HPE filing — read by section

Item 1. Financial Statements

Item 1. Financial Statements. 
 
 Index 
 Page 
 Condensed Consolidated Statements of Earnings for the three and six months ended April 30, 2026 and 2025 (Unaudited) 
 7 
 
 
 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended April 3 0 , 2026 and 2025 (Unaudited) 
 8 
 
 
 Condensed Consolidated Balance Sheets as of April 3 0 , 2026 (Unaudited) and October 31, 2025 (Audited) 
 9 
 
 
 Condensed Consolidated Statements of Cash Flows for the six months ended April 3 0 , 2026 and 2025 (Unaudited) 
 10 
 
 
 Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended April 3 0 , 2026 and 2025 (Unaudited) 
 11 
 
 
 Notes to Condensed Consolidated Financial Statements (Unaudited) 
 13 
 
 
 Note 1: Overview and Summary of Significant Accounting Policies 
 13 
 
 
 Note 2: Segment Information 
 14 
 
 
 Note 3: Retirement Benefit Plans 
 17 
 
 
 Note 4: Taxes on Earnings 
 17 
 
 
 Note 5: Balance Sheet Details 
 19 
 
 
 Note 6: Accounting for Leases as a Lessor 
 23 
 
 
 Note 7: Acquisitions and Dispositions 
 26 
 
 
 Note 8: Goodwill 
 27 
 
 
 Note 9: Fair Value 
 28 
 
 
 Note 10: Financial Instruments 
 30 
 
 
 Note 11: Borrowings 
 34 
 
 
 Note 12: Stockholders' Equity 
 35 
 
 
 Note 13: Net Earnings (Loss) Per Share 
 35 
 
 
 Note 14: Litigation, Contingencies, and Commitments 
 36 
 
 
 

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 Table of Content 
 

 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Condensed Consolidated Statements of Earnings 
 (Unaudited) 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions, except per share amounts 
 Net Revenue: 
 Products $ 7,219 $ 4,769 $ 13,080 $ 9,739 
 Services 3,266 2,670 6,511 5,368 
 Financing income 193 188 388 374 
 Total net revenue 10,678 7,627 19,979 15,481 
 Costs and Expenses: 
 Cost of products (exclusive of amortization shown separately below) 4,840 3,631 8,929 7,393 
 Cost of services (exclusive of amortization shown separately below) 1,820 1,703 3,570 3,372 
 Financing cost 118 124 240 252 
 Research and development 922 540 1,666 1,015 
 Selling, general and administrative 1,830 1,298 3,528 2,566 
 Amortization of intangible assets 323 37 634 75 
 Impairment charges — 1,361 — 1,361 
 
 Acquisition, disposition and other charges 78 42 195 123 
 Total costs and expenses 9,931 8,736 18,762 16,157 
 Earnings (loss) from operations 747 ( 1,109 ) 1,217 ( 676 ) 
 Interest and other, net ( 73 ) 39 ( 127 ) 78 
 Gain on sale of a business — — — 244 
 
 Earnings from equity interests 25 25 42 42 
 Earnings (loss) before provision for taxes 699 ( 1,045 ) 1,132 ( 312 ) 
 Provision for taxes ( 75 ) ( 5 ) ( 56 ) ( 111 ) 
 Net earnings (loss) attributable to HPE 624 ( 1,050 ) 1,076 ( 423 ) 
 Preferred stock dividends ( 29 ) ( 29 ) ( 58 ) ( 58 ) 
 Net earnings (loss) attributable to common stockholders $ 595 $ ( 1,079 ) $ 1,018 $ ( 481 ) 
 Net Earnings (Loss) Per Share Attributable to Common Stockholders: 
 Basic $ 0.45 $ ( 0.82 ) $ 0.76 $ ( 0.36 ) 
 Diluted $ 0.44 $ ( 0.82 ) $ 0.75 $ ( 0.36 ) 
 
 Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share: 
 Basic 1,335 1,322 1,335 1,319 
 Diluted 1,432 1,322 1,356 1,319 

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

 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Condensed Consolidated Statements of Comprehensive Income 
 (Unaudited) 
 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions 
 Net earnings (loss) attributable to HPE $ 624 $ ( 1,050 ) $ 1,076 $ ( 423 ) 
 Other Comprehensive Income (Loss), Before Taxes 
 Change in Net Unrealized Losses on Available-for-sale Securities: 
 Net unrealized losses arising during the period ( 3 ) ( 5 ) ( 2 ) ( 6 ) 
 
 ( 3 ) ( 5 ) ( 2 ) ( 6 ) 
 Change in Net Unrealized Components of Cash Flow Hedges: 
 Net unrealized gains (losses) arising during the period 126 ( 465 ) ( 65 ) ( 195 ) 
 Net (gains) losses reclassified into earnings ( 53 ) 244 85 31 
 73 ( 221 ) 20 ( 164 ) 
 Change in Unrealized Components of Defined Benefit Plans: 
 Net unrealized losses arising during the period ( 1 ) ( 20 ) ( 1 ) ( 20 ) 
 Amortization of net actuarial loss and prior service benefit 25 29 49 59 
 Curtailments, settlements and other 2 3 2 3 
 26 12 50 42 
 Change in Cumulative Translation Adjustment: ( 23 ) 10 ( 23 ) ( 12 ) 
 Other Comprehensive Income (Loss), Before Taxes 73 ( 204 ) 45 ( 140 ) 
 (Provision) Benefit for Taxes ( 18 ) 37 ( 14 ) 23 
 Other Comprehensive Income (Loss), Net of Taxes 55 ( 167 ) 31 ( 117 ) 
 Comprehensive Income (Loss) $ 679 $ ( 1,217 ) $ 1,107 $ ( 540 ) 

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

 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Condensed Consolidated Balance Sheets 
 As of 
 April 30, 2026 October 31, 2025 
 (Unaudited) (Audited) 
 In millions, except par value and shares 
 ASSETS 
 Current Assets: 
 Cash and cash equivalents $ 5,292 $ 5,773 
 Accounts receivable, net of allowances 6,286 5,290 
 Financing receivables, net of allowances 3,694 3,826 
 Inventory 9,034 6,352 
 Other current assets 5,053 3,753 
 Total current assets 29,359 24,994 
 Property, plant and equipment, net 5,597 6,002 
 Long-term financing receivables and other assets 13,992 13,817 
 Investments in equity interests 916 955 
 Goodwill 23,828 23,770 
 Intangible assets, net 5,820 6,368 
 Total assets $ 79,512 $ 75,906 
 LIABILITIES AND STOCKHOLDERS' EQUITY 
 Current Liabilities: 
 Notes payable and short-term borrowings $ 3,009 $ 4,609 
 Accounts payable 11,311 7,731 
 Employee compensation and benefits 1,957 1,871 
 Taxes on earnings 387 319 
 Deferred revenue 5,621 5,358 
 Other accrued liabilities 4,690 4,755 
 Total current liabilities 26,975 24,643 
 Long-term debt 18,237 17,756 
 Other non-current liabilities 8,947 8,753 
 Commitments and Contingencies 
 HPE Stockholders' Equity: 
 7.625 % Series C mandatory convertible preferred stock, $ 0.01 par value ( 30,000,000 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively) 
 — — 
 Common stock, $ 0.01 par value ( 9,600,000,000 shares authorized; 1,323,294,768 and 1,318,292,428 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively) 
 13 13 
 Additional paid-in capital 30,207 30,234 
 Accumulated deficit ( 2,211 ) ( 2,811 ) 
 Accumulated other comprehensive loss ( 2,717 ) ( 2,748 ) 
 Total HPE stockholders' equity 25,292 24,688 
 Non-controlling interests 61 66 
 Total stockholders' equity 25,353 24,754 
 Total liabilities and stockholders' equity $ 79,512 $ 75,906 

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

 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Condensed Consolidated Statements of Cash Flows (Unaudited) 
 For the six months ended April 30, 
 2026 2025 
 In millions 
 Cash Flows from Operating Activities: 
 Net earnings (loss) attributable to HPE $ 1,076 $ ( 423 ) 
 Adjustments to Reconcile Net Earnings (Loss) Attributable to HPE to Net Cash Provided by (Used in) Operating Activities: 
 Depreciation and amortization 1,749 1,173 
 Impairment charges — 1,361 
 Stock-based compensation expense 434 270 
 Provision for inventory and credit losses 305 190 
 
 Cost reduction program 53 146 
 Deferred taxes on earnings ( 266 ) ( 43 ) 
 Earnings from equity interests ( 42 ) ( 42 ) 
 Gain on sale of a business — ( 244 ) 
 
