Hewlett Packard Enterprise (HPE) reported strong financial results for the fourth quarter ended October 31, 2025, closing what the company described as a transformative fiscal year marked by growth in AI, cloud, and networking businesses.
The company posted quarterly revenue of $9.7 billion, representing a 14 percent increase. HPE reported significant expansion in its annualized revenue run-rate (ARR), which climbed to $3.2 billion, up 63 percent compared with the same period last year.
Antonio Neri, president and CEO of HPE, said the company completed a major strategic year with strong operational performance.
HPE completed the acquisition of Juniper Networks, scaled AI and cloud businesses, and accelerated innovation across portfolio.
Record Profitability and Strong Margins
HPE achieved GAAP gross margins of 33.5 percent, an increase of 270 basis points year-over-year and 430 basis points sequentially. The company reported record gross profit and strong non-GAAP operating profit, supported by disciplined spending and cost management.
Marie Myers, executive vice president and CFO at HPE, said operational discipline and portfolio simplification helped the company deliver strong cash flow.
Segment Performance
HPE reported mixed performance across its business segments during the quarter.
Server revenue totaled $4.5 billion, declining 5 percent year-over-year, with an operating profit margin of 9.8 percent, compared with 11.6 percent in the prior-year period.
Networking revenue surged to $2.8 billion, rising 150 percent year-over-year, reflecting strong demand across WAN, campus and branch networking, and security solutions. The segment posted an operating margin of 23 percent.
Hybrid Cloud revenue reached $1.4 billion, down 12 percent year-over-year, with an operating margin of 5 percent. The company noted continued growth in orders for its Alletra MP platform as part of its transition toward higher-margin, HPE-developed solutions.
Financial Services revenue remained stable at $889 million, with an operating margin of 11.5 percent, up from 9.2 percent a year earlier. Net portfolio assets stood at $13.2 billion, while return on equity improved to 20.8 percent.
GreenLake Cloud Expansion
HPE’s cloud platform, HPE GreenLake, continued to gain traction during the quarter. The company reported ARR growth of 62 percent year-over-year, reaching more than $3.2 billion.
The GreenLake platform’s customer base expanded to approximately 46,000 customers, highlighting increasing enterprise adoption of HPE’s hybrid cloud and consumption-based infrastructure model.
Fiscal 2026 Outlook
Looking ahead, HPE expects first-quarter fiscal 2026 revenue to be between $9 billion and $9.4 billion.
The company forecasts GAAP diluted net EPS in the range of $0.09 to $0.13, while non-GAAP diluted net EPS is projected between $0.57 and $0.61.
For the full fiscal year 2026, HPE reaffirmed its revenue growth outlook of 17 percent to 22 percent. The company expects non-GAAP operating profit growth between 32 percent and 40 percent, while GAAP operating profit growth is projected between 455 percent and 520 percent.
HPE also raised its full-year GAAP diluted net EPS guidance to $0.62 to $0.82, while non-GAAP diluted net EPS is expected to range between $2.25 and $2.45.
RAJANI BABURAJAN
