What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-12-18 compared with 2024-12-19 · 736 added, 535 removed, 1894 unchanged (40% of the section changed)

21 unchanged sentences

Stockholders' Equity

Net Earnings Per Share

Net (Loss) Earnings Per Share

Litigation, Contingencies, and Commitments

25 unchanged sentences

Valuation of Goodwill

Description of the matter At October 31, 2024, the Company’s goodwill was $18 billion, of which $4.8 billion related to the Hybrid Cloud reporting unit.

Description of the Matter

At October 31, 2025, the Company’s goodwill was $23.8 billion, of which $3.3 billion and $10.2 billion related to the Hybrid Cloud, and Server reporting units, respectively.

As discussed in Note 11 to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level and more frequently when warranted based on indicators of impairment.

Auditing management’s goodwill impairment test for the Hybrid Cloud reporting unit was complex and highly judgmental due to the significant estimation required to determine the fair value of the reporting unit.

In particular, the fair value estimates of the Hybrid Cloud reporting unit was sensitive to significant assumptions, such as the terminal revenue growth rate and operating margin, which are affected by expectations about future market or economic conditions.

How we addressed the matter in our audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process, including controls over the significant assumptions described above.

To test the estimated fair value of the Company’s Hybrid Cloud reporting unit, we performed audit procedures that included, among others, assessing methodologies and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis.

Auditing management’s goodwill impairment test for the Hybrid Cloud and Server reporting units was complex and highly judgmental due to the significant estimation required to determine the fair value of the reporting units.

In particular, the fair value estimate of the Hybrid Cloud and Server reporting units was sensitive to significant assumptions, such as the terminal revenue growth rate and operating margin, which are affected by expectations about future market or economic conditions.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process, including controls over the significant assumptions described above.

To test the estimated fair value of the Company’s Hybrid Cloud and Server reporting units, we performed audit procedures that included, among others, assessing methodologies and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis.

We compared the significant assumptions used by management to current industry and economic trends and evaluated whether changes to the Company’s business model, product mix and other factors would affect the significant assumptions.

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Estimation of variable consideration

Description of the matter As described in Note 1 to the consolidated financial statements, the Company recognizes revenue for sales to its customers after deducting management’s estimates of variable consideration which may include various rebates, volume-based discounts, price protection, and other incentive programs that are offered to customers, partners, and distributors.

Description of the Matter

As described in Note 1 to the consolidated financial statements, the Company recognizes revenue for sales to its customers after deducting management’s estimates of variable consideration which may include various rebates, volume-based discounts, price protection, and other incentive programs that are offered to customers, partners, and distributors.

Estimated variable consideration is presented within other accrued liabilities on the consolidated balance sheet and totaled $1.0 billion at October 31, 2025.

Auditing the estimates of variable consideration associated with rebates, specifically within the Intelligent Edge segment, was complex and judgmental due to the level of uncertainty involved in management’s estimate of expected usage of these programs.

How we addressed

the matter in our audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process for estimating rebates, including controls over the significant assumptions described above.

To test the Company’s determination of variable consideration we performed audit procedures that included, among others, evaluating the methodologies, testing the significant assumptions discussed above and testing the completeness and accuracy of the underlying data used by the Company in its analyses.

We compared the significant assumptions to historical experience of the Company to develop an expectation of the rebates associated with product remaining in the distribution channel at October 31, 2024, which we compared to management’s recorded amount.

Auditing the estimates of variable consideration for certain rebates within the Networking segment included in this amount was complex and judgmental due to the level of uncertainty involved in management’s estimate of expected usage of these programs.

How We Addressed the Matter in Our Audit

To test the Company’s determination of variable consideration, we performed audit procedures that included, among others, evaluating the methodologies, testing the significant assumptions including revenue eligible for rebates and expected rebate rates and testing the completeness and accuracy of the underlying data used by the Company in its analyses.

We compared the significant assumptions to historical experience of the Company to develop an expectation of future rebates on eligible revenue as of October 31, 2025, which we compared to management’s recorded amount.

In addition, we inspected the underlying agreements and compared the incentive rates used in the Company’s analyses with contractual rates.

We assessed the historical accuracy of management’s estimates by comparing previous estimates of rebate liabilities to the amount of actual payments in subsequent periods.

Acquisition of Juniper Networks – Valuation of customer contracts, customer lists and distribution agreements

Description of the Matter

As disclosed in Notes 1 and 10 to the consolidated financial statements, on July 2, 2025, the Company completed the acquisition of Juniper Networks, Inc.

for total consideration of $13.6 billion.

The Company allocated the net purchase price to assets acquired and liabilities assumed based on their respective fair values as of the date of acquisition, including intangible assets of $6.2 billion, of which $2.4 billion relate to customer contracts, customer lists and distribution agreements.

Auditing the valuation of acquired customer contracts, customer lists and distribution agreements was complex and highly judgmental due to significant judgment and estimation by management when developing the fair value estimate of the customer contracts, customer lists & distribution agreement.

Specifically, there was a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management’s significant assumptions related to forecasted revenue, and forecasted growth in earnings before interest, taxes, depreciation & amortization, both of which are affected by expectations about future market and operational decisions and the discount rate used in estimating the fair value.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company’s valuation of acquired intangible assets, including controls over the significant assumptions described above.

To test the estimated fair value of the customer contracts, customer lists and distribution agreements intangible asset, we performed audit procedures that included, among others, assessing methodologies and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis.

We compared the significant assumptions used by management to current industry and economic trends and evaluated whether and the degree to which changes to the Company’s forecast and other factors would affect the significant assumptions.

Our testing also included comparing the significant assumptions used to the current and historical results of the acquired business and to other guideline companies within the same industry.

We involved our valuation professionals to evaluate the application of valuation methodologies and test the discount rate used in the determination of the fair value estimate.

/s/ Ernst & Young LLP

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In our opinion, Hewlett Packard Enterprise Company and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of October 31, 2025, based on the COSO criteria.

As indicated in the accompanying Management’s Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Juniper Networks, Inc., which is included in the 2025 consolidated financial statements of the Company and constituted 5% of total assets, after excluding goodwill and intangible assets acquired, as of October 31, 2025 and 6% of revenues, for the year then ended.

Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Juniper Networks, Inc.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of October 31, 2025 and 2024, the related consolidated statements of earnings, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended October 31, 2025, and the related notes and our report dated December 18, 2025 expressed an unqualified opinion thereon.

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Hewlett Packard Enterprise's management assessed the effectiveness of Hewlett Packard Enterprise's internal control over financial reporting as of October 31, 2025, utilizing the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013 framework).

Management's evaluation of internal control over financial reporting excluded the internal control activities of Juniper Networks, Inc.

which is included in the 2025 consolidated financial statements of Hewlett Packard Enterprise and constituted 5 percent of total assets excluding goodwill and intangible assets as of October 31, 2025, and 6 percent of net revenues for the year then ended.

Based on the assessment by Hewlett Packard Enterprise's management, we determined that Hewlett Packard Enterprise's internal control over financial reporting was effective as of October 31, 2025.

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/s/ Antonio F.

Neri /s/ Marie Myers

/s/ Marie Myers

President and Chief Executive Officer

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Amortization of intangible assets 511 267 288

Impairment of goodwill — — 905

Impairment charges

Transformation costs 2 93 283

Disaster charges 7 1 48

Acquisition, disposition and other related charges 204 69 19

Acquisition, disposition and other charges

Total costs and expenses 34,733 27,937 27,046

Earnings from operations 2,190 2,089 782

(Loss) earnings from operations

( 437 ) 2,190 2,089

Interest and other, net ( 175 ) ( 117 ) ( 104 )

Gain on sale of equity interest — 733 —

Gain on sale of a business 248 — —

Earnings from equity interests 79 147 245

Earnings before provision for taxes 2,953 2,230 876

Provision for taxes ( 374 ) ( 205 ) ( 8 )

(Loss) earnings before provision for taxes

( 285 ) 2,953 2,230

Benefit (provision) for taxes 342 ( 374 ) ( 205 )

Net earnings attributable to HPE 57 2,579 2,025

Preferred stock dividends ( 116 ) ( 25 ) —

Net earnings attributable to common stockholders $ 2,554 $ 2,025 $ 868

Net Earnings Per Share Attributable to Common Stockholders:

Net (loss) earnings attributable to common stockholders

$ ( 59 ) $ 2,554 $ 2,025

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

Basic $ ( 0.04 ) $ 1.95 $ 1.56

Diluted $ ( 0.04 ) $ 1.93 $ 1.54

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

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

Basic 1,324 1,309 1,299

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Net unrealized gains (losses) arising during the period ( 3 ) 8 1

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

Net unrealized (losses) gains arising during the period ( 115 ) ( 177 ) 1,025

Net losses (gains) reclassified into earnings 16 116 ( 978 )

Losses reclassified into earnings 1 — —

Change in Net Unrealized Components of Cash Flow Hedges:

Net unrealized losses arising during the period ( 168 ) ( 115 ) ( 177 )

Net losses reclassified into earnings 156 16 116

( 12 ) ( 99 ) ( 61 )

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Curtailments, settlements and other 10 2 3

172 48 ( 155 )

Change in Cumulative Translation Adjustment:

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Other Comprehensive Income (Loss) Before Taxes 253 90 ( 44 )

Benefit for Taxes 17 58 87

Other Comprehensive Income (Loss), Net of Taxes 107 14 ( 183 )

(Provision) Benefit for Taxes ( 24 ) 17 58

Other Comprehensive Income, Net of Taxes 229 107 14

Comprehensive Income $ 286 $ 2,686 $ 2,039

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Deferred revenue 5,358 3,904

Accrued restructuring 61 180

Liabilities held for sale — 32

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Commitments and Contingencies

Stockholders' Equity

HPE stockholders' Equity:

7.625 % Series C mandatory convertible preferred stock, $ 0.01 par value ( 30,000,000 issued and outstanding at October 31, 2024)

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

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

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Depreciation and amortization 2,737 2,564 2,616

Impairment of goodwill — — 905

Impairment charges

Stock-based compensation expense 643 430 428

Provision for inventory and credit losses 511 175 230

Restructuring charges 33 242 214

Restructuring (credit) charges

( 13 ) 33 242

Cost reduction program 275 — —

Deferred taxes on earnings ( 565 ) ( 64 ) ( 67 )

Earnings from equity interests ( 90 ) ( 147 ) ( 245 )

Gain on sale of a business ( 248 ) — —

Gain on sale of equity interest — ( 733 ) —

Dividends received from equity investees 29 43 200

H3C divestiture related severance costs 97 — —

Amortization of inventory fair value adjustment

Loss on equity investments, net

Other, net 181 136 —

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Proceeds from sale of property, plant and equipment 380 370 602

Purchases of investments ( 16 ) ( 15 ) ( 55 )

Proceeds from maturities and sales of investments 2,149 9 262

Purchases of equity investments ( 9 ) ( 16 ) ( 15 )

Proceeds from sale of available-for-sale securities and other investments

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

Proceeds from sale of equity interest

Financial collateral posted ( 764 ) ( 1,020 ) ( 1,443 )

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Payments made in connection with business acquisitions, net of cash acquired ( 12,278 ) ( 147 ) ( 761 )

Proceeds from sale of a business 210 — —

Net cash used in investing activities ( 13,190 ) ( 53 ) ( 3,284 )

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Payment of debt ( 6,837 ) ( 5,475 ) ( 4,887 )

Cash settlement for derivative hedging debt — ( 7 ) ( 8 )

Net payments related to stock-based award activities ( 289 ) ( 84 ) ( 106 )

Proceeds from issuance of 7.625 % Series C mandatory convertible preferred stock, net of issuance costs

Repurchase of common stock ( 150 ) ( 421 ) ( 512 )

Cash dividends paid to non-controlling interests, net of contributions ( 8 ) — ( 6 )

Cash dividends paid to shareholders ( 676 ) ( 619 ) ( 621 )

Repurchases of common stock

( 202 ) ( 150 ) ( 421 )

Cash dividends paid to preferred stockholders

Cash dividends paid to common stockholders

( 684 ) ( 676 ) ( 619 )

( 10 ) ( 8 ) ( 7 )

Net cash provided by (used in) financing activities 1,046 6,283 ( 1,362 )

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Interests Total

In millions, except number of shares in thousands

Balance at October 31, 2022 1,281,037 $ 13 — $ 28,299 $ ( 5,350 ) $ ( 3,098 ) $ 19,864 $ 45 $ 19,909

Net earnings attributable to HPE 2,025 2,025 11 2,036

Other comprehensive loss ( 183 ) ( 183 ) — ( 183 )

Other comprehensive income 14 14 — 14

Comprehensive income 2,039 11 2,050

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Tax withholding related to vesting of employee stock plans ( 145 ) ( 145 ) ( 145 )

Equity issued in connection with the 7.625 % Series C mandatory convertible preferred stock

30,000 1,462 1,462 1,462

Issuance of common stock in connection with employee stock plans and other 22,385 52 — 52 52

Repurchases of common stock ( 7,757 ) ( 150 ) ( 150 ) ( 150 )

Dividend on preferred stock accrued / declared ($ 0.83 per preferred share)

( 25 ) ( 25 ) ( 25 )

Cash dividends declared ($ 0.52 per common share)

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Tax withholding related to vesting of employee stock plans ( 333 ) ( 333 ) ( 333 )

Equity issued in connection with the 7.625% Series C mandatory convertible preferred stock 30,000 1,462 1,462 1,462

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 30,758 35 2 37 ( 2 ) 35

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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, dated January 9, 2024, by and among Juniper Networks, HPE and Jasmine Acquisition Sub, Inc., a Delaware corporation and a wholly owned subsidiary of HPE (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 Consolidated Financial Statements commencing on July 2, 2025.

See Note 10, “Acquisitions and Dispositions,” to the Consolidated Financial Statements for additional information.

Basis of Presentation and Principles of Consolidation

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Segment Realignment

Effective as of the beginning of fiscal 2024, in order to align the segment financial reporting more closely with its business structure, the Company established two new reportable segments, Hybrid Cloud and Server.

Hybrid Cloud includes the historical Storage segment, HPE GreenLake Flex Solutions (which provides flexible as-a-service (“aaS”) IT infrastructure through the HPE GreenLake cloud and was previously reported under the Compute and the High Performance Computing & Artificial Intelligence (“HPC & AI”) segments), Private Cloud, and Software (previously reported under the Corporate Investments and Other segment).

The Server segment combines the previously separately reported Compute and HPC & AI segments, with adjustments for certain product lines that are now reported in Hybrid Cloud.

Additionally, certain products and services previously reported in the financial results for the HPC & AI segment were moved to be reported in the Hybrid Cloud segment, and the Athonet business and certain components of the Communications and Media Solutions (“CMS”) business, both previously reported in the financial results for Corporate Investments and Other, moved to be reported in the Intelligent Edge segment.

As a result, the Company’s organizational structure for fiscal 2024 consisted of the following segments:

(ii) Hybrid Cloud;

(iii) Intelligent Edge;

(iv) Financial Services;

and (v) Corporate Investments and Other.

The Company began reporting under this re-aligned segment structure beginning with the results of the first quarter of fiscal 2024 included in the Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2024.

