XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.25.1

Segment Information | 6 Months Ended
--- | ---
Apr. 30, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information Hewlett Packard Enterprise's operations are organized into five segments for financial reporting purposes: Server, Hybrid Cloud, Intelligent Edge, 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”), who is the 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. Server 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 software-as-a-service (“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 as-a-service (“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. Hybrid Cloud segment also includes data lifecycle management and protection through its suite of offerings, including Zerto Disaster Recovery. Intelligent Edge offers wired and wireless local area networks, campus, branch, and data center switching, software-defined wide-area-networks, private and public cellular network software, network security, and associated services that enable secure connectivity for businesses of any size. The HPE Networking product portfolio includes hardware products such as Wi-Fi access points, switches, and gateways. The HPE Networking software and services portfolio includes cloud-based management, network management, network access control, software-defined wide-area networking, network security, analytics and assurance, location services software, private and public cellular core software, and professional and support services, as well as aaS and consumption models through the HPE GreenLake cloud for the Intelligent Edge portfolio of products. Intelligent Edge offerings are consolidated in the edge service platform, which takes a cloud-native approach that provides customers with a unified framework to meet their connectivity, security, and financial needs across campus, branch, data center, and remote worker environments. 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. FS 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 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, transformation (credit) costs, H3C divestiture related severance costs, severance costs associated with the cost reduction program, acquisition, disposition and other charges and impairment of goodwill. 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 Operating Results Segment net revenue and operating results were as follows:
| Server |  |  |  | Hybrid Cloud |  | Intelligent Edge |  | Financial Services |  | Corporate Investments and Other |  | Total
| In millions
Three months ended April 30, 2025: |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 4,028 |  |  |  |  | $ | 1,393 |  |  | $ | 1,156 |  |  | $ | 857 |  |  | $ | 193 |  |  | $ | 7,627 |
Intersegment net revenue | 30 |  |  |  |  | 60 |  |  | 6 |  |  | (1) |  |  | 1 |  |  | 96 |
Total segment net revenue | $ | 4,058 |  |  |  |  | $ | 1,453 |  |  | $ | 1,162 |  |  | $ | 856 |  |  | $ | 194 |  |  | $ | 7,723 |
Segment earnings (loss) from operations | $ | 241 |  |  |  |  | $ | 78 |  |  | $ | 274 |  |  | $ | 89 |  |  | $ | (10) |  |  | $ | 672 |
Three months ended April 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue(1) | $ | 3,786 |  |  |  |  | $ | 1,218 |  |  | $ | 1,081 |  |  | $ | 867 |  |  | $ | 252 |  |  | $ | 7,204 |
Intersegment net revenue | 55 |  |  |  |  | 64 |  |  | 5 |  |  | — |  |  | — |  |  | 124 |
Total segment net revenue(1) | $ | 3,841 |  |  |  |  | $ | 1,282 |  |  | $ | 1,086 |  |  | $ | 867 |  |  | $ | 252 |  |  | $ | 7,328 |
Segment earnings (loss) from operations(1) | $ | 423 |  |  |  |  | $ | 13 |  |  | $ | 237 |  |  | $ | 81 |  |  | $ | (9) |  |  | $ | 745 |
