Hewlett Packard Enterprise Company Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

HPE Fiscal 2025 Q4 & Full Year Earnings Summary

Key Financial Highlights (Q4 FY2025 vs Q4 FY2024)

  • Revenue: $9.7 billion, +14% YoY (slightly below low end of outlook due to AI shipment pushouts).
  • Non-GAAP operating margin: Record 12.2% (+110 bps YoY, +370 bps sequentially); servers ~10%, networking 23%.
  • Non-GAAP diluted EPS: $0.62 (exceeded high end of guidance).
  • GAAP diluted EPS: $0.11.
  • Free cash flow: $1.9 billion (well above expectations, boosted by Juniper collections and profitability).
  • Operating expenses (non-GAAP): Up 40% YoY due to Juniper acquisition; +3% excluding Juniper.

Full Year FY2025 Performance (vs FY2024)

  • Revenue: $34.3 billion, +14% YoY.
  • Non-GAAP diluted EPS: $1.94 (exceeded outlook).
  • Free cash flow: $986 million (exceeded outlook).
  • GAAP diluted EPS: -$0.04 (below outlook, impacted by Juniper acquisition accounting and preferred stock treatment).
  • Returned $886 million to shareholders via dividends and share repurchases.
  • ARR: $3.2 billion, +62% YoY (includes Juniper contribution); ~46,000 GreenLake customers (+7,000 in FY25).

Segment Performance Highlights

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Operator: Good afternoon, and welcome to the Fiscal 2025 Fourth Quarter Hewlett Packard Enterprise Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Paul Glaser, Head of Investor Relations. Please go ahead. Paul Glaser: Good afternoon. I am Paul Glaser, Head of Investor Relations for Hewlett Packard Enterprise. I would like to welcome you to our Fiscal 2025 Fourth Quarter Earnings Conference Call with Antonio Neri, HPE's President and Chief Executive Officer; and Marie Myers, HPE's Chief Financial Officer. Before handing the call to Antonio, let me remind you that this call is being webcast. A replay of the webcast will be available shortly after the call concludes. We have posted the press release and the slide presentation accompanying the release on our HPE Investor Relations web page. Elements of the financial information referenced on this call are forward-looking and are based on our best view of the world and our businesses as we see them today. HPE assumes no obligation and does not intend to update any such forward-looking statements. We also note that the financial information discussed on this call reflects estimates based on information available at this time and could differ materially from the amounts ultimately reported in HPE's annual report on Form 10-K for the fiscal quarter ended October 31, 2025. For more detailed information, please see the disclaimers on the earni
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