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華爾街日報5 Revealing Analyst Questions From Hewlett Packard Enterprise’s Q3 Earnings Call
Hewlett Packard Enterprise’s third quarter was met with a negative market reaction as revenue missed Wall Street’s expectations despite strong year-over-year growth. Management attributed the mixed performance to the delayed timing of AI server shipments and a decline in U.S. federal spending, while emphasizing robust order momentum in networking and storage. CEO Antonio Neri described the quarter as “transformative,” highlighting the completed Juniper Networks acquisition and the integration progress across core business units. Management acknowledged that disciplined pricing actions and continued investment in higher-margin segments shaped the quarter’s results.
Is now the time to buy HPE? Find out in our full research report (it’s free for active Edge members).
Hewlett Packard Enterprise (HPE) Q3 CY2025 Highlights:
- Revenue: $9.68 billion vs analyst estimates of $9.88 billion (14.4% year-on-year growth, 2% miss)
- Adjusted EPS: $0.62 vs analyst estimates of $0.58 (6.5% beat)
- Adjusted EBITDA: $2.06 billion vs analyst estimates of $1.73 billion (21.3% margin, 19% beat)
- Revenue Guidance for Q4 CY2025 is $9.2 billion at the midpoint, below analyst estimates of $9.83 billion
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.35 at the midpoint, missing analyst estimates by 0.8%
- Operating Margin: -0.1%, down from 8.2% in the same quarter last year
- Annual Recurring Revenue: $3.09 billion vs analyst estimates of $2.71 billion (59.7% year-on-year growth, 14.1% beat)
- Market Capitalization: $33.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hewlett Packard Enterprise’s Q3 Earnings Call
- Amit Daryanani (Evercore): Asked about how memory cost inflation and the networking mix are influencing profit guidance. CEO Antonio Neri and CFO Marie Myers explained that price increases and networking strength are the main drivers of raised EPS and cash flow guidance.
- Samik Chatterjee (JPMorgan): Questioned whether the surge in late-quarter orders was due to expected price hikes. Neri responded that order acceleration is typical near year-end but acknowledged that commodity cost discussions influenced some purchasing decisions.
- Timothy Long (Barclays): Inquired about GreenLake ARR growth and the impact of Juniper’s software business. Neri clarified that Juniper’s software subscriptions significantly increased ARR and that cross-platform innovation will further expand recurring revenue.
- Erik Woodring (Morgan Stanley): Sought details on the magnitude of server price increases and potential demand impacts. Neri confirmed substantial price adjustments and described how new server generations offer cost and efficiency benefits that may help offset customer resistance.
- Wamsi Mohan (Bank of America): Asked for clarity on revenue seasonality and the timing of AI server shipments. Myers and Neri explained that delayed deals should support normal seasonal trends and that most AI revenue will be recognized later in the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) progress on the full integration of Juniper Networks and resulting synergy realization, (2) the pace and profitability of AI server and networking backlog conversion, and (3) the company’s ability to pass through memory component price inflation without materially impacting demand. Success in expanding GreenLake’s software subscription base and continued execution of cost-saving initiatives will also be pivotal for tracking Hewlett Packard Enterprise’s strategic progress.
Hewlett Packard Enterprise currently trades at $25.18, up from $23.05 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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