Revenue growth accelerated to 40.7% in 2026Q2, while gross margins improved to 36.5% from the 27.6% trough recorded in 2025Q2.
| 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 |
|---|
| Sales/Revenue | 38.88B | 34.3B | 30.07B | 29.11B | 28.11B | 27.86B | 26.94B | 28.9B | 30.88B | 28.94B | 30.33B | 51.83B | 55.13B | 57.33B |
| Revenue Growth % | 23.21% | 14.06% | 3.3% | 3.55% | 0.87% | 3.42% | -6.77% | -6.39% | 6.69% | -4.58% | -41.49% | -5.98% | -3.83% | - |
| Cost of Goods Sold | 26.08B | 24.43B | 20.52B | 19.18B | 19.28B | 18.76B | 18.89B | 19.91B | 21.91B | 20.5B | 20.78B | 38.03B | 40.4B | 42.86B |
| COGS % of Revenue | - | 71.23% | 68.23% | 65.91% | 68.6% | 67.33% | 70.12% | 68.88% | 70.98% | 70.83% | 68.51% | 73.37% | 73.28% | 74.76% |
| Gross Profit | 12.8B | 9.87B | 9.55B | 9.92B | 8.82B | 9.1B | 8.05B | 8.99B | 8.96B | 8.44B | 9.55B | 13.8B | 14.73B | 14.47B |
| Gross Margin % | 32.92% | 28.77% | 31.77% | 34.09% | 31.4% | 32.67% | 29.88% | 31.12% | 29.02% | 29.17% | 31.49% | 26.63% | 26.72% | 25.24% |
| Gross Profit Growth % | - | 3.29% | -3.74% | 12.44% | -3.05% | 13.05% | -10.46% | 0.36% | 6.16% | -11.6% | -30.83% | -6.29% | 1.82% | - |
| Operating Expenses | 10.24B | 8.22B | 7.12B | 7.51B | 6.99B | 6.91B | 6.5B | 6.75B | 6.59B | 6.43B | 7.09B | 10.58B | 10.9B | 10.55B |
| OpEx % of Revenue | - | 23.97% | 23.67% | 25.8% | 24.85% | 24.79% | 24.12% | 23.35% | 21.34% | 22.21% | 23.39% | 20.42% | 19.78% | 18.41% |
| Selling, General & Admin | 6.67B | 5.7B | 4.87B | 5.16B | 4.94B | 4.93B | 4.62B | 4.91B | 4.85B | 5.01B | 7.82B | 8.03B | 8.72B | 8.6B |
| SG&A % of Revenue | - | 16.63% | 16.2% | 17.73% | 17.58% | 17.69% | 17.16% | 16.98% | 15.71% | 17.3% | 25.79% | 15.48% | 15.81% | 15% |
| Research & Development | 3.17B | 2.52B | 2.25B | 2.35B | 2.04B | 1.98B | 1.87B | 1.84B | 1.66B | 1.49B | 2.3B | 2.34B | 2.2B | 1.96B |
| R&D % of Revenue | - | 7.34% | 7.47% | 8.07% | 7.28% | 7.1% | 6.96% | 6.37% | 5.39% | 5.13% | 7.58% | 4.51% | 3.99% | 3.41% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.56B | 1.64B | 2.44B | 2.41B | 1.84B | 2.19B | 1.55B | 2.24B | 2.37B | 2.01B | 2.46B | 3.22B | 3.83B | 3.91B |
| Operating Margin % | 6.6% | 4.79% | 8.1% | 8.29% | 6.54% | 7.88% | 5.77% | 7.76% | 7.69% | 6.96% | 8.09% | 6.21% | 6.94% | 6.83% |
| Operating Income Growth % | - | -32.48% | 0.87% | 31.27% | -16.22% | 41.25% | -30.75% | -5.44% | 17.88% | -18% | -23.78% | -15.83% | -2.2% | - |
| EBITDA | 4.46B | 4.38B | 5B | 5.03B | 4.32B | 4.79B | 4.18B | 4.78B | 4.95B | 5.06B | 6.23B | 7.17B | 7.97B | 8.31B |
| EBITDA Margin % | 11.48% | 12.77% | 16.63% | 17.28% | 15.37% | 17.2% | 15.51% | 16.54% | 16.03% | 17.5% | 20.54% | 13.83% | 14.46% | 14.49% |
| EBITDA Growth % | -1.93% | -12.36% | -0.62% | 16.46% | -9.87% | 14.67% | -12.55% | -3.44% | -2.27% | -18.72% | -13.09% | -10.07% | -4.07% | - |
| D&A (Non-Cash Add-back) | 1.88B | 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 |
