HPE announced financial results for the fourth quarter ended October 31, 2025, with record quarterly revenue and gross profit.
The company raised its guidance for fiscal year 2026, citing transformative growth and disciplined execution.
Operational discipline led to record gross profit, robust operating profit, and exceeded free cash flow generation in Q4.
Revenue Growth
Q4 revenue reached $9.7 billion, up 14% from the previous year in both actual and constant currency.
Profitability Improvement
Record gross profit margins of 36.4% in Q4, showing significant growth from the prior year.
Strategic Acquisitions
HPE completed the Juniper Networks acquisition, further expanding its AI and Cloud businesses for future growth.
Cash Flow Generation
Q4 saw a considerable increase in both cash flow from operations and free cash flow, providing a strong financial foundation.
Outlook and Guidance
HPE raised FY26 guidance for revenue, diluted net EPS, and free cash flow, demonstrating confidence in continued success.
- HPE's revenue and gross profit hit record highs, reflecting successful strategic initiatives and operational efficiency.
- The company's focus on disciplined spending and portfolio simplification resulted in improved margins and cash flow generation.
- Strong performance in key segments like servers and networking, along with financial services, contributed to overall growth in Q4.
- HPE's increased guidance for FY26 indicates a positive outlook on future growth and profitability.
HPE's fourth quarter results showcase a period of significant growth and strategic advancements, setting a strong foundation for continued success in fiscal year 2026.