This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

See which workplaces made this year's list.

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Employees say:"Our culture is top notch, and our people make this a great place to work. I love that on my team we can bring new ideas to the table, have a seat at the table, and know with confidence that our ideas will be considered. I am fully trusted to get my work done and my leader is available any time I need her. I also love the frequency of the recognition within our team. It keeps our team motivated and inspired."

Best Large Workplaces in Technology

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 116,000 U.S. employees.

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Employees say:"HPE is a company that prioritizes employee retention in a way that I've found to be very rare, especially in tech. There is a real focus on ensuring that people who work here are happy and fulfilled in their roles. There are also opportunities for people to find other roles within HPE if they are unhappy in their current role, instead of looking for a job at another company. I think this improves not only our company culture, but also the quality of our products/services. There is an amazing amount of expertise that is able to build when people stick around for a long time. As a newer employee, I really value the knowledge that the long-time members of my team have."

25 Best Large Workplaces in Texas

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The top companies on our list have one thing in common: Staff largely trust leadership to see them as well-rounded people and reward them for a job well done.

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Employees say: "My upper-level management is exceptionally good, especially my immediate manager. The entire team is extremely supportive and invested in you learning and performing well. It is one of the healthiest work environments I have ever worked in. I would work here just for that reason alone."

Fortune 100 Best Companies to Work For

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

World's Most Admired Companies

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Best Large Workplaces for Parents

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Employees say:"What is truly exemplary is the 6 months of parental leave for having a child, but what's even more special is the recipients include adoptive parents. In addition, the huge benefit for those struggling with fertility and/or adoption...HPE really cares about its teams families."

Hewlett Packard Enterprise

Employees say:"HPE does an excellent job with Employee Resource Groups to help build the culture. Executives support the initiatives and the ERG leaders host events that make everyone feel welcome. I share our activities on social media and my friends are amazed at all we do for our employees at HPE."

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 95,000 U.S. employees.

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Employees say:"The wellness Fridays, innovation days, and the team member appreciation day are taken seriously and are nice benefits. The innovation days help employees to expand their knowledge toolkits and attack new problems and find new ways of doing things."

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-Hewlett Packard Enterprise

In 2015, when HPE was created in the wake of Hewlett-Packard’s separation, it made ambitious DEI goals a key part of its agenda. In February, it earned the top spot in Just Capital’s annual ranking, which takes into account social factors such as paying a fair living wage, creating American jobs, providing benefits to ensure work-life balance, and minimizing pollution. HPE was also dubbed the 15th-best workplace for parents last year, owing in large part to its flexible remote-work policies as well as its paid gender-neutral parental leave, bereavement leave after a miscarriage, and reimbursement for fertility expenses. &nbsp;HPE’s remote-work model, which it rolled out during the pandemic, reimagined offices as cultural and collaboration hubs, with workspaces reflecting HPE’s hybrid vision—equipped with more meeting spaces and hybrid tech. Approximately 78% of team members say they are pleased with the model. And nearly 87% say they are happy with the connectivity tools that bring team members together. Among hybrid staff, 84% say their work environment enables them to perform their roles more effectively.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-HPE

IT firm Hewlett Packard emphasizes the importance of transparency between employees and management. 
<ul> 
 	<li>So far more than 3,500 employees have taken part in Mystery Coffee, a program where team members connect with others from around the globe for virtual one-on-one coffee breaks.</li> 
 	<li>Employee wellness is a top priority at HPE, and team members worldwide can leave work three hours early on designated Wellness Fridays to spend time focused on their personal well-being.</li> 
 	<li>Staff receive financial wellness help, too, with tools enabling them to assess their current money situation and receive insights on how to budget, manage debt, build savings, and protect their finances.</li> 
 	<li>“HPE encourages employees to speak up, innovate, collaborate, be empowered, own our development, et cetera,” noted one employee.</li> 
</ul>

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 100,000 U.S. employees.

