Hewlett Packard Enterprise Company HPE

62.94 (0.58) (0.91%) as of 25 Sep
Market cap
$86.2B
P/E
31.3×
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Hewlett Packard Enterprise Company (HPE) Business Profile

Updated · Covers results through FY2025 · Sources · How this is made

What it does

The company states that it develops technology solutions intended to help customers capture, analyze and act on data from edge to cloud. Its reported segments are Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Server includes general-purpose and workload-optimized servers, integrated systems, and support services. Hybrid Cloud includes storage, private-cloud and infrastructure software offerings. Networking sells networking and security hardware, software and services. Financial Services provides leasing, financing, IT-consumption and asset-management services. The filing says its customers range from small and medium-sized businesses to global enterprises and government entities.

Source: Hewlett Packard Enterprise Company Form 10-K for fiscal 2025, Item 1 — sec.gov

How it makes money

HPE reports revenue from products and services. In FY2025, products revenue was $22.0 billion, representing 65.5% of revenue, while services revenue was $11.6 billion, or 34.5%. The filing identifies Server products and Networking products as product categories that each accounted for more than 10% of consolidated net revenue in fiscal 2025. The segment table below provides the revenue detail across its five reportable segments, including Server, Networking, Hybrid Cloud, Financial Services, and Corporate Investments and Other. The company also says its financial-services segment supports technology deployments through investment and consumption options.

Product or service Revenue, FY2025 Share Change on the year
Products $22.0 billion 65.5% 18.1%
Services $11.6 billion 34.5% 6.45%

Source: Hewlett Packard Enterprise Company Form 10-K for fiscal 2025, Item 1 — sec.gov

Customers and geography

The company serves commercial and large-enterprise groups, including business and public-sector enterprises. It sells directly in some countries and uses resellers, distribution partners, OEMs, software vendors, systems integrators and advisory firms. FY2025 U.S. revenue was $13.4 billion and Europe, Middle East and Africa revenue was $11.5 billion; Asia Pacific and Japan revenue was $6.9 billion. The filing states that approximately 61% of FY2025 net revenue came from outside the United States. It also reports that one distributor represented approximately 10% of total net revenue in FY2025, primarily in Server and Networking.

Region Revenue, FY2025 Share Change on the year
U.S. $13.4 billion 39.1% 23.1%
Europe, Middle East and Africa $11.5 billion 33.6% 13.0%
Asia Pacific and Japan $6.9 billion 20.2% 3.51%
Americas excluding U.S. $2.4 billion 7.13% 4.31%

Source: Hewlett Packard Enterprise Company Form 10-K for fiscal 2025, Item 1 — sec.gov

Competition

The filing describes HPE’s markets as strongly competitive, with short product life cycles and competition based on technology, innovation, performance, price, quality, reliability, distribution, services and other factors. Named Server competitors include Dell Technologies Inc., Super Micro Computer, Inc., Cisco Systems, Inc., Lenovo Group Ltd., Fujitsu Network Communications, Inc. and Atos Information Technology Incorporated. For Hybrid Cloud, the filing names Broadcom, Cisco Systems Inc., Dell Technologies Inc., IBM, NetApp Inc., Nutanix, Pure Storage, Amazon Web Services, Google Cloud and Microsoft Azure. Named Networking competitors include Cisco Systems, Inc., Arista Networks Inc, Nokia Corporation, Huawei Technologies Co. Ltd. and NVIDIA Corporation, among others.

Source: Hewlett Packard Enterprise Company Form 10-K for fiscal 2025, Item 1 — sec.gov

Key risks

The filing’s risk summary highlights the following risks:

  • Successful execution of its go-to-market strategy, including as-a-Service offerings, resource planning and managing offerings with new features and solutions.
  • Intense industry competition and competitive pressures.
  • Failure to identify, manage and complete acquisitions, integrations, divestitures and other significant transactions successfully, including Juniper Networks integration.
  • Issues in the development and use of artificial intelligence that may result in reputational harm, liability or effects on operating results.
  • International geopolitical, trade, regulatory, macroeconomic, supply-chain and other factors affecting a business with substantial non-U.S. sales.
  • Revenue, profitability and margins varying over time.

Source: Hewlett Packard Enterprise Company Form 10-K for fiscal 2025, Item 1A — sec.gov

People and operations

FY2025 employee count was 67,000. The company states that it uses original and outsourced design manufacturers and outsourced contract manufacturers globally, while manufacturing a limited number of finished products itself. It buys materials and components from many vendors, though it relies on single-source suppliers for certain customized parts. The filing also describes seasonal patterns: European sales are often weaker in summer, while customer demand tends to be stronger in fourth quarters. It cautions that historical seasonality patterns should not be treated as a reliable indicator of future revenue or financial performance.

Source: Hewlett Packard Enterprise Company Form 10-K for fiscal 2025, Item 1 — sec.gov

Sources

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.