Free cash flow has stabilized to $827 million in 2026Q2, though the operating cash flow to net income ratio remains volatile at 2.26, reflecting ongoing challenges in cash conversion.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 |
|---|
| Cash from Operations | 6.36B | 2.92B | 4.34B | 4.43B | 4.59B | 5.87B | 2.24B | 4B | 2.96B | 889M | 4.96B | 3.66B | 6.91B | 8.74B |
| Operating CF Margin % | - | 8.51% | 14.44% | 15.21% | 16.34% | 21.07% | 8.31% | 13.83% | 9.6% | 3.07% | 16.35% | 7.06% | 12.54% | 15.24% |
| Operating CF Growth % | 842.42% | -32.76% | -1.96% | -3.59% | -21.77% | 162.1% | -43.96% | 34.85% | 233.41% | -82.07% | 35.43% | -47.03% | -20.92% | - |
| Net Income | 1.52B | 57M | 2.58B | 2.02B | 868M | 3.43B | -322M | 1.05B | 1.91B | 344M | 3.16B | 2.46B | 1.65B | 2.05B |
| Depreciation & Amortization | 3.31B | 2.74B | 2.56B | 2.62B | 2.48B | 2.6B | 2.63B | 2.54B | 2.58B | 3.05B | 3.77B | 3.95B | 4.14B | 4.4B |
| Stock-Based Compensation | 807M | 643M | 430M | 428M | 391M | 382M | 274M | 268M | 286M | 428M | 558M | 565M | 427M | 374M |
| Deferred Taxes | -788M | -565M | -64M | -67M | -249M | -167M | -294M | 1.08B | 2.23B | -1.12B | -1.34B | -2.52B | -304M | -248M |
| Other Non-Cash Items | 1.08B | 2.75B | -480M | 458M | 1.67B | 1B | 2.2B | 801M | 804M | 1.61B | -701M | 1.44B | 1.64B | 1.55B |
| Working Capital Changes | 424M | -2.71B | -688M | -1.03B | -570M | -1.37B | -2.25B | -1.74B | -4.84B | -3.43B | -490M | -2.23B | -647M | 617M |
| Change in Receivables | -1.6B | -853M | -992M | -30M | -186M | -591M | -461M | 374M | -220M | 457M | 991M | 9M | 986M | 580M |
| Change in Inventory | -738M | 1.78B | -3.36B | 400M | -713M | -1.96B | -527M | 46M | -260M | -542M | 34M | -424M | 69M | -251M |
| Change in Payables | 1.79B | -3.47B | 3.93B | -1.66B | 1.71B | 1.61B | -225M | -525M | -27M | 992M | 66M | 868M | 611M | 472M |
| Cash from Investing | -13.17B | -13.19B | -53M | -3.28B | -2.09B | -2.8B | -2.58B | -3.46B | -2.07B | -4.91B | 419M | -5.41B | -2.97B | -2.23B |
| Capital Expenditures | -149M | -2.29B | -2.37B | -2.83B | -3.12B | -2.5B | -2.38B | -2.86B | -2.96B | -3.14B | -3.28B | -3.34B | -3.62B | -2.5B |
| CapEx % of Revenue | 0.38% | 6.68% | 7.87% | 9.72% | 11.11% | 8.98% | 8.84% | 9.88% | 9.57% | 10.84% | 10.82% | 6.45% | 6.57% | 4.36% |
| Acquisitions | -12.44B | -11.69B | -147M | -761M | 602M | -505M | -866M | -1.53B | -194M | -2.22B | 3.32B | -2.5B | -43M | -167M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.51B | -183M | 328M | 311M | 226M | 256M | 724M | 938M | 1.01B | 459M | 450M | 380M | 606M | 370M |
| Cash from Financing | 447M | 1.05B | 6.28B | -1.36B | -1.8B | -3.36B | 883M | -1.55B | -5.59B | 610M | -2.33B | 9.28B | -3.8B | -6.46B |
| Debt Issued (Net) | 2.8B | 2.34B | 5.74B | -209M | -596M | -2.48B | 1.9B | 1.26B | -1.68B | -1.52B | 170M | -194M | -283M | -1.24B |
| Equity Issued (Net) | -422M | -202M | 1.31B | -421M | -512M | -242M | -391M | -2.25B | -3.57B | -2.56B | -2.66B | 0 | 0 | 0 |
| Dividends Paid | -647M | -796M | -676M | -619M | -621M | -625M | -618M | -608M | -570M | -428M | -373M | -32M | -37M | 0 |
| Share Repurchases | -412M | -202M | -150M | -421M | -512M | -213M | -355M | -2.25B | -3.57B | -2.56B | -2.66B | 0 | 0 | 0 |
| Other Financing | -1.28B | -299M | -92M | -113M | -67M | -18M | -7M | 48M | 222M | 4.67B | 535M | 9.5B | -3.48B | -5.23B |
| Net Change in Cash | -5.58B | -9.25B | 10.52B | -182M | 431M | -289M | 545M | -1.01B | -4.7B | -3.41B | 3.15B | 7.52B | 137M | 48M |
| Free Cash Flow | 5.64B | 627M | 1.97B | 1.6B | 1.47B | 3.37B | -143M | 1.14B | 8M | -2.25B | 1.68B | 317M | 3.29B | 6.24B |
| FCF Margin % | 14.51% | 1.83% | 6.57% | 5.5% | 5.23% | 12.09% | -0.53% | 3.95% | 0.03% | -7.77% | 5.53% | 0.61% | 5.97% | 10.89% |
| FCF Growth % | 5171.03% | -68.24% | 23.38% | 8.77% | -56.34% | 2455.94% | -112.53% | 14162.5% | 100.36% | -233.97% | 429.34% | -90.37% | -47.28% | - |