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Employees say: 
 
"HPE encourages employees to speak up, innovate, collaborate, be empowered, own your development, etc. HPE is a place of unlimited opportunities to grow and contribute, and provides a sense of belonging of a family."

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Employees say: 
 
"Top executives care for employees, encourage and provide opportunities for work-life balance, and celebrate every ethnicity and culture. That creates a great all-inclusive culture, which is the best thing this company offers."

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

100 Best 2022-Hewlett Packard Enterprise

Hewlett Packard Enterprise—which split from Hewlett-Packard in 2015 and focuses on information technology—saw order growth up 20% during the first fiscal quarter of 2022 as many U.S. companies continued to bring employees back to the office. Yet internally HPE has doubled down on the mental and emotional support offered to employees and focused on rolling out benefits like the Work That Fits Your Life program. As part of the initiative, rolled out in 2019, employees get access to three hours of paid time off one Friday a month and six full Fridays off each summer.

A key trait that shines through for company after company on this year's list is all-around fairness.

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Employees say: 
 
“Through almost 25 years of working here I've been able to balance my work and life. HPE has allowed me to be there for my children, attend field trips, and volunteer in classrooms throughout the years. When my parents get sick, I am able to balance my work and tend to them. I honestly don't know what other company would allow me to do this. I am so grateful to HPE and always tell people how much I LOVE MY JOB AND COMPANY! My colleagues are not just my colleagues but my family! Now with being an Edge worker, it's only made my work life so much easier. Thank you HPE!!!” 
 
Read the Great Place to Work review .

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Boards 2022  Hewlett Packard Enterprise

In 2014, the old-guard Silicon Valley giant Hewlett-Packard split into two companies, HP Inc. and Hewlett Packard Enterprise. Since then, both have found strong footing in corporate governance: Both HPE and HP made this list. (HP is No. 9.) 
 
That fact signals a remarkable turnaround. A little over a decade ago, Hewlett-Packard’s board endured multiple controversies involving proxy fights, <a href="https://www.businessinsider.com/a-brief-history-of-hps-totally-dysfunctional-board-2011-9#a-couple-weeks-later-fiorina-was-fired-4">unusual CEO transitions</a>, and a scandal over surveillance of colleagues and journalists that led to the <a href="https://money.cnn.com/2011/01/20/technology/HP_board_of_directors/index.htm#:~:text=The%20long%20and%20winding%20Hurd,marketing%20contractor%20for%20the%20company.">departure of four directors</a> in 2011. 
 
With those issues far in the past, HPE’s board earned the No. 2 spot on this list thanks to strengths in board expertise, gender equality, and board independence, among other criteria. The company specializes in enterprise information tech; it has recently seen particularly robust growth from its Intelligent Edge division, a data analytics and business intelligence platform. 
 
HPE’s board is chaired by Patricia Russo, former CEO of Alcatel-Lucent, the communications company. Russo is also a director at Merck, General Motors, and the private equity firm KKR. 
 
HPE’s directors’ careers reflect a wide range of expertise. Daniel Ammann is a former president of General Motors, as well as its former CFO, and until recently was CEO of GM Cruise LLC, a subsidiary of GM that focuses on autonomous vehicles. Pamela Carter is a former executive at Cummins, a machinery design and manufacturing company, where she was a business unit leader and general counsel; she chairs HPE’s HR and compensation committee.  
 
George R. Kurtz started his career at PwC and later founded a tech company that was acquired by McAfee. Mary Agnes Wilderotter chairs the audit committee and is the former CEO of Frontier Communications. 
 
In the non-CEO realm, Raymond Ozzie is a former chief software architect at Microsoft and a fellow of the Computer History Museum; Gary M. Reiner is the former chief information officer at General Electric; and Raymond Lane is the former COO of Oracle and partner emeritus at the famed venture capital firm Kleiner Perkins.

Fortune Modern Board 25

GPTW Information Technology Large 2022-Hewlett Packard Enterprise Company

Employees say: 
 
“The ability to make employees feel like a significant part of the overall team. In a company this size it's hard for employees to feel as if they make a difference. At HPE they go the extra mile to make sure that you know your contributions are critical for the company's success.”

