Hewlett Packard Enterprise Reports 19% Revenue Growth and Beats Analyst Estimates

Hewlett Packard Enterprise (HPE) shares rose over 5% after reporting Q3 2025 financial results that exceeded analyst expectations, driven by strong demand in AI server and networking divisions. Revenue increased 19% to $9.14 billion, beating the consensus estimate of $8.53 billion, and earnings per share came in at $0.44, surpassing the expected $0.43. HPE now expects FY2025 revenue growth of 14% to 16%, up from a previous forecast of 7% to 9%.

Hewlett Packard Enterprise (HPE) reported robust financial results for Q3 2025, exceeding analyst expectations and driving a 5% increase in its stock price. The company's revenue grew 19% to $9.14 billion, surpassing the consensus estimate of $8.53 billion, while earnings per share (EPS) came in at $0.44, beating the expected $0.43. HPE's stock rose to $23.04 in aftermarket trading following the announcement, with a 52-week range between $11.97 and $24.66.

The company's strong performance was driven by significant growth in its AI server and networking divisions. Revenue in these segments increased by 25% and 54% year-over-year, respectively. HPE's AI segment saw a sequential increase in orders by nearly 250%, while its networking segment, which includes the recently acquired Juniper Networks, saw revenue grow by 54% year-over-year.

HPE's improved financial performance was also reflected in its operating margins, which increased by 1.5 percentage points to 29.9%. The company's free cash flow for the quarter was $790 million, up from $650 million in the same period last year.

Looking ahead, HPE expects FY2025 revenue growth of 14% to 16%, up from a previous forecast of 7% to 9%. The company anticipates Q4 revenue between $9.7 billion and $10.1 billion, with networking revenue expected to rise by 60% quarter-over-quarter. Server revenue is forecasted to decline mid-to-high single digits, with a targeted operating margin of around 10%.

HPE's CEO, Antonio Neri, stated, "Our vision for the company is clear, to lead in the AI era through a modern secure cloud native and AI driven networking portfolio." The company's CFO, Marie Myers, emphasized the importance of free cash flow generation for strategic growth.

Risks and challenges for HPE include supply chain disruptions, increased competition in the AI and cloud markets, economic uncertainties, and the integration of Juniper Networks. However, the company's strong financial performance and strategic initiatives position it well for continued growth.

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[1] https://www.investing.com/news/transcripts/earnings-call-transcript-hewlett-packard-enterprise-q3-2025-beats-forecasts-93CH-4223135