These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share (“EPS”) or total assets.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Russia/Ukraine Conflict

In response to the conflict between Russia and Ukraine and the related sanctions imposed by the U.S., European Union and other countries, the Company determined that it was no longer tenable to maintain its operations in Russia and Belarus and has been proceeding with an orderly, managed exit of its remaining business in these countries.

During fiscal 2022, the Company recorded total pre-tax charges of $ 161 million primarily related to expected credit losses of financing and trade receivables, employee severance and abandoned assets, $ 99 million of which was included in Financing cost, $ 12 million in Cost of services and $ 50 million in Disaster charges in the Consolidated Statements of Earnings.

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 segment, to the Hybrid Cloud segment.

Use of Estimates

The preparation of financial statements requires management to make estimates, judgments and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes.

The preparation of financial statements in accordance with U.S.

GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes.

Estimates are assessed each period and updated to reflect current information, including those related to revenue recognition, stock-based compensation, net periodic benefit costs, restructuring accruals, provision for taxes, valuation allowance for deferred taxes, provision for expected credit losses, inventory reserves, and impairment assessments of goodwill, intangible assets and other long-lived assets.

The Company believes that these estimates, judgments and assumptions are reasonable under the circumstances, and are subject to significant uncertainties, some of which are beyond the Company's control.

Should any of these estimates change, it could adversely affect the Company's results of operations.

Should any of

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

these estimates change, it could adversely affect the Company's results of operations.

Actual results could differ materially from these estimates under different assumptions or conditions.

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Variable consideration is estimated at contract inception and updated at the end of each reporting period as additional information becomes available and recognized only to the extent that it is probable that a significant reversal of revenue will not occur.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Transfer of control occurs once the customer has the contractual right to use the product, generally upon delivery once title and risk of loss has transferred to the customer.

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Judgment is applied in determining the transaction price as the Company may be required to estimate variable consideration when determining the amount of revenue to recognize.

Variable consideration may include various rebates, volume-based discounts, price protection, and other incentive programs that are offered to customers, partners and distributors.

Variable consideration may include various rebates,

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

volume-based discounts, price protection, and other incentive programs that are offered to customers, partners and distributors.

When determining the amount of revenue to recognize, the Company estimates the expected usage of these programs, applying the expected value or most likely estimate and updates the estimate at each reporting period as actual utilization becomes available.

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Refer to Note 7, “Balance Sheet Details,” for additional information.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Shipping and Handling

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These assumptions vary by plan, and the weighted-average rates used are set forth in Note 4, “Retirement and Post-Retirement Benefit Plans.”

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The discount rate assumption is based on current investment yields of high-quality fixed-income securities with maturities similar to the expected benefits payment period.

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Advertising expense totaled approximately $ 179 million, $ 117 million, and $ 173 million in fiscal 2025, 2024, and 2023, respectively.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Restructuring

The Company's transformation programs include charges to approved restructuring plans.

Restructuring and Severance

The Company's transformation programs include charges for approved restructuring plans;

the primary elements of the transformation programs were completed by the end of fiscal 2024.

Restructuring charges include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs.

These restructuring actions require management to estimate the timing and amount of severance and other employee separation costs for workforce reduction and enhanced early retirement programs, the fair value of assets made redundant or obsolete, and the value of lease and contract cancellation and other exit costs.

In addition, these restructuring actions require management to estimate the timing and amount of severance and other employee separation costs for workforce reduction and enhanced early retirement programs, the fair value of assets made redundant or obsolete, and the value of lease and contract cancellation and other exit costs.

The Company records restructuring charges based on estimated employee terminations and site closure and consolidation plans.

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The rates used in determining severance accruals are based on existing plans, historical experiences and negotiated settlements.

For a full description of the Company's restructuring actions, refer to the discussions in Note 3, “Transformation Programs.”

For a full description of the Company's restructuring and severance actions, refer to the discussions in Note 3, “Transformation Programs” and Note 7, “Balance Sheet Details.”

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Taxes on Earnings

The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse.

The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized.

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The provision for income taxes includes the effects of adjustments for uncertain tax positions as well as any related interest and penalties.

The Company recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Provision for taxes in the Consolidated Statements of Earnings.

The Company recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Benefit (provision) for taxes in the Consolidated Statements of Earnings.

The Company is subject to the Global Intangible Low Taxed Income (“GILTI”) tax in the U.S.

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The Company establishes an allowance for expected credit losses related to accounts receivable, including unbilled receivables.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Financing Receivable

Financing Receivables

The allowance for expected credit losses related to financing receivables is comprised of a general reserve and a specific reserve.

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Subsequently, the Company may recognize revenue on non-accrual financing receivables as payments are received, which is on a cash basis, if the Company deems the recorded financing receivable to be fully collectible;

however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method.

however, if there is doubt regarding the ultimate collectability of

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method.

In certain circumstances, such as when the Company deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due.

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The Company performs ongoing credit evaluations of the financial condition of its customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances.

As of October 31, 2024 and 2023 no single customer accounted for more than 10% of the Company's receivable from trade customers and financing receivables.

As of October 31, 2025, one distributor accounted for 10% of the Company's accounts receivable balance and no single customer accounted for more than 10% of the Company’s financing receivables.

As of October 31, 2024, no single customer accounted for more than 10% of the Company's receivable from trade customers and financing receivables.

Restricted Cash

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Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis.

At each reporting period, the Company assesses the value of its inventory

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

and writes down the cost of inventory to its net realizable value if required, for estimated excess or obsolescence.

At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable value if required, for estimated excess or obsolescence.

Factors influencing these adjustments include changes in future demand forecasts, market conditions, technological changes, product life-cycle and development plans, component cost trends, product pricing, physical deterioration, and quality issues.

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 Products and Cost of Services in the Consolidated Statements of Earnings.

The write down for excess or obsolescence is charged to the provision of inventory, which is a component of Cost of Sales in the 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.

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On retirement or disposition, the asset cost and related accumulated depreciation are removed from the Consolidated Balance Sheets with any gain or loss recognized in the Consolidated Statements of Earnings.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Company capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software.

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Fixed payments are included in the recognition of ROU assets and liabilities, while non-lease components, such as maintenance or utility charges are expensed as incurred.

The Company has agreements with lease and non-lease components that are accounted for separately and not included in its leased assets and corresponding liabilities for the majority of the Company's lease agreements.

The Company has agreements that include both lease and non-lease components.

For the majority of these agreements, the non-lease components are accounted for separately and therefore are not included in the Company’s recognized leased assets and liabilities.

The Company allocates consideration to the lease and non-lease components using their relative standalone values.

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At the end of the lease term, the Company allows the client to either return the equipment, purchase the equipment or renew the lease based on mutually agreed upon terms.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Company retains a residual position in equipment through lease and finance agreements which is equivalent to an estimated market value.

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The Company includes the results of operations of acquired businesses in the Company's consolidated results prospectively from the date of acquisition.

Upon the acquisition of a business, the fair value of the assets acquired and liabilities assumed are estimated, which may require judgment regarding the identification of acquired assets and liabilities assumed.

Once the acquired assets and assumed liabilities are identified, the fair value of the assets and liabilities are estimated using a variety of approaches, including relief from royalty and multi-period excess earnings method that require significant judgments.

For intangible assets, significant judgments include, but are not limited to, future revenue and operating margins, customer

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

attrition, selection of discount and royalty rates, and estimated technological useful life.

For tangible assets, significant judgments include, but are not limited to, current market values, physical and functional obsolescence of the assets, and remaining useful lives.

The Company allocates the fair value of purchase consideration to the assets acquired including in-process research and development (“IPR&D”), liabilities assumed, and non-controlling interests in the acquired entity based on their fair values at the acquisition date.

IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter.

IPR&D is initially measured at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter.

The excess of the fair value of purchase consideration over the fair value of the assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill.

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Qualitative factors include, but are not limited to, the macroeconomic and industry environment as well as Company-specific factors.

The Company elects to perform a quantitative test for all of its reporting units as part of its annual goodwill impairment assessment in the fourth quarter of each fiscal year.

The Company used the qualitative assessment for the Juniper reporting unit.

For all other reporting units, the Company elects to perform a quantitative test as part of its annual goodwill impairment assessment in the fourth quarter of each fiscal year.

In the quantitative assessment, the Company estimates the fair value of its reporting units using a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach.

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The goodwill impairment loss is measured as the excess of the reporting unit's carrying value over its fair value (not to exceed the total goodwill allocated to that reporting unit).

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Intangible Assets and Long-Lived Assets

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The Company amortizes capitalized costs on a straight-line basis over the estimated useful life of products, which is generally three years .

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Equity Method Investments

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The Company monitors its investment portfolio for potential impairment on a quarterly basis.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Interest and other, net, in the Consolidated Statements of Earnings, while the impairment that is not credit related is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets.

When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit-related factors, the Company recognizes the impairment using an allowance for credit loss in Interest and other, net, in the Consolidated Statements of Earnings, while the impairment that is not credit related is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets.

The Company uses derivative financial instruments, primarily forwards, swaps, and, at times, options, to manage a variety of risks, including risks related to foreign currency and interest rate exposures.

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In the absence of such data, the Company will use internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

The determination of fair value often involves significant judgments about assumptions such as determining an appropriate discount rate that factors in both risk and liquidity premiums, identifying the similarities and differences in market transactions, weighting those differences accordingly and then making the appropriate adjustments to those market transactions to reflect the risks specific to the asset or liability being valued.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

accordingly and then making the appropriate adjustments to those market transactions to reflect the risks specific to the asset or liability being valued.

For a further discussion of fair value measurements and derivative instruments, refer to Note 12, “Fair Value,” and Note 13, “Financial Instruments,” respectively.

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The estimated warranty obligation is based on contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failure outside of the Company's baseline experience.

Warranty terms generally range from one to five years for parts and labor, depending upon the product.

For certain networking products, the Company offers a lifetime warranty.

Warranty terms generally range from one to seven years for parts and labor, depending upon the product.

For certain networking products, the Company offers a limited lifetime warranty.

Over the last three fiscal years, the annual warranty expense has averaged approximately 0.8 % of annual net product revenue.

Our warranty terms are evaluated periodically and may be subject to change.

Refer to Note 7, “Balance Sheet Details,” for additional information.

Recently Enacted Accounting Pronouncements

In December 2025, the Financial Accounting Standards Board (“FASB”) issued guidance to establish the accounting for a government grant received by a business entity.

The amendment is effective for annual and interim periods beginning after December 15, 2028, though early adoption is permitted.

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

In September 2025, the FASB issued guidance to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages and clarifies the criteria to begin capitalizing cost.

The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted.

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

In July 2025, the FASB issued guidance to provide a practical expedient for measuring expected credit losses on current trade receivables and contract assets by assuming that current conditions remain unchanged over the life of the asset.

The amendment is effective for annual and interim periods beginning after December 15, 2025, with early adoption permitted.

The Company elected to early adopt the amendments in the fourth quarter of fiscal 2025, as permitted by the standard.

The adoption of the amendments did not have a material impact on the Company's 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 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 Consolidated Financial Statements.

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.

The Company will adopt this guidance for its annual period ending October 31, 2025 and all interim periods thereafter.

The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

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.

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.

Segment Information

Hewlett Packard Enterprise's operations are organized into five segments for financial reporting purposes:

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

Hewlett Packard Enterprise's organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer, uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology.

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

Hewlett Packard Enterprise's organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), Antonio F.

Neri, who is the President and Chief Executive Officer, uses to evaluate, view and run the Company's business operations, which

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

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.

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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 SaaS space.

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a full suite of private cloud offerings that enable customers to self-manage or choose a fully managed experience;

and a portfolio of world-class AI infrastructure delivered aaS.

This segment also provides self-service private cloud on-demand with HPE GreenLake for Private Cloud Business Edition.

and a portfolio of world-class Private Cloud AI infrastructure delivered aaS.

This segment also provides self-service private cloud on-demand with HPE GreenLake for Private Cloud Business Edition, which includes an integrated VM Essentials virtualization software.

Infrastructure software includes monitoring and observability for day two operations and beyond through the Company’s acquisition of OpsRamp and unified data access through HPE Ezmeral Data Fabric and analytics suite, which helps move and transform data for use in AI and other applications.

Hybrid Cloud segment also includes data lifecycle management and protection through its suite of offerings, including Zerto Disaster Recovery.

Intelligent Edge offers wired and wireless local area networks, campus, branch, and data center switching, software-defined wide-area-networks, private and public cellular network software, network security, and associated services that enable secure connectivity for businesses of any size.

The HPE Aruba Networking product portfolio includes hardware products such as Wi-Fi access points, switches, and gateways.

The HPE Aruba 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.

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;

CMS, which primarily offers software and related services to the telecommunications industry;

and Hewlett Packard Labs, which is responsible for research and development.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Segment Policy

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Hewlett Packard Enterprise's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Financing cost in the Consolidated Statements of Earnings reflects interest expense on borrowing and funding-related activity associated with FS and its subsidiaries, and debt issued by Hewlett Packard Enterprise for which a portion of the proceeds benefited FS.

Segment operating expenses primarily include employee related costs, third-party software costs, and lease expense.

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, impairment of goodwill, transformation costs, disaster recovery/charges, divestiture related exit costs, and acquisition, disposition and other related charges.

These unallocated operating costs include certain corporate costs and eliminations, stock-based compensation expense, amortization of intangible assets, impairment charges, transformation costs, H3C divestiture related severance costs, severance costs related to the cost reduction program, acquisition, disposition and other charge s .

Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by the CODM.

Segment Realignments

Effective at the beginning of the first quarter of fiscal 2026, the Company implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI and (ii) transferring the Telco and Instant On businesses to Corporate Investments and Other from Networking.

Segment Operating Results

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

Server Hybrid Cloud Networking Financial Services Corporate Investments and Other Total

Net revenue $ 17,639 $ 5,544 $ 6,837 $ 3,507 $ 769 $ 34,296

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Total segment net revenue 17,745 5,754 6,850 3,504 776 34,629

Segment cost of sales

14,038 3,624 2,756 2,856 598 23,872

Segment operating expenses

2,364 1,795 2,498 287 210 7,154

Segment earnings (loss) from operations $ 1,343 $ 335 $ 1,596 $ 361 $ ( 32 ) $ 3,603

Fiscal 2024 (1)

Net revenue $ 15,830 $ 5,273 $ 4,501 $ 3,509 $ 1,014 $ 30,127

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Total segment net revenue 16,104 5,487 4,532 3,512 1,014 30,649

Segment cost of sales

12,060 3,302 1,706 2,923 795 20,786

Segment operating expenses

2,240 1,926 1,711 273 244 6,394

Segment earnings (loss) from operations $ 1,804 $ 259 $ 1,115 $ 316 $ ( 25 ) $ 3,469

Net revenue $ 15,137 $ 5,173 $ 3,849 $ 3,326 $ 1,011 $ 28,496

Fiscal 2023 (1)

$ 13,831 $ 5,491 $ 5,362 $ 3,466 $ 985 $ 29,135

Intersegment net revenue 435 97 17 14 — 563

Total segment net revenue

14,266 5,588 5,379 3,480 985 29,698

Segment cost of sales

10,071 3,314 2,228 2,919 808 19,340

Segment operating expenses

2,380 2,027 1,808 280 254 6,749

Segment earnings (loss) from operations

$ 1,815 $ 247 $ 1,343 $ 281 $ ( 77 ) $ 3,609

(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 segment, to the Hybrid Cloud segment.

