Hewlett Packard Enterprise Co
HPE
Market Cap$23.57B
Close$
Earnings Call Q2 2025
June 3, 2025 - AI Summary
Strong Q2 Performance: HPE reported Q2 revenue of $7.6 billion, a 7% year-over-year increase, exceeding previous guidance. This growth was driven by higher AI system revenue, robust performance in the Intelligent Edge, and the hybrid cloud segment, particularly from HPE GreenLake cloud subscription services.
Margin Expectations: Server operating margins stood at 5.9% but are expected to improve to around 10% by the end of Q4 2025, aided by corrective actions taken to enhance pricing analytics, discount scrutiny, and inventory management. Overall, HPE is aiming for a non-GAAP operating margin above 9% for the full fiscal year.
Improved Guidance: HPE tightened its revenue growth forecast for the fiscal year to 7%-9% year-over-year (previously broader) and raised the low end of its non-GAAP diluted net earnings per share outlook by $0.08, now ranging from $1.78 to $1.90.
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$27.99
54.2% upside
Current Fair Value
54.2% upsideUndervalued by 54.2% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $23.57 Billion |
|---|---|
| Enterprise Value | $43.40 Billion |
| Dividend Yield | $0.52 (2.89532293986637%) |
| Earnings per Share | $1.95 |
| Beta | 1.33 |
| Outstanding Shares | 1,322,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 16.65 |
|---|---|
| PEG | -3.75 |
| Price to Sales | 0.79 |
| Price to Book Ratio | 1.01 |
| Enterprise Value to Revenue | 1.37 |
| Enterprise Value to EBIT | 482.21 |
| Enterprise Value to Net Income | 30 |
| Total Debt to Enterprise | 0.71 |
| Debt to Equity | 1.3 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Hewlett Packard Enterprise Co
CEO: Antonio Neri