Hewlett Packard Enterprise closed fiscal 2025 with strong momentum as artificial intelligence continued to shape demand across its businesses. The company reported revenue of $9.7 billion for the fourth quarter, an increase of 14 percent from the prior year, supported by expanding AI infrastructure, network modernisation, and growth in as a Service offerings.
AI played a central role in HPE’s performance during the year. The acquisition of Juniper Networks helped accelerate HPE’s AI networking strategy, while rising demand for AI compute and cloud services supported its broader portfolio. HPE ended the year with a $3.2 billion annualised revenue run rate, up 63 percent year over year, driven largely by software and services aligned to AI and hybrid cloud workloads.
In servers, HPE signed about $6.8 billion in AI orders, with sovereign and enterprise customers making up over 60 percent of cumulative AI demand since early 2023. Traditional server revenue also increased by double digits as customers moved to HPE’s latest generation servers to support more AI-centric compute requirements. Operating margin improved throughout the year, reaching about 10 percent in the fourth quarter, supported by disciplined cost and supply management.
Networking posted one of the strongest contributions to HPE’s AI-driven growth. Revenue for the year reached $6.9 billion, up 51 percent year over year, boosted by four months of Juniper results. Orders and revenue for networks built for AI grew at strong double digit levels, supported by heavy demand for HPE Juniper WAN and data centre switching systems optimised for AI workloads. The company remains on track to meet its cumulative networks for AI orders target of $1.5 billion by the end of fiscal 2026. Campus and branch networking demand also expanded, helped by the combination of Aruba and Mist technologies.
Hybrid Cloud continued to advance HPE’s AI strategy through its GreenLake platform. The company added about 7,000 new customers in fiscal 2025, taking the total customer count to roughly 46,000. ARR reached about $3.2 billion, with more than 80 percent originating from software and services that support AI, data, and cloud operations. Alletra MP storage systems, designed for high performance and AI-ready workloads, saw strong double digit growth throughout the year. HPE shipped more than 7,400 Alletra MP arrays, more than doubling year over year, and added over 1,300 customers. Private cloud solutions orders grew more than 20 percent as enterprises continued modernising data estates for AI adoption.
HPE Innovation
HPE expanded its AI-focused networking, cloud, and infrastructure capabilities with several new product introductions and strategic integrations. In networking, the company launched AIOps features alongside common Wi-Fi 7 solutions to create a consistent, self-driving experience across Aruba Central and Juniper Mist. It introduced the HPE Juniper QFX 5250, the first direct liquid-cooled, Ultra Ethernet Transport ready data center switch, and the MX301 high-performance edge router designed to bring AI inferencing closer to data sources.
HPE also deepened its partnership with NVIDIA by integrating Juniper MX and PTX routing platforms with the NVIDIA Spectrum-X Ethernet platform and BlueField-3 DPUs. In addition, HPE announced support for AMD’s Helios AI rack-scale stack with Juniper scale-up switching.
In cloud and AI, HPE launched the Alletra Storage MP X10000 Data Intelligence Nodes to speed up enterprise AI data pipelines. It added new capabilities to Morpheus Enterprise Software and Morpheus VM Essentials, including software-defined networking and confidential computing. The company further integrated Juniper Apstra and HPE Compute Ops Manager with HPE OpsRamp within GreenLake, strengthening its unified cloud operations model. HPE was also named a Leader in the 2025 Gartner Magic Quadrant for Infrastructure Platform Consumption Services.
HPE’s CEO Antonio Neri highlighted fiscal 2025 as a transformative year, shaped by broader AI demand, expanded networking capabilities, and disciplined execution. The company enters fiscal 2026 with expectations of stronger profitability, higher free cash flow, and continued acceleration in AI-driven revenue streams.
Rajani Baburajan