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

Hewlett Packard Enterprise was founded in 2015 after splitting from the Hewlett-Packard company. Specializing in business information technology, the company offers cloud and infrastructure services to provide data storage, security, and network connectivity to its customers.

Fortune Global 500

Caring leaders at the Best Workplaces in Technology have been preparing their companies to thrive as the business world emerges from the COVID downturn.

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Employees say: 
“I am appreciative of the open line of communication our CEO and executive committee have kept in place with the entire company, especially during the COVID-19 shelter-in-place.” 
Read the Great Place to Work review .

These companies empower employees to bring their whole selves to work, prioritize their well-being, and grow in their careers.

Best Workplaces Women 2020-Hewlett Packard Enterprise Company

Employees say: 
 
“Our company is committed to our wellness and has provided many employee resources for financial, physical, emotional wellness. For example, every month we can leave several hours early to take care of ourselves on what's called a Wellness Friday.”

25 Best Large Workplaces in the Bay Area

This year’s Fortune 500 marks the 67th running of the list.

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We surveyed tens of thousands of employees to create this list of millennials’ favorite workplaces.

Best Large Workplaces Millennials 2021-Hewlett-Packard-Enterprise

Employees say: 
 
“Management is very supportive about growing and expanding your knowledge. Whenever I have shown interest in working on areas outside of my expertise, management has always been supportive, which I really appreciate.”

100 Best Large Workplaces for Millennials

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-431-Hewlett-Packard-Enterprise

Hewlett Packard Enterprise is a provider of various technologies including servers, storage, and networking equipment. Like many hardware companies, HPE has experienced pandemic-related supply chain problems in 2020, causing the company in March to walk back predictions that revenues would increase this year.

The companies on this year's list make a conscious effort to be supportive, inclusive workplaces.

Employees say: 
 
“While my husband was deployed, I was raising three kids with no close family. HPE has supported me for doctor appointments, sick kids, and school events. It was empowering to know that I could be a career-driven mom. ”

100 Best Large Workplaces for Women

This year's Fortune 500 marks the 66th running of the list.

F500-2020-109-HP

Hewlett Packard Enterprise is a provider of various technologies including servers, storage, and networking.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

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Company Info

Industry

Industry Vertical

Founded

City

Sites

Worldwide Employees

Total Worldwide [including U.S.] Revenue in the Latest Fiscal Year

Web Address

Date info provided (companies may opt to keep some data confidential)

Best Workplaces For Parents

Sector

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

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Culture rank

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Best Companies

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Benefits

Subsidized childcare

Compressed work weeks

Option to work remotely

Minimum requirement in-office attendance (days per week)

Mental health coverage

Free mental health sessions (per year)

Free backup childcare time off (days)

Maximum $ amount covered for fertility services

Fully paid maternal leave (days)

Fully paid paternal leave (days)

Fully paid adoptive leave (days)

Maternal leave in addition to regular time off (days)

Paid days off for volunteering

Earnings Per Share (last Fiscal Year)

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Best Workplaces In Texas

Best Workplaces In Technology

Hewlett Packard Enterprise focuses on enterprise IT solutions for customers across the Americas, Europe, the Middle East, and the Asia-Pacific region. The company delivers products and services related to cloud computing, servers, storage, networking, artificial intelligence, and more. HPE has developed several of the fastest supercomputers in the world. With origins tracing back to 1939, the company was spun off from PC manufacturer HP in 2015 and has since expanded through several acquisitions.

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Hewlett Packard Enterprise (HPE): Company Profile, Stock Price, News, Rankings

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hewlett packard enterprise

Good afternoon and welcome to the Fiscal 2025 Fourth Quarter Hewlett Packard Enterprise Earnings Conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Paul Glaser, Head of Investor Relations. Please go ahead.

