Financial Analysis

Acquisitions and Dispositions Acquisitions and Disposition in fiscal 2025 Acquisition of Juniper Networks On July 2, 2025, the Company completed the Merger. Under the terms of the Merger Agreement, HPE agreed to pay $40.00 per share of Juniper Networks common stock, issued and outstanding as of July 2, 2025, representing cash consideration of approximately $13.4 billion, which was paid through cash on hand, including proceeds and term loan drawdowns from the financings in fiscal 2024, and commercial paper issuances. Juniper Networks is a leader in AI-native networks, and is included in the results of the Networking segment. The Company acquired Juniper Networks to advance HPEs portfolio mix shift toward higher-growth solutions and strengthen its networking business. Purchase Consideration The following table summarizes the purchase consideration for the Merger: In millions Cash paid for outstanding Juniper Networks common stock $ 13,386 Consideration for replacement of Juniper Networks equity awards 239 Total purchase consideration $ 13,625 In connection with the Merger, each of the outstanding and unvested equity awards of Juniper Networks, which was comprised of restricted stock units, performance stock awards and stock options previously issued to Juniper Networks employees, was converted into HPE equity awards utilizing an exchange ratio of approximately 2.1. The exchange ratio was calculated as purchase consideration per share divided by HPEs 10-day average stock price p …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Borrowings Notes Payable and Short-Term Borrowings Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows: As of October 31, 2025 2024 Amount Outstanding Weighted-Average Interest Rate Amount Outstanding Weighted-Average Interest Rate Dollars in millions Current portion of long-term debt (1) $ 3,796 4.4 % $ 3,969 7.6 % Commercial paper 681 2.3 % 649 3.7 % Notes payable to banks, lines of credit and other 132 3.1 % 124 5.0 % Total notes payable and short-term borrowings $ 4,609 $ 4,742 (1) As of October 31, 2025 and 2024, the Current portion of long-term debt, net of discount and issuance costs, included $1.2 billion and $1.4 billion, respectively, both associated with the asset-backed debt securities issued by the Company. Long-Term Debt As of October 31, Issuance Date Maturity Date 2025 2024 In millions Unsecured Senior Notes 4.40% notes issued at discount to par at a price of 99.905% September 2025 October 2030 $ 850 $ 4.15% notes issued at discount to par at a price of 99.964% September 2025 September 2028 850 4.05% notes issued at discount to par at a price of 99.949% September 2025 September 2027 900 Floating rate notes issued at par September 2025 September 2028 300 4.45% notes issued at discount to par at a price of 99.996% September 2024 September 2026 1,250 1,250 4.40% notes issued at discount to par at a price of 99.953% September 2024 September 2027 1,250 1,250 4.55% notes issued at discount to par at a price of 99 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation On April 14, 2021 (the Approval Date), shareholders of the Company approved the Hewlett Packard Enterprise Company 2021 Stock Incentive Plan (the 2021 Plan) that replaced the Companys 2015 Stock Incentive Plan (the 2015 Plan). The 2021 Plan provides for the grant of various types of awards including restricted stock awards, stock options and performance-based awards. These awards generally vest over 3 years from the grant date. The maximum number of shares as of the Approval Date that may be delivered to the participants under the 2021 Plan shall not exceed 7 million shares, plus 35.8 million shares that were available for grant under the 2015 Plan and any awards granted under the 2015 Plan prior to the Approval Date that were cash-settled, forfeited, terminated, or lapsed after the Approval Date. On April 5, 2023, April 10, 2024 and April 2, 2025, shareholders of the Company approved amendments to the 2021 Plan thereby increasing the overall number of shares available for issuance by 18 million shares, 22 million shares, and 22 million shares, respectively. As of October 31, 2025, the Company had remaining authorization of 49.7 million shares under the 2021 Plan. Stock-Based Compensation Expense Stock-based compensation expense and the resulting tax benefits were as follows: For the fiscal years ended October 31, 2025 2024 2023 In millions Stock-based compensation expense $ 643 $ 430 $ 428 Income tax benefit (151) (96) (92) Stock-based compensation e …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3Unobservable inputs for assets or liabilities. The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. For the fiscal years ended October 31, 2025 and 2024, there were no transfers between levels within the fair value hierarchy. The following table presents the