 Dividends received from equity investees 76 — 
 H3C divestiture related severance costs — 97 
 Amortization of inventory fair value adjustment 31 — 
 
 Other, net 100 28 
 Changes in Operating Assets and Liabilities, Net of Acquisitions: 
 Accounts receivable ( 1,098 ) ( 372 ) 
 Financing receivables 282 25 
 Inventory ( 2,956 ) ( 435 ) 
 Accounts payable 3,562 ( 1,698 ) 
 Taxes on earnings 137 ( 36 ) 
 
 
 Other assets and liabilities ( 855 ) ( 848 ) 
 Net cash provided by (used in) operating activities 2,588 ( 851 ) 
 Cash Flows from Investing Activities: 
 Investment in property, plant and equipment and software assets ( 1,152 ) ( 1,075 ) 
 Proceeds from sale of property, plant and equipment 196 164 
 Purchases of equity investments ( 4 ) ( 1 ) 
 Proceeds from sale of available-for-sale securities and other investments 5 41 
 
 
 Financial collateral posted ( 491 ) ( 638 ) 
 Financial collateral received 453 287 
 
 Proceeds from sale of a business — 210 
 Net cash used in investing activities ( 993 ) ( 1,012 ) 
 Cash Flows from Financing Activities: 
 Short-term borrowings with original maturities less than 90 days, net ( 10 ) ( 11 ) 
 Proceeds from debt, net of issuance costs 2,230 257 
 Payment of debt ( 3,371 ) ( 1,061 ) 
 
 Net payments related to stock-based award activities ( 183 ) ( 171 ) 
 
 Repurchases of common stock ( 312 ) ( 102 ) 
 
 Cash dividends paid to preferred stockholders ( 58 ) ( 54 ) 
 Cash dividends paid to common stockholders ( 379 ) ( 342 ) 
 Other ( 8 ) ( 8 ) 
 Net cash used in financing activities ( 2,091 ) ( 1,492 ) 
 Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 9 ) 38 
 Change in cash, cash equivalents and restricted cash ( 505 ) ( 3,317 ) 
 Cash, cash equivalents and restricted cash at beginning of period 5,859 15,105 
 Cash, cash equivalents and restricted cash at end of period $ 5,354 $ 11,788 

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

 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) 
 
 Common Stock Preferred Stock 
 For the three months ended April 30, 2026 Number of Shares Par Value Number of 7.625 % 
 Series C Mandatory 
 Convertible 
 Shares 
 Additional Paid-in Capital Accumulated Deficit Accumulated
Other
Comprehensive
Loss Equity
Attributable
to the
Company Non-
controlling
Interests Total
Equity 
 In millions, except number of shares in thousands 
 Balance as of January 31, 2026 1,328,922 $ 13 30,000 $ 30,126 $ ( 2,593 ) $ ( 2,772 ) $ 24,774 $ 60 $ 24,834 
 Net earnings attributable to HPE 624 624 1 625 
 Other comprehensive income 55 55 55 
 Comprehensive income 679 1 680 
 Stock-based compensation expense 218 218 218 
 Tax withholding related to vesting of employee stock plans ( 11 ) ( 11 ) ( 11 ) 
 
 
 Issuance of common stock in connection with employee stock plans and other 897 ( 1 ) 2 1 1 
 Repurchases of common stock ( 6,524 ) ( 125 ) ( 26 ) ( 151 ) ( 151 ) 
 Dividends on preferred stock accrued/declared 
 ($ 0.9531 per preferred share) 
 ( 29 ) ( 29 ) ( 29 ) 
 Cash dividends declared ($ 0.1425 per share) 
 ( 189 ) ( 189 ) — ( 189 ) 
 
 Balance as of April 30, 2026 1,323,295 $ 13 30,000 $ 30,207 $ ( 2,211 ) $ ( 2,717 ) $ 25,292 $ 61 $ 25,353 
 

 
 
 
 Common Stock Preferred Stock 
 For the six months ended April 30, 2026 
 Number of Shares Par Value Number of 7.625 % 
 Series C Mandatory 
 Convertible 
 Shares 
 Additional Paid-in Capital Accumulated Deficit Accumulated
Other
Comprehensive
Loss Equity
Attributable
to the
Company Non-
controlling
Interests Total
Equity 
 In millions, except number of shares in thousands 
 Balance as of October 31, 2025 1,318,292 $ 13 30,000 $ 30,234 $ ( 2,811 ) $ ( 2,748 ) $ 24,688 $ 66 $ 24,754 
 Net earnings attributable to HPE 1,076 1,076 3 1,079 
 Other comprehensive income 31 31 31 
 Comprehensive income 1,107 3 1,110 
 Stock-based compensation expense 434 434 434 
 Tax withholding related to vesting of employee stock plans ( 207 ) ( 207 ) ( 207 ) 
 Issuance of common stock in connection with employee stock plans and other 18,587 19 1 20 20 
 Repurchases of common stock ( 13,584 ) ( 273 ) ( 40 ) ( 313 ) ( 313 ) 
 Dividends on preferred stock accrued/declared 
 ($ 1.9063 per preferred share) 
 ( 58 ) ( 58 ) ( 58 ) 
 Cash dividends declared ($ 0.2850 per share) 
 ( 379 ) ( 379 ) ( 8 ) ( 387 ) 
 Balance as of April 30, 2026 1,323,295 $ 13 30,000 $ 30,207 $ ( 2,211 ) $ ( 2,717 ) $ 25,292 $ 61 $ 25,353 

 11 

 Table of Content 

 
 Common Stock Preferred Stock 
 For the three months ended April 30, 2025 Number of Shares Par Value Number of 7.625 % 
 Series C Mandatory 
 Convertible 
 Shares 
 Additional Paid-in Capital Accumulated Deficit Accumulated
Other
Comprehensive
Loss Equity
Attributable
to the
Company Non-
controlling
Interests Total
Equity 
 In millions, except number of shares in thousands 
 Balance as of January 31, 2025 1,313,391 $ 13 30,000 $ 29,780 $ ( 1,642 ) $ ( 2,927 ) $ 25,224 $ 58 $ 25,282 
 Net (loss) earnings attributable to HPE ( 1,050 ) ( 1,050 ) 2 ( 1,048 ) 
 Other comprehensive loss ( 167 ) ( 167 ) ( 167 ) 
 Comprehensive (loss) income ( 1,217 ) 2 ( 1,215 ) 
 Stock-based compensation expense 116 116 116 
 Tax withholding related to vesting of employee stock plans ( 5 ) ( 5 ) ( 5 ) 
 
 Issuance of common stock in connection with employee stock plans and other 473 ( 1 ) ( 1 ) ( 1 ) 
 Repurchases of common stock ( 3,332 ) ( 50 ) ( 50 ) ( 50 ) 
 Dividend on preferred stock accrued/declared 
 ($ 0.9531 per preferred share) 
 ( 29 ) ( 29 ) ( 29 ) 
 Cash dividends declared ($ 0.13 per share) 
 ( 171 ) ( 171 ) ( 171 ) 
 
 Balance as of April 30, 2025 1,310,532 $ 13 30,000 $ 29,840 $ ( 2,892 ) $ ( 3,094 ) $ 23,867 $ 60 $ 23,927 

 
 
 Common Stock Preferred Stock 
 For the six months ended April 30, 2025 
 Number of Shares Par Value Number of 7.625 % 
 Series C Mandatory 
 Convertible 
 Shares 
 Additional Paid-in Capital Accumulated Deficit Accumulated
Other
Comprehensive
Loss Equity
Attributable
to the
Company Non-
controlling
Interests Total
Equity 
 In millions, except number of shares in thousands 
 Balance as of October 31, 2024 1,297,258 $ 13 30,000 $ 29,848 $ ( 2,068 ) $ ( 2,977 ) $ 24,816 $ 64 $ 24,880 
 Net (loss) earnings attributable to HPE ( 423 ) ( 423 ) 4 ( 419 ) 
 Other comprehensive loss ( 117 ) ( 117 ) ( 117 ) 
 Comprehensive (loss) income ( 540 ) 4 ( 536 ) 
 Stock-based compensation expense 270 270 270 
 Tax withholding related to vesting of employee stock plans ( 197 ) ( 197 ) ( 197 ) 
 Issuance of common stock in connection with employee stock plans and other 18,901 17 1 18 18 
 Repurchases of common stock ( 5,627 ) ( 98 ) ( 2 ) ( 100 ) ( 100 ) 
 Dividend on preferred stock accrued/declared 
 ($ 1.9063 per preferred share) 
 ( 58 ) ( 58 ) ( 58 ) 
 Cash dividends declared ($ 0.26 per share) 
 ( 342 ) ( 342 ) ( 8 ) ( 350 ) 
 Balance as of April 30, 2025 1,310,532 $ 13 30,000 $ 29,840 $ ( 2,892 ) $ ( 3,094 ) $ 23,867 $ 60 $ 23,927 

