Hewlett Packard Enterprise CoHPE
Hewlett Packard Enterprise Co Segments Disclosure
Segment Information
Hewlett Packard Enterprise's operations are organized into five segments for financial reporting purposes: Server, Hybrid Cloud, Networking, Financial Services (“FS”), and Corporate Investments and Other. Hewlett Packard Enterprise's organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), Antonio F. Neri, who is the President and Chief Executive Officer, uses to evaluate, view and run the Company's business operations, which
include, but are not limited to, customer base and homogeneity of products and technology. The five segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results. A summary of the types of products and services within each segment is as follows:
Server consists of general-purpose servers for multi-workload computing and workload-optimized servers to deliver the best performance and value for demanding applications, and integrated systems comprised of software and hardware designed to address High-Performance Computing and Supercomputing (including exascale applications), Artificial Intelligence (“AI”), Data Analytics, and Transaction Processing workloads for government and commercial customers globally. This portfolio of products includes the secure and versatile HPE ProLiant Rack and Tower servers; HPE Synergy, a composable infrastructure for traditional and cloud-native applications; HPE Scale Up Servers product lines for critical applications, including large enterprise software applications and data analytics platforms; HPE Edgeline servers; HPE Cray EX; HPE Cray XD (formerly known as HPE Apollo); and HPE NonStop. The Server segment’s offerings also include operational and support services sold with systems and as standalone services.
Hybrid Cloud offers a wide variety of cloud-native and hybrid solutions across storage, private cloud and the infrastructure SaaS space. Storage includes data storage and data management offerings with the HPE Alletra Storage portfolio; unstructured data solutions and analytics for AI; data protection and archiving; and storage networking. It also includes AIOps-driven intelligence with HPE InfoSight and HPE CloudPhysics. In private cloud, the HPE GreenLake offerings include new cloud-native offerings and capabilities for virtual machines, containers, and bare metal; a full suite of private cloud offerings that enable customers to self-manage or choose a fully managed experience; and a portfolio of world-class Private Cloud AI infrastructure delivered aaS. This segment also provides self-service private cloud on-demand with HPE GreenLake for Private Cloud Business Edition, which includes an integrated VM Essentials virtualization software. Infrastructure software includes monitoring and observability for day two operations and beyond through the Company’s acquisition of OpsRamp and unified data access through HPE Ezmeral Data Fabric and analytics suite, which helps move and transform data for use in AI and other applications. The Hybrid Cloud segment also includes data lifecycle management and protection through its suite of offerings, including Zerto Disaster Recovery.
Networking develops and sells high-performance network and security products and services that empower customers of all sizes to build scalable, reliable, secure, agile, and efficient automated networks. Our platforms are purpose-built using AI to deliver secure and sustainable user experiences from the edge to the data center and cloud. Our solutions include hardware products such as Wi-Fi and private cellular access points; QFX, EX, and CX switches; MX and PTX routers; and gateways. Additionally, HPE provides software products, such as Mist and Aruba Central for cloud-based and on-premise management, network access control, software-defined wide area networking, network security, analytics and assurance, and private cellular core software. The Company also offers professional and support services and education and training programs, as well as aaS and flexible consumption models through the HPE GreenLake platform.
Financial Services provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. The FS segment also supports financial solutions for on-premise flexible consumption models, such as the HPE GreenLake cloud.
Corporate Investments and Other includes the Advisory and Professional Services (“A & PS”) business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities; and Hewlett Packard Labs, which is responsible for research and development.
Segment Policy
Hewlett Packard Enterprise derives the results of its business segments directly from its internal management reporting system. The accounting policies that Hewlett Packard Enterprise uses to derive segment results are substantially the same as those the consolidated company uses. The CODM measures the performance of each segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to allocate resources to each of the segments.
Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by FS to the Company's customers. Hewlett Packard Enterprise's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements.
Financing cost in the Consolidated Statements of Earnings reflects interest expense on borrowing and funding-related activity associated with FS and its subsidiaries, and debt issued by Hewlett Packard Enterprise for which a portion of the proceeds benefited FS.