These prior year amounts have been recast to reflect the change.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

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Total consolidated net revenue $ 34,296 $ 30,127 $ 29,135

Earnings Before Taxes:

(Loss) Earnings Before Taxes:

Total segment earnings from operations $ 3,603 $ 3,469 $ 3,609

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Stock-based compensation expense ( 643 ) ( 430 ) ( 428 )

Amortization of initial direct costs — — ( 4 )

Amortization of intangible assets ( 511 ) ( 267 ) ( 288 )

Impairment of goodwill — — ( 905 )

Impairment charges

( 1,621 ) — —

Transformation costs ( 2 ) ( 93 ) ( 283 )

Disaster recovery (charges) 51 12 ( 159 )

Divestiture related exit costs ( 35 ) — —

Acquisition, disposition and other related charges ( 204 ) ( 69 ) ( 19 )

Gain on sale of a business

H3C divestiture related severance costs

Cost reduction program

Acquisition, disposition and other charges (1)

( 641 ) ( 188 ) ( 57 )

Interest and other, net (2)

( 175 ) ( 117 ) ( 104 )

Gain on sale of equity interest — 733 —

Earnings from equity interests 79 147 245

Total earnings before provision for taxes $ 2,953 $ 2,230 $ 876

Total (loss) earnings before provision for taxes

$ ( 285 ) $ 2,953 $ 2,230

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

For fiscal 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) Fiscal 2025 includes $ 135 million loss on investments, net, non-service net periodic credit $ 100 million and a $ 52 million litigation settlement received in the third quarter.

Major Customers

The Company had two distributors which represented approximately 14 % and 11 % of the Company's total net revenue in fiscal 2024, primarily within the Intelligent Edge and Server segments.

The Company had one customer, which is a distributor, that represented 11 % of the Company's total net revenue in fiscal 2023, primarily within the Intelligent Edge and Server segments.

No single customer represented 10% or more of the Company's total net revenue in fiscal year 2022.

The Company had one distributor which represented approximately 10 % of the Company's total net revenue in fiscal 2025, primarily within the Server and Networking segments.

The Company had two distributors which represented approximately 14 % and 11 % of the Company's total net revenue in fiscal 2024, primarily within the Networking and Server segments.

The Company had one customer, which is a distributor, that represented 11 % of the Company's total net revenue in fiscal 2023, primarily within the Networking and Server segments.

Geographic Information

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For each of the fiscal years of 2025, 2024 and 2023, other than the U.S., no country represented more than 10% of the Company's net revenue.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Net revenue by geographic region was as follows:

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Total consolidated net revenue $ 34,296 $ 30,127 $ 29,135

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Property, plant and equipment, net by country in which the Company's operates was as follows:

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Transformation programs are comprised of the Cost Optimization and Prioritization Plan and the HPE Next Plan.

During the third quarter of fiscal 2020, the Company launched the Cost Optimization and Prioritization Plan which focuses 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 costs predominantly related to labor restructuring, non-labor restructuring, IT investments, design and execution charges and real estate initiatives.

The primary elements of the Cost Optimization and Prioritization Plan were completed by the end of fiscal 2024.

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 is simplifying the operating model, and streamlining its offerings, business processes and business systems to improve its strategy execution.

The primary elements of the HPE Next Plan were completed by the end of fiscal 2024.

Cost Optimization and Prioritization Plan

The components of the transformation costs relating to the Cost Optimization and Prioritization Plan were as follows:

For the fiscal years ended October 31,

2024 2023 2022

Program management $ 2 $ 9 $ 27

IT costs 13 26 26

Restructuring charges 32 226 201

Total $ 47 $ 261 $ 254

HPE Next Plan

The components of transformation costs relating to HPE Next Plan were as follows:

For the fiscal years ended October 31,

2024 2023 2022

Program management $ 1 $ — $ 7

IT costs 47 91 184

Restructuring charges 1 16 13

Gains on real estate sales — ( 85 ) ( 8 )

Impairment on real estate assets — — 11

Total $ 49 $ 25 $ 220

Restructuring Plans

On May 19, 2020, the Company's Board of Directors approved a restructuring plan in connection with the Cost Optimization and Prioritization Plan which primarily related to labor restructuring and real estate site exits under non-labor restructuring.

The changes to the workforce varied by country, based on business needs, local legal requirements and consultations with employee works councils and other employee representatives, as appropriate.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

On October 16, 2017, the Company's Board of Directors approved a restructuring plan in connection with the HPE Next Plan, and on September 20, 2018, the Company's Board of Directors approved a revision to that restructuring plan.

Headcount exits under the HPE Next Plan were substantially complete as of October 31, 2020.

Other restructuring actions primarily related to infrastructure were substantially complete as of October 31, 2022.

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

For each of fiscal 2025, 2024, and 2023, the transformation charges relating to both plans were $ 2 million, $ 96 million, and $ 286 million, respectively.

These costs primarily related to labor restructuring, non-labor restructuring, IT investments, design and execution charges, and real estate initiatives.

Restructuring activities related to the Company's employees and infrastructure under the Cost Optimization and Prioritization Plan and HPE Next Plan are presented in the table below:

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Severance Infrastructure

and other Employee

Severance Infrastructure

Liability as of October 31, 2023

and other Infrastructure

Balance at beginning of year

$ 67 $ 94 $ 23

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Non-cash items 2 ( 2 ) ( 1 )

Liability as of October 31, 2024

Balance at end of year

$ 37 $ 61 $ 14

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$ 823 $ 553 $ 268

The current restructuring liability related to the transformation programs, reported in the Consolidated Balance Sheets as of October 31, 2024 and 2023, was $ 61 million and $ 180 million, respectively, in Accrued restructuring, and $ 17 million and $ 22 million, respectively, in Other accrued liabilities.

The current restructuring liability related to the transformation programs, reported in Other accrued liabilities in the Consolidated Balance Sheets as of October 31, 2025 and 2024, was $ 42 million and $ 78 million, respectively.

The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Consolidated Balance Sheets as of October 31, 2025 and 2024 was $ 70 million and $ 106 million, respectively.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Retirement and Post-Retirement Benefit Plans

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The Company sponsors defined benefit pension plans worldwide, the most significant of which are the United Kingdom (“UK”) and Germany plans.

The pension plan in the UK is closed to new entrants, and the plan was frozen October 31, 2024.

The pension plan in the UK is closed to new entrants, and the plan was frozen on October 31, 2024.

This plan provides benefits based on final pay and years of service and generally requires contributions from members.

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These previously closed pension programs comprise the majority of the pension obligations in Germany.

As part of the Juniper Networks acquisition, HPE added mostly unfunded defined benefit plans contributing to a small decrease to HPE’s asset position.

Post-Retirement Benefit Plans

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The Company offers various defined contribution plans for U.S.

The Company’s defined contribution expense was approximately $ 206 million in fiscal 2024 and 2023, and $ 196 million in fiscal 2022.

The Company’s defined contribution expense was approximately $ 228 million in fiscal 2025, and $ 206 million in fiscal 2024 and 2023.

employees are automatically enrolled in the Hewlett Packard Enterprise Company 401(k) Plan (“HPE 401(k) Plan”), when they meet eligibility requirements, unless they decline participation.

The HPE 401(k) Plan’s quarterly employer matching contributions are 100 % of an employee’s contributions, up to a maximum of 4 % of eligible compensation.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Juniper Networks employees began participating in the HPE 401(k) plan in August 2025.

Pension Benefit Expense

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Settlement loss and special termination benefits (1)

Total net benefit cost (credit) $ 51 $ 56 $ ( 56 ) $ 2 $ 1 $ 1

Total net benefit (credit) cost

$ ( 51 ) $ 51 $ 56 $ 4 $ 2 $ 1

(1) These non-service components were included in Interest and other, net in the Consolidated Statements of Earnings.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The weighted-average assumptions used to calculate the net benefit cost (credit) in the table above for fiscal 2025, 2024 and 2023 were as follows:

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Fair value—beginning of year $ 11,007 $ 9,879 $ 76 $ 68

Acquisitions and divestitures 26 — — —

Reimbursement of benefit payments (1)

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Projected benefit obligation—beginning of year $ 10,256 $ 9,362 $ 162 $ 148

Addition/deletion of plans (2)

Addition/deletion of plans/acquisitions/divestitures (2)

Service cost 52 49 1 1

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Participant contributions 27 26 6 6

Actuarial loss (gain) 613 ( 756 ) 7 3

Actuarial (gain) loss

( 171 ) 613 ( 3 ) 7

Benefits paid ( 524 ) ( 509 ) ( 9 ) ( 7 )

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(1) For benefit payments reimbursed to HPE from the German Contractual Trust Arrangements.

(2) Includes the addition/deletion of plans resulting from acquisitions.

(2) Includes the addition/deletion of plans resulting from acquisitions and divestitures.

(3) HPE divested $ 13 million in projected benefit obligation and $ 7 million in assets due to the Communications Technology Group (“CTG”) divestiture that occurred on December 1, 2024.

For the year ended October 31, 2024, the benefit obligation increased from $ 9.4 billion to $ 10.3 billion primarily due to the effects of decreasing discount rates.

HPE added $ 68 million in projected benefit obligation and $ 39 million in assets due to the Merger that closed on July 2, 2025.

For the year ended October 31, 2025, the benefit obligation increased from $ 10.3 billion to $ 10.5 billion due to the effects of higher interest cost and currency impacts outweighing effects of a lower obligation due to higher discount rates.

The increase was partially offset by benefits paid which reduced benefit obligations.

Pension assets increased from $ 9.9 billion to $ 11.0 billion as assets performed better than expected.

Pension assets increased from $ 11.0 billion to $ 11.7 billion due to asset performance and currency impacts.

The increase was partially offset by benefits paid from plan assets.

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(1) Repurchase agreements, primarily in the UK, represent the plans’ short-term borrowing to hedge against interest rate and inflation risks.

Investments in approximately $ 2.0 billion and $ 2.3 billion of government bonds collateralize this short-term borrowing at October 31, 2024 and 2023, respectively.

Investments in approximately $ 2.0 billion of government bonds collateralize this short-term borrowing at October 31, 2025 and 2024.

The plans have an obligation to return the cash after the term of the agreements.

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(5) Includes a pooled fund in the UK, that seeks a rate of return with direct or indirect linkage to UK inflation by investing in vehicles including bonds, long lease property, income strips, asset-backed securities, and index linked assets.

Units are available for subscription on the first business day of each calendar month at net asset value.

There are no redemption restrictions or future commitments on these investments.

The fund has been terminated following a full redemption request by the Plan, and now holds residual investments in UK ground rents and cash, pending sale by the investment manager, following which the fund will be wound up.

There are no future commitments on this investment.

(6) Common Contractual Funds are investment arrangements in which institutional investors pool their assets.

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(7) Includes funds, primarily in Germany, that invest in a diversified portfolio of European real estate assets exposed to logistics real estate properties, food retailing properties, residential and commercial properties, and properties under development.

Primary valuation techniques for level 3 investments include the income capitalization approach and cost approach.

Primary valuation techniques for level 3 investments include the income capitalization approach, cost approach, and discounted cash flows.

Significant unobservable inputs include rental yield and IRR.

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In the prior year, the IRR ranged from 0 % to 4 %, with the main weighted average around 1 %.

The discount rates ranged from 5 % to 9 %, with the weighted average around 5 %.

Generally, an increase in rental yield rates may result in a decrease in the fair value of certain investments.

A higher IRR generally signifies a greater fair value as it implies a greater potential rate of return over the life of an investment.

An increase in discount rates may result in a decrease in the fair value of certain investments.

(8) Includes life insurance investment policies, unsettled transactions, and derivative instruments.

As of October 31, 2024, the derivative instruments include synthetic equity swaps held by the UK plans with equity exposure of $ 396 million.

As of October 31, 2025 and 2024 , the derivative instruments include synthetic equity swaps held by the UK plans with equity exposure of $ 342 million and $ 396 million, respectively.

As of October 31, 2025 post-retirement benefit plan assets of $ 83 million were invested in publicly traded registered investment entities of which $ 66 million are classified within Level 1 and $ 17 million within Level 2 of the fair value hierarchy.

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Funds Insurance

Annuities Other Total

Annuities Total

Balance at beginning of year $ 799 $ 41 $ 177 $ 237 $ 20 $ 1,274

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During fiscal 2026, the Company expects to contribute approximately $ 220 million to its non-U.S.

pension plans and an additional $ 1 million to cover benefit payments to U.S.

non-qualified plan participants.

pension plans .

In addition, the Company expects to pay approximately $ 7 million to cover benefit claims for its post-retirement benefit plans.

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These awards generally vest over 3 years from the grant date.

The maximum number of shares as of the Approval Date that may be delivered to the participants under the 2021 Plan shall not exceed 7 million shares, plus 35.8 million shares that were available for grant under the 2015 Plan and any awards granted under the 2015 Plan prior to the

On April 5, 2023, April 10, 2024

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Approval Date that were cash-settled, forfeited, terminated, or lapsed after the Approval Date.

On April 5, 2022, April 5, 2023 and April 10, 2024, shareholders of the Company approved amendments to the 2021 Plan thereby increasing the overall number of shares available for issuance by 15 million shares, 18 million shares, and 22 million shares, respectively.

and April 2, 2025, shareholders of the Company approved amendments to the 2021 Plan thereby increasing the overall number of shares available for issuance by 18 million shares, 22 million shares, and 22 million shares, respectively.

As of October 31, 2025, the Company had remaining authorization of 49.7 million shares under the 2021 Plan.

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Selling, general and administrative 348 223 220

Acquisition, disposition and other charges 38 — —

Stock-based compensation expense $ 643 $ 430 $ 428

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The Company expenses the fair value of restricted stock units ratably over the period during which the restrictions lapse.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The following table summarizes restricted stock unit activity for the year ended October 31, 2025:

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Outstanding at end of year 75,410 $ 19

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The total grant date fair value of restricted stock awards vested for Company employees in fiscal 2025, 2024, and 2023 was $ 716 million, $ 348 million and $ 319 million, respectively.

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Performance Restricted Units

The Company issues performance stock units (“PSU”) that vest on the satisfaction of service and performance conditions.

The fair value of the PSUs is the closing price of the Company's common stock on the grant date of the award.

The Company also issues performance-adjusted restricted stock units (“PARSU”) that vest only on the satisfaction of service, performance and market conditions.

The Company issues performance-adjusted restricted stock units (“PARSU”) that vest only on the satisfaction of service, performance and market conditions.

The Company estimates the fair value of PARSUs subject to performance-contingent vesting conditions using the Monte Carlo simulation model.

The expenses associated with these performance restricted units were not material for any of the periods presented.

Stock Options

Stock options granted under the Plan are generally non-qualified stock options, but the Plan permits some options granted to qualify as incentive stock options under the U.S.

Internal Revenue Code.

The exercise price of a stock option is equal to the closing price of the Company's common stock on the option grant date.

