HPE Q3 Earnings Exceed Estimates, Revenue Grows 19% Y/Y, Shares Rise 2%

Hewlett Packard Enterprise reported Q3 earnings of 44 cents per share, beating estimates by 2.3% and declining 12% YoY. Revenues rose 19% YoY to $9.1 billion, exceeding consensus estimates by 4.1%. The Server segment saw a 16% YoY increase, while the Networking division's sales rose 54% YoY. The Hybrid Cloud division's sales increased 12% YoY. HPE's shares rose 2% in extended trading.

Hewlett Packard Enterprise (HPE) reported its third-quarter (Q3) fiscal 2025 earnings, with revenues and earnings per share (EPS) edging above Wall Street's targets. The company's adjusted EPS of 44 cents per share was 12% lower year-over-year (YoY) but 2.3% higher than estimates [1]. Revenue rose 19% YoY to $9.1 billion, surpassing analysts' expectations of $8.84 billion by 4.1% [1].

The company's core server business continues to face margin pressures, with Q3 earnings per share (EPS) falling 12% to 44 cents on an adjusted basis [3]. However, the Server segment saw a 16% YoY increase, while the Networking division's sales rose 54% YoY. The Hybrid Cloud division's sales increased 12% YoY [2]. HPE's shares rose 2% in extended trading after the announcement [3].

For the current quarter ending in October, HPE forecast adjusted EPS of 58 cents per share and revenue in a range of $9.7 billion to $10.1 billion, which was slightly below Wall Street's estimates [3]. The company's Q3 results include the consolidation of Juniper Networks' financial results from July 2 to July 31, 2025. The acquisition has already added to HPE's results, with more profit accretion expected as the company works to capture planned synergies and drive new market opportunities [2].

Looking ahead, HPE estimates fiscal 2025 revenue growth of 14% to 16%, in constant currency, and fiscal 2025 GAAP operating profit growth to be in the range of negative 112% to negative 109% [2]. The company also expects GAAP diluted net EPS to be in the range of $0.42 and $0.46 and non-GAAP diluted net EPS to be in the range of $1.88 to $1.92 [2].

References:
[1] https://www.marketscreener.com/news/earnings-flash-hpe-hewlett-packard-enterprise-company-reports-q3-revenue-9-14b-vs-factset-est-o-ce7d59dbdd89fe22
[2] https://www.hpe.com/us/en/newsroom/press-release/2025/09/hewlett-packard-enterprise-reports-fiscal-2025-third-quarter-results.html
[3] https://www.investors.com/news/technology/hpe-stock-hpe-earnings-fiscal-q3-2025/