Hewlett Packard Enterprise (HPE) reported third quarter fiscal 2025 revenue of $9.1 billion, up 19% from the prior year and 18% in constant currency. Annualized revenue run-rate (ARR) reached $3.1 billion, a 77% year-over-year increase. GAAP gross margin was 29.2%, while non-GAAP gross margin was 29.9%. GAAP diluted earnings per share (EPS) were $0.21, down $0.17 year over year, and non-GAAP EPS was $0.44, within the company’s guidance range.
Segment results included Server revenue of $4.9 billion, up 16% year over year; Networking revenue of $1.7 billion, up 54% year over year; Hybrid Cloud revenue of $1.5 billion, up 12% year over year; and Financial Services revenue of $886 million, up 1% year over year. Free cash flow rose to $790 million, while operating cash flow reached $1.3 billion. The HPE Board declared a regular cash dividend of $0.13 per share, payable on October 17, 2025.
For the fourth quarter, HPE expects revenue between $9.7 billion and $10.1 billion, GAAP EPS of $0.50 to $0.54, and non-GAAP EPS of $0.56 to $0.60. For fiscal 2025, the company projects revenue growth of 14% to 16% in constant currency and free cash flow of approximately $700 million.
“Customer demand stretched broadly across our portfolio and was particularly strong in our Server and Networking segments,” said Antonio Neri, President and CEO. “As we enter a new chapter at HPE, we are focused on capturing the tremendous market opportunity through execution that delivers strong, consistent shareholder value.”
🌐 Analysis: HPE’s close of the $14 billion Juniper Networks acquisition in July 2025 represents its most significant portfolio expansion since the company’s spin-out from HP a decade ago. Juniper brings strengths in routing, data center networking, campus/branch solutions, and security—areas that broaden HPE’s reach beyond servers, storage, and edge-to-cloud services. The Networking segment, which replaces the Intelligent Edge branding, contributed $1.7 billion in Q3 revenue and nearly half of HPE’s non-GAAP operating profit. Management expects at least $600 million in cost synergies over the next three years, with additional upside from cross-selling Juniper’s Mist AI-driven network automation and security platforms into HPE’s global enterprise base and GreenLake as-a-service model.
The deal also intensifies competition with Cisco, particularly in AI data center interconnects, SD-WAN, and campus networking, where Cisco remains dominant. At the same time, it positions HPE to capture share from Dell in servers bundled with networking, and from cloud providers pursuing in-house silicon and networking solutions. With server revenue boosted by AI backlog conversion, Juniper’s routing and security portfolio gives HPE a more complete stack to address end-to-end infrastructure deployments across AI, cloud, and hybrid enterprise environments. Execution on integration and maintaining Juniper’s innovation pipeline will be critical in determining whether HPE can sustain its record revenue growth into fiscal 2026.
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