Hewlett Packard Enterprise CEO Makes Major Stock Sale

Hewlett Packard Enterprise CEO Antonio Neri sold 83,334 shares of stock on August 29, 2025, worth $1,917,515. The sale is seen as neutral by Spark, TipRanks' AI Analyst, due to strong financial performance and positive earnings call highlights in AI and Intelligent Edge growth. However, technical indicators suggest the stock may be overbought, and valuation concerns persist with a high P/E ratio.

Hewlett Packard Enterprise (HPE) reported its third-quarter 2025 results on August 27, 2025, showcasing a 3% year-over-year revenue growth, marking a fifth consecutive positive quarter. The company's strong performance was driven by robust commercial activity, higher average selling prices (ASPs), and significant demand in personal systems and AI-capable PCs (AIPCs).

The personal systems segment, which includes PCs and workstations, delivered a 6% year-over-year revenue gain, reaching a 5.4% operating margin. This segment also experienced a 10% sequential revenue increase and a 13% unit growth, driven by strong back-to-school demand in North America and China. Karen Parkhill, Chief Financial Officer, highlighted the company's ability to regain operational leverage through premium product mix optimization and disciplined cost management.

AIPC adoption boosted HPE's premium hardware mix, with AIPC units commanding a 5%-10% ASP uplift compared to non-AIPC products. Shipments of AIPCs have ramped to over 25% of HPE’s PC mix, a full quarter ahead of plan, contributing to double-digit sequential revenue growth in the segment. Enrique Lores, President and CEO, confirmed the estimations of AIPC pricing, indicating a 5% to 10% price increase driven by AI capabilities.

HPE also completed a strategic migration of manufacturing for nearly all North American products from China to facilities in Vietnam, Thailand, Mexico, and the U.S., significantly reducing tariff exposure. This supply chain transformation has mitigated the majority of tariff-related costs, supporting gross margin stabilization and business agility.

Looking ahead, HPE reaffirmed its full-year free cash flow guidance of $2.6 billion to $3 billion and set a non-GAAP EPS target of $0.87 to $0.97 for the fiscal fourth quarter. The company will outline long-term strategic targets and capital allocation plans at its Investor Day in early 2026.

On August 29, 2025, HPE CEO Antonio Neri sold 83,334 shares of stock worth $1,917,515. The sale is seen as neutral by Spark, TipRanks' AI Analyst, due to strong financial performance and positive earnings call highlights in AI and Intelligent Edge growth. However, technical indicators suggest the stock may be overbought, and valuation concerns persist with a high P/E ratio.

References:
[1] https://www.nasdaq.com/articles/hp-reports-3-percent-revenue-growth