Company's assets and liabilities that are measur …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill Goodwill and related changes in the carrying amount by reportable segment were as follows: Server Hybrid Cloud Networking Financial Services Corporate Investments & Other Total Balance at October 31, 2024 $ 10,194 $ 4,839 $ 2,909 $ 144 $ $ 18,086 Goodwill from acquisitions 7,272 7,272 Impairment of goodwill (1,578) (1,578) Changes due to foreign currency (10) (10) Balance at October 31, 2025 (1) $ 10,194 $ 3,261 $ 10,171 $ 144 $ $ 23,770 (1) Goodwill is net of accumulated impairment losses of $3.3 billion. Accumulated impairment increased by approximately $1.5 billion from October 31, 2024 due to $1.6 billion of Hybrid Cloud reporting unit impairments, partially offset by a decrease due to the disposition of CTG (the Communications and Media Solutions reporting unit). 2025 Interim and Annual Goodwill Impairment Reviews During fiscal 2025, the Company performed the following goodwill impairment tests, two of which resulted in goodwill impairment: Impairment test performed as of November 1, 2024 based on organizational changes impacting the composition of reporting units as of that date did not result in an impairment; Interim test performed as of April 30, 2025 due to indicators of potential impairment, resulted in the Hybrid Cloud reporting unit being impaired; and Annual impairment test, which was performed as of August 1, 2025, resulted in the Hybrid Cloud reporting unit being impaired. April 30, 2025 Interim Impairment Test Durin …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Taxes on Earnings Benefit (provision) for Taxes The domestic and foreign components of Net (loss) earnings from operations before Benefit (provision) for taxes were as follows: For the fiscal years ended October 31, 2025 2024 2023 In millions U.S. $ (3,561) $ 765 $ (1,105) Non-U.S. 3,276 2,188 3,335 $ (285) $ 2,953 $ 2,230 The Benefit (provision) for taxes on (Loss) earnings from operations were as follows: For the fiscal years ended October 31, 2025 2024 2023 In millions U.S. federal taxes: Current $ 154 $ (8) $ Deferred 345 120 88 Non-U.S. taxes: Current (349) (415) (256) Deferred 66 (44) (23) State taxes: Current (28) (15) (16) Deferred 154 (12) 2 $ 342 $ (374) $ (205) The differences between the U.S. federal statutory income tax rate and the Company's effective tax rate were as follows: For the fiscal years ended October 31, 2025 (1) 2024 2023 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 24.4 % 0.4 % 0.9 % Lower rates in other jurisdictions, net 66.5 % (1.3) % (4.4) % Valuation allowance (14.7) % (1.3) % (2.8) % U.S. permanent differences (23.5) % (4.0) % (1.5) % U.S. R&D credit 22.7 % (1.8) % (2.1) % Uncertain tax positions 23.6 % (0.3) % (2.0) % Goodwill impairment (115.7) % % % Tax impact of integration transactions 114.6 % % % Other, net 1.1 % % 0.1 % 120.0 % 12.7 % 9.2 % (1) Positive percentages represent tax benefits and negative percentages represent tax expense as the Company recorded income tax be …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Litigation, Contingencies, and Commitments Hewlett Packard Enterprise is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits, and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement (the Separation and Distribution Agreement) entered into in connection with Hewlett Packard Enterprises spin-off from HP Inc. (formerly known as Hewlett-Packard Company) (the Separation), Hewlett Packard Enterprise and HP Inc. agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. Hewlett Packard Enterprise records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Accounting for Leases as a Lessee Components of lease cost included in the Consolidated Statement of Earnings were as follows: For the fiscal years ended October 31, 2025 2024 2023 In millions Operating lease cost $ 350 $ 259 $ 200 Finance lease cost 3 3 4 Sublease rental income (40) (26) (23) Total lease cost $ 313 $ 236 $ 181 The ROU assets and lease liabilities for operating and finance leases included in the Consolidated Balance Sheets were as follows: As of October 31, Balance Sheet Classification 2025 2024 In millions Operating Leases ROU Assets Long-term financing receivables and other assets $ 1,535 $ 1,408 Lease Liabilities: Operating lease liabilities current Other accrued liabilities 316 261 Operating lease liabilities non-current Other non-current liabilities 1,396 1,309 Total operating lease liabilities $ 1,712 $ 1,570 Finance Leases Finance lease ROU Assets: Property, plant and equipment, net Gross finance lease ROU assets $ 26 $ 26 Less: Accumulated depreciation (18) (16) Net finance lease ROU assets $ 8 $ 10 Lease Liabilities: Finance lease liabilities current Notes payable and short-term borrowings $ 6 $ 6 Finance lease liabilities non-current Long-term debt 25 32 Total