HPE Q4 Earnings Beat Expectations, Revenue Up YoY

HPE Q4 Earnings Beat Expectations, Revenue Up YoY

By Zacks Equity Research
Publication Date: 2025-12-05 15:30:00

Hewlett Packard Company HPE shares fell more than 8% in premarket hours despite reporting better-than-expected results for the fourth quarter of fiscal 2025. The company’s non-GAAP earnings of 62 cents per share topped the Zacks Consensus Estimate by 5.1% and were up 6.3% year over year.

HPE’s revenue increased 14.4% year over year to $9.68 billion, missing the Zacks Consensus Estimate by 2.63%. Revenue grew thanks to the network business.

HPE’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed it once, with the average surprise being 4.3%.

Hewlett Packard Enterprise’s servers segment generated $4.5 billion in revenue in the fourth quarter of fiscal 2025, a decline of 5% year-over-year and in constant currency, due to a decline in AI server shipments and lower-than-expected US federal spending. The division reported an operating profit margin of 9.8%, which decreased 180 basis points (bps) from…