The majority of the stock options issued by the Company contain only service vesting conditions.

The Company has also issued performance-contingent stock options that vest only on the satisfaction of both service and market conditions.

The Company did not issue stock options in fiscal 2024, 2023, and 2022.

The expenses associated with stock options were not material for any of the periods presented.

The Company utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions.

The Company estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions.

Taxes on Earnings

Provision for Taxes

The domestic and foreign components of Net earnings (loss) from operations before taxes were as follows:

Benefit (provision) for Taxes

The domestic and foreign components of Net (loss) earnings from operations before Benefit (provision) for taxes were as follows:

For the fiscal years ended October 31,

3 unchanged sentences

$ ( 285 ) $ 2,953 $ 2,230

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Provision for taxes on Net earnings from operations were as follows:

The Benefit (provision) for taxes on (Loss) earnings from operations were as follows:

For the fiscal years ended October 31,

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$ 342 $ ( 374 ) $ ( 205 )

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The differences between the U.S.

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For the fiscal years ended October 31,

2024 2023 2022

federal statutory income tax rate 21.0 % 21.0 % 21.0 %

6 unchanged sentences

Goodwill impairment ( 115.7 ) % — % — %

Tax impact of integration transactions

114.6 % — % — %

Other, net 1.1 % — % 0.1 %

120.0 % 12.7 % 9.2 %

(1) Positive percentages represent tax benefits and negative percentages represent tax expense as the Company recorded income tax benefit on a pretax loss.

The jurisdictions with favorable tax rates that had the most significant impact on the Company's effective tax rate in the periods presented include Puerto Rico and Singapore.

In the Company’s fiscal 2025 effective tax rate reconciliation, the absolute value of earnings before taxes was smaller than in prior periods, which exaggerated the impact of individual reconciling items.

The effective tax rate for fiscal 2025 also included a $ 330 million tax provision from the non-deductible goodwill impairment.

In fiscal 2025, the Company recorded $ 693 million of net income tax benefits related to various items discrete to the year.

These amounts primarily included $ 402 million of net income tax benefits related to costs incurred as a result of the Merger, which was inclusive of a $ 327 million net income tax benefit from the tax impact of integration transactions, $ 76 million of net income tax benefits related to the release of certain state valuation allowances due to changes in tax law, $ 61 million of net income tax benefits related to the reduction in uncertain tax positions due to statute of limitations expirations, and $ 55 million of net income tax benefits related to the cost reduction program.

In fiscal 2024, the Company recorded $ 43 million of net income tax charges related to various items discrete to the year.

These amounts primarily included $ 104 million of income tax charges resulting from the gain on the partial disposition of H3C Technologies Co., Limited (“H3C”), which included $ 215 million of U.S.

and foreign income tax charges offset by $ 111 million of income tax benefit for the release of an uncertain tax benefit related to the prior divestiture, partially offset by $ 54 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges and $ 11 million of net excess tax benefits related to stock-based compensation.

In fiscal 2023, the Company recorded $ 131 million of net income tax benefits related to various items discrete to the year.

These amounts primarily included $ 104 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges and $ 19 million of net excess tax benefits related to stock-based compensation.

and foreign income tax charges offset by $ 111 million of income tax benefit for the release of an uncertain tax benefit related to the prior divestiture, partially offset by $ 54 million of income tax benefits related to transformation costs, and acquisition, disposition and other charges and $ 11 million of net excess tax benefits related to stock-based compensation.

In fiscal 2023, the Company recorded $ 131 million of net income tax benefits related to various items discrete to the year.

These amounts primarily included $ 150 million of income tax benefits related to releases of foreign valuation allowances, $ 99 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $ 43 million of income tax benefits related to the settlement of U.S.

tax audit matters, $ 42 million of income tax benefits related to the release of U.S.

passive foreign tax credit valuation allowances, $ 30 million of income tax benefits related to the change in pre-separation tax liabilities, primarily those for which the Company shared joint and several liability with HP Inc.

and for which the Company was indemnified by HP Inc., $ 27 million of income tax benefits related to the utilization of capital losses which had a full valuation allowance, $ 12 million of income tax benefits as a result of the fiscal 2021 U.S.

tax return filing primarily

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

from the decrease in GILTI, and $ 11 million of net income tax benefits related to settlements and ongoing discussions in foreign tax audit matters.

These amounts primarily included $ 104 million of income tax benefits related to transformation costs, and acquisition, disposition and other charges and $ 19 million of net excess tax benefits related to stock-based compensation.

As a result of certain employment actions and capital investments the Company has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates through 2039.

The gross foreign income tax benefits attributable to these actions and investments were $ 531 million ($ 0.40 diluted net EPS) in fiscal 2025, $ 356 million ($ 0.27 diluted net EPS) in fiscal 2024, and $ 857 million ($ 0.65 diluted net EPS) in fiscal 2023.

Refer to Note 16, “Net Earnings Per Share” for details on shares used to compute diluted net EPS.

Refer to Note 16, “Net (Loss) Earnings Per Share,” for details on shares used to compute diluted net EPS.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Uncertain Tax Positions

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For prior years' tax positions 26 116 20

For tax positions from the Merger

For prior years' tax positions ( 20 ) ( 113 ) ( 2 )

1 unchanged sentence

Settlements with taxing authorities ( 355 ) ( 7 ) ( 83 )

Settlements related to joint and several positions indemnified by HP Inc.

Balance at end of year $ 474 $ 724 $ 672

Up to $ 309 million, $ 344 million and $ 354 million of the Company's unrecognized tax benefits at October 31, 2025, 2024 and 2023, respectively, would affect its effective tax rate if realized in their respective periods.

During the first quarter of fiscal 2022, the Company effectively settled with the U.S.

Internal Revenue Service (“IRS”) for fiscal 2016, primarily contributing to the reduction in the Company's unrecognized tax benefits of $ 1.5 billion, which was predominantly related to the timing of intercompany royalty revenue recognition which does not affect the Company’s effective tax rate.

The Company recognized $ 2 million of interest expense and $ 25 million and $ 55 million of interest income in fiscal 2024, 2023, and 2022, respectively.

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

Internal Revenue Service ("IRS") regarding its audit of the Company’s fiscal 2017 through 2019 U.S.

federal income tax returns, resulting in a reduction in the Company's unrecognized tax benefits of approximately $ 340 million;

however, the effective settlement did not result in a material impact to the Company’s Consolidated Statement of Earnings and Consolidated Balance Sheet.

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.

Additionally, the Company released $ 47 million of unrecognized tax benefits upon expiration of the applicable statute of limitations related to tax positions acquired from the Merger.

The Company recognized $ 16 million of interest income, $ 2 million of interest expense and $ 25 million of interest income in fiscal 2025, 2024, and 2023, respectively.

As of October 31, 2025 and 2024, the Company had accrued $ 42 million and $ 58 million, respectively, for interest and penalties in the Consolidated Balance Sheets.

6 unchanged sentences

federal income tax returns.

During fiscal 2023, the IRS issued notices of proposed adjustments (“NOPAs”) for fiscal 2017, 2018, and 2019 relating to HPE’s intercompany transfer pricing.

During the first quarter of fiscal 2024, the IRS issued a Revenue Agent Report (“RAR”) finalizing their position on the NOPAs for the same issues and same fiscal years.

However, HPE disagreed with the IRS’ adjustments and believes the positions taken on its tax returns are more likely than not to prevail on technical merits, and has continued with settlement discussions with the IRS.

During the third quarter of fiscal 2024, the Company submitted a formal settlement offer to the IRS to facilitate the closing of the audit and recorded increased reserves for unrecognized tax benefits of $ 122 million.

The impact of the increase in reserves is almost entirely offset with a valuation allowance release, and the net impact to income tax expense for fiscal 2024 was not material.

It is reasonably possible that the IRS audit for fiscal 2017 through 2019 may be concluded in the next 12 months, and it is reasonably possible that existing unrecognized tax benefits related to these years may be reduced by an amount up to $ 358 million within the next 12 months, the majority of which relates to adjustments to foreign tax credits that carry a full valuation

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

allowance or to the timing of intercompany royalty revenue recognition, neither of which affects the Company’s effective tax rate.

Juniper Networks is no longer subject to U.S.

federal tax audits for years prior to 2022 and 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.

With respect to major state and foreign tax jurisdictions, the Company is no longer subject to tax authority examinations for years prior to 2005.

However, 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.

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 may be reduced by an amount up to $ 6 million within the next 12 months.

3 unchanged sentences

However, income tax audits are inherently unpredictable and there can be no assurance that the Company will accurately predict the outcome of these audits.

The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net earnings or cash flows.

The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the Benefit (provision) for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net earnings or cash flows.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Company has not provided for U.S.

7 unchanged sentences

Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The significant components of deferred tax assets and deferred tax liabilities were as follows:

23 unchanged sentences

Net deferred tax assets and liabilities $ 2,479 $ 2,023

(1) Fiscal 2023 amounts have been reclassified to conform to the current period presentation.

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

3 unchanged sentences

Deferred tax assets net of deferred tax liabilities $ 2,479 $ 2,023

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Net deferred tax assets increased by $ 456 million as a result of discrete tax benefits from the release of valuation allowances of $ 678 million related to certain U.S.

foreign tax credits and certain state and non-U.S.

attributes, partially offset by discrete tax charges of $ 117 million related to changes in tax law and a decrease of $ 107 million as a result of acquired net deferred tax liabilities due to the Merger.

As of October 31, 2025, the Company had $ 265 million, $ 2.9 billion and $ 20.5 billion of federal, state and foreign net operating loss carryforwards, respectively.

2 unchanged sentences

The Company has provided a valuation allowance of $ 115 million and $ 3.6 billion for deferred tax assets related to state and foreign net operating losses carryforwards, respectively.

As of October 31, 2024, the Company also had $ 20 million, $ 81 million, and $ 91 million of federal, state, and foreign capital loss carryforwards, respectively.

As of October 31, 2025, the Company also had $ 153 million, $ 115 million, and $ 6.0 billion of federal, state, and foreign capital loss carryforwards, respectively.

Amounts included in federal and state capital loss carryforwards will begin to expire in 2028;

foreign capital losses can carry forward indefinitely.

The Company has provided a valuation allowance of $ 5 million and $ 27 million for deferred tax assets related to state and foreign capital loss carryforwards, respectively.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Company has provided a valuation allowance of $ 28 million, $ 9 million, and $ 1.2 billion for deferred tax assets related to federal, state and foreign capital loss carryforwards, respectively.

As of October 31, 2025, the Company had recorded deferred tax assets for various tax credit carryforwards as follows:

4 unchanged sentences

Balance at end of year $ 1,622 $ ( 1,188 )

Total valuation allowances decreased by $ 224 million in fiscal 2024, primarily as a result of the utilization of certain non-U.S.

loss carryforwards which had full valuation allowances, the impact on fully valued U.S.

foreign tax credits as a result of the change in uncertain tax benefits, the recording of valuation allowances on certain non-U.S.

tax credits, and the release of certain foreign valuation allowances.

Total valuation allowances increased by $ 998 million in fiscal 2025, primarily as a result of certain non-U.S.

capital loss generation as a result of intercompany transactions, attributes acquired due to the Merger, and changes in U.S.

foreign tax credits due to tax return filings, partially offset by the $ 678 million release of valuation allowances related to certain U.S.

foreign tax credits and certain state and non-U.S.

Tax Matters Agreement and Other Income Tax Matters

7 unchanged sentences

Total $ 5,859 $ 15,105

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Accounts Receivable, Net

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Balance at end of year $ 22 $ 10 $ 37

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

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

15 unchanged sentences

Finished goods 2,213 2,369

Total $ 7,810 $ 4,607

$ 6,352 $ 7,810

(1) Inventory balances are net of reserves of $ 0.7 billion and $ 0.5 billion as of October 31, 2025 and October 31, 2024, respectively.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Property, Plant and Equipment, net

1 unchanged sentence

Land $ 309 $ 66

Internal use software

Buildings and leasehold improvements 2,075 1,696

4 unchanged sentences

$ 6,002 $ 5,664

(1) This balance includes $ 593 million and $ 606 million of internal use software, net as of October 31, 2024 and 2023, respectively.

Depreciation expense was $ 2.3 billion in fiscal 2024 and 2023, respectively, and $ 2.2 billion in 2022.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Depreciation expense was $ 2.2 billion in fiscal 2025 and $ 2.3 billion in fiscal 2024 and 2023, respectively.

Long-Term Financing Receivables and Other Assets

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Liabilities associated with the funded participation in these arrangements, are presented within Accounts payable on the Consolidated Balance Sheets, amounted to $ 488 million, and $ 466 million as of October 31, 2025 and October 31, 2024, respectively.

The rollforward of outstanding obligations confirmed as valid under its supplier finance program was as follows:

October 31, 2025

Balance at beginning of period

Invoices confirmed during the year

Confirmed invoices paid during the year

Balance at end of period

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Severance Charges

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 October 31, 2025, $ 204 million and $ 34 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:

October 31, 2025

Balance at beginning of period $ 49

Severance charges 418

Cash paid and other ( 229 )

Balance at end of period $ 238

Government Assistance

The Company receives government assistance in the form of grants and incentives which vary in size, duration, and conditions from various domestic and international governing bodies and related entities which are primarily structured as cash grants and non-income tax incentives.

The Company recognizes the impact of the government assistance on the Consolidated Statements of Income upon reaching reasonable assurance that the Company will comply with the conditions of the assistance and that the grant will be received.

The Company classifies the impact of government assistance on the Consolidated Statements of Income based on the underlying nature and purpose of the assistance.

During fiscal 2025, government assistance received primarily consisted of credits resulting from investment and actions in research and development areas, HPE recorded a receivable of $ 149 million in Other current assets and recognized a reduction in Cost of products of $ 196 million and $ 29 million in fiscal 2025 and 2024, respectively.

Government assistance was not material for fiscal 2023.

Other Accrued Liabilities

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Value-added and property taxes 1,065 922

Contract manufacturer liabilities 505 71

Customer deposits 616 289

Operating lease liabilities 316 261

Severance and accrued restructuring

Warranty 138 150

Contract manufacturer liabilities 23 505

Collateral payable 16 90

1 unchanged sentence

Total $ 4,755 $ 4,591

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Other Non-Current Liabilities

7 unchanged sentences

Total $ 8,753 $ 6,905

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Company's aggregate product warranty liabilities and changes therein were as follows:

22 unchanged sentences

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 October 31, 2024, the aggregate amount of deferred revenue, was $ 7.5 billion.

The Company expects to recognize approximately 50 % of this balance over fiscal 2025 with the remainder to be recognized thereafter.

As of October 31, 2025, the aggregate amount of deferred revenue, was $ 10.3 billion, approximately $ 2.5 billion was attributable to the Merger.

The Company expects to recognize approximately 50 % of this balance over fiscal 2026, 23 % over fiscal 2027, 14 % over fiscal 2028, 7 % over fiscal 2029, and 4 %

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

over fiscal 2030 and thereafter.

