Home / Business and Economy / HPE Delivers Robust Cash Flow Growth
HPE Delivers Robust Cash Flow Growth
6 Dec
Summary
- HPE's Q4 revenue was $9.68 billion, with EPS exceeding expectations at $0.62.
- Gross margin expanded significantly to 36.4%, and free cash flow was robust at $1.92 billion.
- Company reaffirms full-year FY26 guidance with expected EPS rise to $2.25-2.45.
Hewlett Packard Enterprise Company demonstrated strong operational resilience in its fourth quarter, with revenues of $9.68 billion. Despite a slight miss on revenue estimates, the company's earnings per share exceeded expectations at $0.62. Key to this performance was a significant expansion in gross margin to 36.4% and disciplined cost management, leading to improved operating margins across several segments.
The company's financial health was further underscored by robust free cash flow generation, amounting to $1.92 billion, surpassing projections. While the Server and Hybrid Cloud segments experienced declines, Networking and Financial Services showed resilience, contributing positively to the overall results. This balanced performance across its diverse portfolio positions HPE to navigate market fluctuations effectively.
For the upcoming quarter, HPE has projected revenues between $9-$9.4 billion and EPS of $0.57-$0.61. The company also reaffirmed its full-year FY26 guidance, now expecting EPS to range from $2.25 to $2.45. This outlook reflects confidence in HPE's strategic investments and its ability to deliver sustained shareholder value.