 
 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 
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 Table of Content 
 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Notes to Condensed Consolidated Financial Statements 
 (Unaudited) 

 
 
 Note 1: Overview and Summary of Significant Accounting Policies 
 Background 
 Hewlett Packard Enterprise Company (“HPE,” or the “Company”) is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge-to-cloud. HPE enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. HPE's customers range from small- and medium-sized businesses to large global enterprises and governmental entities. 
 Basis of Presentation and Consolidation 
 The Condensed Consolidated Financial Statements of the Company were prepared in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”). The Company’s unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all subsidiaries and affiliates in which the Company has a controlling financial interest or is the primary beneficiary. All intercompany transactions and accounts within the consolidated businesses of the Company have been eliminated. Certain prior period financial statement amounts have been reclassified to conform to current period presentation. This interim information should be read in conjunction with the Consolidated Financial Statements for the fiscal year ended October 31, 2025 in HPE’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on December 18, 2025. The Condensed Consolidated Balance Sheet for October 31, 2025 was derived from audited financial statements. 
 Segment Realignment 
 Effective November 1, 2025, HPE implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & Artificial Intelligence (“AI”) and (ii) transferring the Telco and Instant On businesses from the Networking segment to the Corporate Investments and Other segment. As a result, the Company’s organizational structure consists of the following segments: (i) Cloud & AI; (ii) Networking; and (iii) Corporate Investments and Other. The Company has reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on HPE’s previously reported consolidated net revenue, net earnings, net earnings per share (“EPS”) or total assets. Refer to Note 2, “Segment Information” for further information. 
 Use of Estimates 
 The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HPE’s Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ materially from those estimates. 
 Significant Accounting Policies 
 There have been no significant changes to the Company's significant accounting policies described in Part II, Item 8, Note 1, “Overview and Summary of Significant Accounting Policies,” of the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2025. 
 Recently Enacted Accounting Pronouncements 
 In May 2026, the Financial Accounting Standards Board (“FASB”) issued guidance to provide recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. 
 In December 2025, the FASB issued guidance to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendment is effective for interim periods with annual reporting periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. 
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 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 In December 2025, the FASB issued guidance to establish the accounting for a government grant received by a business entity. The amendment is effective for annual and interim periods beginning after December 15, 2028, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements. 
 In September 2025, the FASB issued guidance to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing 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 November 2024, the FASB issued guidance to provide disaggregated expense disclosures in the Consolidated Financial Statements. The Company is required to adopt the guidance for its annual period ending October 31, 2028 and all interim periods thereafter, though early adoption is permitted. 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 effective tax rate reconciliation and income taxes paid. The guidance is applicable to the Company’s annual filings beginning October 31, 2026. 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. 
 
 Note 2: Segment Information 
 HPE's operations are organized into three segments for financial reporting purposes: Cloud & AI, Networking, and Corporate Investments and Other. HPE’s organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), Antonio F. Neri, who is the President and Chief Executive Officer, uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The three segments are based on this structure and information reviewed by HPE's management to evaluate segment results. A summary of the types of products and services within each segment is as follows: 
 Networking develops and sells high-performance network and security products and services that empower customers of all sizes to build scalable, reliable, secure, agile, and efficient automated networks. HPE’s platforms are purpose-built using AI to deliver secure and sustainable user experiences from the edge to the data center and cloud. Networking’s 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 as-a-service (“aaS”) and flexible consumption models through HPE GreenLake. 
 Cloud & AI includes server and storage offerings. The Cloud & AI server portfolio includes general-purpose servers for multi-workload computing and workload-optimized servers to deliver the best performance and value for demanding applications, and integrated systems comprised of software and hardware designed to address High-Performance Computing and Supercomputing (including exascale applications), AI, Data Analytics, and Transaction Processing workloads for government and commercial customers globally. The Cloud & AI comprehensive storage portfolio offers a wide variety of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service (“SaaS”) space. The storage product line includes data storage and data management offerings with the HPE Alletra Storage portfolio; unstructured data solutions and analytics for AI; data protection and archiving. Storage offerings also include the Company’s GreenLake Flex and software solutions. 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 HPE and others. 
 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; Telco, Instant On, and Hewlett Packard Labs. 
 Segment Policy 
 HPE 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 
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 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 intangible assets, H3C divestiture related severance costs, severance costs associated with the cost reduction program, acquisition, disposition and other charges, and impairment charges. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by the CODM. 
 Segment Operating Results 
 Segment net revenue and operating results were as follows: 
 Networking Cloud & AI Corporate
Investments and Other Total 
 In millions 
 Three months ended April 30, 2026: 
 
 
 
 Total segment net revenue $ 2,690 $ 7,707 $ 281 $ 10,678 
 Segment cost of sales 1,056 5,468 217 6,741 
 Segment operating expenses 1,053 1,285 73 2,411 
 Segment earnings (loss) from operations $ 581 $ 954 $ ( 9 ) $ 1,526 
 Three months ended April 30, 2025 (1) : 
 
 
 
 Total segment net revenue $ 1,084 $ 6,271 $ 272 $ 7,627 
 Segment cost of sales 422 4,760 204 5,386 
 Segment operating expenses 391 1,097 75 1,563 
 Segment earnings (loss) from operations $ 271 $ 414 $ ( 7 ) $ 678 
 
 Six months ended April 30, 2026: 
 
 
 
 Total segment net revenue $ 5,396 $ 14,041 $ 542 $ 19,979 
 Segment cost of sales 2,105 10,112 421 12,638 
 Segment operating expenses 2,070 2,330 142 4,542 
 Segment earnings (loss) from operations $ 1,221 $ 1,599 $ ( 21 ) $ 2,799 
 Six months ended April 30, 2025 (1) : 
 
 
 
 Total segment net revenue $ 2,160 $ 12,782 $ 539 $ 15,481 
 Segment cost of sales 817 9,704 406 10,927 
 Segment operating expenses 752 2,117 148 3,017 
 Segment earnings (loss) from operations $ 591 $ 961 $ ( 15 ) $ 1,537 

 
 

 (1) Effective at the beginning of the first quarter of fiscal 2026, HPE 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. The Company reflected these changes to its segment information retrospectively. These changes had no impact on HPE ’s previously reported consolidated net revenue, net earnings, net earnings per share or total assets. 
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 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The reconciliation of segment operating results to Condensed Consolidated Statements of Earnings was as follows: 
 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions 
 
 
 
 
 Earnings (Loss) Before Taxes: 
 Total segment earnings from operations $ 1,526 $ 678 $ 2,799 $ 1,537 
 Unallocated corporate costs and eliminations ( 103 ) ( 65 ) ( 194 ) ( 144 ) 
 Stock-based compensation expense ( 218 ) ( 116 ) ( 434 ) ( 270 ) 
 Amortization of intangible assets ( 323 ) ( 37 ) ( 634 ) ( 75 ) 
 Impairment charges — ( 1,361 ) — ( 1,361 ) 
 
 Gain on sale of a business — — — 244 
 H3C divestiture related severance costs — ( 20 ) — ( 97 ) 
 Cost reduction program ( 30 ) ( 146 ) ( 53 ) ( 146 ) 
 Acquisition, disposition and other charges ( 105 ) ( 42 ) ( 267 ) ( 120 ) 
 Interest and other, net ( 73 ) 39 ( 127 ) 78 
 Earnings from equity interests 25 25 42 42 
 Total earnings (loss) before provision for taxes $ 699 $ ( 1,045 ) $ 1,132 $ ( 312 ) 

 Geographic Information 
 Net revenue by geographic region was as follows: 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions 
 Americas: 
 United States $ 3,952 $ 2,739 $ 7,272 $ 5,257 
 Americas excluding United States 602 562 1,105 1,436 
 Total Americas 4,554 3,301 8,377 6,693 
 Europe, Middle East and Africa 3,779 2,739 7,266 5,419 
 Asia Pacific and Japan 2,345 1,587 4,336 3,369 
 Total consolidated net revenue $ 10,678 $ 7,627 $ 19,979 $ 15,481 

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 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

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

 
 

 (1) Storage includes revenue from GreenLake Flex and Software. 
 (2) Other category includes intersegment revenue eliminations and third-party storage solutions. 
 