finance lease liabilities $ 31 $ 38 Total ROU assets $ 1,543 $ 1,418 Total lease liabilities $ 1,743 $ 1,608 The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows: As of October 31, 2025 2024 Operating Leases Finan …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Enacted Accounting Pronouncements In December 2025, the Financial Accounting Standards Board (FASB) issued guidance to establish the accounting for a government grant received by a business entity. The amendment is effective for annual and interim periods beginning after December 15, 2028, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. In September 2025, the FASB issued guidance to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages and clarifies the criteria to begin capitalizing cost. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. In July 2025, the FASB issued guidance to provide a practical expedient for measuring expected credit losses on current trade receivables and contract assets by assuming that current conditions remain unchanged over the life of the asset. The amendment is effective for annual and interim periods beginning after December 15, 2025, with early adoption permitted. The Company elected to early adopt the amendments in the fourth quarter of fiscal 2025, as permitted by the standard. The adoption of the amendments did not have a material impact …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement and Post-Retirement Benefit Plans Defined Benefit Plans The Company sponsors defined benefit pension plans worldwide, the most significant of which are the United Kingdom (UK) and Germany plans. The pension plan in the UK is closed to new entrants, and the plan was frozen on October 31, 2024. This plan provides benefits based on final pay and years of service and generally requires contributions from members. The German pension program that is open to new hires consists of cash balance plans that provide employer credits as a percentage of pay, certain employee pay deferrals and employer matching contributions. There also are previously closed German pension programs that include cash balance and final average pay plans. These previously closed pension programs comprise the majority of the pension obligations in Germany. As part of the Juniper Networks acquisition, HPE added mostly unfunded defined benefit plans contributing to a small decrease to HPEs asset position. Post-Retirement Benefit Plans The Company sponsors retiree health and welfare benefit plans, the most significant of which is in the U.S. Generally, employees hired before August 2008 are eligible for employer credits under the Hewlett Packard Enterprise Retirement Medical Savings Account Plan (RMSA) upon attaining age 45. Employer credits to the RMSA available after September 2008 are provided in the form of matching credits on employee contributions made to a voluntary employee beneficiary associati …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Transformation Programs Transformation programs are comprised of the Cost Optimization and Prioritization Plan and the HPE Next Plan. The primary elements of both plans were completed by the end of fiscal 2024. For each of fiscal 2025, 2024, and 2023, the transformation charges relating to both plans were $2 million, $96 million, and $286 million, respectively. These costs primarily related to labor restructuring, non-labor restructuring, IT investments, design and execution charges, and real estate initiatives. Restructuring activities related to the Company's employees and infrastructure under the Cost Optimization and Prioritization Plan and HPE Next Plan are presented in the table below: Cost Optimization and Prioritization Plan HPE Next Plan Employee Severance Infrastructure and other Infrastructure and other In millions Balance at beginning of year $ 67 $ 94 $ 23 Charges (10) (3) Cash payments (32) (21) (5) Non-cash items 2 (2) (1) Balance at end of year $ 37 $ 61 $ 14 Total costs incurred to date as of October 31, 2025 $ 823 $ 553 $ 268 Total expected costs to be incurred as of October 31, 2025 $ 823 $ 553 $ 268 The current restructuring liability related to the transformation programs, reported in Other accrued liabilities in the Consolidated Balance Sheets as of October 31, 2025 and 2024, was $42 million and $78 million, respectively. The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Conso …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders' Equity The components of accumulated other comprehensive loss, net of taxes as of October 31, 2025 and changes during fiscal 2025 were as follows: Net unrealized gains (losses) on available-for-sale securities Net unrealized (losses) gains on cash flow hedges Unrealized components of defined benefit plans Cumulative translation adjustment Accumulated other comprehensive loss In millions Balance at beginning of