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Hewlett Packard Enterprise Company

hpe.com

What Do They Do?

Sells servers, cloud and data-storage systems, and networking and security products, plus related services, to businesses and government agencies.

How Do They Make Money?

Customers pay for hardware and perpetual software when delivered; they pay for maintenance and cloud software over contract terms, while some service contracts are billed at milestones.

revenue
SegmentShareRevenue
Products
Sold outright

65%
FY2022: 64%
Services
Recurring

35%
FY2022: 36%

Who Are Their Customers?

Sells to businesses and public-sector organizations, from smaller firms to large enterprises and government entities. HPE sells directly in some countries and uses resellers, distributors and other partners for sales and delivery; account managers handle many large enterprise and public-sector relationships.

Customers above 10% of revenue, FY2025
of revenue from one customer
FY2023: 11% from one customer

Do Revenues Turn Into Profits?

Yes. It kept less than a cent of every revenue dollar as net income in FY2025 and turned 2 cents into free cash flow.

Operating income, FY2025
−1% of revenue
▼ Now a loss vs FY2024 ($2.2B, 7%)
Net income, FY2025
0% of revenue
▼ −98% vs FY2024 ($2.6B, 9%)
Free cash flow, FY2025
2% of revenue
▼ −68% vs FY2024 ($2B, 7%)

How Are They Changing?

Since the FY2025 annual report
Latest quarter: Q3 FY2026, the three months to Jul 31, 2026
Revenue
▲ +34%
vs $9.1B in Q3 FY2025
Net income
▲ +405%
vs $305M in Q3 FY2025
Products share of revenue vs 67.6% in Q3 FY2025
  • Sep 2, 2026 HPE raised its fiscal 2026 outlook It raised expected revenue growth and free cash flow for fiscal 2026.
  • Jun 1, 2026 HPE completed the sale of its remaining H3C stake HPE said it received proceeds in exchange for the stake.

Growing. Revenue grew 23% in 4 years, from $27.8B in FY2021 to $34.3B in FY2025, about 5% a year.

Revenue over time
Products Services
$50B$25B$0

Who Do They Compete With?

Competes with Dell Technologies, Super Micro Computer, Cisco Systems, Lenovo Group, Fujitsu Network Communications, Atos Information Technology, Broadcom, IBM, NetApp, Nutanix, Pure Storage, Amazon Web Services, Google Cloud, Microsoft Azure, Arista Networks, Nokia, Huawei Technologies, Ciena, NVIDIA, and Extreme Networks

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