 Note 3: Retirement Benefit Plans 
 The Company's net pension benefit credit for defined benefit plans recognized in the Condensed Consolidated Statements of Earnings was as follows: 
 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions 
 Service cost $ 15 $ 12 $ 30 $ 24 
 Interest cost (1) 
 95 89 188 178 
 Expected return on plan assets (1) 
 ( 159 ) ( 146 ) ( 315 ) ( 295 ) 
 Amortization and Deferrals (1) : 
 
 Actuarial loss 24 31 48 62 
 Prior service cost (benefit) 2 ( 1 ) 2 ( 2 ) 
 Net periodic benefit credit ( 23 ) ( 15 ) ( 47 ) ( 33 ) 
 Settlement loss and special termination benefits (1) 
 2 3 2 3 
 Total net benefit credit $ ( 21 ) $ ( 12 ) $ ( 45 ) $ ( 30 ) 

 
 

 (1) These non-service components were included in Interest and other, net in the Condensed Consolidated Statements of Earnings. 
 
 Note 4: Taxes on Earnings 
 Provision for Taxes 
 For the three months ended April 30, 2026 and 2025, the Company recorded income tax expense of $ 75 million and $ 5 million, respectively, which reflects an effective tax rate of 10.7 % and ( 0.5 )%, respectively. For the six months ended April 30, 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 2026 and 2025, the Company recorded income tax expense of $ 56 million and $ 111 million, respectively, which reflects an effective tax rate of 4.9 % and ( 35.6 )%, respectively. The effective tax rate generally differs from the U.S. federal statutory rate of 21% due to favorable tax rates associated with certain earnings from the Company’s operations in lower tax jurisdictions throughout the world but is also impacted by discrete tax adjustments during each fiscal period. For the three and six months ended April 30, 2025, the effective tax rate also included the effects of the non-deductible goodwill impairment. 
 For the three and six months ended April 30, 2026, the Company recorded $ 42 million of net income tax charges and $ 43 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended April 30, 2026, this amount primarily included $ 29 million of net income tax charges related to the increase in uncertain tax positions with respect to federal and state impacts of the U.S. income tax audit for fiscal 2020 to 2022. For the six months ended April 30, 2026, this amount primarily included $ 66 million of net income tax benefits related to the costs incurred as a result of the acquisition of Juniper Networks Inc. (“Juniper Networks”) (which was inclusive of a $ 24 million net income tax benefit from the tax impact of integration transactions) and $ 23 million of net excess tax benefits related to stock-based compensation, partially offset by $ 29 million of net income tax charges related to the increase in uncertain tax positions with respect to federal and state impacts of the U.S. income tax audit for fiscal 2020 to 2022. 
 For the three and six months ended April 30, 2025, the Company recorded $ 94 million and $ 111 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended April 30, 2025, this amount primarily included $ 33 million of net income tax benefits related to the cost reduction program, $ 33 million of net income tax benefits related to the favorable resolution of non-U.S. tax litigation matters, and $ 16 million of net income tax benefits related to the settlement of U.S. tax audit matters. For the six months ended April 30, 2025, this amount primarily included $ 33 million of net income tax benefits related to the cost reduction program, $ 33 million of net income tax benefits related to the favorable resolution of non-U.S. tax litigation matters, $ 31 million of net excess tax benefits related to stock-based compensation, $ 16 million of net income tax benefits related to the settlement of U.S. tax audit matters, and $ 14 million of net income tax benefits related to acquisition, disposition and other charges, partially offset by $ 22 million of net income tax charges resulting from the gain on the Communications Technology Group (“CTG”) divestiture. 
 Uncertain Tax Positions 
 As of April 30, 2026 and October 31, 2025, the amount of unrecognized tax benefits was $ 875 million and $ 474 million, respectively, of which up to $ 413 million and $ 326 million, respectively, would affect the Company's effective tax rate if realized as of their respective periods. 
 For tax liabilities pertaining to unrecognized tax benefits, the Company recognizes interest income from favorable settlements and interest expense and penalties in Provision for taxes in the Condensed Consolidated Statements of Earnings. The Company recognized $ 10 million of interest expense and $ 19 million of interest income for the six months ended April 30, 2026 and 2025, respectively. As of April 30, 2026 and October 31, 2025, the Company had accrued $ 52 million and $ 42 million, respectively for interest and penalties in the Condensed Consolidated Balance Sheets. 
 The Company engages in continuous discussion and negotiation with tax authorities regarding tax matters in various jurisdictions. The Company is no longer subject to U.S. federal tax audits for years prior to 2020. The Internal Revenue Service (“IRS”) is conducting audits of the Company's fiscal 2020 through 2022 U.S. federal income tax returns. During the second quarter of fiscal 2026, the IRS issued notices of proposed adjustments (“NOPAs”) for fiscal 2020, 2021, and 2022 relating to the Company’s intercompany transfer pricing. During the second quarter of fiscal 2026, 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 $ 318 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 the three and six months ended April 30, 2026 was not material. It is reasonably possible that the IRS audit for fiscal 2020 through 2022 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 $ 369 million within the next 12 months; the majority of these unrecognized tax benefits are offset by adjustments to foreign tax credits that carry a full valuation allowance, which does not affect the Company’s effective tax rate. 
 With respect to major state and foreign tax jurisdictions, the Company is no longer subject to tax authority examinations for years prior to 2005. As a result of the IRS audit for fiscal 2020 through 2022, the Company is recording additional state reserves of $ 57 million for the changes to federal taxable income. It is reasonably possible that certain foreign and state tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions and 
 18 

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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 other matters. 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. 
 Deferred Tax Assets and Liabilities 
 Deferred tax assets and liabilities included in the Condensed Consolidated Balance Sheets were as follows: 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Deferred tax assets $ 3,099 $ 2,952 
 Deferred tax liabilities ( 446 ) ( 473 ) 
 Deferred tax assets net of deferred tax liabilities $ 2,653 $ 2,479 

 
 Note 5: Balance Sheet Details 
 Cash, Cash Equivalents and Restricted Cash 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Cash and cash equivalents $ 5,292 $ 5,773 
 Restricted cash (1) 
 62 86 
 Total $ 5,354 $ 5,859 

 
 

 (1) The Company included restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets. 
 Inventory 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Purchased parts and fabricated assemblies $ 6,210 $ 4,139 
 Finished goods 2,824 2,213 
 Total $ 9,034 $ 6,352 

 The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $ 233 million and $ 282 million for the three and six months ended April 30, 2026, respectively. 
 Property, Plant and Equipment, net 
 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Land $ 254 $ 309 
 Internal use software 2,396 2,259 
 Buildings and leasehold improvements 1,906 2,075 
 Machinery and equipment, including equipment held for lease 7,811 7,987 
 
 Gross property, plant and equipment 12,367 12,630 
 Accumulated depreciation ( 6,770 ) ( 6,628 ) 
 Property, plant and equipment, net $ 5,597 $ 6,002 

 Supplier Financing Arrangements 
 The Company enters into supplier financing arrangements with external financial institutions. Under these arrangements, 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 suppliers can choose to settle outstanding payment obligations at a discount. The Company holds no economic interest in suppliers' participation, nor does it provide guarantees or pledge assets under these arrangements. Invoices are settled with the financial institutions based on the original supplier payment terms. These arrangements do not alter the Company's rights and obligations towards suppliers, including scheduled payment terms. Liabilities associated with the funded participation in these arrangements, presented within Accounts payable on the Condensed Consolidated Balance Sheets, amounted to $ 599 million, and $ 488 million as of April 30, 2026 and October 31, 2025, respectively. 
 The rollforward of outstanding obligations confirmed as valid under its supplier finance program for the six months ended April 30, 2026, and the fiscal year ended October 31, 2025 were as follows: 
 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Balance at beginning of period 
 $ 488 $ 466 
 Invoices confirmed during the year 
 1,001 1,895 
 Confirmed invoices paid during the year 
 ( 890 ) ( 1,873 ) 
 
 Balance at end of period 
 $ 599 $ 488 

 Warranties 
 The Company's aggregate product warranty liabilities and changes for the six months ended April 30, 2026, and the fiscal year ended October 31, 2025 were as follows: 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Balance at beginning of period $ 284 $ 301 
 Charges 68 206 
 Adjustments related to pre-existing warranties — ( 55 ) 
 Settlements made ( 65 ) ( 168 ) 
 Balance at end of period (1) 
 $ 287 $ 284 

 
 

 (1) The Company included the current portion in Other accrued liabilities, and amounts due after one year in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets. 
 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 April 30, 2026, $ 124 million and $ 23 million was recorded in Other Accrued Liabilities and Other Non-current liabilities, respectively. 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: 
 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Balance at beginning of period $ 238 $ 49 
 Severance charges 82 418 
 Cash paid and other ( 173 ) ( 229 ) 
 Balance at end of period $ 147 $ 238 

