Hewlett Packard 2025 Q4 Earnings EPS Dives 93.8% Amid 91.5% Net Income Surge

Hewlett Packard (HPE) reported fiscal 2025 Q4 earnings on Dec 4, 2025, with mixed results. The company’s non-GAAP EPS of $0.62 beat estimates by $0.04, but revenue of $9.7B fell short by $210M. CEO Antonio Neri highlighted improved margins and raised 2026 guidance, emphasizing AI and networking growth.

Revenue

Hewlett Packard’s total revenue declined by 13.1% year-over-year to $14.94 billion in Q4 2025, contrasting with a 14.7% year-over-year increase in non-GAAP revenue. The company reported $9.7 billion in quarterly revenue, with networking revenue up 51% and cloud/IT revenue growth in mid-single to low double digits.

Earnings/Net Income

HPE’s EPS plummeted 93.8% to $0.27 in Q4 2025, while net income surged 91.5% to $293 million. Despite the EPS decline, the company maintained profitability for 11 consecutive years. The significant EPS drop contrasts with robust net income growth, underscoring cost discipline and margin expansion.

Post-Earnings Price Action Review

The strategy of buying HPE shares after a quarterly revenue drop on the earnings release date and holding for 30 days delivered strong returns over the past three years. The strategy achieved a 118.37% return, significantly outperforming the benchmark return of 71.17%. The excess return of 47.20% highlights the strategy’s ability to capitalize on positive market reactions to earnings reports. A Sharpe ratio of 1.09 and a maximum drawdown of 0% suggest low-risk exposure relative to its returns.

CEO Commentary

CEO Antonio Neri noted Q4 revenue of $9.7 billion (+14% YoY) and a record non-GAAP operating margin of 12.2%. He emphasized Juniper Networks’ integration as a “transformative” growth driver and raised 2026 non-GAAP EPS guidance to $2.25–$2.45. Strategic priorities include AI infrastructure expansion, GreenLake Cloud scaling, and $3.2 billion ARR targets.

Guidance

HPE reaffirmed 2026 revenue growth of 17–22% and raised non-GAAP diluted EPS guidance to $2.25–$2.45. Networking revenue growth is projected at 65–70%, while cloud/IT revenue growth remains in mid-single to low double digits. Q1 2026 revenue is expected between $9.0–$9.4 billion, with non-GAAP diluted EPS of $0.57–$0.61.

Additional News

1. M&A Activity: HPE finalized the $14 billion acquisition of Juniper Networks in July 2025, positioning itself as a “transformative” leader in AI-native networking.

2. Strategic Guidance: CEO Antonio Neri raised fiscal 2026 non-GAAP EPS guidance to $2.25–$2.45, reflecting confidence in Juniper integration and AI infrastructure growth.

3. Market Reaction: Despite Q4 revenue missing estimates, HPE shares rose 2.77% post-earnings, outperforming the broader market.