Segment operating expenses primarily include employee related costs, third-party software costs, and lease expense. Hewlett Packard Enterprise does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated operating costs include certain corporate costs and eliminations, stock-based compensation expense, amortization of intangible assets, impairment charges, transformation costs, H3C divestiture related severance costs, severance costs related to the cost reduction program, acquisition, disposition and other charges. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by the CODM.
Segment Realignments
Effective at the beginning of the first quarter of fiscal 2026, the Company implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI and (ii) transferring the Telco and Instant On businesses to Corporate Investments and Other from Networking.
Segment Operating Results
| Server | Hybrid Cloud | Networking | Financial Services | Corporate Investments and Other | Total | ||||||||||||||||||||||||||||||
| In millions | |||||||||||||||||||||||||||||||||||
| Fiscal 2025 | |||||||||||||||||||||||||||||||||||
| Net revenue | $ | 17,639 | $ | 5,544 | $ | 6,837 | $ | 3,507 | $ | 769 | $ | 34,296 | |||||||||||||||||||||||
| Intersegment net revenue | 106 | 210 | 13 | (3) | 7 | 333 | |||||||||||||||||||||||||||||
| Total segment net revenue | 17,745 | 5,754 | 6,850 | 3,504 | 776 | 34,629 | |||||||||||||||||||||||||||||
Segment cost of sales | 14,038 | 3,624 | 2,756 | 2,856 | 598 | 23,872 | |||||||||||||||||||||||||||||
Segment operating expenses | 2,364 | 1,795 | 2,498 | 287 | 210 | 7,154 | |||||||||||||||||||||||||||||
| Segment earnings (loss) from operations | $ | 1,343 | $ | 335 | $ | 1,596 | $ | 361 | $ | (32) | $ | 3,603 | |||||||||||||||||||||||
Fiscal 2024(1) | |||||||||||||||||||||||||||||||||||
| Net revenue | $ | 15,830 | $ | 5,273 | $ | 4,501 | $ | 3,509 | $ | 1,014 | $ | 30,127 | |||||||||||||||||||||||
| Intersegment net revenue | 274 | 214 | 31 | 3 | — | 522 | |||||||||||||||||||||||||||||
| Total segment net revenue | 16,104 | 5,487 | 4,532 | 3,512 | 1,014 | 30,649 | |||||||||||||||||||||||||||||
Segment cost of sales | 12,060 | 3,302 | 1,706 | 2,923 | 795 | 20,786 | |||||||||||||||||||||||||||||
Segment operating expenses | 2,240 | 1,926 | 1,711 | 273 | 244 | 6,394 | |||||||||||||||||||||||||||||
| Segment earnings (loss) from operations | $ | 1,804 | $ | 259 | $ | 1,115 | $ | 316 | $ | (25) | $ | 3,469 | |||||||||||||||||||||||
Fiscal 2023(1) | |||||||||||||||||||||||||||||||||||
Net revenue | $ | 13,831 | $ | 5,491 | $ | 5,362 | $ | 3,466 | $ | 985 | $ | 29,135 | |||||||||||||||||||||||
| Intersegment net revenue | 435 | 97 | 17 | 14 | — | 563 | |||||||||||||||||||||||||||||
Total segment net revenue | 14,266 | 5,588 | 5,379 | 3,480 | 985 | 29,698 | |||||||||||||||||||||||||||||
Segment cost of sales | 10,071 | 3,314 | 2,228 | 2,919 | 808 | 19,340 | |||||||||||||||||||||||||||||
Segment operating expenses | 2,380 | 2,027 | 1,808 | 280 | 254 | 6,749 | |||||||||||||||||||||||||||||
Segment earnings (loss) from operations | $ | 1,815 | $ | 247 | $ | 1,343 | $ | 281 | $ | (77) | $ | 3,609 | |||||||||||||||||||||||
(1) Effective at the beginning of the first quarter of fiscal 2025, in order to align its segment financial reporting more closely with its current business structure, HPE implemented an organizational change with the transfer of certain managed services, previously reported within the Server segment, to the Hybrid Cloud segment. These prior year amounts have been recast to reflect the change.