Good afternoon. I am Paul Glaser, Head of Investor Relations for Hewlett Packard Enterprise. I would like to welcome you to our Fiscal 2025 Fourth Quarter Earnings Conference call with Antonio Neri, HPE's President and Chief Executive Officer, and Marie Myers, HPE's Chief Financial Officer. Before handing the call to Antonio, let me remind you that this call is being webcast. A replay of the webcast will be available shortly after the call concludes. We have posted the press release and the slide presentation accompanying the release on our HPE Investor Relations webpage. Elements of the financial information referenced on this call are forward-looking and are based on our best view of the world and our businesses as we see them today. HPE assumes no obligation and does not intend to update any such forward-looking statements.

We also note that the financial information discussed on this call reflects estimates based on information available at this time and could differ materially from the amounts ultimately reported in HPE's annual report on Form 10-K for the fiscal quarter ended October 31st, 2025. For more detailed information, please see the disclaimers on the earnings materials relating to forward-looking statements that involve risks, uncertainties, and assumptions. Please refer to HPE's filings with the SEC for discussion of these risks. For financial information we have expressed on a non-GAAP basis, we have provided reconciliations to the comparable GAAP information on our website. Please refer to the tables and slide presentation accompanying today's earnings release on our website for details. Throughout this conference call, all revenue growth rates, unless noted otherwise, are presented on a year-over-year basis and adjusted to exclude the impact of currency.

Antonio and Marie will be referencing our earnings presentation in their prepared comments. With that, let me turn it over to Antonio.

Thank you, Paul. Good afternoon, everyone. HPE finished a transformative year with a record quarter of profitable growth and disciplined execution. Q4 revenue of $9.7 billion increased 14% year-over-year, with non-GAAP operating profits growing faster, up 26% year-over-year. Non-GAAP operating margin was a record high at 12.2%, including server around 10% and networking at 23%, matching the high end of our expectations. Non-GAAP diluted net earnings per share of $0.62 exceeded the high end of our guidance. Stronger profitability also resulted in higher-than-expected free cash flow of $1.9 billion for the quarter, capping a solid fiscal year 2025 performance. The underlying demand environment was strong throughout the quarter, with orders growing faster than revenues. We saw an acceleration in orders in the last weeks of the quarter, signaling solid demand for our portfolio.

The strong finish, coupled with the steps we have taken throughout the year to transform our company, positions us well in 2026. Reflecting our continued confidence and ongoing technology leadership, we are raising our fiscal year 2026 non-GAAP diluted net earnings per share guidance and the midpoint of free cash flow guidance. Marie will provide more details about our Q4 financial results and our new fiscal year 2026 outlook in a moment. We intend to capture the opportunity in 2026 and beyond by pursuing the key priorities we outlined at the Securities Analysts Meeting in October. These are building a new networking industry leader, profitably capturing the AI infrastructure build-out opportunity, accelerating our high-margin software and services growth through our GreenLake cloud, capitalizing on the unstructured data market growth with our leading Alletra MP storage offerings, and driving the transition to our next-generation server platforms.

This strategy underpins our long-term financial framework. By fiscal year 2028, we are committed to generating at least $3 in Non-GAAP diluted net earnings per share and more than $3.5 billion in free cash flow with improved cash conversion cycles. I also want to highlight that we recently announced agreements regarding our H3C stake in China. We will sell our remaining 19% stake for approximately $1.4 billion, which we expect to close during the first half of calendar year 2026. These transactions support our plan to reduce our net leverage to around two times by the end of fiscal year 2027. Looking back at fiscal year 2025, I am proud of what a transformative year it was for our company. We celebrated our 10-year anniversary in the era of focus, innovation and technology leadership.

We completed the acquisition of Juniper Networks, strengthening our positioning in the networking market to create a new industry leader. We scaled our GreenLake cloud, hybrid cloud software, Alletra MP storage, and AI businesses to new heights, and we continue to improve our cost structure through our catalyst initiatives to operate more efficiently. Overall, HPE delivered full-year revenue of $34.3 billion, a 14% increase year-over-year. Our revenue growth reflects solid performance across our three largest business segments and the addition of Juniper Networks. We exceeded our full-year outlook for non-GAAP diluted net earnings per share and free cash flow, delivering $1.94 and $986 million, respectively. Networking played a pivotal role in our success. Segment revenue increased 51% in fiscal year 2025, achieving $6.9 billion, with the addition of four months of Juniper results.