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

7 unchanged sentences

In fiscal 2025, 2024, and 2023 the Company amortized $ 125 million, $ 106 million, and $ 94 million, respectively, of the capitalized costs to obtain a contract which are included in Selling, general and administrative expense in the Consolidated Statements of Earnings.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Accounting for Leases as a Lessee

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Total lease cost $ 313 $ 236 $ 181

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The ROU assets and lease liabilities for operating and finance leases included in the Consolidated Balance Sheets were as follows:

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Total lease liabilities $ 1,743 $ 1,608

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows:

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ROU assets obtained in exchange for new operating lease liabilities Non-cash activities $ 109 $ 627 $ 251

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The following tables shows the future payments on the Company's operating and finance leases:

14 unchanged sentences

The components of financing receivables were as follows:

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

As of October 31,

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Difference between undiscounted cash flows and discounted cash flows $ 1,264

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Sale of Financing Receivables

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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.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

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

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The allowance for credit losses for financing receivables as of October 31, 2025, 2024, and 2023, and the respective changes for the twelve months then ended were as follows:

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

As of October 31,

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Balance at end of period $ 198 $ 194 $ 243

(1) Fiscal 2022 included a provision of $ 99 million related to expected credit losses due to the Company's exit from its Russia and Belarus businesses.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Non-Accrual and Past-Due Financing Receivables

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As of October 31, 2025, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows:

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

As of October 31, 2025

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At commencement of an operating lease, initial direct costs are deferred and are expensed over the lease term on the same basis as the lease revenue is recorded.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

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

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Long-term debt, net of unamortized debt issuance costs 1,287 965

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

For the year ended October 31, 2025, financing receivables and leased equipment transferred via securitization through the SPE were $ 1.3 billion and $ 0.4 billion, respectively.

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Acquisitions and Disposition in fiscal 2025

On August 30, 2024, the Company completed the acquisition of Morpheus Data, a pioneer in software for hybrid cloud management and platform operations.

Morpheus Data’s results of operations were included within the Hybrid Cloud segment.

The acquisition date fair value consideration of $ 147 million primarily consisted of cash paid for outstanding common stock.

The Company is amortizing the intangible assets on a straight-line basis over an estimated weighted-average useful life of 4 years.

The purchase price allocations for the Morpheus Data acquisition, described below, reflect various preliminary fair value estimates and analysis, including preliminary work performed by third-party valuation specialists, of certain tangible assets and

Acquisition of Juniper Networks

On July 2, 2025, the Company completed the Merger.

Under the terms of the Merger Agreement, HPE agreed to pay $ 40.00 per share of Juniper Networks common stock, issued and outstanding as of July 2, 2025, representing cash consideration of approximately $ 13.4 billion, which was paid through cash on hand, including proceeds and term loan drawdowns from the financings in fiscal 2024, and commercial paper issuances.

Juniper Networks is a leader in AI-native networks, and is included in the results of the Networking segment.

The Company acquired Juniper Networks to advance 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 previously issued to Juniper Networks employees, was converted into HPE equity awards utilizing an exchange ratio of approximately 2.1 .

The exchange ratio was calculated as purchase consideration per share divided by 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.

For fiscal 2025, HPE recorded stock-based compensation expense of $ 192 million related to these assumed awards.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

liabilities acquired, the valuation of intangible assets acquired, certain legal matters, income and non-income based taxes, and residual goodwill, which are subject to change within the measurement period.

The following table presents the aggregate estimated fair value of the assets acquired and liabilities assumed, including those items that are still pending allocations, for the acquisition completed during fiscal 2024:

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

Cash and cash equivalents $ 1,098

Inventory 989

Other current assets 1,803

Goodwill 7,272

Amortizable intangible assets 68

Net liabilities assumed ( 19 )

Total fair value consideration $ 147

Pending Merger with Juniper Networks, Inc.

On January 9, 2024, the Company entered into a definitive 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 transaction was unanimously approved by the boards of directors of both companies.

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

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 UNIS of 30 % of the total issued share capital of 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 (the “Preferred Stock”), and cash on the balance sheet.

Refer to Note 14, “Borrowings,” and Note 15, “Stockholders' Equity,” for additional information.

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

Intangible assets 6,219

Other non-current assets

Total assets acquired 19,071

Other accrued liabilities (1)

Long-term debt 1,232

Other non-current liabilities 1,587

Total liabilities assumed 5,446

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 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.

HPE estimated the fair value of acquired inventory, specifically finished goods, by determining the estimated selling price when completed, less an estimate of costs to be incurred to complete and sell the inventory, and an estimate of a reasonable profit allowance for those manufacturing and selling efforts.

The fair value of inventory is recognized in the Company’s results of operations as the inventory is sold.

Some of the more significant estimates and assumptions inherent in the estimate of the fair value of inventory include stage of completion, costs to complete, costs to dispose and selling price.

HPE estimated the fair value of acquired property, plant and equipment using a combination of the cost and market approaches.

The market approach estimates fair value by analyzing recent actual market transactions for similar assets or liabilities.

The cost approach estimates fair value based on the expected cost to replace or reproduce the asset or liability and relies on assumptions regarding the occurrence and extent of any physical, functional and/or economic obsolescence.

Some of the more significant estimates and assumptions inherent in these approaches are the values of asset replacement costs, comparable assets and estimated remaining economic lives of the assets.

The purchase price allocation was updated during the fourth quarter of fiscal 2025 for certain measurement period adjustments based on revised estimates of fair value.

Purchase price allocation adjustments during the measurement period primarily related to $ 71 million decrease in inventory, $ 51 million decrease in property, plant and equipment, $ 41 million decrease in deferred tax assets, $ 19 million increase in intangible assets, $ 86 million decrease in other assets and liabilities resulting in $ 230 million increase in goodwill.

As of October 31, 2025, the purchase price allocation was substantially complete, except for legal and tax contingencies, which may be revised during the measurement period of up to one year from the acquisition date.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Purchased Intangible Assets

The weighted-average useful life for intangible assets acquired was 7 years.

The following table presents preliminary details of the purchased intangible assets acquired:

Weighted-Average Useful Life

Customer contracts, customer lists and distribution agreements 10 $ 2,420

Developed and core technology and patents 4 2,507

Trade name and trademarks 10 464

Total identified finite-lived intangible assets (1)

Total intangible assets

(1) Amortization expense for fiscal 2025, was $ 362 million.

The fair values of (i) Developed and core technology and patents, (ii) Trade name and trademarks, and (iii) IPR&D were determined using the relief from royalty method under the income approach.

The fair value of Customer contracts, customer lists and distribution agreements was determined using the multi-period excess earnings method under the income approach.

Significant estimates and assumptions were used to determine the fair value of the acquired intangible assets.

The relief from royalty method utilizes estimates such as projected future revenues, selected royalty rates, useful lives, and discount rates.

The multi-period excess earnings method relies on estimates including projected future revenues, customer attrition rates, profit margins, contributory asset charges, useful lives, and discount rates.

The following table presents the details of IPR&D by category as of the date of the Merger:

% of Completion

Estimated Costs to Complete

Expected Release Date (Fiscal Year)

Dollars in millions

Campus & Branch $ 28 50 % $ 13 2026

Data Center 107 29 % 35 2026

SASE & Security 4 75 % 1 2026

WAN $ 689 72 % $ 51 2027

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 October 31, 2025:

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Total revenue $ 2,096

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 fiscal years ended October 31,

Total revenue $ 38,085 $ 35,201

$ 108 $ 1,196

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 Consolidated Statements of Earnings.

For fiscal 2025 and 2024, acquisition costs were $ 346 million and $ 130 million, respectively.

Disposition of CTG

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On December 1, 2024, the Company completed the disposition of CTG.

The Company received net proceeds of $ 210 million and expect to recognize a gain of approximately $ 230 million.

The Company received net proceeds of $ 210 million and recognized a gain of $ 248 million included in Gain on sale of a business in the Consolidated Statements of Earnings.

Acquisitions in fiscal 2024

On August 30, 2024, the Company completed the acquisition of Morpheus Data, a pioneer in software for hybrid cloud management and platform operations.

Morpheus Data’s results of operations were included within the Hybrid Cloud segment.

The acquisition date fair value consideration of $ 147 million primarily consisted of cash paid for outstanding common stock.

The Company is amortizing the intangible assets on a straight-line basis over an estimated weighted-average useful life of 4 years.

The purchase price allocations for the Morpheus Data acquisition, described below, reflect various fair value estimates and analysis, including work performed by third-party valuation specialists, of certain tangible assets and liabilities acquired, the valuation of intangible assets acquired, certain legal matters, income and non-income based taxes, and residual goodwill.

The following table presents the aggregate fair value of the assets acquired and liabilities assumed for the acquisition completed during fiscal 2024:

Goodwill $ 98

Amortizable intangible assets 68

Net liabilities assumed ( 19 )

Total fair value consideration $ 147

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Acquisitions in fiscal 2023

During fiscal 2023, the Company completed five acquisitions.

The purchase price allocations for the acquisitions described below reflect various fair value estimates and analysis, including work performed by third-party valuation specialists, of certain tangible assets and liabilities acquired, the valuation of intangible assets acquired, certain legal matters, income and non-income based taxes, and residual goodwill, which were subject to change within the measurement period.

Measurement period adjustments were recorded in the reporting period in which the estimates were finalized and adjustment amounts were determined.

The purchase price allocations for the acquisitions described below reflect various fair values and analysis, including work performed by third-party valuation specialists, of certain tangible assets and liabilities acquired, the valuation of intangible assets acquired, certain legal matters, income and non-income based taxes, and residual goodwill, which were subject to change within the measurement period.

The pro forma results of operations, revenue and net income subsequent to the acquisition dates have not been presented as they were not material to the Company's consolidated results of operations, either individually or in the aggregate.

Goodwill, which represents the excess of the purchase price over the net tangible and intangible assets acquired, was not deductible for tax purposes.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The following table presents the aggregate fair value of the assets acquired and liabilities assumed for the acquisitions completed during fiscal 2023:

Goodwill $ 585

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On May 2, 2023, the Company completed the acquisition of OpsRamp, an IT operations management company that monitors, observes, automates, and manages IT infrastructure, cloud resources, workloads, and applications for hybrid and multi-cloud environments, including the leading hyperscalers.

OpsRamp’s results of operations were included within the Corporate Investments and Other segment.

OpsRamp’s results of operations were included within the Hybrid Cloud segment.

The acquisition date fair value consideration of $ 307 million primarily consisted of cash paid for outstanding common stock.

2 unchanged sentences

On March 15, 2023, the Company completed the acquisition of Axis Security, a cloud security provider, enabling the Company to expand its edge-to-cloud security capabilities by offering a unified Secure Access Services Edge solution to meet the increasing demand for integrated networking and security solutions delivered aaS.

Axis Security's results of operations were included within the Intelligent Edge segment.

Axis Security's results of operations were included within the Networking segment.

The acquisition date fair value consideration of $ 412 million primarily consisted of cash paid for outstanding common stock.

1 unchanged sentence

The Company is amortizing the intangible assets on a straight-line basis over an estimated weighted-average useful life of 5 years.

Acquisitions in fiscal 2022

The Company did not have any acquisitions during fiscal 2022.

Goodwill and Intangible Assets

Goodwill and related changes in the carrying amount by reportable segment were as follows:

Hybrid Cloud Intelligent Edge Financial

Hybrid Cloud Networking Financial

Services Corporate Investments & Other Total

2 unchanged sentences

Goodwill from acquisitions — — 7,272 — — 7,272

Goodwill adjustments — ( 1 ) 1 — — —

Impairment of goodwill

— ( 1,578 ) — — — ( 1,578 )

Changes due to foreign currency — — ( 10 ) — — ( 10 )

Balance at October 31, 2025 (1)

1 unchanged sentence

(1) Goodwill is net of accumulated impairment losses of $ 3.3 billion.

Of this amount, $ 1.7 billion relates to the HPC & AI reporting unit of which $ 815 million was recorded during the fourth quarter of fiscal 2022.

The Hybrid Cloud reporting unit has an accumulated impairment loss of $ 90 million related to the former Software reporting unit which was also recorded during the fourth quarter of fiscal 2022.

Accumulated impairment increased by approximately $ 1.5 billion from October 31, 2024 due to $ 1.6 billion of Hybrid Cloud reporting unit impairments, partially offset by a decrease due to the disposition of CTG (the Communications and Media Solutions reporting unit).

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

2025 Interim and Annual Goodwill Impairment Reviews

As of October 31, 2024, the Company’s reporting units with goodwill are consistent with the reportable segments identified in Note 2, “Segment Information” to the Consolidated Financial Statements in Item 8 of Part II, with the exception of Server, which contains two reporting units:

Compute and HPC & AI, and Corporate Investments and Other which contains two reporting units:

Advisory and Professional Services, and legacy Communications and Media Solutions.

During fiscal 2025, the Company performed the following goodwill impairment tests, two of which resulted in goodwill impairment:

• Impairment test performed as of November 1, 2024 based on organizational changes impacting the composition of reporting units as of that date did not result in an impairment;

• Interim test performed as of April 30, 2025 due to indicators of potential impairment, resulted in the Hybrid Cloud reporting unit being impaired;

• Annual impairment test, which was performed as of August 1, 2025, resulted in the Hybrid Cloud reporting unit being impaired.

April 30, 2025 Interim Impairment Test

During the second quarter of fiscal 2025, the macroeconomic environment experienced a rapid deterioration, primarily driven by the announcement and subsequent modifications of international tariffs, an escalation in global trade tensions, and increasing geopolitical uncertainty.

These events contributed to significant movement in inputs used to determine the weighted-average cost of capital.

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.

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.

The decline in the fair value of the Hybrid Cloud reporting unit was primarily driven by an increase in the discount rate used in the discounted cash flows analysis, which reflected heightened macroeconomic uncertainty and changes in market conditions.

The fair value of the Hybrid Cloud reporting unit was based on a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach.

Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows which HPE considers to be a level 3 unobservable input in the fair value hierarchy.

Prior to the quantitative goodwill impairment test, the Company tested the recoverability of long-lived assets and other assets of the Hybrid Cloud reporting unit and concluded that such assets were not impaired.

The quantitative goodwill impairment test indicated that the carrying value of the Hybrid Cloud reporting unit exceeded its fair value by $ 1.4 billion.

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

August 1, 2025 Annual Impairment Test

Based on the results of the annual quantitative impairment test performed as of August 1, 2025, the fair value of the Hybrid Cloud reporting unit was below the carrying value assigned to Hybrid Cloud.

The decline in the fair value of the Hybrid Cloud reporting unit was primarily driven by a strategic shift away from the Non-IP storage business.

The fair value of the Hybrid Cloud reporting unit was based on a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach.

The quantitative goodwill impairment test indicated that the carrying value of the Hybrid Cloud reporting unit exceeded its fair value by $ 0.2 billion.

As a result, the Company recorded a goodwill impairment charge of $ 0.2 billion in the fourth quarter of fiscal 2025.

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 240 %.

The Hybrid Cloud reporting unit has remaining goodwill of $ 3.3 billion as of October 31, 2025 and an excess of fair value over carrying value of net assets of 0 % as of the annual test date.

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

The excess of fair value over carrying amount for the Server reporting unit was 11 %.

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

In the current macroeconomic and inflationary environment,

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

customers have invested selectively, resulting in moderate unit growth and competitive pricing in the traditional servers business.