| EBIT | 1.26B | -110M | 3B | 2.23B | 1.92B | 3.73B | -186M | 1.87B | 558M | 769M | 4.16B | 1.5B | 2.29B | 2.91B |
| Net Interest Income | -570M | -175M | -117M | 138M | -1.04B | -138M | -256M | -315M | -290M | -497M | -298M | -29M | -45M | -40M |
| Interest Income | -450M | 0 | 0 | 138M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 120M | 175M | 117M | 0 | 1.04B | 138M | 256M | 315M | 290M | 497M | 298M | 29M | 45M | 40M |
| Other Income/Expense | -1.41B | -1.93B | 518M | -184M | -963M | 1.39B | -2B | -691M | -2.1B | -1.74B | 1.41B | -1.75B | -1.58B | -1.04B |
| Pretax Income | 1.16B | -285M | 2.95B | 2.23B | 876M | 3.59B | -442M | 1.55B | 268M | 272M | 4.08B | 1.47B | 2.24B | 2.87B |
| Pretax Margin % | 2.98% | -0.83% | 9.82% | 7.66% | 3.12% | 12.87% | -1.64% | 5.37% | 0.87% | 0.94% | 13.45% | 2.84% | 4.07% | 5.01% |
| Income Tax | -359M | -342M | 374M | 205M | 8M | 160M | -120M | 504M | -1.74B | -164M | 623M | -705M | 596M | 820M |
| Effective Tax Rate % | -30.97% | 120% | 12.67% | 9.19% | 0.91% | 4.46% | 27.15% | 32.45% | -650.75% | -60.29% | 15.27% | -47.96% | 26.56% | 28.56% |
| 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 |
| Net Margin % | 3.9% | 0.17% | 8.58% | 6.96% | 3.09% | 12.3% | -1.2% | 3.63% | 6.18% | 1.19% | 10.42% | 4.75% | 2.99% | 3.58% |
| Net Income Growth % | 4.33% | -97.79% | 27.36% | 133.29% | -74.67% | 1164.29% | -130.7% | -45.02% | 454.65% | -89.12% | 28.44% | 49.33% | -19.65% | - |
| Net Income (Continuing) | 1.52B | 57M | 2.58B | 2.02B | 868M | 3.43B | -322M | 1.05B | 2.01B | 436M | 3.24B | 2.64B | 1.65B | 2.05B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 61M | 66M | 64M | 56M | 45M | 46M | 47M | 51M | 35M | 39M | 70M | 383M | 396M | 387M |
| EPS (Diluted) | 1.06 | -0.04 | 1.93 | 1.54 | 0.66 | 2.58 | -0.25 | 0.77 | 1.23 | 0.21 | 1.82 | 1.34 | 0.90 | 1.12 |
| EPS Growth % | 7.14% | -102.31% | 25.32% | 133.33% | -74.42% | 1132% | -132.47% | -37.4% | 485.71% | -88.46% | 35.82% | 48.89% | -19.64% | - |
| EPS (Basic) | - | -0.04 | 1.95 | 1.56 | 0.67 | 2.62 | -0.25 | 0.78 | 1.25 | 0.21 | 1.84 | 1.36 | 0.92 | 1.14 |
| Diluted Shares Outstanding | 1.43B | 1.32B | 1.34B | 1.32B | 1.32B | 1.33B | 1.29B | 1.37B | 1.55B | 1.67B | 1.74B | 1.83B | 1.83B | 1.83B |
| Basic Shares Outstanding | 1.33B | 1.32B | 1.31B | 1.3B | 1.3B | 1.31B | 1.29B | 1.35B | 1.53B | 1.65B | 1.72B | 1.8B | 1.8B | 1.8B |
| Dividend Payout Ratio | - | 1396.49% | 26.21% | 30.57% | 71.54% | 18.24% | - | 57.96% | 29.87% | 124.42% | 11.8% | 1.3% | 2.25% | - |
Integration and execution risk
As reported in recent financial statements, HPE achieved a significant revenue acceleration to 40.7% in 2026Q2, marking a sharp departure from the low single-digit growth observed in early 2024, suggesting that the company's strategic pivot toward high-performance computing and AI-optimized infrastructure is gaining substantial market traction.