Orders for the new combined networking segment grew at a faster rate than revenues in fiscal year 2025 as the market recovered. We saw strong double-digit order and revenue growth across our key segments of the networking market on an as-reported basis. Regarding the integration of Juniper, I am pleased with the significant progress we have made in forming a new unified leader in networking. In the five months since closing the transaction, we have brought together our teams, technologies, and go-to-market strategies, and the response from our employees, customers, partners, and the industry at large has been overwhelmingly positive. They are already seeing the benefits of our combined portfolio, the innovation we are driving, and the cohesive customer experience we now deliver.

Across the industry, stakeholders have expressed enthusiasm for the combined company's ability to accelerate innovation, deliver greater value, and help organizations build secure, modern, and high-performance networks for the future. The new combined networking team is performing exceptionally well. We increased orders and revenues on a pro forma basis during the first full quarter as one team. As a combined company, we are able to better compete with our comprehensive industry-leading networking portfolio. We saw good traction with our core customer segments, enterprise and service provider. As we integrate Juniper Networks and HPE Aruba Networking, we are building a modern, secure, AI-native networking portfolio, one that encompasses campus and branch, data center switching, routing, and security. By combining our unique strengths in AIOps, Agentic AI, Silicon IP, and go-to-market scale, we are positioning HPE to capture greater market share and revenue synergies.

Our networks for AI solutions grew in fiscal year 2025, where we saw notable strength in both WAN and data center switching. We are on track to achieve networking for AI cumulative to order target of $1.5 billion by the end of fiscal year 2026. The campus and branch business had a strong performance in fiscal year 2025, with revenue up double digits, with orders growing above revenues. Our AI for network solutions leverage both Mist AI large language models and Aruba Agentic AI models, driving clear differentiation that is resonating with our customers. In our server segment, fiscal year 2025 revenue grew 10% year-over-year. We signed $6.8 billion in new AI system orders in fiscal year 2025. Sovereign and enterprise bookings now account for more than 60% of the cumulative orders since Q1 of fiscal year 2023, demonstrating our strategy to prioritize profitable AI infrastructure build-out opportunities.

In traditional servers, revenue grew double digits year-over-year, benefiting from a refreshed cycle as customers upgrade to the latest generation 11 and 12 servers. These support greater workload performance with quantum-proof security, higher density, and lower power consumption. I am pleased that we have returned server operating margin to approximately 10% in Q4. As we look to 2026, we will draw on our supply chain expertise to secure critical commodity supply and exercise our pricing management discipline. We expect DRAM and NAND costs to continue to increase in 2026, the majority of which we expect to pass to the market while monitoring demand. Hybrid cloud revenue grew 5% in fiscal year 2025. We added approximately 7,000 new customers to GreenLake, ending the year with approximately 46,000 customers. Total company AIR was $3.2 billion, up 62% year-over-year, with additional Juniper.

We continue to differentiate ourselves in a market with unique cloud-native software, AIOps, and services, which together represented over 80% of AIR. In storage, we continue to make excellent progress in shifting our portfolio to our own IP. We closed the year with strong demand for HPE Alletra MP, with four consecutive quarters of double-digit growth in both orders and revenue. We have now shipped over 7,400 Alletra MP storage arrays, more than doubling year-over-year. We added more than 1,300 new customers in fiscal year 2025, further solidifying our leadership in this space. Demand for our newer differentiated private cloud solutions, Private Cloud AI, and private cloud for virtualization with our HPE Morpheus VM Essentials software ramped throughout the year. We set new milestones, including approximately 100 new PC AI customers.

