What changed in this filing

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Item 1. Financial Statements

2025-09-04 compared with 2025-06-04 · 468 added, 299 removed, 868 unchanged (47% of the section changed)

Financial Statements.

Condensed Consolidated Statements of Earnings for the three and six months ended April 30 , 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended April 30 , 2025 and 2024 (Unaudited)

Condensed Consolidated Balance Sheets as of April 30 , 2025 (Unaudited) and October 31, 2024 (Audited)

Condensed Consolidated Statements of Cash Flows for the six months ended April 30 , 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended April 30 , 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Earnings for the three and nine months ended July 31, 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended July 31, 2025 and 2024 (Unaudited)

Condensed Consolidated Balance Sheets as of July 31, 2025 (Unaudited) and October 31, 2024 (Audited)

Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended July 31, 2025 and 2024 (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

9 unchanged sentences

Stockholders' Equity

Net (Loss) Earnings Per Share

Net Earnings (Loss) Per Share

Litigation, Contingencies, and Commitments

Subsequent Events

Table of Content

1 unchanged sentence

Condensed Consolidated Statements of Earnings

For the three months ended April 30, For the six months ended April 30,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

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Impairment of goodwill — — 1,361 —

Transformation (credit) costs ( 13 ) 33 2 53

Transformation costs — 14 2 67

Acquisition, disposition and other charges 181 42 302 131

Total costs and expenses 8,889 7,163 25,046 20,172

(Loss) earnings from operations ( 1,109 ) 425 ( 676 ) 950

Earnings (loss) from operations 247 547 ( 429 ) 1,497

Interest and other, net 8 ( 12 ) 86 ( 122 )

1 unchanged sentence

Earnings from equity interests 32 73 74 161

(Loss) earnings before provision for taxes ( 1,045 ) 445 ( 312 ) 928

Provision for taxes ( 5 ) ( 131 ) ( 111 ) ( 227 )

Net (loss) earnings attributable to HPE $ ( 1,050 ) $ 314 ( 423 ) 701

Earnings (loss) before provision for taxes 288 608 ( 24 ) 1,536

Benefit (provision) for taxes 17 ( 96 ) ( 94 ) ( 323 )

Net earnings (loss) attributable to HPE 305 512 ( 118 ) 1,213

Preferred stock dividends ( 29 ) — ( 87 ) —

Net (loss) earnings attributable to common stockholders $ ( 1,079 ) $ 314 $ ( 481 ) $ 701

Net (Loss) Earnings Per Share Attributable to Common Stockholders:

Net earnings (loss) attributable to common stockholders $ 276 $ 512 $ ( 205 ) $ 1,213

Net Earnings (Loss) Per Share Attributable to Common Stockholders:

Basic $ 0.21 $ 0.39 $ ( 0.16 ) $ 0.93

Diluted $ 0.21 $ 0.38 $ ( 0.16 ) $ 0.92

Weighted-average Shares Used to Compute Net (Loss) Earnings Per Share:

Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share:

Basic 1,325 1,312 1,321 1,308

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Condensed Consolidated Statements of Comprehensive Income

For the three months ended April 30, For the six months ended April 30,

2025 2024 2025 2024

Net (loss) earnings attributable to HPE $ ( 1,050 ) $ 314 $ ( 423 ) $ 701

Other Comprehensive (Loss) Income Before Taxes

Change in Net Unrealized (Losses) Gains on Available-for-sale Securities:

Net unrealized (losses) gains arising during the period ( 5 ) ( 3 ) ( 6 ) 3

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

Change in Net Unrealized (Losses) Gains on Cash Flow Hedges:

Net unrealized (losses) gains arising during the period ( 465 ) 169 ( 195 ) ( 35 )

Net losses (gains) reclassified into earnings 244 ( 115 ) 31 ( 1 )

Net earnings (loss) attributable to HPE $ 305 $ 512 $ ( 118 ) $ 1,213

Other Comprehensive Income (Loss) Before Taxes

Change in Net Unrealized Gains (Losses) on Available-for-sale Securities:

Net unrealized gains (losses) arising during the period 1 3 ( 5 ) 6

Change in Net Unrealized Components of Cash Flow Hedges:

Net unrealized gains (losses) arising during the period 6 ( 34 ) ( 189 ) ( 69 )

Net losses reclassified into earnings 56 3 87 2

62 ( 31 ) ( 102 ) ( 67 )

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( 16 ) ( 9 ) ( 28 ) ( 17 )

Other Comprehensive (Loss) Income Before Taxes ( 204 ) 64 ( 140 ) 27

Benefit (Provision) for Taxes 37 ( 14 ) 23 ( 1 )

Other Comprehensive (Loss) Income, Net of Taxes ( 167 ) 50 ( 117 ) 26

Comprehensive (Loss) Income $ ( 1,217 ) $ 364 $ ( 540 ) $ 727

Other Comprehensive Income (Loss) Before Taxes 93 ( 4 ) ( 47 ) 23

(Provision) Benefit for Taxes ( 23 ) 5 — 4

Other Comprehensive Income (Loss), Net of Taxes 70 1 ( 47 ) 27

Comprehensive Income (Loss) $ 375 $ 513 $ ( 165 ) $ 1,240

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Condensed Consolidated Balance Sheets

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

(Unaudited) (Audited)

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Deferred revenue 5,311 3,904

Accrued restructuring 39 61

Liabilities held for sale — 32

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HPE Stockholders' Equity:

7.625 % Series C mandatory convertible preferred stock, $ 0.01 par value ( 30,000,000 shares issued and outstanding as of April 30, 2025 and October 31, 2024, respectively)

7.625 % Series C mandatory convertible preferred stock, $ 0.01 par value ( 30,000,000 shares issued and outstanding as of July 31, 2025 and October 31, 2024, respectively)

Common stock, $ 0.01 par value ( 9,600,000,000 shares authorized;

1,310,531,962 and 1,297,258,235 shares issued and outstanding as of April 30, 2025 and October 31, 2024, respectively)

1,318,814,831 and 1,297,258,235 shares issued and outstanding as of July 31, 2025 and October 31, 2024, respectively)

Additional paid-in capital 30,199 29,848

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Condensed Consolidated Statements of Cash Flows (Unaudited)

For the six months ended April 30,

For the nine months ended July 31,

Cash Flows from Operating Activities:

Net (loss) earnings attributable to HPE $ ( 118 ) $ 1,213

Adjustments to Reconcile Net (Loss) Earnings Attributable to HPE to Net Cash (Used in) Provided by Operating Activities:

Adjustments to Reconcile Net (Loss) Earnings Attributable to HPE to Net Cash Provided by Operating Activities:

Depreciation and amortization 1,860 1,924

7 unchanged sentences

Gain on sale of a business ( 245 ) —

Dividends received from equity investees — 43

H3C divestiture related severance costs 97 —

8 unchanged sentences

Other assets and liabilities ( 936 ) ( 447 )

Net cash (used in) provided by operating activities ( 851 ) 1,157

Net cash provided by operating activities 454 2,311

Cash Flows from Investing Activities:

1 unchanged sentence

Proceeds from sale of property, plant and equipment 254 280

Purchases of investments ( 1 ) ( 16 )

Proceeds from maturities and sales of investments 41 5

Purchases of equity investments ( 7 ) ( 16 )

Proceeds from sale of available-for-sale securities 47 5

Proceeds from maturities and redemptions of available-for-sale securities 48 —

Financial collateral posted ( 755 ) ( 728 )

Financial collateral received 518 638

Payments made in connection with business acquisitions, net of cash acquired ( 12,278 ) —

Proceeds from sale of a business 210 —

9 unchanged sentences

Cash dividends paid to common stockholders ( 513 ) ( 507 )

Net cash used in financing activities ( 1,492 ) ( 1,676 )

Net cash provided by (used in) financing activities 2,743 ( 1,372 )

Effect of exchange rate changes on cash, cash equivalents, and restricted cash 9 ( 35 )

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Common Stock Preferred Stock

For the three months ended April 30, 2025 Number of Shares Par Value Number of 7.625 %

For the three months ended July 31, 2025 Number of Shares Par Value Number of 7.625 %

Series C Mandatory

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In millions, except number of shares in thousands

Balance as of January 31, 2025 1,313,391 $ 13 30,000 $ 29,780 $ ( 1,642 ) $ ( 2,927 ) $ 25,224 $ 58 $ 25,282

Net (loss) earnings attributable to HPE ( 1,050 ) ( 1,050 ) 2 ( 1,048 )

Other comprehensive loss ( 167 ) ( 167 ) ( 167 )

Comprehensive (loss) income ( 1,217 ) 2 ( 1,215 )

Balance as of April 30, 2025 1,310,532 $ 13 30,000 $ 29,840 $ ( 2,892 ) $ ( 3,094 ) $ 23,867 $ 60 $ 23,927

Net earnings attributable to HPE 305 305 5 310

Other comprehensive income 70 70 70

Comprehensive income 375 5 380

Stock-based compensation expense 177 177 177

Tax withholding related to vesting of employee stock plans ( 77 ) ( 77 ) ( 77 )

Consideration for replacement of Juniper Networks Inc.’s equity awards 239 239 239

Issuance of common stock in connection with employee stock plans and other 8,283 20 1 21 21

Repurchases of common stock ( 3,332 ) ( 50 ) ( 50 ) ( 50 )

Dividends on preferred stock accrued/declared

3 unchanged sentences

( 171 ) ( 171 ) ( 171 )

