HPE’s revenue up 14% to $9.7bn in Q4 2025

Core Insights - Hewlett Packard Enterprise (HPE) reported a revenue of $9.7 billion for Q4 2025, marking a 14% increase from $8.4 billion in the same quarter last year [1] - The annualized revenue run-rate (ARR) increased to $3.2 billion, reflecting a 63% year-on-year growth in actual dollars and 62% in constant currency [1] - HPE experienced a loss from operations of $8 million in Q4 2025, contrasting with earnings of $693 million in the same quarter a year ago [1] Financial Performance - Cash flow from operations was $2.465 billion, an increase of $435 million year-on-year, while free cash flow totaled $1.92 billion, up $420 million compared to last year [2] - The company returned $271 million to common shareholders through dividends and share repurchases [2] - HPE's president and CEO, Antonio Neri, highlighted a strong fourth quarter of profitable growth and disciplined execution [2] Segment Performance - Server revenue was $4.5 billion, down 5% from the same period last year, with an operating profit margin of 9.8%, down from 11.6% [3] - Networking revenue surged to $2.8 billion, up 150%, with an operating profit margin of 23%, slightly down from 24.4% [3] - Hybrid Cloud revenue decreased to $1.4 billion, down 12%, with an operating profit margin of 5%, compared to 7.8% last year [4] - Financial Services revenue remained steady at $889 million, down 2% in constant currency, with an operating profit margin rising to 11.5% from 9.2% [4] Future Outlook - For Q1 of fiscal year 2026, HPE expects revenue between $9 billion and $9.4 billion [5] - HPE's executive vice president and chief financial officer, Marie Myers, noted operational discipline in Q4, resulting in record gross profit and robust non-GAAP operating profit [5] - The company is confident in raising its FY26 diluted net earnings per share guidance and the midpoint of its FY26 free cash flow guidance due to disciplined spending and ongoing cost management initiatives [6]