The reconciliation of segment operating results to Consolidated Statement of Earnings results was as follows:
| For the fiscal years ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| In millions | |||||||||||||||||
| Net Revenue: | |||||||||||||||||
| Total segments | $ | 34,629 | $ | 30,649 | $ | 29,698 | |||||||||||
| Elimination of intersegment net revenue | (333) | (522) | (563) | ||||||||||||||
| Total consolidated net revenue | $ | 34,296 | $ | 30,127 | $ | 29,135 | |||||||||||
(Loss) Earnings Before Taxes: | |||||||||||||||||
| Total segment earnings from operations | $ | 3,603 | $ | 3,469 | $ | 3,609 | |||||||||||
| Unallocated corporate costs and eliminations | (250) | (301) | (464) | ||||||||||||||
| Stock-based compensation expense | (643) | (430) | (428) | ||||||||||||||
| Amortization of intangible assets | (511) | (267) | (288) | ||||||||||||||
Impairment charges | (1,621) | — | — | ||||||||||||||
| Transformation costs | (2) | (93) | (283) | ||||||||||||||
Gain on sale of a business | 248 | — | — | ||||||||||||||
H3C divestiture related severance costs | (97) | — | — | ||||||||||||||
Cost reduction program | (275) | — | — | ||||||||||||||
Acquisition, disposition and other charges(1) | (641) | (188) | (57) | ||||||||||||||
Interest and other, net(2) | (175) | (117) | (104) | ||||||||||||||
| Gain on sale of equity interest | — | 733 | — | ||||||||||||||
| Earnings from equity interests | 79 | 147 | 245 | ||||||||||||||
Total (loss) earnings before provision for taxes | $ | (285) | $ | 2,953 | $ | 2,230 | |||||||||||
(1) Includes disaster recovery and divestiture related exit costs. For fiscal 2025, Acquisition, disposition and other charges include non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, which was recorded in cost of sales.
(2) Fiscal 2025 includes $135 million loss on investments, net, non-service net periodic credit $100 million and a $52 million litigation settlement received in the third quarter.
Major Customers
The Company had one distributor which represented approximately 10% of the Company's total net revenue in fiscal 2025, primarily within the Server and Networking segments. The Company had two distributors which represented approximately 14% and 11% of the Company's total net revenue in fiscal 2024, primarily within the Networking and Server segments. The Company had one customer, which is a distributor, that represented 11% of the Company's total net revenue in fiscal 2023, primarily within the Networking and Server segments.
Geographic Information
Net revenue by country is based upon the sales location that predominately represents the customer location. For each of the fiscal years of 2025, 2024 and 2023, other than the U.S., no country represented more than 10% of the Company's net revenue.
Net revenue by geographic region was as follows:
| For the fiscal years ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| In millions | |||||||||||||||||
| Americas | |||||||||||||||||
| U.S. | $ | 13,402 | $ | 10,890 | $ | 10,369 | |||||||||||
| Americas excluding U.S. | 2,446 | 2,345 | 2,208 | ||||||||||||||
| Total Americas | 15,848 | 13,235 | 12,577 | ||||||||||||||
| Europe, Middle East and Africa | 11,510 | 10,189 | 10,151 | ||||||||||||||
| Asia Pacific and Japan | 6,938 | 6,703 | 6,407 | ||||||||||||||
| Total consolidated net revenue | $ | 34,296 | $ | 30,127 | $ | 29,135 | |||||||||||
Property, plant and equipment, net by country in which the Company's operates was as follows:
| As of October 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| In millions | |||||||||||
| U.S. | $ | 2,982 | $ | 2,616 | |||||||
| Other countries | 3,020 | 3,048 | |||||||||
| Total property, plant and equipment, net | $ | 6,002 | $ | 5,664 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 18, 2025 | Showing above |
| 2024 | Dec 19, 2024 | |
| 2023 | Dec 22, 2023 | |
| 2022 | Dec 8, 2022 | |
| 2021 | Dec 10, 2021 | |
| 2020 | Dec 10, 2020 | |
| 2019 | Dec 13, 2019 | |
| 2018 | Dec 12, 2018 | |
| 2017 | Dec 15, 2017 | |
| 2016 | Dec 15, 2016 | |
| 2015 | Dec 17, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.