Executive Summary
Hewlett Packard Enterprise (0J51.L) reported QQ2 2025 revenue of $7.588 billion, up 5.65% year over year, signaling continued demand for enterprise IT solutions. Despite top-line growth, net income declined sharply to -$1.05 billion, resulting in earnings per share of -$0.82, due largely to negative non-operating items that overshadow the positive operating performance. The quarter delivered positive operating income of $0.255 billion and EBITDA of -$0.471 billion, with gross profit of $2.093 billion and a gross margin of 27.58%. The company maintains a strong liquidity position with cash and cash equivalents of approximately $11.77 billion and total stockholders’ equity of about $23.87 billion, even as total debt stands at $17.53 billion, producing a net debt position of roughly $5.86 billion. While operating profitability is modest, the robust balance sheet provides flexibility for strategic investments in hybrid IT, data center modernization, and Aruba edge initiatives. Management commentary is not included in the provided data, limiting forward-looking guidance; the near-term focus appears to be on cost discipline, capital allocation, and the realization of operating efficiencies to improve free cash flow over time.
Key Performance Indicators
QoQ: -45.74% | YoY:-47.10%
QoQ: -267.46% | YoY:-434.39%
QoQ: -282.22% | YoY:-441.67%
Key Insights
Revenue: $7.588B (YoY +5.65%; QoQ -2.84%); Gross Profit: $2.093B (Gross Margin 27.58%, YoY -8.48%; QoQ -5.42%); Operating Income: $0.255B (Operating Margin 3.36%, YoY -47.10%; QoQ -45.74%); Net Income: -$1.05B (Net Margin -13.84%, YoY -434.39%; QoQ -267.46%); EPS: -$0.82 (YoY -441.67%; QoQ -282.22%); Cash Flow: CFO -$0.461B; Free Cash Flow -$1.009B; Cash End Period: $11.768B; Net Debt: $5.863B; Total Debt: $17.53B; Current Ratio: ~1.29; Capex: $0.547B; Inventory: $8.096B; Accounts Payables: -$1....
Financial Highlights
Revenue: $7.588B (YoY +5.65%; QoQ -2.84%); Gross Profit: $2.093B (Gross Margin 27.58%, YoY -8.48%; QoQ -5.42%); Operating Income: $0.255B (Operating Margin 3.36%, YoY -47.10%; QoQ -45.74%); Net Income: -$1.05B (Net Margin -13.84%, YoY -434.39%; QoQ -267.46%); EPS: -$0.82 (YoY -441.67%; QoQ -282.22%); Cash Flow: CFO -$0.461B; Free Cash Flow -$1.009B; Cash End Period: $11.768B; Net Debt: $5.863B; Total Debt: $17.53B; Current Ratio: ~1.29; Capex: $0.547B; Inventory: $8.096B; Accounts Payables: -$1.434B; Working Capital Change: -$1.653B.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.59B |
5.65% |
-2.84% |
| Gross Profit |
2.09B |
-8.48% |
-5.42% |
| Operating Income |
255.00M |
-47.10% |
-45.74% |
| Net Income |
-1.05B |
-434.39% |
-267.46% |
| EPS |
-0.82 |
-441.67% |
-282.22% |
Management Commentary
Transcript details were not provided in the input. As a result, management themes, strategy articulation, and market condition commentary from the QQ2 2025 earnings call could not be extracted. Once the transcript is available, the highlights should cover strategic priorities (e.g., data center modernization, hybrid IT adoption, Aruba edge offerings), operating efficiency initiatives, and outlook commentary.
Forward Guidance
No formal forward guidance was supplied in the provided data for QQ2 2025. Investors should monitor: (1) stabilization or improvement in non-operating items that contributed to the net loss, (2) working capital normalization (receivables, payables, and inventory dynamics), (3) the trajectory of capital expenditures and its impact on free cash flow, and (4) the demand trajectory for enterprise IT budgets and the progression of hybrid IT and edge solutions. A credible pathway to sustained profitability and positive free cash flow would be a key driver of valuation improvement.