with a 23% operating profit margin compared with 24.4% a year earlier.
- GAAP gross margin up 270 basis points: GAAP gross margin was 33.5%, up 270 basis points year on year and 430 basis points from the prior quarter.
From this 10-K
Hewlett Packard Enterprise sells the hardware, software and services that enterprises run their computing on: servers, storage, private and hybrid cloud, networking equipment, and the financing to pay for it. Customers run from small and medium-sized businesses to large global enterprises and governments. The company's legacy dates to a partnership founded in 1939 by William R. Hewlett and David Packard. Its financial year ends on 31 October, and it reported five segments in fiscal 2025: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. One distributor represented approximately 10% of total net revenue in fiscal 2025, mostly in the Server and Networking segments.
The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025
Income statement (profit and loss)
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 34,296 | 30,127 | 29,135 | +13.8% | |
| Cost of revenue | 23,419 | 19,754 | 18,513 | +18.6% | |
| Gross profit | 10,877 | 10,373 | 10,622 | +4.9% | |
| Gross margin | 31.7% | 34.4% | 36.5% | ||
| Research and development | 2,518 | 2,246 | 2,349 | +12.1% | |
| Selling, general and administrative | 5,704 | 4,871 | 5,160 | +17.1% | |
| Operating income | -437 | 2,190 | 2,089 | ||
| Operating margin | -1.3% | 7.3% | 7.2% | ||
| Interest expense | 1,098 | 777 | 709 | +41.3% | |
| Pre-tax income | -285 | 2,953 | 2,230 | ||
| Income tax | -342 | 374 | 205 | ||
| Effective tax rate | n/a | 12.7% | 9.2% | ||
| Net income | 57.0 | 2,579 | 2,025 | -97.8% | |
| Net margin | 0.2% | 8.6% | 7.0% | ||
| Diluted EPS | -$0.04 | $1.93 | $1.54 |
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Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.Cash flow
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 2,919 | 4,341 | 4,428 | -32.8% | |
| Capital expenditure | 2,292 | 2,367 | 2,828 | -3.2% | |
| Free cash flow | 627 | 1,974 | 1,600 | -68.2% | |
| Free cash flow margin | 1.8% | 6.6% | 5.5% | ||
| Cash from investing | -13,190 | -53.0 | -3,284 | ||
| Cash from financing | 1,046 | 6,283 | -1,362 | -83.4% | |
| Depreciation and amortisation | 2,737 | 2,564 | 2,616 | +6.7% | |
| Share-based compensation | 643 | 430 | 428 | +49.5% | |
| Buybacks | 202 | 150 | 421 | +34.7% | |
| Dividends paid | 684 | 676 | 619 | +1.2% | |
| Dividend per share | $0.52 | $0.52 | $0.48 | 0.0% | |
| Diluted shares, weighted | 1,324m | 1,337m | 1,316m | -1.0% | |
| Shares outstanding at period end | 1,318m | 1,297m | 1,283m | +1.6% |
Balance sheet
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 24,688 | 24,816 | 21,182 | -0.5% | |
| Non-controlling interest | 66.0 | 64.0 | 56.0 | +3.1% | |
| Debt | 22,365 | 18,246 | 12,355 | +22.6% | |
| Operating lease liabilities | 1,396 | 1,309 | 966 | +6.6% | |
| Finance lease liabilities | 25.0 | 32.0 | 38.0 | -21.9% | |
| Other liabilities | 27,366 | 26,795 | 22,556 | +2.1% | |
| Total liabilities and equity | 75,906 | 71,262 | 57,153 | +6.5% | |
| Fixed assets | 6,002 | 5,664 | 5,989 | +6.0% | |
| Goodwill | 23,770 | 18,086 | 17,988 | +31.4% | |
| Intangible assets | 6,368 | 510 | 654 | +1,148.6% | |
| Securities held for sale or to maturity | 222 | 117 | 119 | +89.7% | |
| Cash and equivalents | 5,773 | 14,846 | 4,270 | -61.1% | |
| Receivables | 5,290 | 3,550 | 3,481 | +49.0% | |
| Inventory | 6,352 | 7,810 | 4,607 | -18.7% | |
| Other assets | 22,129 | 20,679 | 20,045 | +7.0% | |
| Total assets | 75,906 | 71,262 | 57,153 | +6.5% |
10-K for the year ended 31 October 2025, filed 18 December 2025: the filing.