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Apr 30, 2025
Hewlett Packard Enterprise Q2 2025 Earnings Report
Hewlett Packard Enterprise reported solid revenue growth but a net loss due to a major non-cash goodwill impairment.
Key Takeaways
HPE delivered revenue growth across key business segments in Q2 2025, but posted a net loss of over $1 billion driven by a $1.4 billion goodwill impairment charge. Adjusted EPS came in above guidance.
Revenue by Segment
Forward Guidance
HPE expects stronger revenue and improved adjusted EPS in Q3 FY25, with continued focus on streamlining and innovation amid macro challenges.
Positive Outlook
- Revenue expected between $8.2B and $8.5B for Q3
- Non-GAAP EPS guidance between $0.40 and $0.45
- Stability in Intelligent Edge growth trajectory
- Higher margins expected in Hybrid Cloud segment
- Focus on operational efficiency and streamlining
Challenges Ahead
- GAAP EPS forecast remains low due to impairment effects
- Server margins pressured by cost structure
- Free cash flow has turned significantly negative
- Ongoing macroeconomic uncertainties
- Legacy goodwill impairments affecting net income
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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