Executive Summary
Hewlett Packard Enterprise (2HP.DE) reported QQ3 2025 results with a notable turn in top-line momentum. Revenue reached $9.136 billion, up 18.5% year over year and 20.4% quarter over quarter, supported by continued demand for enterprise IT infrastructure and data-centric solutions. Gross profit was $2.365 billion, yielding a gross margin of 25.89%, while operating income was $0.247 billion and EBITDA stood at $0.730 billion, translating to an EBITDA margin of about 8.0%. Net income totaled $0.305 billion, with basic and diluted EPS of $0.21 and $0.19 respectively. The quarter marks a sequential rebound from Q2 2025, when EBITDA was negative, underscoring a meaningful improvement in operating efficiency and product mix. However, the company’s operating margin remains modest, reflecting ongoing investments in R&D and SG&A as HPE continues to pivot toward higher-value, software-enabled solutions and as-a-service offerings. The results imply that while demand for compute, storage, and edge solutions remains resilient, sustaining profitability will hinge on mix optimization, services growth, and disciplined cost management moving forward.
Key Performance Indicators
QoQ: -3.14% | YoY:-54.84%
QoQ: 129.05% | YoY:-40.43%
QoQ: 125.61% | YoY:-46.15%
Key Insights
Revenue: 9,136,000,000 USD; YoY growth: 18.50%; QoQ growth: 20.40%
Gross Profit: 2,365,000,000 USD; Gross Margin: 25.89%; YoY gross margin: -3.03%; QoQ: +13.00%
Operating Income: 247,000,000 USD; Operating Margin: 2.70%; YoY: -54.84%; QoQ: -3.14%
EBITDA: 730,000,000 USD; EBITDA Margin: 7.99%
Net Income: 305,000,000 USD; Net Margin: 3.34%; YoY: -40.43%; QoQ: +129.05%
EPS (Basic): 0.21 USD; EPS (Diluted): 0.19 USD; YoY: -46.15%; QoQ: +125.61%
Note: QoQ and YoY guidance reflect a rebound in profita...
Financial Highlights
Revenue: 9,136,000,000 USD; YoY growth: 18.50%; QoQ growth: 20.40%
Gross Profit: 2,365,000,000 USD; Gross Margin: 25.89%; YoY gross margin: -3.03%; QoQ: +13.00%
Operating Income: 247,000,000 USD; Operating Margin: 2.70%; YoY: -54.84%; QoQ: -3.14%
EBITDA: 730,000,000 USD; EBITDA Margin: 7.99%
Net Income: 305,000,000 USD; Net Margin: 3.34%; YoY: -40.43%; QoQ: +129.05%
EPS (Basic): 0.21 USD; EPS (Diluted): 0.19 USD; YoY: -46.15%; QoQ: +125.61%
Note: QoQ and YoY guidance reflect a rebound in profitability alongside revenue growth; tax line shows a net tax benefit of -$17M in the quarter, contributing to net income performance.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.14B |
18.50% |
20.40% |
| Gross Profit |
2.37B |
-3.03% |
13.00% |
| Operating Income |
247.00M |
-54.84% |
-3.14% |
| Net Income |
305.00M |
-40.43% |
129.05% |
| EPS |
0.21 |
-46.15% |
125.61% |
Management Commentary
Note: No earnings call transcript data provided in the input. Consequently, transcript highlights and management quotes could not be extracted from the source material.
Forward Guidance
No explicit forward-looking guidance was presented in the provided data. Given the QQ3 2025 momentum (double-digit revenue growth and a return to positive EBITDA after a Q2 downturn), the plausible base-case outlook is for continued solid demand for enterprise IT infrastructure, data-center optimization, and edge solutions, with a bias toward higher-margin services and consumption-based models. Risks include macro IT spend cyclicalality, supply chain dynamics, and execution risks associated with scaling as-a-service offerings. Key indicators to monitor include: (1) trajectory of service and subscription mix (which could lift margins), (2) utilization of capex-friendly solutions (e.g., HPE Aruba edge platforms and AI-ready HPC), (3) ongoing cost discipline in R&D and SG&A, and (4) working capital and cash flow generation as service models mature.