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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The following table presents severance charges as included in the Condensed Consolidated Statements of Earnings for the periods indicated: 
 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions 
 Cost of sales $ 7 $ 62 $ 12 $ 63 
 Research and development 3 23 7 31 
 Selling, general and administrative 17 79 26 147 
 Acquisition, disposition and other charges 10 — 37 — 
 Total severance charges $ 37 $ 164 $ 82 $ 241 

 Transformation Programs 
 Restructuring activities related to the Company's employees and infrastructure under the Cost Optimization and Prioritization Plan and HPE Next Plan are presented in the table below: 
 
 Cost Optimization and Prioritization Plan HPE Next Plan 
 Employee
Severance Infrastructure
and other Infrastructure
and other 
 In millions 
 Balance at October 31, 2025 $ 37 $ 61 $ 14 
 
 Cash paid and other ( 13 ) ( 8 ) ( 2 ) 
 Balance at April 30, 2026 $ 24 $ 53 $ 12 

 The current restructuring liability related to the transformation programs, reported in Other accrued liabilities in the Consolidated Balance Sheets as of April 30, 2026 and October 31, 2025 was $ 35 million and $ 42 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 April 30, 2026 and October 31, 2025 was $ 54 million and $ 70 million, respectively. 
 Contract Balances 
 The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer. 
 Contract Assets 
 A summary of accounts receivable, net, including unbilled receivables was as follows: 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Accounts receivable $ 5,919 $ 4,916 
 Unbilled receivables 391 396 
 Allowances ( 24 ) ( 22 ) 
 Total $ 6,286 $ 5,290 

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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The allowances for credit losses related to accounts receivable and changes for the six months ended April 30, 2026, and the fiscal year ended October 31, 2025 were as follows: 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Balance at beginning of period $ 22 $ 10 
 Provision for credit losses 12 33 
 Adjustments to existing allowances, including write offs ( 10 ) ( 21 ) 
 Balance at end of period $ 24 $ 22 

 Sale of Trade Receivables 
 For the three and six months ended April 30, 2026, the Company sold $ 1.2 billion and $ 2.4 billion of trade receivables, respectively, and received gross proceeds of $ 1.1 billion and $ 2.3 billion, respectively. F or the fiscal year ended October 31, 2025, the Company sold $ 3.7 billion of trade receivables. The Company recorded an obligation of $ 53 million and $ 59 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of April 30, 2026 and October 31, 2025, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred. 
 Contract Liabilities and Remaining Performance Obligations 
 Contract liabilities consist of deferred revenue and customer deposits. A summary of contract liabilities were as follows: 
 
 As of 
 April 30, 2026 October 31, 2025 
 Location In millions 
 Customer deposits Other accrued liabilities $ 313 $ 616 
 Customer deposits - non-current Other non-current liabilities 34 72 
 Total customer deposits $ 347 $ 688 
 
 Deferred revenue Deferred revenue $ 5,621 $ 5,358 
 Deferred revenue - non-current Other non-current liabilities 5,220 4,980 
 Total deferred revenue $ 10,841 $ 10,338 

 For the six months ended April 30, 2026, approximately $ 3.2 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2025. 
 Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency. As of April 30, 2026, the aggregate amount of deferred revenue, was $ 10.8 billion. The Company expects to recognize approximately 37 % of this balance over fiscal 2026, 26 % over fiscal 2027, 17 % over fiscal 2028, 10 % over fiscal 2029, and 8 % over fiscal 2030 and thereafter. The Company receives payments in advance of completion of its contractual obligations; these payments are considered customer deposits. As customer acceptance milestones are met, the Company will recognize revenue and reduce the amount of contract liabilities. As of April 30, 2026, the aggregate amount of customer deposits was $ 347 million. The Company expects to recognize $ 313 million over the next twelve months and the remaining balance thereafter. 
 Costs to Obtain a Contract 
 As of April 30, 2026, the current and non-current portions of the capitalized costs to obtain a contract were $ 96 million and $ 140 million, respectively. As of October 31, 2025, the current and non-current portions of the capitalized costs to obtain a contract were $ 109 million and $ 128 million, respectively. The current and non-current portions of the capitalized costs to 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheets. For the three and six months ended April 30, 2026 the Company amortized $ 28 million and $ 56 million, of capitalized costs to obtain a contract. For the three and six months ended April 30, 2025 the Company amortized $ 27 million and $ 54 million, of capitalized costs to obtain a contract. The amortized capitalized costs to obtain a contract are included in Selling, general and administrative expense in the Condensed Consolidated Statements of Earnings. 
 
 Note 6: Accounting for Leases as a Lessor 
 Financing receivables represent sales-type and direct-financing leases of the Company and third-party products. These receivables typically have terms ranging from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The allowance for credit losses represents future expected credit losses over the life of the receivables based on past experience, current information and forward-looking economic considerations. The components of financing receivables were as follows: 
 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Minimum lease payments receivable $ 9,897 $ 10,310 
 Unguaranteed residual value 719 694 
 Unearned income ( 1,191 ) ( 1,264 ) 
 Financing receivables, gross 9,425 9,740 
 Allowance for credit losses 
 ( 210 ) ( 198 ) 
 Financing receivables, net 9,215 9,542 
 Less: current portion ( 3,694 ) ( 3,826 ) 
 Amounts due after one year, net $ 5,521 $ 5,716 

 Sale of Financing Receivables 
 The Company enters into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions. For the three and six months ended April 30, 2026, the Company sold $ 20 million and $ 103 million, respectively. For the fiscal year ended October 31, 2025, the Company sold $ 196 million of financing receivables. 
 Credit Quality Indicators 
 Due to the homogeneous nature of its leasing transactions, the Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. The Company assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction and periodically updates the risk ratings when there is a change in the underlying credit quality. 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. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The credit risk profile of gross financing receivables, based on internal risk ratings as of April 30, 2026, presented on amortized cost basis by year of origination was as follows: 
 
 As of April 30, 2026 
 
 Risk Rating 
 Low Moderate High 
 Fiscal Year In millions 
 2026 $ 829 $ 538 $ 10 
 2025 2,183 1,046 28 
 2024 1,728 795 31 
 2023 853 475 43 
 2022 and prior 454 334 78 
 Total $ 6,047 $ 3,188 $ 190 

 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: 
 
 As of October 31, 2025 
 Risk Rating 
 Low Moderate High 
 Fiscal Year In millions 
 2025 $ 2,245 $ 1,016 $ 17 
 2024 2,160 942 36 
 2023 1,189 645 47 
 2022 579 347 26 
 2021 and prior 213 206 72 
 Total $ 6,386 $ 3,156 $ 198 

 Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB– or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment. The credit quality indicators do not reflect any mitigation actions taken to transfer credit risk to third parties. 
 Allowance for Credit Losses 
 The allowance for credit losses for financing receivables as of April 30, 2026 and October 31, 2025 and the respective changes for the six and twelve months then ended were as follows: 
 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Balance at beginning of period $ 198 $ 194 
 
 Provision for credit losses 14 77 
 Adjustment to the existing allowance 8 ( 1 ) 
 Deductions ( 10 ) ( 72 ) 
 Balance at end of period $ 210 $ 198 

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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Non-Accrual and Past-Due Financing Receivables 
 The following table summarizes the aging and non-accrual status of gross financing receivables: 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Billed: (1) 
 
 Current 1-30 days $ 368 $ 349 
 Past due 31-60 days 17 26 
 Past due 61-90 days 19 13 
 Past due > 90 days 70 70 
 Unbilled sales-type and direct-financing lease receivables 8,951 9,282 
 Total gross financing receivables $ 9,425 $ 9,740 
 Gross financing receivables on non-accrual status (2) 
 $ 120 $ 168 
 Gross financing receivables 90 days past due and still accruing interest (2) 
 $ 90 $ 114 

 
 

 (1) Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. 
 (2) Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. 
 The following table presents amounts included in the Condensed Consolidated Statements of Earnings related to lessor activity: 
 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 Location In millions 
 
 Interest income from sales-type leases and direct financing leases Financing Income $ 193 $ 188 $ 388 $ 374 
 Lease income from operating leases Services 500 539 1,008 1,086 
 Total lease income $ 693 $ 727 $ 1,396 $ 1,460 

 Variable Interest Entities 
 The Company has issued asset-backed debt securities under a fixed-term securitization program to private investors. The asset-backed debt securities are collateralized by the U.S. fixed-term financing receivables and leased equipment in the offering, which is held by a Special Purpose Entity (“SPE”). The SPE meets the definition of a Variable Interest Entity (“VIE”) and is consolidated, along with the associated debt, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the VIE. The SPE is a bankruptcy-remote legal entity with separate assets and liabilities. The purpose of the SPE is to facilitate the funding of customer receivables and leased equipment in the capital markets. 
 The Company’s risk of loss related to securitized receivables and leased equipment is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The following table presents the assets and liabilities held by the consolidated VIE as of April 30, 2026 and October 31, 2025, which are included in the Condensed Consolidated Balance Sheets. The assets in the table below include those that can be used to settle the obligations of the VIE. Additionally, general creditors of the Company do not have recourse to the assets of the VIE. 
 