Total orders for our private cloud solutions, which also includes private cloud business edition and private cloud enterprise offerings, increased more than 20% year-over-year. HPE is proud to have been named a leader in the 2025 Gartner Magic Quadrant for Infrastructure Platform Consumption Services, positioned highest in execution and furthest in vision. This acknowledgment spotlights our innovative cloud-native software and services experience, which help customers accelerate transformation and drive operational efficiency across their hybrid IT environments. This week, more than 5,000 attendees participated in our HPE Discover Barcelona customer and partner event. We introduced new innovations and demonstrated the considerable progress we have made in bringing together HPE and Juniper in a short period of time.

For example, in AI for Networks, we announced new AI Ops capabilities and common infrastructure products that deliver a consistent self-driving experience across both HPE Aruba Networking Central and HPE Juniper Networking Mist cloud platforms. This is an important milestone in achieving a unified experience across campus and branch and demonstrates our commitment to quickly cross-pollinating our platforms and driving common infrastructure products for investment protection. In Networks for AI, we announced the first OEM switch to leverage Broadcom Tomahawk 6 Silicon. To address performance-hungry computing for AI inferencing, our new HPE Juniper Networking data center switch connects GPUs within data centers with the world's highest performance Ultra Ethernet transport-ready switch, delivering 102.4 terabits per second total capacity.

Our new HPE Juniper Multi-Service Edge Router brings AI inferencing closer to the source of data generation, with performance up to 1.6 terabits per second with full duplex 400 gigabits per second connectivity. Also, in Barcelona, we extended the NVIDIA AI Computing by HPE portfolio, introducing new solutions for AI factory scale and performance. In HPE's AI Factory Networking Solutions, we introduced the new HPE Juniper Networking Edge OnRamp and Long Haul Data Center Interconnect with our HPE Juniper Networking MX and PTX high-speed routing platforms. Integrating our Juniper routing solutions with NVIDIA Spectrum-X Ethernet Networking and NVIDIA BlueField-3 DPUs enables high-speed, secure, and efficient Edge OnRamp and AI Data Center Interconnect use cases. We also announced the first AMD Helios AI rack scale architecture with integrated HPE Juniper Scale-up Ethernet Networking.

The solution leverages purpose-built HPE Juniper Networking data center infrastructure and software to accelerate performance and deployment of at-scale AI training and inferencing for cloud service providers and sovereign clouds. In storage, we announced new solutions to accelerate AI data pipelines. The new HPE Alletra Storage MP X10000 data intelligence nodes transform the X10000 into an active data layer that enriches data in real time for AI pipelines. Finally, last month at Supercomputer 2025, we demonstrated our next-generation LiquidCool Cray GX and super-generation exascale AI supercomputer for the U.S. Department of Energy. These announcements highlight the strength of our innovation to deliver the best networking AI and cloud solutions for our customers and partners. As I reflect on the past year, I want to highlight a few critical milestones we have achieved as a company.

First, we repositioned our business, creating a new networking leader by combining the strength of HPE Aruba Networking and Juniper Networks. Second, we scaled our AI business with focus on sovereign and enterprise customers, representing more than 60% of our bookings. Third, we advanced our cloud business with innovative offerings such as our own Alletra MP storage for both structured and unstructured data, Cloud Ops Suite software, HPE Morpheus Enterprise, VM Essentials, and private cloud AI, which are all underpinned by our GreenLake cloud scale and experience. And lastly, we continue to improve our cost structure through our catalyst initiatives to operate more efficiently by leveraging automation and new AI technologies. We enter fiscal 2026 with a world-class portfolio and a stronger market position. Networking, cloud, and AI remain the three pillars of our strategy.

Our organic investments are focused on higher margin opportunities, and with a disciplined approach to the Juniper integration, we are positioned to accelerate value for shareholders. On behalf of the HPE Management Team, I want to thank our customers, partners, and team members for their dedication this year. Your support has been instrumental in making fiscal 2025 a transformative year for HPE. We look forward to successfully executing on our strategy to achieve our fiscal 2026 and long-term plan commitments to our shareholders. With that, I will hand it over to Marie for a detailed review of Q4 financial results and our outlook for Q1 and the full fiscal year 2026.