Balance as of April 30, 2025 1,310,532 $ 13 30,000 $ 29,840 $ ( 2,892 ) $ ( 3,094 ) $ 23,867 $ 60 $ 23,927

Balance as of July 31, 2025 1,318,815 $ 13 30,000 $ 30,199 $ ( 2,786 ) $ ( 3,024 ) $ 24,402 $ 65 $ 24,467

Common Stock Preferred Stock

For the six months ended April 30, 2025 Number of Shares Par Value Number of 7.625 %

For the nine months ended July 31, 2025 Number of Shares Par Value Number of 7.625 %

Series C Mandatory

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Tax withholding related to vesting of employee stock plans ( 274 ) ( 274 ) ( 274 )

Consideration for replacement of Juniper Networks Inc.’s equity awards 239 239 239

Issuance of common stock in connection with employee stock plans and other 27,184 37 2 39 39

5 unchanged sentences

( 513 ) ( 513 ) ( 8 ) ( 521 )

Balance as of April 30, 2025 1,310,532 $ 13 30,000 $ 29,840 $ ( 2,892 ) $ ( 3,094 ) $ 23,867 $ 60 $ 23,927

Balance as of July 31, 2025 1,318,815 $ 13 30,000 $ 30,199 $ ( 2,786 ) $ ( 3,024 ) $ 24,402 $ 65 $ 24,467

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For the three months ended April 30, 2024 Number of Shares Par Value Additional Paid-in Capital Accumulated Deficit Accumulated

For the three months ended July 31, 2024 Number of Shares Par Value Additional Paid-in Capital Accumulated Deficit Accumulated

Comprehensive

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In millions, except number of shares in thousands

Balance as of January 31, 2024 1,299,768 $ 13 $ 28,239 $ ( 3,728 ) $ ( 3,108 ) $ 21,416 $ 52 $ 21,468

Balance as of April 30, 2024 1,297,931 $ 13 $ 28,308 $ ( 3,583 ) $ ( 3,058 ) $ 21,680 $ 54 $ 21,734

Net earnings attributable to HPE 512 512 3 515

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( 169 ) ( 169 ) ( 169 )

Balance as of April 30, 2024 1,297,931 $ 13 $ 28,308 $ ( 3,583 ) $ ( 3,058 ) $ 21,680 $ 54 $ 21,734

For the six months ended April 30, 2024 Number of Shares Par Value Additional Paid-in Capital Accumulated Deficit Accumulated

Balance as of July 31, 2024 1,298,356 $ 13 $ 28,361 $ ( 3,240 ) $ ( 3,057 ) $ 22,077 $ 57 $ 22,134

For the nine months ended July 31, 2024 Number of Shares Par Value Additional Paid-in Capital Accumulated Deficit Accumulated

Comprehensive

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( 507 ) ( 507 ) ( 8 ) ( 515 )

Balance as of April 30, 2024 1,297,931 $ 13 $ 28,308 $ ( 3,583 ) $ ( 3,058 ) $ 21,680 $ 54 $ 21,734

Balance as of July 31, 2024 1,298,356 $ 13 $ 28,361 $ ( 3,240 ) $ ( 3,057 ) $ 22,077 $ 57 $ 22,134

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Hewlett Packard Enterprise's customers range from small- and medium-sized businesses to large global enterprises and governmental entities.

On July 2, 2025, the Company completed the Juniper Networks, Inc.

(“Juniper Networks”) merger (the “Merger”).

Under the terms of the Agreement and Plan of Merger (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 a cash consideration of approximately $ 13.4 billion.

The results of operations of Juniper Networks are included in the unaudited Condensed Consolidated Financial Statements commencing on July 2, 2025.

See Note 8, “Acquisitions and Dispositions” to the Condensed Consolidated Financial Statements for additional information.

Basis of Presentation and Consolidation

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Recently Enacted Accounting Pronouncements

In July 2025, the Financial Accounting Standards Board (“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 is currently evaluating the impact of this amendment on its Condensed Consolidated Financial Statements.

In November 2024, the FASB issued guidance to provide disaggregated expense disclosures in the Consolidated Financial Statements.

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The Company is currently evaluating the impact of this amendment on its Condensed Consolidated Financial Statements.

In December 2023, the FASB issued guidance to provide disaggregated income tax disclosures on the rate reconciliation and income taxes paid.

The Company is required to adopt the guidance in the first quarter of fiscal 2026, though early adoption is permitted.

The Company is currently evaluating the impact of this amendment on its Condensed Consolidated Financial Statements.

In December 2023, the FASB issued guidance to provide disaggregated income tax disclosures on the effective tax rate reconciliation and income taxes paid.

The Company is required to adopt the guidance in fiscal 2026, though early adoption is permitted.

The Company will adopt the guidance prospectively.

Adoption of this new guidance will result in increased disclosures in the “Taxes on Earnings” note in the Company’s Consolidated Financial Statements but will not impact the consolidated financial results.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

In November 2023, the FASB issued guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses.

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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.

Server, Hybrid Cloud, Networking, Financial Services (“FS”), and Corporate Investments and Other.

During the third quarter of fiscal 2025, the Intelligent Edge segment was renamed to Networking.

The segment name change did not result in any change to the composition of the Company’s segments and therefore no prior information was recast;

further, the designation change did not impact the Company’s Condensed Consolidated Financial Statements.

The results of operations of Juniper Networks are included in the Networking segment commencing on July 2, 2025.

See Note 8, “Acquisitions and Dispositions” to the Condensed Consolidated Financial Statements for additional information.

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

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

products and services within each segment is as follows:

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.

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and HPE NonStop.

Server offerings also include operational and support services sold with systems and as standalone services.

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 software-as-a-service (“SaaS”) space.

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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.

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.

FS also supports financial solutions for on-premise flexible consumption models, such as the HPE GreenLake cloud.

The FS segment also supports financial solutions for on-premise flexible consumption models, such as the HPE GreenLake cloud.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

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;

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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.

These unallocated operating costs include certain corporate costs and eliminations, stock-based compensation expense, amortization of intangible assets, transformation 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.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

Segment Operating Results

Segment net revenue and operating results were as follows:

Server Hybrid Cloud Intelligent Edge Financial

Server Hybrid Cloud Networking Financial

Services Corporate

Investments and Other Total

Three months ended April 30, 2025:

Three months ended July 31, 2025:

Net revenue $ 4,903 $ 1,422 $ 1,732 $ 887 $ 192 $ 9,136

2 unchanged sentences

Segment earnings (loss) from operations $ 317 $ 87 $ 360 $ 88 $ ( 14 ) $ 838

Three months ended April 30, 2024:

Three months ended July 31, 2024:

Net revenue (1)

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$ 461 $ 69 $ 251 $ 79 $ ( 4 ) $ 856

Six months ended April 30, 2025:

Nine months ended July 31, 2025:

Net revenue $ 13,202 $ 4,182 $ 4,035 $ 2,616 $ 582 $ 24,617

2 unchanged sentences

Segment earnings (loss) from operations $ 906 $ 264 $ 948 $ 259 $ ( 26 ) $ 2,351

Six months ended April 30, 2024:

Nine months ended July 31, 2024:

Net revenue (1)

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$ 1,263 $ 133 $ 841 $ 234 $ ( 23 ) $ 2,448

(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.

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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,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

2 unchanged sentences

Total consolidated net revenue $ 9,136 $ 7,710 $ 24,617 $ 21,669

(Loss) Earnings Before Taxes:

Earnings (Loss) Before Taxes:

Total segment earnings from operations $ 838 $ 856 $ 2,351 $ 2,448

2 unchanged sentences

Amortization of intangible assets ( 126 ) ( 60 ) ( 201 ) ( 198 )

Transformation credit (costs) 13 ( 33 ) ( 2 ) ( 53 )

Impairment of goodwill — — ( 1,361 ) —

Transformation costs — ( 14 ) ( 2 ) ( 67 )

Gain on sale of a business 1 — 245 —

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Acquisition, disposition and other charges (1)

Impairment of goodwill ( 1,361 ) — ( 1,361 ) —

( 225 ) ( 70 ) ( 343 ) ( 127 )

Interest and other, net (2)

8 ( 12 ) 86 ( 122 )

Earnings from equity interests 32 73 74 161

Total (loss) earnings before provision for taxes $ ( 1,045 ) $ 445 $ ( 312 ) $ 928

Total earnings (loss) before provision for taxes $ 288 $ 608 $ ( 24 ) $ 1,536

(1) Includes disaster recovery and divestiture related exit costs.

For the three and nine months ended July 31, 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) The three and nine months ended July 31, 2025, include a $ 52 million litigation settlement received in the third quarter of fiscal 2025.

Geographic Information

Net revenue by geographic region was as follows:

For the three months ended April 30, For the six months ended April 30,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

5 unchanged sentences

Total consolidated net revenue $ 9,136 $ 7,710 $ 24,617 $ 21,669

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

Transformation Programs

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The primary elements of both plans were completed by the end of fiscal 2024.

During the third quarter of fiscal 2020, the Company launched the Cost Optimization and Prioritization Plan, which focused on realigning the workforce to areas of growth, a new hybrid workforce model called Edge-to-Office, real estate strategies, and simplifying and evolving the Company’s product portfolio strategy.

The transformation (credit) costs predominantly related to labor restructuring, non-labor restructuring, IT investments, design and execution charges and real estate initiatives.

During the third quarter of fiscal 2017, the Company launched the HPE Next Plan to put in place a purpose-built company designed to compete and win in the markets where it participates.

Through this program, the Company simplified the operating model, and streamlined its offerings, business processes and business systems to improve its strategy execution.