period $ 8 $ (16) $ (2,342) $ (627) $ (2,977) Other comprehensive (loss) income before reclassifications (3) (168) 177 (44) (38) Reclassifications of losses into earnings 1 156 134 291 Tax benefit (provision) 2 (27) 1 (24) Balance at end of period $ 6 $ (26) $ (2,058) $ (670) $ (2,748) The components of accumulated other comprehensive loss, net of taxes as of October 31, 2024 and changes during fiscal 2024 were as follows: Net unrealized gains on available-for-sale securities Net unrealized gains (losses) on cash flow hedges Unrealized components of defined benefit plans Cumulative translation adjustment Accumulated other comprehensive loss In millions Balance at beginning of period $ $ 61 $ (2,507) $ (638) $ (3,084) Other comprehensive income (loss) before reclassifications 8 (115) 34 (23) (96) Reclassifications of losses into earnings 16 138 32 186 Tax benefit (provision) 22 (7) 2 17 Balance at end of period $ 8 $ (16) $ (2,342) $ (627) $ (2,977) The components of accumulated other comprehensive loss, net of taxes as of October 31, 2023 and changes durin …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On December [ ], 2025, HPE announced plans to divest the Companys Telcos business to HCLTech. Subsequent to year end, Telco is included in our Corporate Investments and Other segment. The disposition is subject to regulatory approvals and satisfaction of other customary closing conditions. Executive Overview: Pending Divestiture of Telco On December [ ], 2025, we announced plans to divest our Telco business to HCLTech. Subsequent to year end, Telco is included in our Corporate Investments and Other segment. The disposition is subject to regulatory approvals and satisfaction of other customary closing conditions. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Acquisitions and Dispositions Pending Telco Solutions Divestiture On December 18, 2025, the Company announced an agreement to divest its Telco Solutions business to HCLTech. Divestiture of H3C Shares On November 17, 2025, HPEs subsidiary, H3C Holdings Limited (H3C Holdings), entered into (i) share purchase agreements with five counterparties, including Unisplendour International Technology Limited (UNIS), whereby such counterparties, in the aggregate, agreed to purchase 10% of the total issued share capital of H3C Technologies Co., Limited (H3C) for cash consideration of approximately $714 million and (ii) a side letter with UNIS, amending the Agreement on Subsequent Arrangements that was previously entered into on May 24, 2024, whereby, among other things, H3C Holdings and UNIS shall retain their put option and call option, respectively, relating to the remaining issued share capital of H3C held by H3C Holdings and have the right to exercise their respective option rights in respect of such shares up to three times, subject to the timing and terms as set forth therein. The agreement referenced in clause (ii) above revises the arrangements governing the sale of all of the remaining issued share capital of H3C held by us through H3C Holdings. On November 28, 2025, H3C Holdings entered into three additional share purchase agreements, including one with UNIS, whereby such counterparties, in the aggregate, agreed to purchase the remaining 9% of the total issued share capital of H …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Borrowings Notes Payable, Short-Term Borrowings and Long-Term Debt Notes payable, short-term borrowings, including the current portion of long-term debt, and long-term debt were as follows: As of April 30, 2026 October 31, 2025 In millions Current portion of long-term debt (1) $ 2,249 $ 3,796 Commercial paper 637 681 Notes payable to banks, lines of credit and other 123 132 Total notes payable and short-term borrowings 3,009 4,609 Long-term debt 18,237 17,756 Total $ 21,246 $ 22,365 (1) As of April 30, 2026 and October 31, 2025, the Current portion of long-term debt, net of discount and issuance costs, included $0.9 billion and $1.2 billion respectively, both associated with the asset-backed debt securities issued by the Company. Unsecured Senior Notes In March 2026, the Company issued (i) $300 million of floating rate notes due March 23, 2028, with interest payable quarterly beginning June 23, 2026; (ii) $500 million of 4.5% Senior Notes due March 23, 2028, with interest payable semi-annually beginning September 23, 2026; (iii) $600 million of 4.6% Senior Notes due March 23, 2029, with interest payable semi-annually beginning September 23, 2026; and (iv) $600 million of 5.25% Senior Notes due April 1, 2033, with interest payable semi-annually beginning October 1, 2026. In April 2026, the Company repaid $750 million of 1.75% Senior Notes on their original maturity date. Financing arrangements The Company maintains two commercial paper programs (the Parent Programs) and third …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Net