Hewlett Packard Enterprise (HPE) is a global technology firm that provides comprehensive solutions, empowering clients across the Americas, Europe, the Middle East, ...
Hewlett Packard Enterprise (HPE) is a global technology company formed on November 1, 2015, as a result of the split of the original Hewlett-Packard Company into HP Inc. and HPE. While the company's roots trace back to 1939 when Bill Hewlett and Dave Packard founded Hewlett-Packard in a Palo Alto ...Hewlett Packard Enterprise (HPE) is a global technology company formed on November 1, 2015, as a result of the split of the original Hewlett-Packard Company into HP Inc. and HPE. While the company's roots trace back to 1939 when Bill Hewlett and Dave Packard founded Hewlett-Packard in a Palo Alto garage, HPE as a separate entity focuses on enterprise technology solutions. Headquartered in Spring, Texas (a suburb of Houston), HPE operates across the Americas, Europe, Middle East, Africa, Asia Pacific, and Japan.
Business-wise, HPE is a leader in the edge-to-cloud space, enabling organizations to capture, analyze, and utilize data efficiently. The company's portfolio is broad, including adaptable servers such as HPE ProLiant, HPE BladeSystem, and HPE Synergy for various computing needs. Storage solutions range from traditional tape to advanced disk products like HPE Modular Storage Arrays and HPE XP. HPE also provides high-performance computing (HPC) systems such as HPE Apollo and Cray, alongside critical infrastructure platforms like HPE Superdome Flex, HPE Nonstop, HPE Integrity, and HPE Edgeline.
Networking is delivered through HPE Aruba, offering wired and wireless LAN hardware (Wi-Fi access points, switches, routers) and software for cloud management, network access control, and analytics. The company also offers professional and support services, financial services (leasing, financing, IT consumption models), and as-a-service options for intelligent edge products. HPE invests in communications and media solutions and partners with firms like Striim for real-time analytics.
Financially, HPE has a market cap of approximately $70 billion (as of the latest data), with a revenue per share of $29.12 and a gross profit margin of 32.9%. The company shows an EBITDA margin of 10.3% and a net profit margin of 3.9%. Despite a high price-to-earnings ratio of 48.56, HPE maintains stable cash flows with a free cash flow yield of 8%. The company employs around 67,000 people globally.
Key leadership includes President and CEO Antonio Neri, who has been instrumental in driving HPE's strategy toward as-a-service models and edge computing. HPE also benefits from its heritage of innovation, continuing to push boundaries in AI, hybrid cloud, and intelligent edge solutions. The company's vision is to help customers accelerate their digital transformation, with a focus on sustainability and security. However, HPE faces challenges like competition from Dell, Cisco, and cloud providers, as well as the need to navigate supply chain complexities. Despite that, HPE remains a pivotal player in the enterprise IT landscape, aiming to unlock value for stakeholders and drive growth through innovation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$34.3B
+14.1%
+14.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$57.0M
-97.8%
+142.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+28.8%
-9.4%
-100.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+4.8%
-40.8%
+63.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+0.2%
-98.1%
+111.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$627.0M
-68.2%
+237.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+1.8%
-72.2%
+195.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
97.5%
+22.1%
-9.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.01x
-21.3%
+2.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day. And welcome to the fiscal 26 second quarter Hewlett Packard Enterprise Earnings Conference Call. All participants will be in a listen only mode. Please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch tone phone. To withdraw your question, please press star and 2. 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, sir.
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 26 second quarter earnings conference call. With Antonio Neri, HPE's president and chief executive officer and Marie E. 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 Investor Relations webpage. Elements of the financial information referenced on this call are forward looking, and are based on our best view of our business and the external factors affecting us 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 quarterly report on Form 10 Q for the fiscal quarter ended 04/30/2026. Figures used in verbal remarks are rounded for ease of discussion. For more detailed information, please see the earnings materials. As well as disclaimers relating to forward looking statements that involve risks uncertainties, and assumptions. Please refer to HPE's filings with the SEC for more detailed discussion of these risks. For financial information that we are showing on a non GAAP basis, we have provided reconciliations to the comparable GAAP information on our website. Please refer to the tables and slide presentation accompanying today's earnings release on our website for details. Throughout this conference call, all revenue growth rates, unless noted otherwise, are presented on a year over year basis. Unless otherwise noted, all financial metrics and growth rates discussed today are non GAAP and EPS refers to non GAAP diluted net earnings per share. Certain financial information featured in the presentation today has been normalized to include Juniper Networks results as of the beginning of HPE's fiscal 25. Antonio and Marie will reference our earnings presentation in their prepared comments. With that, let me turn it over to Antonio.
Antonio Fabio Neri: Thank you, Paul. Good afternoon, everyone. HPE delivered an exceptional …