Hewlett Packard Enterprise Reports Record Sales and Acquisition Completion of Juniper Networks

Hewlett Packard Enterprise (HPE) reported record Q3 fiscal 2025 revenue of $9.1 billion, up 18% YoY, driven by the new networking segment, which accounted for nearly 50% of non-GAAP consolidated operating profit. Adjusted EPS reached $0.44 and free cash flow rebounded to $719 million. The acquisition of Juniper Networks raised networking revenue to $1.7 billion, a 54% YoY increase, but networking segment non-GAAP operating margin dropped to 20.8%. Server segment revenue reached an all-time high of $4.9 billion, up 16% YoY, supported by AI system adoption and a record AI backlog of $3.7 billion.

Hewlett Packard Enterprise (HPE) has reported record third-quarter (Q3) fiscal 2025 revenue of $9.1 billion, marking an 18% year-over-year (YoY) increase in actual dollars and an 18% increase in constant currency. This performance was driven by robust growth across the company's segments, particularly the new networking segment, which contributed significantly to non-GAAP consolidated operating profit [1].

The acquisition of Juniper Networks, completed in July 2025, had a notable impact on HPE's financials. The networking segment reported revenue of $1.7 billion, a 54% YoY increase, but the non-GAAP operating margin for this segment dropped to 20.8% [1]. The server segment also performed strongly, reaching an all-time high of $4.9 billion in revenue, a 16% YoY increase, supported by AI system adoption and a record AI backlog of $3.7 billion [1].

Adjusted earnings per share (EPS) reached $0.44, while free cash flow rebounded to $790 million, indicating improved liquidity and cash flow management. HPE's fiscal 2025 fourth-quarter outlook projects revenue to range between $9.7 billion and $10.1 billion, with GAAP diluted net EPS expected to be between $0.50 and $0.54, and non-GAAP diluted net EPS expected to be between $0.56 and $0.60 [1].

The company also reported a return on equity of 17.7%, up 0.3 points from the prior year, reflecting strong profitability and efficiency [1]. The HPE Board of Directors declared a regular cash dividend of $0.13 per share, payable on October 17, 2025 [1].

HPE's acquisition of Juniper Networks is expected to generate more profit accretion as the company works to capture planned synergies and drive new market opportunities [1]. The company remains focused on capturing the market opportunity through execution that delivers strong, consistent shareholder value [1].

References:

[1] https://www.morningstar.com/news/business-wire/20250903478868/hewlett-packard-enterprise-reports-fiscal-2025-third-quarter-results