 As of 
 April 30, 2026 October 31, 2025 
 Assets held by VIE: In millions 
 Other current assets $ 52 $ 73 
 Financing receivables 
 Short-term 678 885 
 Long-term 928 1,283 
 Property, plant and equipment, net 504 775 
 Liabilities held by VIE: 
 Notes payable and short-term borrowings, net of unamortized debt issuance costs 933 1,159 
 Long-term debt, net of unamortized debt issuance costs $ 861 $ 1,287 

 For the six months ended April 30, 2026, the Company did not transfer any financing receivables and leased equipment via securitization through the SPE. For the fiscal 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. 
 
 Note 7: Acquisitions and Dispositions 
 Pending Telco Solutions Divestiture 
 On December 18, 2025, the Company announced an agreement to divest its Telco Solutions business to HCLTech. 
 Divestiture of H3C Shares 
 On November 17, 2025, HPE’s 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. 
 On May 13, 2026, the Company closed on the sale and disposition of 13.8 % of the total issued share capital of H3C for approximately $ 987 million. On May 28, 2026, the Company closed on the sale of the remaining 5.2 % of the total issued share capital of H3C for approximately $ 370 million. 
 Acquisition of Juniper Networks 
 On July 2, 2025, the Company completed the Juniper Networks merger (the “Merger”). Under the terms of the Agreement and Plan of Merger (the “Merger Agreement”), HPE agreed to pay $ 40.00 per share of Juniper Networks common stock, issued and outstanding as of July 2, 2025, representing a cash consideration of approximately $ 13.4 billion, which was paid through cash on hand, including proceeds and term loan drawdowns from the financings in fiscal 2024, and commercial paper issuances. During the first half of fiscal 2026, the Company recorded measurement period adjustments resulting in an increase to goodwill of $ 111 million, primarily related to adjustments to deferred tax assets. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Acquisition costs related to the Merger were primarily included within Acquisition, disposition and other charges in the Condensed Consolidated Statements of Earnings. For the three and six months ended April 30, 2026, acquisition costs were $ 108 million and $ 231 million, respectively. For three and six months ended April 30, 2025, acquisition costs were $ 39 million and $ 72 million, respectively. 
 
 Note 8: Goodwill 
 Goodwill is tested for impairment at the reporting unit level. As of November 1, 2025, the Company reassessed its reporting units and determined that the former Server and Hybrid Cloud reporting units met the criteria to qualify as a single Cloud & AI (excluding Financial Services) reporting unit, and Intelligent Edge and Juniper Networks met the criteria to qualify as a single Networking reporting unit. The Cloud & AI segment contains the Cloud & AI (excluding Financial Services) and Financial Services reporting units. The Corporate Investments and Other segment contains the A & PS, Telco Solutions and Instant On reporting units. The following table represents the carrying value of goodwill, by segment as of April 30, 2026 and October 31, 2025. 
 
 Networking Cloud & AI Corporate Investments and Other Total 
 In millions 
 Balance as of October 31, 2025 (1) 
 $ 10,121 $ 13,599 $ 50 $ 23,770 
 
 
 
 Goodwill reclassified as held for sale (2) 
 — — ( 46 ) ( 46 ) 
 Purchase price and other currency adjustments 104 — — 104 
 
 Balance as of April 30, 2026 (1) 
 $ 10,225 $ 13,599 $ 4 $ 23,828 

 
 
 
 
 
 
 
 
 
 
 

 (1) There has been no change to the accumulated impairment loss from the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2025. 
 (2) Reclassified to assets held for sale and is reported in Other current assets in the Condensed Consolidated Balance Sheets. 
 Goodwill is tested annually for impairment, as of the first day of the fourth quarter, at the reporting unit level. Additionally, an interim impairment test was performed as of November 1, 2025 based on organizational changes impacting the reporting units. The interim impairment test did not result in any impairment of goodwill. For all reporting units other than Cloud & AI (excluding Financial Services), a qualitative test was performed and there were no indicators of impairment of goodwill. For the Cloud & AI (excluding Financial Services) reporting unit a quantitative assessment was performed, and the excess of fair value over carrying amount was 10 %. In order to evaluate the sensitivity of the estimated fair value of the reporting units in the goodwill impairment test, the Company applied a 10 % decrease to the fair value of the Cloud & AI, (excluding Financial Services) reporting unit. Based on the results of this hypothetical 10 % decrease, this reporting unit did not have an excess of fair value over carrying value. 
 The Cloud & AI (excluding Financial Services) reporting unit has goodwill of $ 13.5 billion as of April 30, 2026. In the current macroeconomic and inflationary environment, customers are investing selectively. This has resulted in moderate unit growth in server offerings offset by expansion of average unit selling prices as a result of higher commodity and input costs. In addition, the business is managing a storage product model transition 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 Cloud & AI (excluding Financial Services) reporting unit continues to focus on capturing market share in both traditional and AI servers and storage while maintaining operating margin and leveraging its strong portfolio of products and services. 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 this reporting unit's ability to successfully address the current challenges may change, which could result in the carrying value of the Cloud & AI (excluding Financial Services) reporting unit exceeding its estimated fair value and potential impairment charges. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Note 9: Fair Value 
 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. 
 The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. 
 The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis: 
 
 As of April 30, 2026 As of October 31, 2025 
 Fair Value
Measured Using Fair Value
Measured Using 
 Quoted Prices in Active Markets for Identical Assets 
 (Level 1) 
 Significant Other Observable Remaining Inputs (Level 2) 
 Significant Other Unobservable Remaining Inputs 
 (Level 3) 
 Total Quoted Prices in Active Markets for Identical Assets 
 (Level 1) 
 Significant Other Observable Remaining Inputs (Level 2) 
 Significant Other Unobservable Remaining Inputs 
 (Level 3) 
 Total 
 In millions 
 Assets 
 Cash Equivalents: 
 
 
 
 Time deposits $ — $ 846 $ — $ 846 $ — $ 997 $ — $ 997 
 Money market funds 2,603 — — 2,603 2,741 — — 2,741 
 Total cash equivalents 2,603 846 — 3,449 2,741 997 — 3,738 
 Available-for-sale Debt Investments: 
 
 
 
 
 
 
 
 
 Foreign bonds — 111 — 111 — 111 — 111 
 Other debt securities (1) 
 — — 44 44 — — 46 46 
 Total available-for-sale debt investments — 111 44 155 — 111 46 157 
 Equity Investments: 
 
 Mutual funds — 61 — 61 — 59 — 59 
 Equity securities in public companies 8 — — 8 6 — — 6 
 
 Total equity investments 8 61 — 69 6 59 — 65 
 Derivatives Instruments: 
 
 Foreign currency contracts — 171 — 171 — 193 — 193 
 Other derivatives — 9 — 9 — 2 — 2 
 Total assets 2,611 1,198 44 3,853 2,747 1,362 46 4,155 
 Liabilities 
 Derivatives Instruments: 
 Interest rate contracts — 58 — 58 — 51 — 51 
 Foreign currency contracts — 326 — 326 — 238 — 238 
 
 Total liabilities $ — $ 384 $ — $ 384 $ — $ 289 $ — $ 289 

 
 

 (1) Available-for-sale debt securities with carrying values that approximate fair value. 
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 Table of Content 
 HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES 
 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Other Fair Value Disclosures 
 Short-Term and Long-Term Debt: As of April 30, 2026, the estimated fair value and carrying value of the Company's short-term and long-term debt was $ 21.1 billion and $ 21.2 billion, respectively. As of October 31, 2025, the estimated fair value and carrying value of the Company's short-term and long-term debt was $ 22.5 billion and $ 22.4 billion, respectively. If measured at fair value in the Condensed Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy. 
 Other Financial Instruments: For the balance of the Company's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short-term nature. If measured at fair value in the Condensed Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. 
 Non-Recurring Fair Value Measurements 
 Equity Investments without Readily Determinable Fair Value: Equity investments are recorded at cost and adjusted for impairments or observable price changes. For the three and six months ended April 30, 2026 and 2025, the Company recognized immaterial unrealized gains or losses. Cumulative adjustments as of April 30, 2026 were immaterial . Refer to Note 10, “Financial Instruments” for further information. 
 Non-Financial Assets: The Company's non-financial assets, such as intangible assets, goodwill, and property, plant and equipment, are recorded at cost. The Company records right-of-use assets based on the lease liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized. 
 In the second quarter of fiscal 2025, the Company recorded a goodwill impairment charge of $ 1.4 billion associated with the Cloud & AI (excluding Financial Services) reporting unit. The fair values of the Company's reporting units were classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. 
 29 