For the three months ended April 30, 2025, the transformation credit relating to both plans was $ 13 million.

For the six months ended April 30, 2025, the transformation charges relating to both plans was $ 2 million.

For the three and six months ended April 30, 2024, the transformation charges relating to both plans were $ 34 million and $ 55 million, respectively.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

No transformation charges were recorded for either plan during the three months ended July 31, 2025.

For the nine months ended July 31, 2025, the transformation charges relating to both plans were $ 2 million.

For the three and nine months ended July 31, 2024, the transformation charges relating to both plans were $ 15 million and $ 70 million, respectively.

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:

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$ 67 $ 94 $ 23

Charges (credits) — ( 10 ) ( 3 )

Credits — ( 10 ) ( 3 )

Cash payments ( 26 ) ( 16 ) ( 4 )

Non-cash items 2 ( 2 ) ( 1 )

Liability as of April 30, 2025

Liability as of July 31, 2025

$ 43 $ 66 $ 15

Total costs incurred to date, as of April 30, 2025

Total costs incurred to date, as of July 31, 2025

$ 823 $ 543 $ 265

Total expected costs to be incurred as of April 30, 2025

Total expected costs to be incurred as of July 31, 2025

$ 823 $ 543 $ 265

The current restructuring liability related to the transformation programs, reported in the Condensed Consolidated Balance Sheets as of April 30, 2025 and October 31, 2024, was $ 38 million and $ 61 million, respectively, in Accrued restructuring, and $ 14 million and $ 17 million, respectively, in Other accrued liabilities.

The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Condensed Consolidated Balance Sheets as of April 30, 2025 and October 31, 2024, was $ 88 million and $ 106 million, respectively.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

The current restructuring liability related to the transformation programs reported in Other accrued liabilities in the Condensed Consolidated Balance Sheets was $ 49 million and $ 78 million as of July 31, 2025 and October 31, 2024, respectively.

The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Condensed Consolidated Balance Sheets as of July 31, 2025 and October 31, 2024, was $ 75 million and $ 106 million, respectively.

Retirement Benefit Plans

The Company's net pension benefit (credit) cost 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,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

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Taxes on Earnings

Provision for Taxes

For the three months ended April 30, 2025 and 2024, the Company recorded income tax expense of $ 5 million and $ 131 million, respectively, which reflects an effective tax rate of ( 0.5 )% and 29.4 %, respectively.

For the six months ended April 30, 2025 and 2024, the Company recorded income tax expense of $ 111 million and $ 227 million, respectively, which reflects an effective tax rate of ( 35.6 )% and 24.5 %, respectively.

For the three and six months ended April 30, 2025, 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 Company’s operations in lower tax jurisdictions throughout the world and the effects of the non-deductible goodwill impairment.

For the three and six months ended April 30, 2024, the effective tax rate differs from the U.S.

federal statutory rate of 21% due to the geographic mix of forecasted earnings and net unfavorable permanent differences from U.S.

income tax on non-U.S.

For the three and six months ended April 30, 2025, the Company recorded $ 94 million and $ 111 million of net income tax benefits, respectively, related to various items discrete to the period.

For the three months ended April 30, 2025, this amount primarily included $ 33 million of net income tax benefits related to the cost reduction program, $ 33 million of net income tax benefits related to the favorable resolution of non-U.S.

tax litigation matters, and $ 16 million of net income tax benefits related to the settlement of U.S.

tax audit matters.

For the six months ended April 30, 2025, this amount primarily included $ 33 million of net income tax benefits related to the cost reduction program, $ 33 million of net income tax benefits related to the favorable resolution of non-U.S.

tax litigation matters, $ 31 million of net excess tax benefits related to stock-based compensation, $ 16 million of net income tax benefits related to the settlement of U.S.

tax audit matters, and $ 14 million of net income tax benefits related to acquisition, disposition and other charges, partially offset by $ 22 million of net income tax charges resulting from the gain on the Communications Technology Group (“CTG”) divestiture.

For the three and six months ended April 30, 2024, the Company recorded immaterial net income tax benefits related to various items discrete to the period.

Benefit (Provision) for Taxes

For the three months ended July 31, 2025 and 2024, the Company recorded income tax benefit of $ 17 million and income tax expense of $ 96 million, respectively, which reflects an effective tax rate of ( 6.5 )% and 15.8 %, respectively.

For the nine months ended July 31, 2025 and 2024, the Company recorded income tax expense of $ 94 million and $ 323 million, respectively, which reflects an effective tax rate of ( 359.9 )% and 21.0 %, respectively.

For the three and nine months ended July 31, 2025 and the three months ended July 31, 2024 the effective tax rate generally differs from the U.S.

federal statutory rate of

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Notes to Condensed Consolidated Financial Statements (Continued)

21.0% due to favorable tax rates associated with certain earnings from the Company’s operations in lower tax jurisdictions throughout the world but is also impacted by discrete tax adjustments during each fiscal period.

The effective tax rate for the nine months ended July 31, 2025 also included the effects of the non-deductible goodwill impairment.

For the three and nine months ended July 31, 2025, the Company recorded $ 106 million and $ 217 million of net income tax benefits, respectively, related to various items discrete to the period.

For the three months ended July 31, 2025, this amount primarily included $ 76 million of net income tax benefits related to the release of certain state valuation allowances and $ 21 million of net income tax benefits related to costs incurred as a result of the Merger, and $ 4 million of net income tax benefits related to acquisition, disposition and other related charges.

For the nine months ended July 31, 2025, this amount primarily included $ 76 million of net income tax benefits related to the release of certain state valuation allowances, $ 33 million of net income tax benefits related to the cost reduction program, $ 33 million of net income tax benefits related to the favorable resolution of non-U.S.

tax litigation matters, $ 30 million of net excess tax benefits related to stock-based compensation, $ 29 million of net income tax benefits related to costs incurred as a result of the Merger, $ 16 million of net income tax benefits related to the settlement of U.S.

tax audit matters, and $ 9 million of net income tax benefits related to acquisition, disposition and other related charges, partially offset by $ 22 million of net income tax charges resulting from the gain on the Communications Technology Group (“CTG”) divestiture.

For the three and nine months ended July 31, 2024, the Company recorded immaterial net income tax benefits related to various items discrete to the period.

Uncertain Tax Positions

As of April 30, 2025 and October 31, 2024, the amount of unrecognized tax benefits was $ 365 million and $ 724 million, respectively, of which up to $ 265 million and $ 344 million, respectively, would affect the Company's effective tax rate if realized as of their respective periods.

As of July 31, 2025 and October 31, 2024, the amount of unrecognized tax benefits was $ 485 million and $ 724 million, respectively, of which up to $ 345 million and $ 344 million, respectively, would affect the Company's effective tax rate if realized as of their respective periods.

During the second quarter of fiscal 2025, the Company effectively settled with the U.S.

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The resolution of the audit resulted in the release of tax reserves that were predominantly related either to adjustments to foreign tax credits that carried a full valuation allowance or to the timing of intercompany royalty revenue recognition, neither of which affected the Company’s effective tax rate.

For tax liabilities pertaining to unrecognized tax benefits, the Company recognizes interest income from favorable settlements and interest expense and penalties in Provision for taxes in the Condensed Consolidated Statements of Earnings.

The Company recognized $ 19 million of interest income and $ 1 million of interest expense for the six months ended April 30, 2025 and 2024, respectively.

Unrecognized tax benefits increased $ 111 million due to the Merger.

For tax liabilities pertaining to unrecognized tax benefits, the Company recognizes interest income from favorable settlements and interest expense and penalties in Benefit (provision) for taxes in the Condensed Consolidated Statements of Earnings.

The Company recognized $ 7 million of interest income for the nine months ended July 31, 2025 and the interest expense was not material for the nine months ended July 31, 2024.

The increase in interest income resulted from the favorable resolution of non-U.S.

tax litigation matters.

As of April 30, 2025 and October 31, 2024, the Company had accrued $ 39 million and $ 58 million, respectively, for interest and penalties in the Condensed Consolidated Balance Sheets.

tax litigation matters, partially offset with the addition of interest accrued on unrecognized tax benefits due to the Merger.

As of July 31, 2025 and October 31, 2024, the Company had accrued $ 52 million and $ 58 million, respectively, for interest and penalties in the Condensed Consolidated Balance Sheets.

The Company engages in continuous discussion and negotiation with tax authorities regarding tax matters in various jurisdictions.

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federal income tax returns.

Tax years of Juniper Networks through 2018 have been audited by the IRS, and Juniper Networks is not currently under examination by the IRS for other tax years.

The Company does not expect complete resolution of any IRS audit cycle within the next 12 months.

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It is reasonably possible that certain foreign tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions and other matters.

The Company believes it is reasonably possible that its existing unrecognized tax benefits for these matters may be reduced by an amount up to $ 5 million within the next 12 months.

The Company believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $ 58 million within the next 12 months.

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Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities included in the Condensed Consolidated Balance Sheets were as follows:

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Deferred tax assets $ 2,477 $ 2,396

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Deferred tax assets net of deferred tax liabilities $ 2,049 $ 2,023

Net deferred tax assets increased $ 26 million as a result of discrete tax benefits from the release of certain state valuation allowances of $ 76 million and the settlement of U.S.

tax audit matters of $ 16 million, which were partially offset by a decrease of $ 65 million due to the Merger.

Balance Sheet Details

Cash, Cash Equivalents and Restricted Cash

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Cash and cash equivalents $ 4,571 $ 14,846

2 unchanged sentences

(1) The Company included restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.