While the AI servers business is growing at a faster pace, because graphics processing units represent a large portion of the solutions, the pricing is very competitive and margins are limited.

The Server business continues to focus on capturing market share in both traditional and AI servers, while maintaining operating margin and leveraging its strong portfolio of products.

If the global macroeconomic or geopolitical conditions worsen, projected revenue growth rates or operating margins decline, weighted-average cost of capital increases, or if the Company has significant or sustained decline in its stock price, it is possible its estimates about the Hybrid Cloud and Server reporting units’ ability to successfully address the current challenges may change, which could result in the carrying value of the Hybrid Cloud and Server reporting units exceeding their estimated fair value and potential impairment charges.

2024 Interim and Annual Goodwill Impairment Reviews

As of October 31, 2024, the Company’s reporting units with goodwill were consistent with the reportable segments identified in Note 2, “Segment Information,” to the Consolidated Financial Statements in Item 8 of Part II, with the exception of Server, which contained two reporting units:

Compute and High Performance Compute & AI, and Corporate Investments and Other which contained two reporting units:

Advisory and Professional Services, and legacy Communications and Media Solutions.

During fiscal 2024, the Company performed the following goodwill impairment tests, none of which resulted in goodwill impairment:

3 unchanged sentences

• Interim goodwill impairment test as of September 30, 2024 for Compute and Hybrid Cloud reporting units.

In September 2024, HPE sold 30 % of the total issued share capital of H3C.

The equity investment in H3C primarily benefits the Compute and Hybrid Cloud reporting units.

Subsequent to the sale, on September 30, 2024, the Company performed an interim impairment analysis for Compute and Hybrid Cloud reporting units.

The excess of fair value over carrying amount for these reporting units was 6 % for Compute and 5 % for Hybrid Cloud.

The Compute reporting unit has goodwill of $ 8.2 billion as of October 31, 2024, and excess of fair value over carrying value of 6 % as of the September 30, 2024 interim test date.

The Compute business is cyclical in nature.

Over the last several years, digital transformation drove increased investment to modernize infrastructure.

However, in the current macroeconomic and inflationary environment, customers have invested selectively resulting in moderate unit growth and competitive pricing.

The Compute business continues to focus on capturing market share while maintaining operating margin, leveraging its strong portfolio of ProLiant Gen11 products.

The Hybrid Cloud reporting unit has goodwill of $ 4.8 billion as of October 31, 2024, and excess of fair value of 5 % as of the September 30, 2024 interim test date.

Although the Hybrid Cloud business is on a positive trajectory, the Company is managing both a sales model transition and product transition within this business.

The Company’s product model transition is to a more cloud-native, 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.

2023 and 2022 Annual Goodwill Impairment Reviews

2023 Annual Goodwill Impairment Review

The Company’s fiscal 2023 annual impairment test did not result in any impairment charges.

The Company’s fiscal 2022 annual goodwill impairment analysis resulted in impairment charges for goodwill related to the HPC & AI reporting unit and former Software reporting unit (which is now part of the Hybrid Cloud reporting unit).

There was no impairment of goodwill for other reporting units.

The decline in the fair value of the HPC & AI reporting unit below its carrying value resulted from changes in expected future cash flows due to the continuation of supply chain constraints, and other operational challenges as well as an increase in cost of capital.

As a result, a goodwill impairment charge of $ 815 million was recorded in the fourth quarter of fiscal 2022.

The decline in the fair value of the former Software reporting unit resulted primarily from a decline in market multiples.

As a result, a goodwill impairment charge of $ 90 million was recorded in the fourth quarter of fiscal 2022.

Intangible Assets

7 unchanged sentences

Capitalized software development costs 232 ( 27 ) 205 56 — 56

828 — 828 — — —

Total intangible assets $ 7,411 $ ( 1,043 ) $ 6,368 $ 1,028 $ ( 518 ) $ 510

For fiscal 2025, the increase in gross intangible assets was primarily due to $ 6.2 billion of acquired intangible assets related to the Merger and $ 0.2 billion related to capitalized software development costs.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

For fiscal 2024, the decrease in gross intangible assets was primarily due to $ 761 million of intangible assets which became fully amortized and were eliminated from gross intangible assets and accumulated amortization, partially offset by $ 68 million of intangible assets related to acquisitions and $ 56 million related to capitalized software development costs.

As of October 31, 2025, the weighted-average remaining useful lives of the Company's finite-lived intangible assets were as follows:

7 unchanged sentences

Fiscal year In millions

(1) This table does not include $ 50 million of software development costs that are in-progress and not amortizable.

Thereafter 1,282

(1) This table does not include $ 899 million of software development costs and IPR&D that are not amortizable as they are in-process.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

8 unchanged sentences

For the fiscal years ended October 31, 2025 and 2024, there were no transfers between levels within the fair value hierarchy.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

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

3 unchanged sentences

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Cash Equivalents and Investments:

Cash Equivalents:

Time deposits $ — $ 997 $ — $ 997 $ — $ 601 $ — $ 601

Money market funds 2,741 — — 2,741 12,639 — — 12,639

Equity investments — — 88 88 — — 135 135

Total cash equivalents 2,741 997 — 3,738 12,639 601 — 13,240

Available-for-sale Debt Investments:

Foreign bonds — 111 — 111 — 102 1 103

1 unchanged sentence

— — 46 46 — — 14 14

Derivative instruments:

Foreign exchange contracts — 299 — 299 — 464 — 464

Total available-for-sale debt investments — 111 46 157 — 102 15 117

Equity Investments:

Mutual funds — 59 — 59 — — — —

Equity securities in public companies

6 — — 6 — — — —

Equity securities

— — — — — — 88 88

Total equity investments 6 59 — 65 — — 88 88

Derivatives Instruments:

Foreign currency contracts — 193 — 193 — 299 — 299

Other derivatives — 2 — 2 — — — —

Total assets 2,747 1,362 46 4,155 12,639 1,002 103 13,744

Derivative instruments:

Derivatives Instruments:

Interest rate contracts — 51 — 51 — 58 — 58

Foreign exchange contracts — 103 — 103 — 152 — 152

Foreign currency contracts — 238 — 238 — 103 — 103

Other derivatives — — — — — 2 — 2

18 unchanged sentences

As of October 31, 2025, the estimated fair value of the Company's short-term and long-term de bt was $ 22.5 billion and the carrying value was $ 22.4 billion.

As of October 31, 2023, the estimated fair value of the Company's short-term

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

and long-term debt was $ 12.2 billion and the carrying value was $ 12.4 billion.

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

If measured at fair value in the Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy.

5 unchanged sentences

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 fiscal 2024, the Company recorded a net unrealized gain of $ 34 million.

For fiscal 2023 and 2022, the Company recorded net unrealized losses of $ 45 million and $ 17 million, respectively, which included impairments of $ 50 million and $ 24 million for the same respective periods.

For fiscal 2025, the Company recorded a realized net loss of $ 105 million on the sale of these investments.

For fiscal 2024, the Company recorded net unrealized gain of $ 34 million.

For fiscal 2023, the Company recorded net unrealized loss of $ 45 million, which included impairments of $ 50 million.

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

1 unchanged sentence

These adjustments are based on observable price changes for certain equity investments without readily determinable fair value.

For investments still held as of October 31, 2024, the cumulative upward adjustments for observable price changes was $ 82 million and cumulative downward adjustments for observable price changes and impairments was $ 88 million.

For investments still held as of October 31, 2025, there was no cumulative upward adjustments for observable price changes while the cumulative downward adjustments for observable price changes and impairments was immaterial .

Refer to Note 13 “Financial Instruments,” for further information about equity investments.

3 unchanged sentences

Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized.

In fiscal 2023 and 2022, the Company recorded a net ROU asset impairment charge of $ 18 million and $ 5 million, respectively, in Transformation costs in the Consolidated Statements of Earnings as the carrying value of certain ROU assets exceeded its fair value.

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

In the fourth quarter of fiscal 2022, the Company recorded a goodwill impairment charge of $ 905 million associated with the HPC & AI reporting unit and the Software reporting unit within the Corporate Investments and Other segment.

The fair value of the Company's reporting units was classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information.

In fiscal 2025, the Company recorded $ 1.6 billion of impairment charges for the goodwill associated with the Hybrid Cloud reporting unit and the impairment of certain fixed assets.

For impairment testing purposes, the fair values of both the reporting unit and the fixed assets were estimated using company‑specific unobservable inputs and would generally be classified within Level 3 of the fair value hierarchy.

For more information on the goodwill impairment, see Note 11 “Goodwill and Intangible Assets.”

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

In fiscal 2023, the Company recorded a net ROU asset impairment charge of $ 18 million in Transformation costs in the Consolidated Statements of Earnings as the carrying value of certain ROU assets exceeded its fair value.

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

Financial Instruments

9 unchanged sentences

Total cash equivalents 3,738 — 3,738 13,240 — 13,240

Available-for-sale Debt Investments:

Available-for-sale Investments

Debt Securities:

Foreign bonds 107 4 111 101 2 103

Other debt securities 44 2 46 8 6 14

Total available-for-sale debt investments 109 8 117 119 — 119

Total cash equivalents and available-for-sale debt investments $ 13,349 $ 8 $ 13,357 $ 2,696 $ — $ 2,696

Total debt securities 151 6 157 109 8 117

Equity Securities:

Equity securities in public companies 6 — 6 — — —

Mutual funds 59 — 59 — — —

Total equity securities 65 — 65 — — —

Total available-for-sale investments 216 6 222 109 8 117

Total cash equivalents and available-for-sale investments $ 3,954 $ 6 $ 3,960 $ 13,349 $ 8 $ 13,357

All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents.

7 unchanged sentences

Amortized Cost Fair Value

Due in one to five years $ 37 $ 37

Due in more than five years 114 120

3 unchanged sentences

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 $ 88 million and $ 135 million as of October 31, 2024 and 2023, respectively.

For fiscal 2024, he Company recorded a net unrealized loss of $ 47 million on these investments.

For fiscal 2023 and 2022, the Company recorded net unrealized gains of $ 9 million and $ 86 million, respectively on these investments.

In fiscal 2025, the Company sold its entire portfolio of non-marketable equity investments valued at $ 54 million under the fair value option.

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

For fiscal 2025, the Company recorded a net realized loss of $ 14 million on the sale of these investments.

For fiscal 2024 and 2023, the Company recorded a net unrealized loss of $ 47 million and net unrealized gain

of $ 9 million, respectively on these investments.

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

In fiscal 2022, the Company sold $ 165 million of these investments.

The carrying amount of those non-marketable equity investments accounted for under the measurement alternative was $ 61 million and $ 200 million as of October 31, 2025 and 2024, respectively.

For fiscal 2024, the Company recorded a net unrealized gain of $ 34 million.

For fiscal 2025, the Company recorded a net realized loss of $ 105 million on the sale of these investments.

For fiscal 2024, the Company recorded net unrealized gain of $ 34 million.

For fiscal 2023, the Company recorded net unrealized loss of $ 45 million, which included impairments of $ 50 million.

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

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Derivative Instruments

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The Company may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S.

dollar LIBOR-based floating interest rate which was replaced with SOFR starting in July of fiscal 2023.

dollar London Interbank Offered Rate (“LIBOR”)-based floating interest rate which was replaced with Secured Overnight Financing Rate (“SOFR”) starting in July of fiscal 2023.

The swap transactions generally involve principal and interest obligations for U.S.

5 unchanged sentences

The Company uses forward contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S.

The Company's foreign currency cash flow hedges mature generally

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

within twelve months ;

The Company's foreign currency cash flow hedges mature generally within twelve months ;

however, forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which can extend up to five years .

For derivative instruments that are designated and qualify as cash flow hedges, and as long as they remain highly effective, the Company records the changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of equity in the Consolidated Balance Sheets and subsequently reclassifies these amounts into earnings in the same financial statement line item when the hedged transaction is recognized.

In connection with the Company’s pending acquisition of Juniper Networks and related debt issuances, the Company entered into interest rate locks for an aggregate notional amount of $ 2.6 billion.

These contracts were settled in fiscal 2024, the Company recognized a loss of $ 42 million in accumulated other comprehensive income.

In fiscal 2024, in connection with the Merger and related debt issuances, the Company entered into interest rate locks for an aggregate notional amount of $ 2.6 billion.

These contracts were settled in fiscal 2024 and the Company recognized a loss of $ 42 million in Accumulated other comprehensive loss.

Net Investment Hedges

8 unchanged sentences

For forward contracts designated as cash flow or net investment hedges, the Company measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Fair Value of Derivative Instruments in the Consolidated Balance Sheets

36 unchanged sentences

Derivative assets $ 195 $ — $ 195 $ 121 $ 16 (1) $ 58

Derivative liabilities $ 163 $ — $ 163 $ 138 $ 27 (2) N/A

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Derivative liabilities $ 289 $ — $ 289 $ 121 $ 136 (2) $ 32

As of October 31, 2024

7 unchanged sentences

Derivative assets $ 299 $ — $ 299 $ 138 $ 90 (1) $ 71

Derivative liabilities $ 305 $ — $ 305 $ 196 $ 103 (2) $ 6

Derivative liabilities $ 163 $ — $ 163 $ 138 $ 27 (2) N/A

(1) Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

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

As of October 31, 2025, of the $ 136 million of collateral posted, $ 120 million was in cash and $ 16 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 in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:

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

Carrying Amount of the Hedged Liabilities

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

As of October 31, As of October 31,

14 unchanged sentences

As of October 31, 2025, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $ 2 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.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Effect of Derivative Instruments on the Consolidated Statements of Earnings

11 unchanged sentences

Foreign Exchange Contracts

Amount of gains (losses) reclassified from accumulated other comprehensive income into income 59 ( 75 ) 28 ( 144 ) 388 590

Amount of (losses) gains reclassified from accumulated other comprehensive income into income ( 33 ) ( 120 ) 59 ( 75 ) 28 ( 144 )

Interest Rate Locks

Amount of losses reclassified from accumulated other comprehensive income into income — ( 3 ) — — — —

Gains (Losses) on Derivatives not Designated as Hedging Instruments:

1 unchanged sentence

Other derivatives — 3 — — — ( 8 )

Total gains (losses) $ 59 $ ( 37 ) $ 28 $ ( 249 ) $ 388 $ 874

Total (losses) gains $ ( 33 ) $ ( 181 ) $ 59 $ ( 37 ) $ 28 $ ( 249 )

Notes Payable and Short-Term Borrowings

11 unchanged sentences

Total notes payable and short-term borrowings $ 4,609 $ 4,742

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

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

(1) As of October 31, 2025 and 2024, the Current portion of long-term debt, net of discount and issuance costs, included $ 1.2 billion and $ 1.4 billion, respectively, both associated with the asset-backed debt securities issued by the Company.