Thank you, Antonio, and good afternoon, everyone. Fiscal year 2025 has been a transformative year for HPE. We took significant strides towards aligning with our long-term strategy, delivering on our commitments, and positioning the company for sustainable growth.

We closed the acquisition of Juniper Networks, our largest ever, which has expanded our reach into the data center and significantly bolstered our scale in the networking sector. The integration of Juniper is a top priority, and I'm pleased to share that our execution is progressing well. While it's early days, the initial synergies we are seeing are encouraging, reaffirming our belief in the potential of this acquisition to drive higher margin and higher growth opportunities for HPE. We have established a robust foundation to transform our cost structure through catalyst initiatives, which, combined with the synergies from Juniper, are targeting approximately $1 billion in annualized structural savings by fiscal 2028. We are pleased with the significant catalyst-related cost reductions we captured in fiscal 2025. We exceeded our target of achieving 20% of $350 million in annual run rate cost savings as our results track ahead of plan.

As part of Catalyst, we continue to optimize and streamline our portfolio to become a more agile and efficient organization. Turning to fiscal year 2025, total revenue reached $34.3 billion, up 14% year-over-year. Non-GAAP diluted net earnings per share was $1.94, and free cash flow was $986 million, exceeding the outlook ranges provided at our securities analyst meeting in October. GAAP diluted net earnings per share was a loss of $0.04, below our outlook range, primarily driven by accounting adjustments related to the acquisition of Juniper and treatment of preferred stock. We returned $886 million to our common shareholders through dividends and share repurchases, further demonstrating our commitment to delivering value to our investors. Non-GAAP operating expenses of $7.5 billion increased 11% year-over-year and declined 60 basis points as a percentage of revenue. Excluding Juniper, non-GAAP operating expense was down modestly year-over-year, driven by ongoing cost management initiatives.

Let me highlight some key segment-related metrics from our fiscal 2025 results. Networking emerged as a standout performer of the year. The acquisition of Juniper was instrumental in driving this success, particularly in our WAN business. Overall, networking orders were up strong double digits year-over-year on a performer basis. Meanwhile, our AI server business also had good traction, with orders totaling $6.8 billion for the fiscal year and cumulative AI orders since Q1 fiscal 2023 reaching $13.4 billion. Additionally, we saw strong double-digit year-over-year growth in Alletra MP storage orders, signaling momentum as we focus on HPE-developed intellectual property and innovation. Now, let me walk you through our fourth quarter performance. Revenue for Q4 was $9.7 billion, up 14% year-over-year and 6% sequentially, coming in slightly below the low end of our outlook range due primarily to the push-out of some AI shipments.

This growth was primarily driven by our acquisition of Juniper Networks and robust performance in the HPE Aruba Networking, partially offset by declines in server and hybrid cloud revenue. Our Q4 profitability was another highlight of the quarter. Non-GAAP gross margin reached a record 36%, driven by a favorable mix shift to networking, stable gross margins across our three largest business segments, and disciplined pricing strategies. Non-GAAP operating expenses rose 40% year-over-year, primarily driven by the acquisition of Juniper. Excluding Juniper, non-GAAP operating expenses increased by 3%, reflecting our ongoing efforts to streamline our cost structure and maintain disciplined management of discretionary spending. Non-GAAP operating margin expanded to 12%, an improvement of 110 basis points year-over-year and 370 basis points sequentially. These improvements were supported by our catalyst cost savings and Juniper synergies.

For the quarter, our non-GAAP diluted net EPS was $0.62, exceeding the high end of our guidance, while GAAP diluted net EPS was $0.11. The difference reflects the exclusion of certain items, including amortization of intangible assets, Juniper-related acquisition costs, stock-based compensation expense, and cost reduction plan expense, partially offset by adjustments for taxes and other adjustments. Our annualized revenue run rate, or ARR, grew by 62% year-over-year, reaching $3.2 billion. This growth reflects the strength of our GreenLake platform, the accelerating adoption of our software solutions, and the incremental contributions from Juniper. GreenLake continues to grow its footprint, adding around 2,000 new customers in the quarter, bringing our total to approximately 46,000 customers by year-end. I'm particularly pleased with our Q4 free cash flow of $1.9 billion, well above our expectations, bolstered by strong Juniper collections and better-than-expected profitability.