 
 Table of Content 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Note 10: Financial Instruments 
 Cash Equivalents and Available-for-Sale Debt Investments 
 Cash equivalents and available-for-sale debt investments were as follows: 
 As of April 30, 2026 As of October 31, 2025 
 Cost Gross Unrealized Gains Fair
Value Cost Gross Unrealized Gains Fair
Value 
 In millions 
 Cash Equivalents 
 
 
 
 Time deposits $ 846 $ — $ 846 $ 997 $ — $ 997 
 Money market funds 2,603 — 2,603 2,741 — 2,741 
 Total cash equivalents 3,449 — 3,449 3,738 — 3,738 
 Available-for-sale Investments 
 Debt Securities: 
 
 
 
 
 
 
 
 
 Foreign bonds 110 1 111 107 4 111 
 Other debt securities 41 3 44 44 2 46 
 Total debt securities 151 4 155 151 6 157 
 Equity Securities: 
 
 Equity securities in public companies 8 — 8 6 — 6 
 Mutual funds 61 — 61 59 — 59 
 Total equity securities 69 — 69 65 — 65 
 Total available-for-sale investments 220 4 224 216 6 222 
 Total cash equivalents and available-for-sale investments $ 3,669 $ 4 $ 3,673 $ 3,954 $ 6 $ 3,960 

 As of April 30, 2026 and October 31, 2025, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions outside the U.S. as of April 30, 2026 and October 31, 2025. The estimated fair value of the available-for-sale debt investments may not be representative of values that will be realized in the future. 
 Contractual maturities of investments in available-for-sale debt securities were as follows: 
 As of April 30, 2026 
 Amortized Cost Fair Value 
 In millions 
 Due in one year $ 34 $ 34 
 Due in one to five years 1 1 
 Due in more than five years 116 120 
 Total $ 151 $ 155 

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 Table of Content 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Equity Investments 
 Non-marketable equity investments in privately held companies are included in Long-term financing receivables and other assets in the Condensed Consolidated Balance Sheets. These non-marketable equity investments are carried at cost under measurement alternative and adjusted for impairments or observable price changes. The carrying amount of investments was $ 73 million and $ 61 million as of April 30, 2026 and October 31, 2025, respectively. For the three and six months ended April 30, 2026 and 2025, the Company recognized immaterial unrealized gains or losses that are reflected in Interest and other, net in the Condensed Consolidated Statement of Earnings. 
 Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets 
 The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows: 
 
 As of April 30, 2026 As of October 31, 2025 
 Fair Value Fair Value 
 Outstanding
Gross
Notional Other
Current
Assets Long-Term
Financing
Receivables
and Other
Assets Other
Accrued
Liabilities Long-Term
Other
Liabilities Outstanding
Gross
Notional Other
Current
Assets Long-Term
Financing
Receivables
and Other
Assets Other
Accrued
Liabilities Long-Term
Other
Liabilities 
 In millions 
 Derivatives Designated as Hedging Instruments 
 Fair Value Hedges: 
 Interest rate contracts $ 1,200 $ — $ — $ — $ 58 $ 600 $ — $ — $ — $ 51 
 Cash Flow Hedges: 
 Foreign currency contracts 7,610 62 27 113 74 7,062 81 29 95 67 
 
 Net Investment Hedges: 
 Foreign currency contracts 2,125 22 26 44 44 2,126 20 24 30 20 
 Total derivatives designated as hedging instruments 10,935 84 53 157 176 9,788 101 53 125 138 
 Derivatives Not Designated as Hedging Instruments 
 Foreign currency contracts 6,232 30 4 38 13 7,167 37 2 22 4 
 Other derivatives 146 9 — — — 153 2 — — — 
 Total derivatives not designated as hedging instruments 6,378 39 4 38 13 7,320 39 2 22 4 
 Total derivatives $ 17,313 $ 123 $ 57 $ 195 $ 189 $ 17,108 $ 140 $ 55 $ 147 $ 142 

 Offsetting of Derivative Instruments 
 The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows: 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 
 As of April 30, 2026 
 In the Condensed Consolidated Balance Sheets 
 (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) 
 Gross Amounts Not Offset 
 Gross
Amount
Recognized Gross
Amount
Offset Net Amount
Presented Derivatives Financial
Collateral Net Amount 
 In millions 
 Derivative assets $ 180 $ — $ 180 $ 144 $ 6 (1) 
 $ 30 
 Derivative liabilities $ 384 $ — $ 384 $ 144 $ 164 (2) 
 $ 76 

 
 As of October 31, 2025 
 In the Condensed Consolidated Balance Sheets 
 (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) 
 Gross Amounts Not Offset 
 Gross
Amount
Recognized Gross
Amount
Offset Net Amount
Presented Derivatives Financial
Collateral Net Amount 
 In millions 
 Derivative assets $ 195 $ — $ 195 $ 121 $ 16 (1) 
 $ 58 
 Derivative liabilities $ 289 $ — $ 289 $ 121 $ 136 (2) 
 $ 32 

 
 

 (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 April 30, 2026, of the $ 164 million of collateral posted, $ 158 million was in cash and $ 6 million was 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. 
 The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows: 
 
 Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities 
 As of As of 
 April 30, 2026 October 31, 2025 April 30, 2026 October 31, 2025 
 In millions 
 
 Long-term debt $ ( 1,345 ) $ ( 754 ) $ 3 $ ( 4 ) 

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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income (“OCI”) were as follows: 
 
 Gains (Losses) Recognized in OCI on Derivatives 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions 
 Derivatives in Cash Flow Hedging Relationship: 
 Foreign exchange contracts $ 126 $ ( 465 ) $ ( 65 ) $ ( 195 ) 
 
 
 Derivatives in Net Investment Hedging Relationship: 
 Foreign exchange contracts ( 108 ) ( 64 ) ( 49 ) ( 21 ) 
 Total $ 18 $ ( 529 ) $ ( 114 ) $ ( 216 ) 

 As of April 30, 2026, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $ 15 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges. 
 Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings 
 The following table represents the pre-tax effect of derivative instruments on total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value hedges and derivatives not designated as hedging instruments are recorded: 
 
 Gains (Losses) Recognized in Income 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 Net Revenue Interest and Other, net Net Revenue Interest and Other, net Net Revenue Interest and Other, net Net Revenue Interest and Other, net 
 In millions 
 
 Total net revenue and interest and other, net $ 10,678 $ ( 73 ) $ 7,627 $ 39 $ 19,979 $ ( 127 ) $ 15,481 $ 78 
 Gains (Losses) on Derivatives in Fair Value Hedging Relationships: 
 Interest Rate Contracts 
 Hedged items $ — $ 8 $ — $ ( 15 ) $ — $ 7 $ — $ ( 30 ) 
 Derivatives designated as hedging instruments — ( 8 ) — 15 — ( 7 ) — 30 
 Gains (Losses) on Derivatives in Cash Flow Hedging Relationships: 
 Foreign Exchange Contracts 
 Amount of gains (losses) reclassified from accumulated other comprehensive income into income 6 47 39 ( 283 ) ( 4 ) ( 81 ) 83 ( 113 ) 
 Interest Rate Locks 
 Amount of losses reclassified from accumulated other comprehensive income into income — — — — — — — ( 1 ) 
 
 
 Gains (Losses) on Derivatives not Designated as Hedging Instruments: 
 Foreign exchange contracts — 59 — ( 130 ) — ( 1 ) — ( 76 ) 
 Other derivatives — 8 — — — 8 — 4 
 Total gains (losses) $ 6 $ 114 $ 39 $ ( 413 ) $ ( 4 ) $ ( 74 ) $ 83 $ ( 186 ) 

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 Table of Content 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Note 11: Borrowings 
 Notes Payable, Short-Term Borrowings and Long-Term Debt 
 Notes payable, short-term borrowings, including the current portion of long-term debt, and long-term debt were as follows: 
 