Six months ended April 30, 2025: |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue | $ | 8,299 |  |  |  |  | $ | 2,760 |  |  | $ | 2,303 |  |  | $ | 1,729 |  |  | $ | 390 |  |  | $ | 15,481 |
Intersegment net revenue | 49 |  |  |  |  | 98 |  |  | 5 |  |  | — |  |  | 1 |  |  | 153 |
Total segment net revenue | $ | 8,348 |  |  |  |  | $ | 2,858 |  |  | $ | 2,308 |  |  | $ | 1,729 |  |  | $ | 391 |  |  | $ | 15,634 |
Segment earnings (loss) from operations | $ | 589 |  |  |  |  | $ | 177 |  |  | $ | 588 |  |  | $ | 171 |  |  | $ | (12) |  |  | $ | 1,513 |
Six months ended April 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue(1) | $ | 7,007 |  |  |  |  | $ | 2,449 |  |  | $ | 2,274 |  |  | $ | 1,739 |  |  | $ | 490 |  |  | $ | 13,959 |
Intersegment net revenue | 161 |  |  |  |  | 106 |  |  | 13 |  |  | 1 |  |  | — |  |  | 281 |
Total segment net revenue(1) | $ | 7,168 |  |  |  |  | $ | 2,555 |  |  | $ | 2,287 |  |  | $ | 1,740 |  |  | $ | 490 |  |  | $ | 14,240 |
Segment earnings (loss) from operations(1) | $ | 802 |  |  |  |  | $ | 64 |  |  | $ | 590 |  |  | $ | 155 |  |  | $ | (19) |  |  | $ | 1,592 |
(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 reportable segment, to the Hybrid Cloud reportable segment. The reconciliation of segment operating results to Condensed Consolidated Statements of Earnings was as follows:
| For the three months ended April 30, |  | For the six months ended April 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| In millions
Net Revenue: |  |  |  |  |  |  |
Total segments | $ | 7,723 |  |  | $ | 7,328 |  |  | $ | 15,634 |  |  | $ | 14,240 |
Eliminations of intersegment net revenue | (96) |  |  | (124) |  |  | (153) |  |  | (281) |
Total consolidated net revenue | $ | 7,627 |  |  | $ | 7,204 |  |  | $ | 15,481 |  |  | $ | 13,959 |
(Loss) Earnings Before Taxes: |  |  |  |  |  |  |
Total segment earnings from operations | $ | 672 |  |  | $ | 745 |  |  | $ | 1,513 |  |  | $ | 1,592 |
Unallocated corporate costs and eliminations | (59) |  |  | (61) |  |  | (120) |  |  | (133) |
Stock-based compensation expense | (116) |  |  | (120) |  |  | (270) |  |  | (261) |
Amortization of intangible assets | (37) |  |  | (67) |  |  | (75) |  |  | (138) |
Transformation credit (costs) | 13 |  |  | (33) |  |  | (2) |  |  | (53) |
Gain on sale of a business | — |  |  | — |  |  | 244 |  |  | — |
H3C divestiture related severance costs | (20) |  |  | — |  |  | (97) |  |  | — |
Cost reduction program | (146) |  |  | — |  |  | (146) |  |  | — |
Acquisition, disposition and other charges | (55) |  |  | (39) |  |  | (118) |  |  | (57) |
Impairment of goodwill | (1,361) |  |  | — |  |  | (1,361) |  |  | — |
Interest and other, net | 39 |  |  | (22) |  |  | 78 |  |  | (110) |
Earnings from equity interests | 25 |  |  | 42 |  |  | 42 |  |  | 88 |
Total (loss) earnings before provision for taxes | $ | (1,045) |  |  | $ | 445 |  |  | $ | (312) |  |  | $ | 928 |
Geographic Information Net revenue by geographic region was as follows:
| For the three months ended April 30, |  | For the six months ended April 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| In millions
Americas: |  |  |  |  |  |  |
United States | $ | 2,739 |  |  | $ | 2,584 |  |  | $ | 5,257 |  |  | $ | 4,878 |
Americas excluding United States | 562 |  |  | 560 |  |  | 1,436 |  |  | 1,067 |
Total Americas | 3,301 |  |  | 3,144 |  |  | 6,693 |  |  | 5,945 |
Europe, Middle East and Africa | 2,739 |  |  | 2,454 |  |  | 5,419 |  |  | 4,888 |
Asia Pacific and Japan | 1,587 |  |  | 1,606 |  |  | 3,369 |  |  | 3,126 |
Total consolidated net revenue | $ | 7,627 |  |  | $ | 7,204 |  |  | $ | 15,481 |  |  | $ | 13,959 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration