Hewlett Packard Enterprise (HPE) Q2 2025 Earnings
How Did HPE Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +4.10%.
Did HPE Beat Earnings? Q2 2025 Results
Yes. Hewlett Packard Enterprise reported Q2 2025 earnings of $0.38 a share on Jun 3, 2025, beating the $0.33 consensus estimate by 16.3%. Revenue was $7.6B against a $7.5B estimate.
Hewlett Packard Enterprise delivered a stronger-than-expected fiscal second quarter, posting non-GAAP EPS of $0.38 against a consensus estimate of $0.33, a beat of 16.31%, while revenue of $7.63 billion topped forecasts by 1.73% and grew 6.2% year-over-year, driven by broad-based momentum across all three product segments. The standout catalyst was the company's AI and cloud infrastructure push, with Hybrid Cloud emerging as the fastest-growing segment at 13% revenue growth and HPE's annualized revenue run-rate surging 46% year-over-year to $2.20 billion, signals that its <a href="https://247wallst.com/investing/2025/04/15/3-reasons-hewlett-packard-stock-is-a-buy/">enterprise AI strategy</a> is gaining commercial traction. The quarter was clouded, however, by a $1.36 billion non-cash goodwill impairment charge tied to the Hybrid Cloud unit, swinging GAAP EPS to a loss of $0.82. Looking ahead, HPE guided Q3 revenue of $8.20 billion to $8.50 billion with non-GAAP EPS of $0.40 to $0.45, and maintained its full-year outlook for 7% to 9% constant-currency revenue growth and free cash flow of approximately $1.00 billion.
- Year-over-year revenue growth across Server, Intelligent Edge, and Hybrid Cloud segments
- Improved Server margin performance over the course of the quarter
- Annualized revenue run-rate (ARR) of $2.2 billion, up 46% year-over-year driven by GreenLake consumption services
- Hybrid Cloud operating profit margin expanded to 5.4% from 1.0% year-over-year
- Intelligent Edge operating profit margin improved to 23.6% from 21.8% year-over-year
“We delivered a solid performance, achieving yet another quarter of year-over-year revenue growth with strength in each of our product segments. In a very dynamic macro environment, we executed our strategy with discipline. We remain focused on bringing breakthrough innovation to our customers while increasing profitability and enhancing shareholder value.”
Hewlett Packard Enterprise CEO, on the earnings call
What Was Hewlett Packard Enterprise's Outlook in Q2 2025?
For fiscal Q3 2025, HPE estimates revenue of $8.2 billion to $8.5 billion, GAAP diluted net EPS of $0.24 to $0.29, and non-GAAP diluted net EPS of $0.40 to $0.45. For full fiscal year 2025, HPE estimates revenue growth of 7% to 9% in constant currency, GAAP diluted net EPS of $0.30 to $0.42 (including $1.4 billion goodwill impairment impact), non-GAAP diluted net EPS of $1.78 to $1.90, non-GAAP operating profit growth of negative 7% to 0%, and free cash flow of approximately $1 billion.
HPE YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $7.6B | $7.2B | +6.2% |
| Gross Profit | $2.2B | $2.3B | −5.2% |
HPE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.