The recent surge in top-line performance appears to be driven by the successful deployment of AI-optimized server capacity, which has effectively offset the cyclical headwinds in traditional compute segments. Investors should monitor whether this growth trajectory is sustainable or if it reflects a temporary spike in demand for specialized hardware that may eventually normalize as supply chain constraints ease.
Based on the provided income statement data, HPE's gross margin expanded to 36.5% in 2026Q2, representing a notable improvement from the 27.6% trough observed in 2025Q2, which indicates a potential shift toward higher-margin software and services within the company's evolving Edge-to-Cloud architecture.
This margin expansion suggests that the company is successfully increasing the attach rate of proprietary software and services to its hardware sales. However, the reliance on commodity components for its core compute business warrants caution, as any volatility in memory or GPU pricing could quickly reverse these gains.
According to the quarterly income statement data, operating income reached $747 million in 2026Q2, yet the operating margin of 7.0% remains below the 9.7% peak seen in 2024Q4, suggesting that rising R&D and SG&A expenses are currently offsetting the benefits of improved gross profitability.
The company appears to be aggressively reinvesting in R&D to support its AI and networking initiatives, which is suppressing short-term operating leverage. Analysts should investigate whether these elevated expense levels are permanent structural costs or temporary investments required to integrate recent acquisitions and scale the GreenLake platform.
As evidenced by the historical data, net income has exhibited extreme volatility, ranging from a $1.1 billion loss in 2025Q2 to a $1.4 billion profit in 2024Q4, which suggests that non-operating items and restructuring charges continue to obscure the underlying quality of the company's core earnings.
The significant fluctuations in net income appear to be driven by one-time charges and divestiture-related accounting, making it difficult to assess the true earnings power of the business. Investors should focus on adjusted metrics to determine if the core operational performance is actually improving or if it remains tethered to non-recurring financial events.
Based on the company's recent strategic shift, the $14 billion acquisition of Juniper Networks introduces significant execution risk, as the historical data shows that HPE has struggled to maintain consistent operating margins while navigating complex portfolio transitions and large-scale capital allocation decisions in recent quarters.
Short-sellers may focus on the potential for margin dilution and the increased debt burden associated with this acquisition, which could strain the balance sheet in a high-interest-rate environment. The market's skepticism appears rooted in the difficulty of successfully integrating large networking assets without disrupting the existing profitability profile of the core hardware business.
Quick answers to the most common questions about buying HPE stock.
For fiscal year 2025, Hewlett Packard Enterprise Company (HPE) reported total revenue of $34.30B. This represents a 40.2% decline compared to $57.33B in 2013.
Hewlett Packard Enterprise Company (HPE) is profitable, generating $57.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.2%.
Hewlett Packard Enterprise Company (HPE) reported an operating income of $1.64B, resulting in an operating profit margin of 4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Hewlett Packard Enterprise Company (HPE) generated $9.87B in gross profit for the year, representing a gross profit margin of 28.8%. This demonstrates the company's core pricing power and production efficiency.