revenue disaggregated by segment and major product categories was as follows: For the three months ended April 30, For the six months ended April 30, 2026 2025 2026 2025 In millions Networking: Campus & Branch $ 1,322 $ 880 $ 2,549 $ 1,744 Data Center Networking 320 96 764 188 Security 273 107 528 226 Routing 775 1 1,555 2 Total 2,690 1,084 5,396 2,160 Cloud & AI: Server 5,454 4,109 9,686 8,457 Storage (1) 1,175 1,148 2,236 2,203 Financial Services 904 856 1,780 1,729 Other (2) 174 158 339 393 Total 7,707 6,271 14,041 12,782 Corporate Investments and Other 281 272 542 539 Total consolidated net revenue $ 10,678 $ 7,627 $ 19,979 $ 15,481 (1) Storage includes revenue from GreenLake Flex and Software. (2) Other category includes intersegment revenue eliminations and third-party storage solutions.

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Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis: As of April 30, 2026 As of October 31, 2025 Fair Value Measured Using Fair Value Measured Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Remaining Inputs (Level 2) Significant Other Unobservable Remaining Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Remaining Inputs (Level 2) Significant Other Unobservable Remaining Inputs (Level 3) Total In millions Assets Cash Equivalents: Time deposits $ $ 846 $ $ 846 $ $ 997 $ $ 997 Money market funds 2,603 2,603 2,741 2,741 Total cash equivalents 2,603 846 3,449 2,741 997 3,738 Available-for-sale Debt Investments: Foreign bonds 111 111 111 111 Other debt securities (1) 44 44 46 46 Total available-for-sale debt investments 111 4 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill Goodwill is tested for impairment at the reporting unit level. As of November 1, 2025, the Company reassessed its reporting units and determined that the former Server and Hybrid Cloud reporting units met the criteria to qualify as a single Cloud & AI (excluding Financial Services) reporting unit, and Intelligent Edge and Juniper Networks met the criteria to qualify as a single Networking reporting unit. The Cloud & AI segment contains the Cloud & AI (excluding Financial Services) and Financial Services reporting units. The Corporate Investments and Other segment contains the A & PS, Telco Solutions and Instant On reporting units. The following table represents the carrying value of goodwill, by segment as of April 30, 2026 and October 31, 2025. Networking Cloud & AI Corporate Investments and Other Total In millions Balance as of October 31, 2025 (1) $ 10,121 $ 13,599 $ 50 $ 23,770 Goodwill reclassified as held for sale (2) (46) (46) Purchase price and other currency adjustments 104 104 Balance as of April 30, 2026 (1) $ 10,225 $ 13,599 $ 4 $ 23,828 (1) There has been no change to the accumulated impairment loss from the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2025. (2) Reclassified to assets held for sale and is reported in Other current assets in the Condensed Consolidated Balance Sheets. Goodwill is tested annually for impairment, as of the first day of the fourth quarter, at the reporting unit level. Addition …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Taxes on Earnings Provision for Taxes For the three months ended April 30, 2026 and 2025, the Company recorded income tax expense of $75 million and $5 million, respectively, which reflects an effective tax rate of 10.7% and (0.5)%, respectively. For the six months ended April 30, 2026 and 2025, the Company recorded income tax expense of $56 million and $111 million, respectively, which reflects an effective tax rate of 4.9% and (35.6)%, respectively. The effective tax rate generally differs from the U.S. federal statutory rate of 21% due to favorable tax rates associated with certain earnings from the Companys operations in lower tax jurisdictions throughout the world but is also impacted by discrete tax adjustments during each fiscal period. For the three and six months ended April 30, 2025, the effective tax rate also included the effects of the non-deductible goodwill impairment. For the three and six months ended April 30, 2026, the Company recorded $42 million of net income tax charges and $43 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended April 30, 2026, this amount primarily included $29 million of net income tax charges related to the increase in uncertain tax positions with respect to federal and state impacts of the U.S. income tax audit for fiscal 2020 to 2022. For the six months ended April 30, 2026, this amount primarily included $66 million of net income tax benefits related to the c …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Litigation, Contingencies, and Commitments Litigation HPE is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits, and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement (the Separation and