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April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Purchased parts and fabricated assemblies $ 4,455 $ 5,441

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If in any period the Company anticipates a change in those factors to be less favorable than its previous estimates, additional inventory write-downs may be required and could materially impact gross margin.

The write down for excess or obsolescence is charged to the provision of inventory, which is a component of cost of sales in the Condensed Consolidated Statements of Earnings.

The write down for excess or obsolescence is charged to the provision for inventory, which is a component of cost of sales in the Condensed Consolidated Statements of Earnings.

At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $ 105 million and $ 149 million for the three and six months ended April 30, 2025, respectively.

The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $ 122 million and $ 271 million for the three and nine months ended July 31, 2025, respectively.

For the fiscal year ended October 31, 2024, the Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $ 89 million.

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Property, Plant and Equipment, net

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Land $ 306 $ 66

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These arrangements do not alter the Company's rights and obligations towards suppliers, including scheduled payment terms.

Liabilities associated with the funded participation in these arrangements, are presented within Accounts Payable on the Consolidated Balance Sheets, amounted to $ 490 million, and $ 466 million as of April 30, 2025 and October 31, 2024, respectively.

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The Company's aggregate product warranty liabilities and changes for the six months ended April 30, 2025, and the fiscal year ended October 31, 2024 were as follows:

April 30, 2025 October 31, 2024

Liabilities associated with the funded participation in these arrangements, are presented within Accounts payable on the Consolidated Balance Sheets, amounted to $ 435 million, and $ 466 million as of July 31, 2025 and October 31, 2024, respectively.

The Company's aggregate product warranty liabilities and changes for the nine months ended July 31, 2025, and the fiscal year ended October 31, 2024 were as follows:

July 31, 2025 October 31, 2024

Balance at beginning of period $ 301 $ 318

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The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated.

As of April 30, 2025, $ 197 million and $ 42 million was recorded in Other Accrued Liabilities and Other Non-current liabilities, respectively.

As of July 31, 2025, $ 164 million and $ 42 million was recorded in Other Accrued Liabilities and Other Non-current liabilities, respectively.

The following table presents the activity related to the Company’s severance liability for the period indicated:

April 30, 2025

July 31, 2025

Balance at beginning of period $ 49

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Balance at end of period $ 206

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Notes to Condensed Consolidated Financial Statements (Continued)

The following table presents severance charges as included in the Condensed Consolidated Statements of Earnings for the periods indicated:

For the three months ended April 30, 2025 For the six months ended April 30, 2025

For the three months ended July 31, 2025 For the nine months ended July 31, 2025

Cost of sales — $ 63

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Selling, general and administrative — 147

Acquisition, disposition and other charges 15 15

Total severance charges $ 15 $ 256

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The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.

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Contract Assets

A summary of accounts receivable, net, including unbilled receivables was as follows:

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Accounts receivable $ 5,260 $ 3,236

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Total $ 5,656 $ 3,550

The allowances for credit losses related to accounts receivable and changes for the six months ended April 30, 2025, and the fiscal year ended October 31, 2024 were as follows:

April 30, 2025 October 31, 2024

The allowances for credit losses related to accounts receivable and changes for the nine months ended July 31, 2025, and the fiscal year ended October 31, 2024 were as follows:

July 31, 2025 October 31, 2024

Balance at beginning of period $ 10 $ 37

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The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers.

For the three and six months ended April 30, 2025, the Company sold $ 0.9 billion and $ 1.8 billion of trade receivables, respectively.

For the three and nine months ended July 31, 2025, the Company sold $ 1.0 billion and $ 2.8 billion of trade receivables, respectively.

F or the fiscal year ended October 31, 2024, the Company sold $ 3.1 billion of trade receivables.

The Company recorded an obligation of $ 59 million and $ 62 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of April 30, 2025 and October 31, 2024, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

The Company recorded an obligation of $ 70 million and $ 62 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of July 31, 2025 and October 31, 2024, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

Contract Liabilities and Remaining Performance Obligations

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A summary of contract liabilities were as follows:

April 30, 2025 October 31, 2024

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July 31, 2025 October 31, 2024

Location In millions

5 unchanged sentences

Total deferred revenue $ 10,148 $ 7,482

For the six months ended April 30, 2025, approximately $ 1.8 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2024.

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For the nine months ended July 31, 2025, approximately $ 3.0 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2024.

Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed.

Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency.

As of April 30, 2025, the aggregate amount of deferred revenue, was $ 7.8 billion.

As of July 31, 2025, the aggregate amount of deferred revenue, was $ 10.1 billion.

The Company expects to recognize approximately 18 % of this balance over fiscal 2025 with the remainder to be recognized thereafter.

The Company receives payments in advance of completion of its contractual obligations, these payments are considered customer deposits.

The Company receives payments in advance of completion of its contractual obligations;

these payments are considered customer deposits.

As customer acceptance milestones are met, the Company will recognize revenue and reduce the amount of contract liabilities.

As of April 30, 2025, the aggregate amount of customer deposits was $ 670 million.

As of July 31, 2025, the aggregate amount of customer deposits was $ 653 million.

The Company expects to recognize $ 580 million over the next twelve months and the remaining balance thereafter.

Costs to Obtain a Contract

As of April 30, 2025, the current and non-current portions of the capitalized costs to obtain a contract were $ 86 million and $ 132 million, respectively.

As of July 31, 2025, the current and non-current portions of the capitalized costs to obtain a contract were $ 122 million and $ 147 million, respectively.

As of October 31, 2024, the current and non-current portions of the capitalized costs to obtain a contract were $ 88 million and $ 136 million, respectively.

The current and non-current portions of the capitalized costs to obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheets.

For the three and six months ended April 30, 2025, the Company amortized $ 27 million and $ 54 million, of capitalized costs to obtain a contract.

For the three and six months ended April 30, 2024 the Company amortized $ 26 million and $ 52 million respectively, of capitalized costs to obtain a contract.

For the three and nine months ended July 31, 2025, the Company amortized $ 88 million and $ 142 million, of capitalized costs to obtain a contract.

For the three and nine months ended July 31, 2024 the Company amortized $ 27 million and $ 79 million respectively, of capitalized costs to obtain a contract.

The amortized capitalized costs to obtain a contract are included in Selling, general and administrative expense in the Condensed Consolidated Statements of Earnings.

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Accounting for Leases as a Lessor

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The components of financing receivables were as follows:

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Minimum lease payments receivable $ 10,194 $ 10,266

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The Company enters into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions.

For the three and six months ended April 30, 2025 the Company sold $ 23 million and $ 147 million of financing receivables, respectively.

For the three and nine months ended July 31, 2025, the Company sold $ 17 million and $ 164 million of financing receivables, respectively.

For the fiscal year ended October 31, 2024, the Company sold $ 93 million of financing receivables.

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Notes to Condensed Consolidated Financial Statements (Continued)

Credit Quality Indicators

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Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits.

The credit risk profile of gross financing receivables, based on internal risk ratings as of April 30, 2025, presented on amortized cost basis by year of origination was as follows:

As of April 30, 2025

The credit risk profile of gross financing receivables, based on internal risk ratings as of July 31, 2025, presented on amortized cost basis by year of origination was as follows:

As of July 31, 2025

Low Moderate High

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Total $ 6,230 $ 3,191 $ 207

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The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2024, presented on amortized cost basis by year of origination was as follows:

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The credit quality indicators do not reflect any mitigation actions taken to transfer credit risk to third parties.

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Notes to Condensed Consolidated Financial Statements (Continued)

Allowance for Credit Losses

The allowance for credit losses for financing receivables as of April 30, 2025 and October 31, 2024 and the respective changes for the six and twelve months then ended were as follows:

April 30, 2025 October 31, 2024

The allowance for credit losses for financing receivables as of July 31, 2025 and October 31, 2024 and the respective changes for the nine and twelve months then ended were as follows:

July 31, 2025 October 31, 2024

Balance at beginning of period $ 194 $ 243

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Balance at end of period $ 206 $ 194

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Notes to Condensed Consolidated Financial Statements (Continued)

Non-Accrual and Past-Due Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Current 1-30 days $ 318 $ 334

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The following table presents amounts included in the Condensed Consolidated Statements of Earnings related to lessor activity:

For the three months ended April 30, For the six months ended April 30,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

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fixed-term financing receivables and leased equipment in the offering, which is held by a Special Purpose Entity (“SPE”).

The SPE meets the definition of a Variable Interest Entity (“VIE”) and is consolidated, along with the associated debt, into the Condensed Consolidated Financial Statements as the Company is the

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Notes to Condensed Consolidated Financial Statements (Continued)

primary beneficiary of the VIE.

The SPE meets the definition of a Variable Interest Entity (“VIE”) and is consolidated, along with the associated debt, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the VIE.

The SPE is a bankruptcy-remote legal entity with separate assets and liabilities.

1 unchanged sentence

The Company’s risk of loss related to securitized receivables and leased equipment is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities.

The following table presents the assets and liabilities held by the consolidated VIE as of April 30, 2025 and October 31, 2024, which are included in the Condensed Consolidated Balance Sheets.

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Notes to Condensed Consolidated Financial Statements (Continued)

The following table presents the assets and liabilities held by the consolidated VIE as of July 31, 2025 and October 31, 2024, which are included in the Condensed Consolidated Balance Sheets.

The assets in the table below include those that can be used to settle the obligations of the VIE.

Additionally, general creditors of the Company do not have recourse to the assets of the VIE.

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Assets held by VIE:

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Long-term debt, net of unamortized debt issuance costs $ 1,068 $ 965

For the six months ended April 30, 2025, the Company did not transfer any financing receivables and leased equipment via securitization through the SPE.

For the nine months ended July 31, 2025, the financing receivables and leased equipment transferred via securitization through the SPE were $ 0.7 billion and $ 0.3 billion, respectively.

For the fiscal year ended October 31, 2024, financing receivables and leased equipment transferred via securitization through the SPE were $ 1.2 billion and $ 0.6 billion, respectively.

Acquisitions and Dispositions

Proposed Acquisition of Juniper Networks, Inc.

On January 9, 2024, the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) under which HPE will acquire Juniper Networks, Inc.

(“Juniper Networks”) in an all-cash transaction for $ 40.00 per share, representing an equity value of approximately $ 14 billion (the “Merger”).

The transaction was unanimously approved by the boards of directors of both companies.

On April 2, 2024, Juniper Networks stockholders approved the transaction.

The closing of the transaction remains subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.

On January 30 2025, the Antitrust Division of the United States Department of Justice (the “DOJ”) filed a complaint in the United States District Court for the Northern District of California, seeking to enjoin the closing of the Merger, alleging that the Merger is likely to substantially lessen competition in violation of Section 7 of the Clayton Act.

On February 10, 2025, HPE and Juniper Networks filed answers to the DOJ’s complaint, disputing these claims.

Trial is scheduled to begin on July 9, 2025.

We intend to vigorously defend the litigation.

A $ 815 million termination fee will be payable by the Company to Juniper Networks if the transaction is terminated under certain circumstances, including due to the Company’s breach of the Merger Agreement or the failure to obtain certain regulatory approvals.

The transaction is expected to be funded based on senior unsecured delayed draw term loans from a syndicate of banks, the post-tax proceeds from the Company’s sale to Unisplendour International Technology Limited of 30 % of the total issued share capital of H3C Technologies Co., Limited (“H3C”), the net proceeds (including after repayments of maturing debt) of its September 2024 issuances of senior unsecured notes and 7.625 % Series C Mandatory Convertible Preferred Stock (“Preferred Stock”), and cash on the balance sheet.

In September 2024, the Company issued $ 9.0 billion of senior unsecured notes and $ 1.5 billion of Preferred Stock, the net proceeds of which the Company intends to use to fund a portion of the consideration for the acquisition of Juniper Networks and for other general corporate purposes.

If the proposed transaction is terminated, the senior unsecured notes and Preferred Stock will be treated as follows:

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 a 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 will be reported in the Networking segment.

The Company acquired Juniper Networks to advance HPE’s portfolio mix shift toward higher-growth solutions and strengthen its networking business.

Purchase Consideration

The following table summarizes the purchase consideration for the Merger:

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 which had been previously issued to 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 HPE’s 10-day average stock price prior to July 2, 2025.

The acquisition date fair value of the replacement equity awards has been determined using the Hull-White I Lattice model for options, and for restricted stock units by adjusting HPE’s Merger date close price for expected dividends as applicable.

The fair value of the replacement awards was $ 927 million , of which $ 239 million is included in the Merger consideration.

At the date of the acquisition, the Company converted Juniper Networks’ equity awards into approximately 46 million HPE equity awards, of which approximately 10 million restricted stock units vested in July 2025.

As of July 31, 2025, there was $ 563 million of unrecognized pre-tax stock-based compensation expense related to unvested restricted stock units, which the Company expects to recognize over the remaining weighted-average vesting period of 1.5 years.

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Notes to Condensed Consolidated Financial Statements (Continued)

• If (i) the proposed acquisition of Juniper Networks does not close on or before the later of (a) the date that is five business days after October 9, 2025 and (b) the date that is five business days after any later date to which Juniper Networks and HPE may agree to extend the “End Date” (as defined in the Merger Agreement) or (ii) HPE notifies the trustee of such notes that HPE will not pursue the consummation of the proposed acquisition of Juniper Networks, HPE shall be required to redeem $ 6.5 billion of these senior unsecured notes.

• If (i) the proposed acquisition of Juniper Networks does not close on or before the later of (a) the date that is five business days after October 9, 2025 and (b) the date that is five business days after any later date to which Juniper Networks and HPE may agree to extend the “End Date” (as defined in the Merger Agreement) or (ii) HPE notifies the holders of the Preferred Stock in writing that HPE will not pursue the consummation of the proposed acquisition of Juniper Networks, HPE may, at its option, redeem the Preferred Stock, in whole but not in part.

For the three and nine months ended July 31, 2025, HPE recorded stock-based compensation expense of $ 87 million related to these assumed awards.

A summary of the preliminary allocation of the total purchase price for the Merger is presented as follows:

Cash and cash equivalents $ 1,098

Inventory 1,060

Other current assets 1,827

Goodwill 7,042

Intangible assets 6,211

Long-term financing receivables and other assets 1,786

Total assets acquired 19,024

Other accrued liabilities (1)

Long-term debt 1,232

Other non-current liabilities 1,575

Total liabilities assumed 5,399

Total purchase consideration $ 13,625

(1) Includes the current portion of long-term debt.

This acquisition has been accounted for as a business combination under FASB Topic Accounting Standards Codification 805 using the acquisition method.

Tangible and identifiable intangible assets acquired, and liabilities assumed were recorded at the respective preliminary estimated fair values.

The excess of the consideration transferred over the estimated fair value of the net assets received has been recorded as goodwill.

The factors that contributed to the recognition of goodwill primarily relate to acceleration of the company’s portfolio mix shift to higher-margin, higher-growth areas.

Goodwill also reflects the expectation that the Merger will position the company for long-term profitable growth.

Goodwill created as a result of the Merger is not deductible for tax purposes.

The purchase price allocation is preliminary as the final review of intangible assets, certain tangible assets, income tax balances, liabilities assumed, and residual goodwill related to this acquisition is not complete.

These amounts are subject to revision as additional information about fair value of assets acquired and liabilities assumed is obtained within the measurement period, which is up to one year from the acquisition date.

Purchased Intangible Assets

The weighted-average useful life for intangible assets acquired was 6.5 years, the following table presents preliminary details of the purchased intangible assets acquired:

(in Years) In millions

Customer contracts, customer lists and distribution agreements 8 $ 3,031

Developed and core technology and patents 5 2,915

Trade name and trademarks 6 265

Total intangible assets (1)

(1) Amortization expense for the three and nine months ended July 31, 2025, was $ 88 million.

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Long-term Debt

The following table presents long-term debt assumed at closing:

Maturity Date Par Value Fair Value

1.200 % fixed-rate notes

December 2025 $ 400 $ 394

3.750 % fixed-rate notes

August 2029 500 486

2.000 % fixed-rate notes

December 2030 400 348

5.950 % fixed-rate notes

March 2041 $ 400 $ 398

Results of Operations and Pro forma Financial Information

The following table presents revenues and net earnings for Juniper Networks since the acquisition date, July 2, 2025 through July 31, 2025:

Total revenue $ 480

Earnings from operations (1)

(1) This amount does not include certain corporate costs which are managed at the corporate level.

The unaudited pro forma results of operations for HPE as if the Merger had occurred on November 1, 2023 are presented in the table below:

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

Total revenue $ 10,119 $ 8,900 $ 28,407 $ 25,372

Net earnings (loss) $ 280 $ 195 $ ( 271 ) $ 2

These pro forma results were based on estimates and assumptions, which the Company believes are reasonable.

The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and the cost of financing the acquisition had taken place at the beginning of fiscal 2024.

The unaudited pro forma information includes adjustments to amortization for intangible assets acquired, stock-based compensation expense, interest expense for acquisition financing, and depreciation for property and equipment acquired.

Acquisition costs related to the Merger were primarily included within Acquisition, disposition and other charges in the Condensed Consolidated Statements of Earnings.

For the three and nine months ended July 31, 2025, acquisition costs were $ 159 million and $ 231 million, respectively.

For the three and nine months ended July 31, 2024, acquisition costs were $ 23 million and $ 77 million, respectively.

Disposition of Communications Technology Group

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Goodwill is tested for impairment at the reporting unit level.

As of November 1, 2024, the Company reassessed its reporting units and determined that the former Compute and High Performance Computing & Artificial Intelligence reporting units (within the Server segment) met the criteria to qualify as a single Server reporting unit.

As of April 30, 2025, the Company's reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”, with the exception of Corporate Investments and Other, which contains the A & PS reporting unit.

The following table represents the carrying value of goodwill, by reportable segment as of April 30, 2025 and October 31, 2024.

Server Hybrid Cloud Intelligent Edge Financial Services Corporate Investments and Other Total

As of November 1, 2024, the Company reassessed its

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

reporting units and determined that the former Compute and High Performance Computing & Artificial Intelligence reporting units (within the Server segment) met the criteria to qualify as a single Server reporting unit.

As of July 31, 2025, the Company's reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”, with the exception of Networking and Corporate Investments and Other segments.

The Networking segment contains two reporting units:

Intelligent Edge and Juniper Networks.

The Corporate Investments and Other segment contains the A & PS reporting unit.

The following table represents the carrying value of goodwill, by segment as of July 31, 2025 and October 31, 2024.

Server Hybrid Cloud Networking Financial Services Corporate Investments and Other Total

Balance as of October 31, 2024

$ 10,194 $ 4,839 $ 2,909 $ 144 $ — $ 18,086

Goodwill acquired during the period — — 7,042 — — 7,042

Goodwill impairment — ( 1,361 ) — — — ( 1,361 )

Balance as of April 30, 2025 (1)

Balance as of July 31, 2025 (1)

$ 10,194 $ 3,478 $ 9,951 $ 144 $ — $ 23,767

10 unchanged sentences

As of April 30, 2025, the Company determined that an indicator of potential impairment existed to require an interim quantitative goodwill impairment test for its reporting units.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

Based on the results of the interim quantitative impairment test performed as of April 30, 2025, the fair value of the Hybrid Cloud reporting unit was below the carrying value assigned to Hybrid Cloud.

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As a result, the Company recorded a goodwill impairment charge of $ 1.4 billion in the second quarter of fiscal 2025.

Subsequent to the impairment of Hybrid Cloud reporting unit, the indicated fair values of the reporting units exceeded their respective carrying amounts by a range of 0 % to 112 %.

Subsequent to the impairment of the Hybrid Cloud reporting unit, the indicated fair values of the reporting units exceeded their respective carrying amounts by a range of 0 % to 112 %.

In order to evaluate the sensitivity of the estimated fair value of the reporting units in the goodwill impairment test, the Company applied a hypothetical 10 % decrease to the fair value of each reporting unit.

Based on the results of this hypothetical 10 % decrease, all of the reporting units had an excess of fair value over carrying amount, except Server and Hybrid Cloud.

The Hybrid Cloud reporting unit has remaining goodwill of $ 3.5 billion as of April 30, 2025 and an excess of fair value over carrying value of net assets of 0 % as of the interim test date.

Hybrid Cloud business is transitioning to a more cloud-native, software-defined platform with HPE Alletra.

The Hybrid Cloud reporting unit has remaining goodwill of $ 3.5 billion as of July 31, 2025 and an excess of fair value over carrying value of net assets of 0 % as of the interim test date.

Hybrid Cloud business is transitioning to a more cloud-native,

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Notes to Condensed Consolidated Financial Statements (Continued)

software-defined platform with HPE Alletra.

Translating this growth to revenue and operating income will take time because a greater mix of high margin business, such as ratable software and services, are deferred and recognized in future periods.

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The fair value of the Server reporting unit was also impacted by an increase in the discount rate used in the discounted cash flow analysis, driven by heightened macroeconomic uncertainty.

The Server reporting unit has a goodwill balance of $ 10.2 billion as of April 30, 2025.

The Server reporting unit has a goodwill balance of $ 10.2 billion as of July 31, 2025.

In the current macroeconomic and inflationary environment, customers have invested selectively, resulting in moderate unit growth and competitive pricing in the traditional servers business.

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The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:

As of April 30, 2025 As of October 31, 2024

As of July 31, 2025 As of October 31, 2024

Measured Using Fair Value

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Significant Other Unobservable Remaining Inputs

Cash Equivalents and Investments:

Cash Equivalents:

Commercial paper $ — $ 3 $ — $ 3 $ — $ — $ — $ —

Time deposits — 945 — 945 — 601 — 601

Money market funds 1,413 — — 1,413 12,639 — — 12,639

Equity investments — — 54 54 — — 88 88

Total cash equivalents 1,413 948 — 2,361 12,639 601 — 13,240

Available-for-sale Debt Investments:

Asset-backed and mortgage-backed securities — 134 — 134 — — — —

Certificates of deposit — 16 — 16 — — — —

Corporate debt securities — 366 — 366 — — — —

Commercial paper — 47 — 47 — — — —

government agency securities — 38 — 38 — — — —

government securities 105 32 — 137 — — — —

Foreign bonds 1 107 — 108 — 102 1 103

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— — 47 47 — — 14 14

Derivative Instruments:

Foreign exchange contracts — 152 — 152 — 299 — 299

Total available-for-sale debt investments 106 740 47 893 — 102 15 117

Equity Investments:

Mutual funds — 56 — 56 — — — —

Equity securities in public companies 6 — — 6 — — — —

Equity securities — — 54 54 — — 88 88

Total equity investments 6 56 54 116 — — 88 88

Derivatives Instruments:

Foreign currency contracts — 196 — 196 — 299 — 299

Other derivatives — 1 — 1 — — — —

Total assets 1,525 1,941 101 3,567 12,639 1,002 103 13,744

Derivative Instruments:

Derivatives Instruments:

Interest rate contracts — 72 — 72 — 58 — 58

Foreign exchange contracts — 389 — 389 — 103 — 103

Foreign currency contracts — 302 — 302 — 103 — 103

Other derivatives — 1 — 1 — 2 — 2

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(1) Available-for-sale debt securities with carrying values that approximate fair value.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

Other Fair Value Disclosures

Short-Term and Long-Term Debt:

As of April 30, 2025, the estimated fair value and carrying value of the Company's short-term and long-term debt was $ 17.4 billion and $ 17.5 billion, respectively.

As of July 31, 2025, the estimated fair value and carrying value of the Company's short-term and long-term debt was $ 23.6 billion and $ 23.7 billion, respectively.

As of October 31, 2024, the estimated fair value and carrying value of the Company's short-term and long-term debt was $ 18.3 billion and $ 18.2 billion, respectively.

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Equity investments are recorded at cost and measured at fair value when they are deemed to be impaired or when there is an adjustment from observable price changes.

For the six months ended April 30, 2025 and 2024, the Company recognized a loss of $ 2 million resulting from an impairment and an unrealized net loss of $ 7 million, respectively, on these investments.

For the three months ended July 31, 2025 and 2024, the Company recognized unrealized gains of $ 1 million and $ 7 million, respectively, on these investments.

For the nine months ended July 31, 2025, the Company recognized a net loss of $ 1 million primarily resulting from an impairment on these investments.

If measured at fair value in the Condensed Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

For investments still held as of April 30, 2025, the cumulative upward adjustments for observable price changes was $ 82 million and cumulative downward

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Notes to Condensed Consolidated Financial Statements (Continued)

adjustments for observable price changes and impairments was $ 89 million.

For investments still held as of July 31, 2025, the cumulative upward adjustments for observable price changes was $ 83 million and cumulative downward adjustments for observable price changes and impairments was $ 89 million.

Refer to Note 11 “Financial Instruments,” for further information about equity investments.

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For more information on the goodwill impairment, see Note 9 “Goodwill”.

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Notes to Condensed Consolidated Financial Statements (Continued)

Financial Instruments

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Cash equivalents and available-for-sale debt investments were as follows:

As of April 30, 2025 As of October 31, 2024

Cost Gross Unrealized Gains Fair

Value Cost Gross Unrealized Gains Fair

As of July 31, 2025 As of October 31, 2024

Cost Gross Unrealized Gains (Losses) Fair

Value Cost Gross Unrealized Gains (Losses) Fair

Cash Equivalents

Commercial paper $ 3 $ — $ 3 $ — $ — $ —

Time deposits 945 — 945 601 — 601

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Total cash equivalents 2,361 — 2,361 13,240 — 13,240

Available-for-sale Debt Investments:

Available-for-sale Investments

Debt Securities:

Asset-backed and mortgage-backed securities 134 — 134 — — —

Certificates of deposit 16 — 16 — — —

Corporate debt securities 367 ( 1 ) 366 — — —

Commercial paper 47 — 47 — — —

government agency securities 38 — 38 — — —

government securities 137 — 137 — — —

Foreign bonds 107 1 108 101 2 103

Other debt securities 44 3 47 8 6 14

Total available-for-sale debt investments 114 2 116 109 8 117

Total cash equivalents and available-for-sale debt investments $ 10,418 $ 2 $ 10,420 $ 13,349 $ 8 $ 13,357

As of April 30, 2025 and October 31, 2024, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity.

Time deposits were primarily issued by institutions in the U.S.

as of April 30, 2025 and outside the U.S.

as of October 31, 2024.

Total debt securities 890 3 893 109 8 117

Equity Securities:

Equity securities in public companies 9 ( 3 ) 6 — — —

Mutual funds 55 1 56 — — —

Total equity securities 64 ( 2 ) 62 — — —

Total available-for-sale investments 954 1 955 109 8 117

Total cash equivalents and available-for-sale investments $ 3,315 $ 1 $ 3,316 $ 13,349 $ 8 $ 13,357

As of July 31, 2025 and October 31, 2024, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity.

Time deposits were primarily issued by institutions outside the U.S.

as of July 31, 2025 and October 31, 2024.

The estimated fair value of the available-for-sale debt investments may not be representative of values that will be realized in the future.

Contractual maturities of investments in available-for-sale debt securities were as follows:

As of April 30, 2025

As of July 31, 2025

Amortized Cost Fair Value

Due in one year $ 322 $ 322

Due in one to five years 454 453

Due in more than five years 114 118

Total $ 890 $ 893

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Notes to Condensed Consolidated Financial Statements (Continued)

Equity Investments

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Measurement alternative equity investments are recorded at cost and measured at fair value when they are deemed to be impaired or when there is an adjustment from observable price changes.

The carrying amount of those non-marketable equity investments accounted for under the fair value option was $ 54 million and $ 88 million as of April 30, 2025 and October 31, 2024, respectively.

For the three months ended April 30, 2025, the Company recognized a realized gain of $ 1 million on these investments.

For the six months ended April 30, 2025, the

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Notes to Condensed Consolidated Financial Statements (Continued)

Company recognized a total gain of $ 5 million on these investments, of which $ 4 million was unrealized and $ 1 million was realized.

For the six months ended April 30, 2024, the Company recognized an unrealized loss of $ 54 million on these investments.

The carrying amount of those non-marketable equity investments accounted for under the fair value option was $ 54 million and $ 88 million as of July 31, 2025 and October 31, 2024, respectively.

For the nine months ended July 31, 2025, the Company recognized a total gain of $ 5 million on these investments, of which $ 4 million was unrealized and $ 1 million was realized.

During the nine months ended July 31, 2025, the Company sold $ 38 million of these investments.

For the three and nine months ended July 31, 2024, the Company recognized an unrealized gain of $ 7 million and an unrealized loss of $ 47 million on these investments.

This amount is reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings.

During the three and six months ended April 30, 2025, the Company sold $ 38 million of these investments.

The carrying amount of those non-marketable equity investments accounted for under the measurement alternative was $ 197 million and $ 200 million as of April 30, 2025 and October 31, 2024, respectively.

The carrying amount of those non-marketable equity investments accounted for under the measurement alternative was $ 252 million and $ 200 million as of July 31, 2025 and October 31, 2024, respectively.

For the three months ended July 31, 2025 and 2024, the Company recognized unrealized gains of $ 1 million and $ 7 million, respectively, on these investments.

For the nine months ended July 31, 2025, the Company recognized a loss of $ 1 million primarily resulting from an impairment on these investments.

These amounts are reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings.

1 unchanged sentence

The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:

As of April 30, 2025 As of October 31, 2024

As of July 31, 2025 As of October 31, 2024

Fair Value Fair Value

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The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements.

The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements.

The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under

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Notes to Condensed Consolidated Financial Statements (Continued)

As of April 30, 2025

collateral security agreements.

The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

As of July 31, 2025

In the Condensed Consolidated Balance Sheets

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(2) Represents the collateral posted by the Company in cash or through the re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

As of April 30, 2025, of the $ 292 million of collateral posted, $ 288 million was in cash and $ 4 million was through the re-use of counterparty collateral.

As of July 31, 2025, of the $ 181 million of collateral posted, $ 174 million was in cash and $ 7 million was through the re-use of counterparty collateral.

As of October 31, 2024, $ 27 million of collateral posted was entirely through the re-use of counterparty collateral.

The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:

Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets

April 30, 2025 October 31, 2024 April 30, 2025 October 31, 2024

Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities

July 31, 2025 October 31, 2024 July 31, 2025 October 31, 2024

Notes payable and short-term borrowings $ ( 2,486 ) $ ( 2,440 ) $ 14 $ 58

Long-term debt $ ( 744 ) $ — $ 3 $ —

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Gains (Losses) Recognized in OCI on Derivatives

For the three months ended April 30, For the six months ended April 30,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

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Total $ ( 6 ) $ ( 2 ) $ ( 222 ) $ ( 56 )

As of April 30, 2025, the Company expects to reclassify an estimated net accumulated other comprehensive loss of approximately $ 113 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

As of July 31, 2025, the Company expects to reclassify an estimated net accumulated other comprehensive loss of approximately $ 63 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings

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Gains (Losses) Recognized in Income

For the three months ended April 30, For the six months ended April 30,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

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Notes payable, short-term borrowings, including the current portion of long-term debt, and long-term debt were as follows:

April 30, 2025 October 31, 2024

July 31, 2025 October 31, 2024

Current portion of long-term debt (1)

5 unchanged sentences

Total $ 23,653 $ 18,246

(1) As of April 30, 2025, the Current portion of long-term debt, net of discount and issuance costs, included $ 1.0 billion associated with the asset-backed debt securities issued by the Company.

(1) As of July 31, 2025 and October 31, 2024, the Current portion of long-term debt, net of discount and issuance costs, included $ 1.1 billion and $ 1.4 billion associated with the asset-backed debt securities issued by the Company, respectively.

Asset-backed Debt Securities

In July 2025, the Company issued $ 900 million of asset-backed debt securities in six tranches at a weighted-average price of 99.99 % and a weighted-average interest rate of 4.673 %, payable monthly from September 2025 with a stated final maturity date of March 2033.

Commercial Paper

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In addition, the Hewlett Packard Enterprise subsidiary's euro Commercial Paper/Certificate of Deposit Program provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $ 1.0 billion.

As of April 30, 2025 and October 31, 2024, no borrowings were outstanding under the Parent Programs.

As of April 30, 2025 and October 31, 2024, $ 662 million and $ 649 million, respectively, were outstanding under the subsidiary’s program.

As of July 31, 2025 and October 31, 2024, no borrowings were outstanding under the Parent Programs.

As of July 31, 2025 and October 31, 2024, $ 625 million and $ 649 million, respectively, were outstanding under the subsidiary’s program.

Revolving Credit Facility

In September 2024, the Company terminated its prior senior unsecured revolving credit facility that was entered into in December 2021, and entered into a new senior unsecured revolving credit facility with an aggregate lending commitment of $ 5.25 billion for a period of five years .

The commitment comprised of (i) $ 4.75 billion of commitments available immediately and (ii) $ 500 million of commitments available from and subject to the closing of the proposed acquisition of Juniper Networks and refinancing of Juniper Networks’ credit agreement in connection with the closing of such proposed acquisition.

As of April 30, 2025 and October 31, 2024, no borrowings were outstanding under this credit facility.

The commitment initially comprised of (i) $ 4.75 billion of commitments available immediately and (ii) $ 500 million of commitments available from and subject to the closing of the Merger and refinancing of Juniper Networks’ credit agreement in connection with the closing of such acquisition.

With the completion of the acquisition and the associated refinancing, the full $ 5.25 billion commitment under the new facility is now available to the Company.

As of July 31, 2025 and October 31, 2024, no borrowings were outstanding under this credit facility.

Uncommitted Credit Facility

The Company maintains an uncommitted short-term advance facility with Societe Generale that was entered into in September 2023 with a principal amount of up to $ 500 million for a period of 5 years.

As of April 30, 2025 and October 31, 2024, no borrowings were outstanding under this credit facility.

Juniper Acquisition Financing

In September 2024, the Company entered into term loan agreements with JPMorgan Chase Bank, N.A, Citibank, N.A., and Mizuho Bank, Ltd.

for approximately $ 12.0 billion of senior unsecured delayed draw term loan facilities, comprised of an approximately $ 9.0 billion 364-day tranche and a $ 3.0 billion three-year tranche, subject to customary conditions.

The Company has since further reduced the commitments under the 364-day term loan to $ 1.0 billion.

Unless previously terminated, commitments under both the 364-day term loan and the three-year term loan will terminate upon the earliest of (i) five business

As of July 31, 2025 and October 31, 2024, no borrowings were outstanding under this credit facility.

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Notes to Condensed Consolidated Financial Statements (Continued)

days after the Juniper Outside Date (as defined in such term loan agreements), (ii) the occurrence of the closing of the acquisition of Juniper Networks without the funding of any borrowings under either of the term loan agreements, and (iii) the termination of the Merger Agreement by HPE in writing in accordance with its terms.

As of April 30, 2025, no borrowings were outstanding under these agreements.

Juniper Networks Acquisition Financing

In September 2024, the Company entered into term loan agreements with JPMorgan Chase Bank, N.A, Citibank, N.A., and Mizuho Bank, Ltd.

The Company has since further reduced the commitments under the 364-day term loan to $ 1.0 billion.

HPE funded the aggregate consideration for the Merger through a combination of cash from its balance sheet, commercial paper issuances, and borrowings pursuant to the aforementioned three-year delayed-draw term loan credit facility of $ 3.0 billion and the 364-day delayed-draw term loan credit facility of $ 1.0 billion.

The 364-day loan is scheduled for full repayment on July 1, 2026.

The three-year loan is subject to quarterly amortization at 1.25 %, with the remaining balance due at maturity on June 30, 2028.

Under both loans, interest was initially calculated using the Alternate Base Rate until July 8, 2025 with payment due in September 2025.

Thereafter, the rate transitioned to the Term Benchmark Rate (defined as Adjusted Term SOFR plus the Applicable Rate), payable monthly in accordance with the terms of both credit agreements.

As of July 31, 2025, $ 3.0 billion was outstanding under the three-year delayed-draw term loan credit facility and $ 1.0 billion was outstanding under the 364-day delayed-draw term loan credit facility.

Future Maturities of Borrowings

As of July 31, 2025, aggregate future maturities of the Company's borrowings at face value (excluding a fair value adjustment related to hedged debt of $ 17 million, a net discount of $ 49 million, unamortized debt issuance costs of $ 81 million, and adjusted for fair value to par accretion relating to debt assumed as a result of the Merger of $ 72 million), including finance lease obligations were as follows:

Thereafter 7,827

Total $ 22,123

Stockholders' Equity

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:

The components of accumulated other comprehensive loss, net of taxes as of July 31, 2025, and changes for the nine months ended July 31, 2025 were as follows:

Net unrealized gains (losses)

10 unchanged sentences

Balance at end of period $ 3 $ ( 102 ) $ ( 2,270 ) $ ( 655 ) $ ( 3,024 )

The components of accumulated other comprehensive loss, net of taxes as of April 30, 2024, and changes for the six months ended April 30, 2024 were as follows:

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

The components of accumulated other comprehensive loss, net of taxes as of July 31, 2024, and changes for the nine months ended July 31, 2024 were as follows:

Net unrealized

8 unchanged sentences

Other comprehensive income (loss) before reclassifications 6 ( 69 ) ( 2 ) ( 17 ) ( 82 )

Reclassifications of (gains) losses into earnings — ( 1 ) 69 — 68

Reclassifications of losses into earnings — 2 103 — 105

Tax benefit (provision) — 15 ( 12 ) 1 4

1 unchanged sentence

Share Repurchase Program

For the six months ended April 30, 2025, the Company repurchased and settled 5.7 million shares under its share repurchase program through open market repurchases, which included 0.1 million shares that were unsettled open market repurchases as of October 31, 2024.