Now, let me provide some color by segment, starting with networking, which is the cornerstone of our transformation strategy. HPE is uniquely positioned to lead in the networking market, offering an industry-leading secure AI-native networking portfolio that spans campus and branch, data center switching, routing, and security solutions. In Q4, networking generated revenue of $2.8 billion, representing a 150% year-over-year increase and a 62% sequential growth. Q4 revenue benefited from the first full quarter contribution of Juniper results, alongside continued growth in our HPE Aruba Networking business. We saw double-digit growth performance year-over-year across WAN, campus and branch, and security. We are particularly encouraged by the profitability of this newly consolidated networking business, which delivered an operating margin of 23%. While this represents a 140 basis point decline year-over-year, it marks a 220 basis point improvement quarter over quarter, driven by robust gross margin performance and higher revenue.

Although we will not report Juniper's results separately going forward, we are pleased to note that integration synergies have already been materializing, enabling Juniper to deliver an eight-year high in operating profit margin during Q4. We remain focused on continuing to unlock the value of this integration. We are combining our two networking sales teams into a unified organization and implementing a new sales coverage model to drive efficiency and alignment. Starting in January, we will also introduce a unified sales compensation plan, promoting consistency across the integrated networking team. These actions position us well to build on the momentum we have established and capitalize on the significant market opportunities ahead. Moving to our server business, in Q4, server revenue totaled $4.5 billion, representing a 5% decline year-over-year and a 10% sequential decrease.

This performance primarily reflects the timing of AI server shipments during the quarter and lower-than-expected U.S. federal spending. Despite these headwinds, we were encouraged by robust server order growth across both traditional server and AI offerings, with demand significantly outpacing revenue in this period. Momentum in traditional server was driven by the continued shift toward next-generation platforms, which contributed to higher average selling prices. Our Gen 11 and Gen 12 platforms now comprise approximately 98% of our traditional server revenue mix. As we look ahead, we will maintain a disciplined focus on balancing profitability and unit growth for our traditional server business, emphasizing volume and services attached to support sustainable long-term cash flow. Turning to AI systems, orders were strong in the fourth quarter, reaching $1.9 billion, largely fueled by demand for sovereign customers.

Additionally, our AI server pipeline remains multiples of our backlog, underscoring the substantial interest we are seeing from sovereign and enterprise customers. It is worth noting that we expect AI demand to remain uneven, as some of our larger sovereign customers are placing orders with extended lead times, which may defer shipments to future periods. We successfully delivered an operating margin of approximately 10%, consistent with our outlook. We improved our margin performance by 340 basis points sequentially, a result of our disciplined approach to managing AI volumes, executing on traditional server pricing, and reducing operating expenses. Moving to our hybrid cloud segment, we reported revenue of $1.4 billion for the quarter, reflecting a 13% decline year-over-year and a 5% decline sequentially.

While below our outlook for flattish revenue quarter over quarter, this performance reflected our strategy to sharpen our focus on higher margin HPE-developed solutions while intentionally reducing our exposure to low-margin non-IP-related businesses. As part of this strategic pivot, we are encouraged by the continued momentum in our innovative offerings. Orders for Alletra MP grew strong double digits year-over-year, underscoring the growing traction of this solution in the market. We are also seeing good growth in Private Cloud AI orders, which more than doubled sequentially, and we closed the year with approximately 100 new logos in this space. Hybrid cloud operating margin for the quarter came in at 5%, representing a 280 basis point decline year-over-year and a 90 basis point decline sequentially. This reduction primarily reflects the scaling of operating expenses as we continue to invest in innovative and transformative solutions.

Hewlett Packard Enterprise (HPE) Q4 2025 Earnings Call Transcript

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