HPE Filings — Hewlett Packard Enterprise Company - FilingSpy
HPE
Hewlett Packard Enterprise Company
A maker of servers, storage, networking gear, and cloud services for businesses, sold under brands like HPE GreenLake, ProLiant, and Cray, plus the Juniper Networks portfolio it acquired. It was born in 2015 when the original Hewlett-Packard split in two, keeping the enterprise side. That company began in 1939 when Bill Hewlett and Dave Packard, Stanford pals, flipped a coin to decide whose name went first — and set up shop in a Palo Alto garage now called the birthplace of Silicon Valley.
Q2 FY2026 revenue rose 40% to $10.7B as Juniper lifted Networking and gross margin expanded 8.1 points to 36.5%.
returned to 36.5% after a year of -driven losses. rose 40.0% to $10.7B and swung to 7.0% from -14.5% a year ago, driven by the Juniper acquisition and higher prices, with at $0.44 versus a $0.82 loss. The company has absorbed the Juniper deal and posted its widest margin in two years.
Key takeaways
expanded 8.1 percentage points to 36.5%, driven by a favorable mix of higher-margin and after the prior-year period carried a $1.4B .
Total net increased 40.0% to $10.7B, primarily from the acquisition in and higher in .
grew 148.2% to $2.7B, entirely attributable to the inclusion of .
Section summaries
Management's Discussion and Analysis
HPE Q2 FY2026 revenue surged 40% to $10.7B, driven by the Juniper acquisition and higher server ASPs, with gross margin expanding 8.1pp to 36.5%.
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Total net increased 40.0% to $10.7 billion, primarily from the acquisition in the and higher average selling prices in .
grew 22.9% to $7.7B, led by a 32.7% increase in revenue from commodity cost pass-throughs raising average prices.
margin swung to 7.0% from -14.5% a year ago, as the prior-year quarter bore the $1.4B non-cash that did not repeat.
improved by $1.8B to $915M for the quarter on higher and the timing of vendor payments.
The filing's only new risk factor is intensifying cybersecurity threats, including AI-enabled exploits and quantum computing breaking current encryption.
What changed
Q2 FY2025 had taken a $1.4B non-cash driving a $(1.1)B operating loss; this quarter that charge did not repeat and swung to 7.0%.
, which sat at 28.4% in Q2 FY2025 and 35.9% in Q1 FY2026, reached 36.5% — the highest in the quarterly table since Q3 FY2023.
recovered from negative $847M in Q2 FY2025 to $915M, answering the prior flag on recovery from negative readings as AI-system and normalized.
rose to $18.2B from $17.7B at FY2025 year-end and $17.7B in Q1 FY2026, continuing the post-Juniper borrowed balance with no paydown yet reported.
The new three- structure took effect Q1 FY2026; merged , , and Financial Services, and its rose 22.9% this quarter after declining 2.7% in Q1.
What to watch
Q3 FY2026 to see if the 22.9% rise holds as volume and pricing stabilize.
Progress on $350M cost savings and $600M Juniper synergies toward fiscal 2028 targets.
sustainability after the 8.1-point expansion as tariff and input-cost pressure continues.
level and any paydown from the $18.2B balance after Juniper-funded borrowings.
margin expanded 8.1 percentage points to 36.5%, driven by a favorable mix of higher-margin and .
grew 148.2% to $2.7 billion, entirely attributable to the inclusion of .
grew 22.9% to $7.7 billion, led by a 32.7% increase in revenue due to higher average selling prices from commodity cost pass-throughs.
margin swung to 7.0% from -14.5% a year ago, primarily due to improvement and the absence of a prior-year $1.4 billion .
improved by $1.8 billion to $915 million for the quarter, driven by higher and the timing of vendor payments.
Quantitative and Qualitative Disclosures About Market Risk
For quantitative and qualitative disclosures about market risk affecting HPE, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. There have been no material changes…
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For quantitative and qualitative disclosures about market risk affecting HPE, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. There have been no material changes in our market risk exposures since October 31, 2025.
Cybersecurity threats are intensifying, with sophisticated attacks, AI-enabled exploits, and quantum risks posing material operational, financial, and reputational dangers.
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Frequent and increasingly sophisticated cyberattacks, including and nation-state intrusions, have breached defenses and may continue to disrupt operations or compromise sensitive data.
Malicious use of AI, deepfakes, and advanced social engineering is creating new attack methods that challenge existing verification and detection controls.
Quantum computing advances could break current encryption, requiring significant investment to transition to quantum-resistant techniques that may still prove insufficient.
Vulnerabilities in acquired companies, third-party providers, and customer-integrated systems expand the attack surface and could lead to cascading breaches.
Incident investigation and remediation are often slow and incomplete, delaying reliable disclosure and prolonging exposure, while insurance may not cover resulting losses.