Long-Term Debt

As of October 31,

Hewlett Packard Enterprise Unsecured Senior Notes

$ 1,250 issued at discount to par at a price of 99.996 % in September 2024 at 4.45 %, due September 25, 2026, interest payable semi-annually on March 25 and September 25 of each year

$ 1,250 issued at discount to par at a price of 99.953 % in September 2024 at 4.40 %, due September 25, 2027, interest payable semi-annually on March 25 and September 25 of each year

$ 1,750 issued at discount to par at a price of 99.894 % in September 2024 at 4.55 %, due October 15, 2029, interest payable semi-annually on April 15 and October 15 of each year

$ 1,250 issued at discount to par at a price of 99.908 % in September 2024 at 4.85 %, due October 15, 2031, interest payable semi-annually on April 15 and October 15 of each year

$ 2,000 issued at discount to par at a price of 99.078 % in September 2024 at 5.00 %, due October 15, 2034, interest payable semi-annually on April 15 and October 15 of each year

$ 1,500 issued at discount to par at a price of 98.086 % in September 2024 at 5.60 %, due October 15, 2054, interest payable semi-annually on April 15 and October 15 of each year

$ 250 issued at premium to par at a price of 100.452 % in June 2023 at 5.90 %, due October 1, 2024, interest payable semi-annually on April 1 and October 1 of each year

$ 550 issued at discount to par at a price of 99.887 % in June 2023 at 5.25 %, due July 1, 2028, interest payable semi-annually on January 1 and July 1 of each year

$ 400 issued at discount to par at a price of 99.997 % in March 2023 at 6.102 %, due April 1, 2026, interest payable semi-annually on April 1 and October 1 of each year

$ 1,300 issued at discount to par at a price of 99.934 % in March 2023 at 5.90 %, due October 1, 2024, interest payable semi-annually on April 1 and October 1 of each year

$ 1,000 issued at discount to par at a price of 99.883 % in July 2020 at 1.45 %, due April 1, 2024, interest payable semi-annually on April 1 and October 1 of each year

$ 750 issued at discount to par at a price of 99.820 % in July 2020 at 1.75 %, due April 1, 2026, interest payable semi-annually on April 1 and October 1 of each year

$ 2,500 issued at discount to par at a price of 99.725 % in October 2015 at 4.90 %, due October 15, 2025, interest payable semi-annually on April 15 and October 15 of each year

$ 750 issued at discount to par at a price of 99.942 % in October 2015 at 6.20 %, due October 15, 2035, interest payable semi-annually on April 15 and October 15 of each year

$ 1,500 issued at discount to par at a price of 99.932 % in October 2015 at 6.35 %, due October 15, 2045, interest payable semi-annually on April 15 and October 15 of each year

Hewlett Packard Enterprise Asset-Backed Debt Securities

$ 818 issued in June 2024, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.59 %, payable monthly from July 2024

$ 796 issued in January 2024, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.48 %, payable monthly from February 2024

$ 612 issued in September 2023, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 6.40 %, payable monthly from October 2023 with a stated final maturity of July 2031

$ 643 issued in March 2023 and April 2023, in five tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.59 %, payable monthly from April 2023 with a stated final maturity of April 2028

$ 651 issued in October 2022, in five tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.55 %, payable monthly from November 2022 with a stated final maturity date of August 2029

$ 747 issued in May 2022, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 3.68 %, payable monthly from July 2022 with a stated final maturity date of March 2030

$ 1,000 issued in January 2022, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 1.51 %, payable monthly from March 2022 with a stated final maturity date of November 2029

$ 753 issued in June 2021, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 0.58 %, payable monthly from August 2021 with a stated final maturity date of March 2029

$ 1,000 issued in March 2021, in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 0.49 %, payable monthly from April 2021 with a stated final maturity date of March 2031

Issuance Date Maturity Date 2025 2024

Unsecured Senior Notes

4.40 % notes issued at discount to par at a price of 99.905 %

September 2025 October 2030 $ 850 $ —

4.15 % notes issued at discount to par at a price of 99.964 %

September 2025 September 2028 850 —

4.05 % notes issued at discount to par at a price of 99.949 %

September 2025 September 2027 900 —

Floating rate notes issued at par

September 2025 September 2028 300 —

4.45 % notes issued at discount to par at a price of 99.996 %

September 2024 September 2026 1,250 1,250

4.40 % notes issued at discount to par at a price of 99.953 %

September 2024 September 2027 1,250 1,250

4.55 % notes issued at discount to par at a price of 99.894 %

September 2024 October 2029 1,750 1,750

4.85 % notes issued at discount to par at a price of 99.908 %

September 2024 October 2031 1,250 1,250

5.00 % notes issued at discount to par at a price of 99.078 %

September 2024 October 2034 2,000 2,000

5.60 % notes issued at discount to par at a price of 98.086 %

September 2024 October 2054 1,500 1,500

5.25 % notes issued at discount to par at a price of 99.887 %

June 2023 July 2028 550 550

1.75 % notes issued at discount to par at a price of 99.820 %

July 2020 April 2026 750 750

4.90 % notes issued at discount to par at a price of 99.725 %

October 2015 October 2025 — 2,500

6.20 % notes issued at discount to par at a price of 99.942 %

October 2015 October 2035 750 750

6.35 % notes issued at discount to par at a price of 99.932 %

October 2015 October 2045 1,500 1,500

1.20 % Juniper Global Notes assumed

December 2025 400 —

3.75 % Juniper Global Notes assumed

August 2029 500 —

2.00 % Juniper Global Notes assumed

September 2030 400 —

5.95 % Juniper Global Notes assumed

March 2041 400 —

Asset-Backed Debt Securities

$ 660 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 4.31 %

October 2025 Stated final maturity date of May 2033 660 —

$ 900 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 4.67 %

July 2025 Stated final maturity date of March 2033 812 —

$ 818 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.59 %

June 2024 Stated final maturity date of April 2032 441 700

$ 796 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.48 %

January 2024 Stated final maturity date of November 2031 326 583

$ 612 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 6.40 %

September 2023 Stated final maturity date of July 2031 172 373

$ 643 issued in five tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.59 %

March-April 2023 Stated final maturity date of April 2028 40 257

$ 651 issued in five tranches at a weighted average price of 99.99 % and a weighted average interest rate of 5.55 %

October 2022 Stated final maturity date of August 2029 1 191

$ 747 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 3.68 %

May 2022 Stated final maturity date of March 2030 — 148

$ 1,000 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 1.51 %

January 2022 Stated final maturity date of November 2029 — 124

$ 753 issued in six tranches at a weighted average price of 99.99 % and a weighted average interest rate of 0.58 %

June 2021 Stated final maturity date of March 2029 — 26

Term Loan at Term Benchmark Rate

July 2025 June 2028 2,000 —

Other, including finance lease obligations, at 1.6 %- 6.3 %, due in calendar years 2025-2030 (1)

Fair value adjustment related to hedged debt ( 58 ) ( 151 )

Unamortized debt issuance costs ( 76 ) ( 30 )

21,748 17,660

Unamortized premium/discount, issuance costs and other ( 196 ) ( 187 )

current portion ( 3,796 ) ( 3,969 )

Total long-term debt $ 17,756 $ 13,504

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

(1) Other, including finance lease obligations included $ 4 million and $ 14 million as of October 31, 2025 and 2024, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related finance and operating leases.

For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings.

Interest is payable semi-annually on fixed rate Unsecured Senior Notes, quarterly on floating rate Unsecured Senior Notes and monthly on Asset-Backed Debt Securities and Term Loan.

Interest expense on borrowings recognized in the Consolidated Statements of Earnings was as follows:

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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 Juniper Networks acquisition and refinancing of Juniper Networks’ credit agreement in connection with the closing of the Juniper Networks acquisition.

As of October 31, 2024 and 2023, no borrowings were outstanding under either credit facilities.

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

Uncommitted Credit Facility

On September 21, 2023, the Company entered into a five-year agreement with Societe Generale for an uncommitted short-term cash advance facility in the principal amount of up to $ 500 million.

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

Juniper Networks Acquisition Committed Financing

In connection with HPE’s signing a definitive agreement to acquire Juniper Networks in January 2024 (the “Merger Agreement”), HPE entered into a commitment letter whereby HPE obtained a commitment from Citigroup Global Markets Inc., JPMorgan Chase Bank, N.A.

and Mizuho Bank, Ltd.

for a $ 14.0 billion senior unsecured delayed draw term loan facility, comprised of an $ 11.0 billion 364-day tranche and a $ 3.0 billion three-year tranche, subject to customary conditions (the “Term Loan Commitment Letter”).

In September 2024, HPE issued $ 9.0 billion of senior unsecured notes.

In addition, in furtherance of the Term Loan Commitment Letter, the Company entered into term loan agreements with JPMorgan Chase Bank, N.A, Citibank, N.A., and

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Mizuho Bank, Ltd.

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

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

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.

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 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 October 31, 2024, no borrowings were outstanding and HPE paid $ 42 million of financing fees.

In connection with the entry into the aforementioned 364-day term loan and the three-year term loan, on September 12, 2024, HPE terminated the Term Loan Commitment Letter.

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.

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.

The 364-day loan, which was originally scheduled for full repayment on July 1, 2026, was fully repaid in September 2025.

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

In October 2025, the Company repaid $ 1.0 billion against the $ 3.0 billion previously borrowed under this agreement.

On November 21, 2025, the Company amended the three-year delayed-draw term loan agreement that was entered into in September 2024.

Under such amendment, the $ 1.0 billion of prepayment made in October 2025, along with any subsequent prepayments, will be applied toward the remaining scheduled amortization payments due on the loan, either as directed by the Company or, if no direction is provided, in order of maturity.

As a result of the amendment, subsequent to October 31, 2025, the $ 1.0 billion of prepayment has been applied to a portion of the outstanding borrowed amount and all scheduled amortization payments until the maturity of the borrowings, as provided for in the term loan agreement (including the annual amortization payments of $ 150 million in each of fiscal 2026 and fiscal 2027, which are included in the fiscal 2026 and fiscal 2027 amounts shown in the below table).

The remaining total amount of outstanding borrowings is $ 2.0 billion, which matures in fiscal 2028.

Future Maturities of Borrowings

As of October 31, 2024, aggregate future maturities of the Company's borrowings at face value (excluding a fair value adjustment related to hedged debt of $ 58 million, a net discount of $ 53 million and unamortized debt issuance costs of $ 76 million), including finance lease obligations were as follows:

As of October 31, 2025, aggregate future maturities of the Company's borrowings at face value:

Fiscal Year In millions

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The components of accumulated other comprehensive loss, net of taxes as of October 31, 2025 and changes during fiscal 2025 were as follows:

Net unrealized

Net unrealized gains (losses)

available-for-sale

securities Net unrealized

gains (losses)

securities Net unrealized (losses) gains

flow hedges Unrealized

3 unchanged sentences

Balance at beginning of period $ 8 $ ( 16 ) $ ( 2,342 ) $ ( 627 ) $ ( 2,977 )

Other comprehensive income (loss) before reclassifications 8 ( 115 ) 34 ( 23 ) ( 96 )

Other comprehensive (loss) income before reclassifications ( 3 ) ( 168 ) 177 ( 44 ) ( 38 )

Reclassifications of losses into earnings 1 156 134 — 291

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Net unrealized

(losses) gains on

available-for-sale

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Reclassifications of losses into earnings — 16 138 32 186

Tax benefit — 13 41 4 58

Tax benefit (provision) — 22 ( 7 ) 2 17

Balance at end of period $ 8 $ ( 16 ) $ ( 2,342 ) $ ( 627 ) $ ( 2,977 )

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The components of accumulated other comprehensive loss, net of taxes as of October 31, 2023 and changes during fiscal 2023 were as follows:

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The Company’s ability to pay dividends will depend on many factors, such as its financial condition, earnings, capital requirements, debt service obligations, restrictive covenants in its debt, industry practice, legal requirements, regulatory constraints, and other factors that the Board of Directors deems relevant.

Furthermore, so long as any share of its Preferred Stock remains outstanding, no dividend on shares of common stock (or any other class of stock junior to the Preferred Stock) shall be declared or paid unless all accumulated and unpaid dividends for all preceding dividend periods for the Preferred Stock have been declared and paid in full in cash, shares of the Company’s common stock or a combination thereof, or a sufficient sum of cash or number of shares of its common stock has been set apart for the payment of such dividends, on all outstanding shares of the Preferred Stock.

Dividends declared were $ 0.52 and $ 0.48 per common share in fiscal 2024 and 2023, respectively.

Furthermore, so long as any share of its Preferred

Stock remains outstanding, no dividend on shares of common stock (or any other class of stock junior to the Preferred Stock) shall be declared or paid unless all accumulated and unpaid dividends for all preceding dividend periods for the Preferred Stock have been declared and paid in full in cash, shares of the Company’s common stock or a combination thereof, or a sufficient sum of cash or number of shares of its common stock has been set apart for the payment of such dividends, on all outstanding shares of the Preferred Stock.

Dividends declared were $ 0.52 per common share in fiscal 2025 and 2024.

Dividends declared on the Preferred Stock were $ 3.81 and $ 0.83 per share in fiscal 2025 and 2024, respectively.

On December 4, 2025, the Company declared a regular cash dividend of $ 0.1425 per share on the Company's common stock, payable on January 16, 2026, to the stockholders of record as of the close of business on December 19, 2025.

Dividends on the Preferred Stock will be payable on a cumulative basis when, as and if declared by the Board of Directors, or an authorized committee thereof, at an annual rate of 7.625 % on the liquidation of preference of $ 50.00 per share.

The Company may pay declared dividends in cash or, subject to certain limitations, in shares of its common stock or in any combination of cash and shares of its common stock on March 1, June 1, September 1 and December 1 of each year,

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

commencing on December 1, 2024, and ending on, and including, September 1, 2027.

The Company has declared a cash dividend of $ 0.953125 per share of its 7.625 % Series C Mandatory Convertible Preferred Stock, which was paid on December 1, 2025, to holders of record as of the close of business on November 15, 2025.

Share Repurchase Program

On October 13, 2015, the Board of Directors approved a share repurchase program with a $ 3.0 billion authorization, which was refreshed with additional share repurchase authorizations of $ 3.0 billion, $ 5.0 billion and $ 2.5 billion on May 24, 2016, October 16, 2017 and February 21, 2018, respectively.

On October 13, 2015, the Board of Directors approved a share repurchase program with a $ 3.0 billion authorization, which was refreshed with additional share repurchase authorizations of $ 3.0 billion, $ 5.0 billion, $ 2.5 billion and $ 3.0 billion on May 24, 2016, October 16, 2017, February 21, 2018 and October 15, 2025, respectively.

This program, which does not have a specific expiration date, authorizes repurchases in the open market or in private transactions.

In fiscal 2025, the Company repurchased and settled a total of 9.8 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.

Additionally, the Company had unsettled open market repurchases of 0.1 million shares as of October 31, 2024.

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

Shares repurchased during the fiscal 2025 were recorded as a $ 200 million reduction to stockholders' equity.

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Shares repurchased during the fiscal 2024 were recorded as a $ 0.2 billion reduction to stockholders' equity.

Net Earnings Per Share

The Company calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period.

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.

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

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In millions, except per share amounts

Net earnings attributable to common stockholders - Basic $ 2,554 $ 2,025 $ 868

Net (loss) earnings attributable to common stockholders - Basic

$ ( 59 ) $ 2,554 $ 2,025

7.625 % Series C mandatory convertible preferred stock dividends

Net earnings - Diluted $ 2,579 $ 2,025 $ 868

Net (loss) earnings - Diluted

$ ( 59 ) $ 2,579 $ 2,025

Weighted-average shares used to compute basic net EPS 1,324 1,309 1,299

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Weighted-average shares used to compute diluted net EPS 1,324 1,337 1,316

Net earnings per share attributable to common stockholders:

Basic $ ( 0.04 ) $ 1.95 $ 1.56

Diluted $ ( 0.04 ) $ 1.93 $ 1.54

Anti-dilutive weighted-average stock awards (2)

(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 is calculated under the if-converted method.

(2) The Company excludes shares potentially issuable under employee stock plans that could dilute basic net EPS in the future from the calculation of diluted net earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Anti-dilutive Share Count (1)(2) :

Employee stock plans

7.625 % Series C mandatory convertible preferred stock

Total anti-dilutive weighted-average stock

(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.

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

(2) The Company excludes shares potentially issuable under employee stock plans and Preferred Stock that could dilute basic net EPS in the future from the calculation of diluted net earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

Litigation, Contingencies, and Commitments

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Litigation, Proceedings, and Investigations

Ross and Rogus v.

Hewlett Packard Enterprise Company.

On November 8, 2018, a putative class action complaint was filed in the Superior Court of California, County of Santa Clara alleging that HPE pays its California-based female employees “systemically lower compensation” than HPE pays male employees performing substantially similar work.

The complaint alleges various California state law claims, including California’s Equal Pay Act, Fair Employment and Housing Act, and Unfair Competition Law, and seeks certification of a California-only class of female employees employed in certain “Covered Positions.” The parties subsequently reached an agreement to resolve this class action.

The terms of the settlement are reflected in Plaintiff’s Motion for Preliminary Approval of Class Action Settlement and Certification of Settlement Class, which was filed with the Court on September 26, 2022.

On November 3, 2022, the Court granted Plaintiff’s motion and preliminarily approved the terms of the class settlement, which defines the settlement class as all “[w]omen actively employed in California by Defendant at any point from November 1, 2015, through the date of Preliminary Approval” who were employed in a covered job code.

The settlement class excludes certain individuals, including those who previously executed an arbitration agreement with HPE or an agreement that resulted in a release or waiver of claims.

On April 28, 2023, the Court granted Plaintiffs’ Motion for Final Approval of the Class Action Settlement and Certification of the Settlement Class.

On February 6, 2024, the Court entered final judgment, approving the settlement and dismissing the action.

DOJ Action on the Proposed Acquisition of Juniper Networks .

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 (“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.

On June 27, 2025, HPE, Juniper, 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 agreed to dismiss its action to enjoin the Merger, subject to the Court’s approval of the Proposed Final Judgment under the Antitrust Procedures and Penalties Act (the “Tunney Act”).

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

On October 14, 2025, the Attorneys General of twelve states and the District of Columbia (the “Attorneys General”) filed a motion to intervene in the Court’s Tunney Act process.

Following a November 18, 2025 hearing, the Court issued an order granting the Attorneys General’s motion to intervene and set a status conference for December 16, 2025 to determine next steps, including the scope of the Attorneys General’s intervention rights under the Tunney Act.

On November 18, 2025, the Attorneys General filed a motion to hold separate, seeking to enjoin further integration and consolidation of HPE and Juniper during the pendency of the Tunney Act proceedings.

The hearing on the Attorneys General’s motion to hold separate is set for January 8, 2026.

India Directorate of Revenue Intelligence Proceedings .

On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the “DRI”) issued notices to Hewlett-Packard India Sales Private Ltd (“HP India”), a subsidiary of HP Inc., seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $ 370 million, plus penalties.

On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related notices affirming duties and penalties against HP India and the named individuals for approximately $ 386 million.

On April 20, 2012, the Commissioner issued an order on the spare parts-related notice affirming duties and penalties against HP India and certain of the named individuals for approximately $ 17 million.

3 unchanged sentences

The Customs Tribunal rejected HP India's request to return the matter to the Commissioner on procedural grounds.

The hearings before the Customs Tribunal were subsequently delayed, have been postponed on several occasions since 2014, and have not yet been rescheduled.

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 were completed in June 2025.

HPE expects a ruling from the Customs Tribunal by early 2026.

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

ECT Proceedings .

1 unchanged sentence

in Brazil (“HP Brazil”) that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008.

In late July 2011, ECT notified HP Brazil it had decided to

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years , based upon the evidence before it.

In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years , based upon the evidence before it.

In August 2011, HP Brazil appealed ECT's decision.

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HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until a final ruling on the merits of the case.

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

Forsyth, et al.

and Hewlett Packard Enterprise.

This purported class and collective action was filed on August 18, 2016 in the United States District Court for the Northern District of California, against HP Inc.

and Hewlett Packard Enterprise (collectively, “Defendants”) alleging Defendants violated the Federal Age Discrimination in Employment Act (“ADEA”), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code by terminating older workers and replacing them with younger workers.

Plaintiffs seek to certify a nationwide collective action under the ADEA comprised of individuals aged 40 years and older who had their employment terminated by an HP entity pursuant to a work force reduction (“WFR”) plan.

Plaintiffs also seek to certify a class under California law consisting of all persons 40 years or older employed by Defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012.

On April 14, 2021, Plaintiffs’ Motion for Conditional Class Certification was granted.

The conditionally certified collective action consists of all individuals who had their employment terminated by Defendants pursuant to a WFR Plan on or after November 1, 2015, and who were 40 years or older at the time of such termination.

The collective action excludes all individuals who signed a Waiver and General Release Agreement or an Agreement to Arbitrate Claims.

The parties have reached an agreement to resolve this matter.

Plaintiffs filed a Motion for Preliminary Approval of the Class Action and Collective Action Settlement on September 21, 2023.

On November 3, 2023, the Court issued an order granting preliminary approval to the Class Action and Collective Action Settlement.

On March 29, 2024, the Court granted Final Approval to the settlement following a Fairness Hearing on the parties’ Motion for Final Approval.

Judgment has been entered by the Court and the matter is now closed.

Q3 Networking Litigation.

On September 21 and September 22, 2020, Q3 Networking LLC filed complaints against HPE, Aruba Networks, Commscope and Netgear in the United States District Court for the District of Delaware and the United States International Trade Commission (“ITC”).

Both complaints allege infringement of four patents, and the ITC complaint defines the “accused products” as “routers, access points, controllers, network management servers, other networking products, and hardware and software components thereof.” The ITC action was instituted on October 23, 2020.

The District of Delaware action has been stayed pending resolution of the ITC action.

On December 7, 2021, the Administrative Law Judge issued his initial determination finding no violation of section 337 of the Tariff Act.

On May 3, 2022, the ITC issued its Notice of Final Determination, affirming the initial determination and terminating the investigation.

On June 18, 2022, Q3 Networking filed a petition for review of the ITC ruling with the United States Court of Appeals for the Federal Circuit.

On May 10, 2024, the United States Court of Appeals for the Federal Circuit affirmed the ITC’s ruling in favor of HPE and Aruba Networks.

Q3 Networking has not sought further review of the Federal Circuit’s ruling and HPE considers the matter closed.

R2 Semiconductor Patent Litigation.

In November 2022, R2 Semiconductor, Inc.

(“R2”) filed a lawsuit in the Dusseldorf Regional Court in Germany against Intel Deutschland GmbH, Hewlett-Packard GmbH, and other Intel customers.

R2 asserts that one European patent is infringed by certain Intel processors and the HPE products that contain those Intel processors.

On February 7, 2024, the Dusseldorf Regional Court ruled in R2’s favor, issuing an injunction that, if enforced by R2, would prevent the sale in Germany of any products with infringing Intel processors, and require HPE to correspond with its direct customers in Germany requesting return of the products with infringing Intel processors.

The injunction would remain in place unless the ruling is overturned on appeal, the patent is invalidated by the German Federal Patent Court, or the matter is resolved by the parties.

On February 8, 2024, HPE, Intel, HP Inc., and Dell filed an appeal and request for a stay of the judgment pending appeal.

On April 9, 2024 the request for a stay pending appeal was denied.

On April 3, 2024, R2 filed a lawsuit in France in the first instance court in Paris (Tribunal judiciare de Paris) against Intel Corporation, Intel Corporation SAS, Intel Deutschland GmbH, HP France SAS and certain other Intel customers.

In May 2024, R2 filed suit in Milan against Intel Corporation Italia S.P.A., Hewlett-Packard Italiana S.r.l., and certain other Intel customers.

R2 asserts the same European patent is infringed in both the French and Italian actions.

On August 30, 2024, Intel and R2 publicly announced an agreement to dismiss all litigation between the two companies that would include dismissal of all litigation against all subsidiaries of HPE in the foregoing actions.

Pursuant to that agreement, the Italian lawsuit was dismissed on September 2, 2024, the German lawsuit was dismissed on September 4, 2024, and the French Lawsuit was dismissed on September 6, 2024.

These matters are now

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Shared Litigation with HP Inc., DXC and Micro Focus

In September 2025, the Court of Appeals ruled in favor of HPE’s Civil Appeal, annulling the previously-stayed sanctions that, if enforced, would have barred HPE Brazil from participating in public tenders for five years.

HPE has filed a motion to recover legal costs incurred during the appeal.

ECT has filed a motion requesting the Court to clarify the merits.

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 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 held a hearing during the week of November 17, 2025 addressing a number of matters including costs (including attorneys’ fees), pre-judgment interest, issues relating to the currency in which the judgment should be paid, and the Lynch Estate’s right to appeal discrete issues in the Court’s May 2022 liability judgment and its July 2025 quantum judgment.

In total, Claimants are seeking a total of $ 1.786 billion from Lynch’s Estate.

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

As part of the Separation and Distribution Agreements between Hewlett Packard Enterprise and HP Inc., Hewlett Packard Enterprise and DXC, and Hewlett Packard Enterprise and Seattle SpinCo, the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses.

3 unchanged sentences

The Company's operations and products are or may in the future become subject to various federal, state, local, and foreign laws and regulations concerning the environment, including laws addressing the discharge of pollutants into the air and water;

supply chain due diligence, and sustainability, environment, and emissions-related reporting;

supply chain due diligence;

and sustainability, environment, and emissions-related reporting;

environmental claims and statements;

the management, movement, and disposal of hazardous substances and wastes;

the clean-up of contaminated sites;

product compliance and safety;

product safety and compliance;

the energy consumption of products, services, and operations;

and the operational or financial responsibility for recycling, treatment, and disposal of those products.

This includes legislation that makes producers of electrical goods, including servers and networking equipment, subject to certain repairability requirements or financially responsible for specified collection, recycling, treatment, and disposal of past and future covered products (sometimes referred to as “product take-back legislation”).

The Company could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws, including those related to addressing climate change and other environmental related issues, or if its products become non-compliant with such environmental laws.

The Company's potential exposure includes impacts on revenue, fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs.

This includes legislation that makes producers of electrical goods, including servers and networking equipment, responsible for repairability requirements or financially responsible for specified collection, recycling, treatment, and disposal of past and future covered products (sometimes referred to as “product take-back legislation”).

The Company could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws, including those related to addressing climate change, sustainability, and other environmental related issues, or if its products become non-compliant with such environmental laws.

The Company's potential exposure includes impacts on revenue, fines and civil or criminal sanctions, third-party environmental or property damage or personal injury claims or actions, and clean-up costs.

The amount and timing of costs to comply with environmental laws are difficult to predict.

7 unchanged sentences

Unconditional purchase obligations exclude agreements that are cancellable without penalty.

The Company expects the commitments to total $ 556 million, $ 368 million, $ 278 million, $ 68 million, and $ 13 million, for fiscal years 2025, 2026, 2027, 2028, and 2029, respectively.

There are no unconditional purchase obligations subsequent to fiscal year 2029.

The Company expects the commitments to total $ 1,956 million, $ 414 million, $ 379 million, $ 347 million, $ 111 million, and $ 87 million for fiscal years 2026, 2027, 2028, 2029, 2030, and thereafter, respectively.

Guarantees and Indemnifications

3 unchanged sentences

The Company believes the likelihood of having to perform under a material guarantee is remote.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

The Company has entered into service contracts with certain of its clients that are supported by financing arrangements.

16 unchanged sentences

In certain jurisdictions, the Company and DXC/Micro Focus have joint and several liability for past tax liabilities and accordingly, the Company could be legally liable under applicable tax law for such liabilities and required to make additional tax payments.

In addition, if the distribution of Everett's or Seattle's common shares to Hewlett Packard Enterprise's stockholders is determined to be taxable, the Company would generally bear the tax liability, unless the taxability of the distribution is the direct result of actions taken by DXC/Micro Focus, in which case DXC/Micro Focus would be responsible for any taxes imposed on the distribution.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

As of October 31, 2025 and 2024, the Company's receivable and payable balances related to indemnified litigation matters and other contingencies, and income tax-related indemnification covered by these agreements were as follows:

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Net indemnification receivable - long-term

Net indemnification receivable - short-term

(1) The actual amount that the Company may receive or pay could vary depending upon the outcome of certain unresolved tax matters, which may not be resolved for several years.

7 unchanged sentences

As of October 31, 2025, the Company's Investments in equity interests was $ 955 million and primarily related to a 19 % equity interest in H3C.

As of October 31, 2023, the Company's Investments in equity interests was $ 2.2 billion and primarily related to a 49 % equity interest in H3C.

As of October 31, 2024, the difference between the cost of the investment and the underlying equity in the net assets of the investment is $ 649 million.

As of October 31, 2024, the Company's Investments in equity interests was $ 929 million and primarily related to a 19 % equity interest in H3C.

Pending Divestiture of H3C Shares

On November 17, 2025, our subsidiary, H3C Holdings Limited (“H3C Holdings”), entered into (i) share purchase agreements with five counterparties, including Unisplendour International Technology Limited (“UNIS”), whereby such counterparties, in the aggregate, agreed to purchase 10 % of the total issued share capital of H3C Technologies Co., Limited (“H3C”) for cash consideration of approximately $ 714 million and (ii) a side letter with UNIS, amending the Agreement on Subsequent Arrangements that was previously entered into on May 24, 2024, whereby, among other things, H3C Holdings and UNIS shall retain their put option and call option, respectively, relating to the remaining issued share capital of H3C held by H3C Holdings and have the right to exercise their respective option rights in respect of such shares up to three times, subject to the timing and terms as set forth therein.

The agreement referenced in clause (ii) above revises the arrangements governing the sale of all of the remaining issued share capital of H3C held by us through H3C Holdings.

On November 28, 2025, H3C Holdings entered into three additional share purchase agreements, including one with UNIS, whereby such counterparties, in the aggregate, agreed to purchase the remaining 9 % of the total issued share capital of H3C for cash consideration of approximately $ 643 million.

Such transactions and the transactions referenced in clause (i) remain subject to regulatory approvals.

As of October 31, 2025, there was no difference between the cost of the investment and the underlying equity in the net assets of the investment.

As of October 31, 2025 and 2024, the Company determined that no impairment of its equity method investments existed.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Earnings from equity interests

5 unchanged sentences

Adjustment of profit on intra-entity sales

( 4 ) 12 ( 10 )

Earnings from equity interests $ 79 $ 147 $ 245

7 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data