Hewlett Packard Enterprise (HPE) has reported revenue of $9.7bn for the fourth quarter ended 31 October 2025 (Q4 2025), representing a 14% increase compared to $8.4bn during the same period last year.

The company’s annualised revenue run-rate (ARR) rose to $3.2bn, an increase of 63% year-on-year in actual dollars and 62% in constant currency.

HPE has reported a loss from operations of $8m for the quarter, contrasting with earnings of $693m in the same quarter a year ago.

Cash flow from operations was $2.465bn, an increase of $435m year-on-year. Free cash flow totalled $1.92bn, up $420m compared to last year.

The company returned $271m to common shareholders through dividends and share repurchases.

HPE president and CEO Antonio Neri said: “HPE finished a transformative year with a strong fourth quarter of profitable growth and disciplined execution.

“During the year, we completed the Juniper Networks acquisition, further scaled our AI and Cloud businesses, and accelerated innovation across our portfolio, giving HPE momentum to advance our strategic priorities in fiscal 2026.”

In segment performance, server revenue stood at $4.5bn, down 5% from the same period last year, with an operating profit margin of 9.8%, below last year’s 11.6%.

Networking revenue increased to $2.8bn, up 150%, and had a 23% operating profit margin compared to 24.4% previously.

Hybrid Cloud revenue was $1.4bn, down 12%, and had an operating profit margin of 5%, compared to 7.8% last year.

Financial Services revenue was steady at $889m but decreased by 2% in constant currency. Operating profit margin rose to 11.5% from 9.2%.

Net portfolio assets in financial services were valued at $13.2bn, down 3% in actual dollars and down 5% in constant currency, with a return on equity of 20.8%, up by 3.8% points from the prior-year period.

For the first quarter of fiscal year 2026, HPE expects revenue between $9bn and $9.4bn.

HPE executive vice president and chief financial officer Marie Myers said: “HPE continued to drive operational discipline in Q4, resulting in record gross profit and robust non-GAAP operating profit as well as free cash flow generation that exceeded our outlook.

“Our focus on disciplined spending, portfolio simplification, and ongoing structural cost management initiatives gives us the confidence to raise our FY26 diluted net earnings per share guidance and the midpoint of our FY26 free cash flow guidance.”