Distribution Agreement) entered into in connection with HPEs spin-off from HP Inc. (formerly known as Hewlett-Packard Company) (the Separation), HPE and HP Inc. agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. HPE records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Recently Enacted Accounting Pronouncements In May 2026, the Financial Accounting Standards Board (FASB) issued guidance to provide recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. In December 2025, the FASB issued guidance to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendment is effective for interim periods with annual reporting periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. In December 2025, the FASB issued guidance to establish the accounting for a government grant received by a business entity. The amendment is effective for annual and interim periods beginning after December 15, 2028, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. In September 2025, the FASB issued guidance to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing a …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement Benefit Plans The Company's net pension benefit credit for defined benefit plans recognized in the Condensed Consolidated Statements of Earnings was as follows: For the three months ended April 30, For the six months ended April 30, 2026 2025 2026 2025 In millions Service cost $ 15 $ 12 $ 30 $ 24 Interest cost (1) 95 89 188 178 Expected return on plan assets (1) (159) (146) (315) (295) Amortization and Deferrals (1) : Actuarial loss 24 31 48 62 Prior service cost (benefit) 2 (1) 2 (2) Net periodic benefit credit (23) (15) (47) (33) Settlement loss and special termination benefits (1) 2 3 2 3 Total net benefit credit $ (21) $ (12) $ (45) $ (30) (1) These non-service components were included in Interest and other, net in the Condensed Consolidated Statements of Earnings.

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Segment Information HPE's operations are organized into three segments for financial reporting purposes: Cloud & AI, Networking, and Corporate Investments and Other. HPEs 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 three segments are based on this structure and information reviewed by HPE's management to evaluate segment results. A summary of the types of products and services within each segment is as follows: 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. HPEs platforms are purpose-built using AI to deliver secure and sustainable user experiences from the edge to the data center and cloud. Networkings 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 p …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders' Equity The components of accumulated other comprehensive loss, net of taxes as of April 30, 2026, and changes for the six months ended April 30, 2026 were as follows: Net unrealized gains (losses) on available-for-sale securities Net unrealized (losses) gains on cash flow hedges Unrealized components of defined benefit plans Cumulative translation adjustment Accumulated other comprehensive loss In millions Balance at beginning of period $ 6 $ (26) $ (2,058) $ (670) $ (2,748) Other comprehensive loss before reclassifications (2) (65) (1) (23) (91) Reclassifications of losses into earnings 85 51 136 Tax provision (1) (11) (2) (14) Balance at end of period $ 4 $ (7) $ (2,019) $ (695) $ (2,717) The components of accumulated other comprehensive loss, net of taxes as of April 30, 2025, and changes for the six months ended April 30, 2025 were as follows: Net unrealized gains (losses) on available-for-sale securities Net unrealized (losses) gains on cash flow hedges Unrealized components of defined benefit plans Cumulative translation adjustment Accumulated other comprehensive loss In millions Balance at beginning of period $ 8 $ (16) $ (2,342) $ (627) $ (2,977) Other comprehensive loss before reclassifications (6) (195) (20) (12) (233) Reclassifications of losses into earnings 31 62 93 Tax benefit (provision) 30 (6) (1) 23 Balance at end of period $ 2 $ (150) $ (2,306) $ (640) $ (3,094) Share Repurchase Program For the six months ended April 30, 2026, the Company repur …

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Subsequent Events On February 20, 2026, the United States Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). The ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory, and administrative developments. Following the Supreme Courts decision, the U.S. presidential administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariffs. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on the Companys business. The Company continues to monitor and evaluate these developments and assess their potential impact on its business, financial condition, and results of operations. …

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