| FCF per Share | 3.94 | 0.47 | 1.48 | 1.22 | 1.11 | 2.53 | -0.11 | 0.84 | 0.01 | -1.34 | 0.96 | 0.17 | 1.80 | 3.42 |
| FCF Conversion (FCF/Net Income) | 3.72x | 51.21x | 1.68x | 2.19x | 5.29x | 1.71x | -6.96x | 3.81x | 1.55x | 2.58x | 1.57x | 1.49x | 4.19x | 4.26x |
| Interest Paid | 0 | 0 | 772M | 677M | 453M | 486M | 574M | 593M | 609M | 415M | 585M | 291M | 357M | 374M |
| Taxes Paid | 0 | 0 | 248M | 307M | 107M | 398M | 297M | 518M | 538M | 836M | 656M | 192M | 302M | 354M |
Integration and liquidity pressure
As reported in recent financial statements, HPE's operating cash flow to net income ratio has fluctuated wildly, reaching a high of 14.09 in 2025Q4 before normalizing to 2.26 in 2026Q2, which highlights a persistent disconnect between accounting profits and the actual cash generated by core operations.
The significant variance in the OCF/NI ratio suggests that non-cash charges and restructuring-related accounting adjustments continue to distort the company's reported profitability. Investors should monitor this divergence, as it implies that net income may not be a reliable proxy for the company's underlying cash-generating capacity during this period of strategic transformation.
Based on quarterly cash flow data, HPE's free cash flow trajectory has shown signs of stabilization, moving from a $918 million deficit in 2025Q1 to a positive $827 million in 2026Q2, reflecting a gradual improvement in the company's ability to fund operations after accounting for capital expenditures.
While the return to positive free cash flow is a constructive signal, the margin remains thin at 7.7% as of 2026Q2. This suggests that the company's transition toward a recurring revenue model is still in its early stages and remains sensitive to the high capital intensity required to support its AI-optimized infrastructure portfolio.
According to historical cash flow filings, working capital changes have been a major source of volatility, with a $1.7 billion outflow in 2025Q1 contrasting sharply with a $723 million inflow in 2025Q4, indicating significant cyclicality in inventory management and the timing of customer collections.
These erratic working capital movements suggest that HPE's cash position is highly susceptible to supply chain disruptions and the lumpy nature of large-scale enterprise hardware deployments. The inability to maintain a consistent working capital cycle may indicate challenges in balancing inventory levels with the fluctuating demand for high-end compute and networking components.
As evidenced by recent financial disclosures, HPE has balanced dividend payments with significant capital deployment, including a notable $12.6 billion net acquisition outflow in 2025Q3, which has placed considerable pressure on the company's available cash reserves and overall liquidity profile during this period of aggressive expansion.
The substantial capital outflow for acquisitions suggests that management is prioritizing inorganic growth over organic cash preservation. Investors should remain cautious, as the reliance on large-scale M&A to drive the Edge-to-Cloud strategy may limit the company's flexibility to navigate future downturns or fund internal R&D initiatives without further straining the balance sheet.
Quick answers to the most common questions about buying HPE stock.
Hewlett Packard Enterprise Company (HPE) generated $2.92B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hewlett Packard Enterprise Company (HPE) generated $627.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Hewlett Packard Enterprise Company (HPE) spent $2.29B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hewlett Packard Enterprise Company (HPE) returned $796.0M to shareholders via cash dividends and spent $202.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.