Hewlett Packard Enterprise Company ("HPE") has announced a segment realignment that impacts its fiscal 2025 and fiscal 2024 financial results. The segment realignment involves the merging of the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI, along with the transfer of the Telco and Instant On businesses to Corporate Investments and Other from Networking.
In terms of net revenue for the three months ended July 31, 2025, the Cloud & AI segment reported $7.2 billion, while the Networking segment reported $1.7 billion and Corporate Investments and Other reported $270 million. This represents an increase in net revenue for the Cloud & AI segment compared to the same period in fiscal 2024, where it reported $6.3 billion. The Networking segment also saw an increase in net revenue compared to the same period in fiscal 2024, where it reported $1.1 billion.
Regarding earnings before taxes for the same period, the Cloud & AI segment reported $543 million, the Networking segment reported $328 million, and Corporate Investments and Other reported a loss of $21 million. This indicates an increase in earnings before taxes for the Cloud & AI segment compared to the same period in fiscal 2024, where it reported $612 million. The Networking segment also saw an increase in earnings before taxes compared to the same period in fiscal 2024, where it reported $225 million.
In terms of segment operating margin for the Cloud & AI segment for the three months ended July 31, 2025, it reported an operating margin of 7.5%, which is slightly lower than the 9.7% reported for the same period in fiscal 2024. The Networking segment reported an operating margin of 19.8%, which is lower compared to the 21.4% reported for the same period in fiscal 2024.
Today the company's shares have moved 0.16% to a price of $25.04. Check out the company's full 8-K submission here.