As of April 30, 2025, the Company did not have any unsettled open market repurchases.

Shares repurchased for the six months ended April 30, 2025 were recorded as a $ 100 million reduction to stockholders' equity.

As of April 30, 2025, the Company had a remaining authorization of approximately $ 0.7 billion for future share repurchases.

Net (Loss) Earnings Per Share

The Company calculates basic net (loss) earnings per share (“EPS”) using net (loss) earnings and the weighted-average number of shares outstanding during the reporting period.

For the nine months ended July 31, 2025, the Company repurchased and settled 5.7 million shares under its share repurchase program through open market repurchases, which included 0.1 million shares that were unsettled open market repurchases as of October 31, 2024.

As of July 31, 2025, the Company did not have any unsettled open market repurchases.

Shares repurchased for the nine months ended July 31, 2025 were recorded as a $ 100 million reduction to stockholders' equity.

As of July 31, 2025, the Company had a remaining authorization of approximately $ 0.7 billion for future share repurchases.

Net Earnings (Loss) Per Share

The Company calculates basic net earnings (loss) per share (“EPS”) using net earnings (loss) and the weighted-average number of shares outstanding during the reporting period.

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The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

For the three months ended April 30, For the six months ended April 30,

For the three months ended July 31, For the nine months ended July 31,

2025 2024 2025 2024

In millions, except per share amounts

Net (loss) earnings attributable to common stockholders - Basic $ ( 1,079 ) $ 314 $ ( 481 ) $ 701

Net earnings (loss) attributable to common stockholders - Basic $ 276 $ 512 $ ( 205 ) $ 1,213

7.625 % Series C mandatory convertible preferred stock dividends

Net (loss) earnings - Diluted $ ( 1,079 ) $ 314 $ ( 481 ) $ 701

Net earnings (loss) - Diluted $ 305 $ 512 $ ( 205 ) $ 1,213

Weighted-average shares used to compute basic net EPS 1,325 1,312 1,321 1,308

8 unchanged sentences

Total anti-dilutive weighted-average stock 18 — 133 —

(1) The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the Preferred Stock is calculated under the if-converted method.

(1) The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the 7.625 % Series C mandatory convertible preferred stock (“Preferred Stock”) is calculated under the if-converted method.

The effect of employee stock plans and Preferred Stock is excluded when calculating diluted net loss per share as it would be anti-dilutive.

17 unchanged sentences

Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies.

HPE believes it has recorded adequate provisions for any such matters and, as of April 30, 2025, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements.

HPE believes it has recorded adequate provisions for any such matters and, as of July 31, 2025, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements.

Litigation, Proceedings, and Investigations

Department of Justice Action on the Proposed Acquisition of Juniper Networks .

As previously disclosed, on January 9, 2024, HPE entered into the Merger Agreement with Juniper Networks and Jasmine Acquisition Sub, Inc., providing for the acquisition of Juniper by HPE.

Completion of the Merger is subject to the satisfaction or waiver of certain closing conditions, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Act and certain other approvals, clearances or expirations of waiting periods under other antitrust laws and foreign investment laws and the absence of any order, injunction, or other order or law prohibiting the Merger or making the closing of the Merger illegal.

As previously disclosed, on January 9, 2024, the Company entered into the Merger Agreement with Juniper Networks and Jasmine Acquisition Sub, Inc., providing for the acquisition of Juniper Networks by HPE.

On January 30, 2025, the Antitrust Division of the United States Department of Justice (the “DOJ”) filed a complaint in the United States District Court for the Northern District of California, seeking to enjoin the closing of the Merger, alleging that the Merger is likely to substantially lessen competition in violation of Section 7 of the Clayton Act.

On February 10, 2025, HPE and Juniper Networks filed answers to the DOJ’s complaint, disputing these claims.

Trial is scheduled to begin on July 9, 2025.

The consummation of the Merger has been delayed by the DOJ action, and could ultimately be prevented if HPE and Juniper Networks are unsuccessful in defending against or settling the DOJ action.

On June 27, 2025, HPE, Juniper Networks, and the DOJ filed an Asset Preservation and Hold Separate Stipulation and Order (“Stipulation”) and Proposed Final Judgment with the Court.

Pursuant to the Stipulation, HPE has agreed to divest its global InstantOn campus and branch business.

HPE also has agreed to grant up to two licenses to the Mist AIOps source code, with the licensees determined through an auction process.

In exchange, the DOJ has agreed to dismiss its action to enjoin the Merger, subject to the Court’s approval of the Proposed Final Judgment.

On June 30, 2025, the Court signed the Stipulation, allowing the Merger to proceed to closing.

India Directorate of Revenue Intelligence Proceedings .

7 unchanged sentences

After multiple delays and postponements over the last decade, the Customs Tribunal began hearing the parties’ cross-appeals on April 21, 2025.

The hearing on the cross-appeals is expected to be completed in June 2025.

The Company expects a ruling from the Customs Tribunal in fiscal 2025.

The hearings on the cross-appeals were completed in June 2025.

The Company expects a ruling from the Customs Tribunal in 2025.

Either party may appeal the ruling to the India Supreme Court.

10 unchanged sentences

HP Brazil expects a resolution of the decision on the merits to take several years.

Shared Litigation with HP Inc., DXC Technology Company and Micro Focus International plc

As part of the Separation and Distribution Agreements between HPE and HP Inc., HPE and DXC Technology Company (“DXC”), and HPE and Seattle SpinCo (“Micro Focus”), the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses.

The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general

Autonomy-Related Legal Proceedings .

In 2015, four Hewlett Packard Enterprise subsidiaries (Autonomy Corporation Limited, Hewlett Packard Vision BV, Autonomy Systems Limited, and Autonomy, Inc., hereinafter the “Claimants”) initiated civil proceedings in the U.K.

High Court of Justice against two members of Autonomy’s former management, Michael Lynch and Sushovan Hussain, for breach of their fiduciary duties in causing Autonomy group companies to engage in improper transactions and accounting practices before and in connection with the 2011 acquisition of Autonomy.

Trial concluded in January 2020.

In May 2022, the court issued its liability judgment, finding that the Claimants had succeeded on substantially all

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Notes to Condensed Consolidated Financial Statements (Continued)

corporate matters of HP Inc.

claims against Messrs.

Lynch and Hussain, and dismissing a counterclaim filed by Mr.

In February 2024, the court held a two-week trial on damages.

The Claimants sought recovery for $ 4 billion in losses.

In May 2025, Claimants reached an agreement with Mr.

Hussain to resolve claims against him.

On July 22, 2025, the court issued its ruling on the quantum of damages, finding that the Lynch estate owed £ 740 million .

The court has set a hearing for the week of November 17, 2025, to address additional matters, including attorneys’ fees, pre-judgment interest, and the relevant date to use for the exchange rate to convert the recovery from pounds to dollars.

The damages award is also subject to a set-off for prior settlements.

Pursuant to the terms of the 2015 Separation and Distribution Agreement, HP and Hewlett Packard Enterprise will share equally in any recovery.

Shared Litigation with HP Inc., DXC Technology Company and Micro Focus International plc.

The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc.

(in the case of the separation of HPE from HP Inc.) or of HPE (in the case of the separation of DXC from HPE and the separation of Micro Focus from HPE), in each case arising prior to the applicable separation.

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The Company is also contractually obligated to make financial contributions to address actions related to certain environmental liabilities, both ongoing and arising in the future, pursuant to its Separation and Distribution Agreement with HP Inc.

In the ordinary course of business, the Company may issue performance guarantees to certain of its clients, customers, and other parties pursuant to which the Company has guaranteed the performance obligations of third parties.

Unconditional Purchase Obligations

As of July 31, 2025, the Company had unconditional purchase obligations of approximately $ 3.0 billion.

These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction, as well as settlements that the Company has reached with third parties, requiring it to pay determined amounts over a specified period of time.

These unconditional purchase obligations are related principally to inventory purchases, software maintenance and support services and other items.

Unconditional purchase obligations exclude agreements that are cancellable without penalty.

The Company expects the commitments to total $ 463 million, $ 1,314 million, $ 385 million, $ 375 million, $ 346 million, and $ 91 million for fiscal years 2025, 2026, 2027, 2028, 2029, and thereafter, respectively.

In the ordinary course of business, the Company may issue performance guarantees to certain of its clients, customers,

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

and other parties pursuant to which the Company has guaranteed the performance obligations of third parties.

Some of those guarantees may be backed by standby letters of credit or surety bonds.

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The Company believes the likelihood of having to acquire a material amount of assets under these arrangements is remote.

The maximum potential future payments under performance guarantees and financing arrangements was $ 314 million as of April 30, 2025.

The maximum potential future payments under performance guarantees and financing arrangements was $ 320 million as of July 31, 2025.

Indemnifications

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Historically, payments made related to these indemnifications have been immaterial.

Subsequent Events

On August 18, 2025, the Company elected to redeem the entire $ 2.5 billion aggregate principal amount of its outstanding 4.900 % Notes due 2025, on September 17, 2025 (the “Redemption Date”).

The Notes will be redeemed at par, along with any accrued and unpaid interest up to, but not including, the Redemption Date.

Subsequent to the quarter end, the Company sold approximately $ 739 million of available-for-sale investments and recognized a realized gain of approximately $ 2 million.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements