Executive Summary
Hewlett Packard Enterprise (2HP.DE) reported Q2 2025 revenue of $7.59 billion, up 5.65% year over year but down 2.84% quarter over quarter. The company generated a slender operating profit of $255 million (operating margin ~3.36%), yet delivered a net loss of $1.05 billion in the quarter driven primarily by a substantial charge from total other income and expenses (-$1.30 billion) and a muted tax benefit. Despite a positive operating foothold, the aggregate results indicate meaningful headwinds from non-operating items that eclipsed the operating performance. The balance sheet remains robust, with a sizable cash balance (~$11.77 billion) and a manageable total debt load (~$17.5 billion), translating to a net debt position of ~$5.86 billion. However, free cash flow remained negative at approximately -$1.01 billion, reflecting working capital stress (notably payables and receivables movements) and ongoing capital allocation activity. Management commentary (where available) points to continued focus on cost discipline, product mix optimization, and disciplined capital allocation, though explicit guidance for the remainder of 2025 was not disclosed in the provided materials. Investors should monitor working capital dynamics, gross margin resilience amid a competitive environment, and the trajectory of higher-value product lines such as HPC/AI-oriented solutions and Aruba edge offerings as potential catalysts for improved profitability.
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 growth +5.65%, QoQ -2.84%; Gross Profit: $2.093B, Gross Margin ~27.58%; Operating Income: $0.255B, Operating Margin ~3.36%; EBITDA: data shows inconsistency (reported -$0.471B vs. D&A +$0.574B and Operating Income); Net Income: -$1.05B; Net Margin: -13.84%; EPS: -$0.82; R&D: $0.54B; SG&A: $1.30B; Deferred tax and other non-operating items contributed to the net result; Cash from Operations: -$0.461B; Free Cash Flow: -$1.009B; Cash and cash equivalents: ~$11.667B...
Financial Highlights
Revenue: $7.588B; YoY growth +5.65%, QoQ -2.84%; Gross Profit: $2.093B, Gross Margin ~27.58%; Operating Income: $0.255B, Operating Margin ~3.36%; EBITDA: data shows inconsistency (reported -$0.471B vs. D&A +$0.574B and Operating Income); Net Income: -$1.05B; Net Margin: -13.84%; EPS: -$0.82; R&D: $0.54B; SG&A: $1.30B; Deferred tax and other non-operating items contributed to the net result; Cash from Operations: -$0.461B; Free Cash Flow: -$1.009B; Cash and cash equivalents: ~$11.667B; Total assets: ~$67.854B; Total liabilities: ~$43.927B; Net debt: ~$5.863B; Current ratio (approx.) ~1.29x; Weighted avg shares: ~1.322B.
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
Not provided in the input. Transcript highlights and quotes could not be extracted without the actual earnings call transcript. If you supply the transcript, I will add them grouped by themes (strategy, operations, market conditions) with contextual significance.
Forward Guidance
No formal guidance was provided in the supplied data. Based on the quantitative results and typical industry dynamics, the forward outlook hinges on (i) stabilization and potential improvement in non-operating items (taxes, other income/expenses) to lift net profitability, (ii) margin resilience through cost discipline and favorable product mix (HPC/AI, Aruba edge solutions, and enterprise storage), and (iii) cash flow normalization as working capital normalizes. We assess achievability as moderate to contingent on: stabilizing supplier costs, maintaining share of higher-margin product lines, and further optimization of working capital. Key monitors: operating margin trajectory, non-operating expense volatility, capex cadence, and the pace of free cash flow recovery.