Hewlett Packard 2025 Q3 Earnings Revenue Surges 18.5% Despite EPS Decline of 46.2%

Hewlett Packard (HPE) reported its fiscal 2025 Q3 earnings on September 3, 2025. The company delivered strong top-line performance, with revenue rising significantly year-over-year, although earnings per share fell sharply. The results were in line with management’s expectations, and the company provided revenue guidance for the upcoming quarter that reflects optimism in key growth areas.

HPE’s total revenue for fiscal 2025 Q3 increased by 18.5% to $9.14 billion, reflecting robust demand across its key technology segments. The Server segment led the way with $4.94 billion in revenue, while the newly expanded Networking segment, following the successful acquisition of Juniper, generated $1.73 billion. Hybrid Cloud revenue reached $1.48 billion, and Financial Services reported $886 million. Meanwhile, Corporate Investments and other segments totaled $194 million, and intersegment eliminations reduced consolidated revenue by $98 million.

Hewlett Packard’s EPS declined by 46.2% to $0.21 in 2025 Q3, compared to $0.39 in the same period of 2024. Net income also dropped to $305 million, down 40.4% from $512 million in 2024 Q3. Despite this, the company has maintained profitability for 11 consecutive years, demonstrating resilience in a challenging economic environment. This decline in earnings, while notable, was expected due to strategic investments and one-time costs related to the Juniper integration.

The stock price of Hewlett Packard edged down 0.61% during the latest trading day but showed a stronger performance over the week, gaining 1.42%. Month-to-date, the stock surged 15.19%, indicating investor confidence in the company’s long-term strategy.

Following the earnings release, HPE’s CEO, Antonio Neri, highlighted a strong Q3 performance, with revenue of $9.1 billion, up 18% year-over-year. The CEO attributed this success to AI demand, networking, and hybrid cloud growth. Neri also emphasized the successful integration of Juniper, which has positioned the Networking segment as a significant contributor to non-GAAP operating profit, nearly reaching 50%. AI-related orders nearly doubled sequentially, and the company now holds a record backlog of $3.7 billion in AI-related deals. Neri reiterated the Catalyst cost-reduction program and stressed HPE’s commitment to innovation in AI-native networking and server solutions. He expressed optimism about the company’s ability to lead in the convergence of AI, cloud, and networking, citing a clear vision for profitable growth.

Looking ahead, CFO Marie Myers provided Q4 guidance: revenue is expected to range between $9.7 billion and $10.1 billion, with Networking projected to grow over 60% quarter-over-quarter. Server revenue is anticipated to decline in the mid to high single digits, primarily due to a large AI-related deal closed in Q3. Non-GAAP diluted EPS is forecasted to be between $0.56 and $0.60, and operating margins are expected to improve to approximately 10% for servers and low 20% for Networking. Free cash flow is projected at around $700 million, with a continued focus on debt reduction and maintaining an investment-grade credit rating.

The Nigerian newspaper *Punch* reported on several high-profile developments within three weeks of HPE’s earnings release. Among them, the Economic and Financial Crimes Commission (EFCC) arrested the CEO of Gavice Logistics Limited for allegedly operating a failed $2 billion investment scheme, underscoring ongoing regulatory scrutiny in the business sector. Additionally, the Central Bank of Nigeria introduced new POS rules aimed at enhancing the security of digital transactions, signaling a broader push toward financial modernization. In the political arena, the APC and opposition parties clashed over the federal government’s claims of revenue growth, indicating ongoing tensions over fiscal policy and transparency. These developments reflect a dynamic business and regulatory environment in Nigeria during the period.