Hewlett Packard Enterprise Reports Q3 EPS Down 12% to $0.44, Revenue Grows 19% to Record $9.1bn

Hewlett Packard Enterprise reported Q3 2024-25 adjusted EPS of $0.44, down 12% but within the target range. Revenues grew 19% to $9.1bn, driven by networking and server divisions. The acquisition of Juniper Networks is reflected in results, with expected synergies and market opportunities to boost profits. FY 2024-25 targets include adjusted EPS of $1.88-$1.92, 4%-7% adjusted operating profit growth, and 14%-16% revenue growth at constant exchange rates.

Hewlett Packard Enterprise (HPE) has released its Q3 2024-25 financial results, showing a 19% increase in revenue to $9.1 billion, driven primarily by the networking and server divisions. The company reported an adjusted EPS of $0.44, down 12% from the previous year, but within the targeted range. The acquisition of Juniper Networks is evident in the results, with expected synergies and market opportunities poised to boost profits.

The networking segment, which includes Juniper’s AI-native solutions, accounted for nearly 50% of HPE's non-GAAP consolidated operating profit. This segment saw a 54% year-over-year increase in revenue, reaching $1.7 billion, while the server division contributed $4.9 billion in revenue, up 16% year-over-year [1].

HPE’s acquisition of Juniper Networks, completed in July 2025, has positioned the company to capitalize on the growing demand for cloud-native, AI-optimized infrastructure. The integration of Juniper’s AI-native networking solutions with HPE’s hybrid cloud expertise has enabled the company to redefine enterprise networking, offering a comprehensive portfolio that spans silicon to software [2].

The company’s CEO, Antonio Neri, highlighted the completion of the Juniper Networks acquisition as a major milestone, stating, "Together with Juniper, we will accelerate our momentum across our 3 strategic business pillars: networking, cloud and AI, building a stronger, leaner and more profitable HPE." He noted record-breaking revenue of $9.1 billion, up 18% year-over-year, with growth across AI, networking, and hybrid cloud [3].

For the fiscal year 2024-25, HPE expects adjusted EPS of $1.88 to $1.92, 4% to 7% adjusted operating profit growth, and 14% to 16% revenue growth at constant exchange rates. The company has reaffirmed its commitment to reducing leverage to 2x by fiscal 2027, positioning itself for long-term value creation [1].

The acquisition has already delivered measurable financial benefits, with HPE projecting $1 billion in total synergies by 2025, including $450 million in annual cost savings. The networking business is expected to generate over 50% of HPE’s operating income by 2026 [2].

HPE’s strategic alignment with AI and hybrid cloud trends positions it as a compelling long-term investment. The company’s Q3 2025 guidance, projecting $9.7–$10.1 billion in revenue for the next quarter, reflects confidence in sustaining its growth trajectory [2].

References:
[1] Earnings Call Insights: Hewlett Packard Enterprise (HPE) Q3 2025 Management View [https://seekingalpha.com/news/4492086-hpe-outlines-14-percentminus-16-percent-revenue-growth-target-for-fy2025-as-juniper]
[2] HPE's Juniper Acquisition and Its Implications for AI-Native Networking Growth [https://www.ainvest.com/news/hpe-juniper-acquisition-implications-ai-native-networking-growth-2509/]
[3] HPE (HPE) Q3 2025 Earnings Call Transcript [https://www.fool.com/earnings/call-transcripts/2025/09/03/hpe-hpe-q3-2025-earnings-call-transcript/]