 As of 
 April 30, 2026 October 31, 2025 
 In millions 
 Current portion of long-term debt (1) 
 $ 2,249 $ 3,796 
 Commercial paper 637 681 
 Notes payable to banks, lines of credit and other 123 132 
 Total notes payable and short-term borrowings 3,009 4,609 
 Long-term debt 18,237 17,756 
 Total $ 21,246 $ 22,365 

 
 

 (1) As of April 30, 2026 and October 31, 2025, the Current portion of long-term debt, net of discount and issuance costs, included $ 0.9 billion and $ 1.2 billion respectively, both associated with the asset-backed debt securities issued by the Company. 
 Unsecured Senior Notes 
 In March 2026, the Company issued (i) $ 300 million of floating rate notes due March 23, 2028, with interest payable quarterly beginning June 23, 2026; (ii) $ 500 million of 4.5 % Senior Notes due March 23, 2028, with interest payable semi-annually beginning September 23, 2026; (iii) $ 600 million of 4.6 % Senior Notes due March 23, 2029, with interest payable semi-annually beginning September 23, 2026; and (iv) $ 600 million of 5.25 % Senior Notes due April 1, 2033, with interest payable semi-annually beginning October 1, 2026. 
 In April 2026, the Company repaid $ 750 million of 1.75 % Senior Notes on their original maturity date. 
 Financing arrangements 
 The Company maintains two commercial paper programs (the “Parent Programs”) and third program managed by a wholly-owned subsidiary, together with a revolving credit facility, and an uncommitted credit facility. There have been no changes to either of these financing arrangements since October 31, 2025. As of April 30, 2026 and October 31, 2025, no borrowings were outstanding under the Parent Programs, the revolving credit facility, or the uncommitted credit facility. Outstanding borrowings under the subsidiary’s commercial paper program were $ 637 million and $ 681 million, respectively. 
 Juniper Networks Acquisition Financing 
 In March 2026, the Company prepaid $ 1.25 billion against the outstanding balance under the three-year delayed draw term loan credit facility. The repayment was made at par, along with accrued interest. As of April 30, 2026, $ 0.75 billion was outstanding under this facility. In May 2026, the Company fully repaid this amount at par, along with accrued interest. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Note 12: Stockholders' Equity 
 The components of accumulated other comprehensive loss, net of taxes as of April 30, 2026, and changes for the six months ended April 30, 2026 were as follows: 
 
 Net unrealized gains (losses)
on
available-for-sale
securities Net unrealized (losses) gains
on cash
flow hedges Unrealized
components
of defined
benefit plans Cumulative
translation
adjustment Accumulated
other
comprehensive
loss 
 In millions 
 Balance at beginning of period $ 6 $ ( 26 ) $ ( 2,058 ) $ ( 670 ) $ ( 2,748 ) 
 
 Other comprehensive loss before reclassifications ( 2 ) ( 65 ) ( 1 ) ( 23 ) ( 91 ) 
 Reclassifications of losses into earnings — 85 51 — 136 
 Tax provision — ( 1 ) ( 11 ) ( 2 ) ( 14 ) 
 Balance at end of period $ 4 $ ( 7 ) $ ( 2,019 ) $ ( 695 ) $ ( 2,717 ) 

 The components of accumulated other comprehensive loss, net of taxes as of April 30, 2025, and changes for the six months ended April 30, 2025 were as follows: 
 
 Net unrealized
 gains (losses) on
available-for-sale
securities Net unrealized (losses) gains on cash
flow hedges Unrealized
components
of defined
benefit plans Cumulative
translation
adjustment Accumulated
other
comprehensive
loss 
 In millions 
 Balance at beginning of period $ 8 $ ( 16 ) $ ( 2,342 ) $ ( 627 ) $ ( 2,977 ) 
 
 Other comprehensive loss before reclassifications ( 6 ) ( 195 ) ( 20 ) ( 12 ) ( 233 ) 
 Reclassifications of losses into earnings — 31 62 — 93 
 Tax benefit (provision) — 30 ( 6 ) ( 1 ) 23 
 Balance at end of period $ 2 $ ( 150 ) $ ( 2,306 ) $ ( 640 ) $ ( 3,094 ) 

 Share Repurchase Program 
 For the six months ended April 30, 2026, the Company repurchased and settled 13.5 million shares under its share repurchase program through open market repurchases. As of April 30, 2026, the Company’s unsettled open market repurchases were immaterial. Shares repurchased for the six months ended April 30, 2026 were recorded as a $ 313 million reduction to stockholders’ equity. As of April 30, 2026, the Company had a remaining authorization of approximately $ 3.3 billion for future share repurchases. 
 
 Note 13: Net Earnings (Loss) Per Share 
 The Company calculates basic EPS using net earnings (loss) and the weighted-average number of shares outstanding during the reporting period. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows: 
 
 For the three months ended April 30, For the six months ended April 30, 
 2026 2025 2026 2025 
 In millions, except per share amounts 
 Numerator: 
 Net earnings (loss) attributable to common stockholders - Basic $ 595 $ ( 1,079 ) $ 1,018 $ ( 481 ) 
 Plus: 7.625 % Series C mandatory convertible preferred stock dividends 
 29 — — — 
 Net earnings (loss) - Diluted $ 624 $ ( 1,079 ) $ 1,018 $ ( 481 ) 
 Denominator: 
 Weighted-average shares used to compute basic net EPS 1,335 1,322 1,335 1,319 
 Dilutive effect of 7.625 % Series C mandatory convertible preferred stock (1) 
 76 — — — 
 Dilutive effect of employee stock plans (1) 
 21 — 21 — 
 Weighted-average shares used to compute diluted net EPS 1,432 1,322 1,356 1,319 
 Net EPS: 
 Basic $ 0.45 $ ( 0.82 ) $ 0.76 $ ( 0.36 ) 
 Diluted $ 0.44 $ ( 0.82 ) $ 0.75 $ ( 0.36 ) 
 Anti-dilutive Share Count (1)(2) : 
 
 Employee stock plans 9 49 7 51 
 7.625 % Series C mandatory convertible preferred stock 
 — 87 76 76 
 Total anti-dilutive weighted-average stock 9 136 83 127 

 
 

 (1) The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the 7.625 % Series C mandatory convertible preferred stock (“Preferred Stock”) is calculated under the if-converted method. 
 (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 EPS, as their effect, if included, would have been anti-dilutive for the periods presented. 
 
 Note 14: Litigation, Contingencies, and Commitments 
 Litigation 
 HPE is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits, and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement (the “Separation and Distribution Agreement”) entered into in connection with HPE’s spin-off from HP Inc. (formerly known as “Hewlett-Packard Company”) (the “Separation”), HPE and HP Inc. agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. HPE records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. HPE reviews these matters at least quarterly and adjusts these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other updated information and events pertaining to a particular matter. Litigation is inherently unpredictable. However, HPE believes it has valid defenses with respect to legal matters pending against us. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. HPE believes it has 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 recorded adequate provisions for any such matters and, as of April 30, 2026, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements. 
 Litigation, Proceedings, and Investigations 
 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 Instant On 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. Following a January 8, 2026 hearing, the Court denied the Attorneys General’s motion to hold separate, allowing further integration of the companies to proceed. The Tunney Act hearing was held on March 23, 2026 to determine whether the Court will approve the settlement between HPE and the DOJ. The Court has taken the matter under advisement. The parties are awaiting the Court’s ruling. 
 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 (plus interest). 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. HP India filed appeals of the Commissioner’s orders before the Customs Tribunal. The Customs Department filed cross-appeals before the Customs Tribunal. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP India's request to return the matter to the Commissioner on procedural grounds. 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. The Company expects a ruling from the Customs Tribunal by 2026. Either party may appeal the ruling to the India Supreme Court. 
 ECT Proceedings . In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos (“ECT”), notified a former subsidiary of HP Inc. 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 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. In April 2013, ECT rejected HP Brazil’s appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT’s decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case, which was denied. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years . 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. In September 2025, the Court of Appeals ruled in favor of HPE’s Civil Appeal, annulling the previously-stayed 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 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 HPE 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. Lynch. 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. On March 24, 2026, the U.K. High Court entered a ruling that provides a total judgment against the Lynch Estate of approximately $ 1.24 billion when adding interest and currency effects. The judgment amount reflects an approximately $ 145 million offset for amounts previously recovered by HPE and does not include attorneys’ fees, which will be determined at a later time. The U.K. High Court also rejected the Estate’s request for permission to appeal the liability and damages judgments. On April 14, 2026, the Lynch Estate filed a request with the Court of Appeal for permission to appeal the liability and damages judgments. A ruling is expected in 2026. Pursuant to the terms of the 2015 Separation and Distribution Agreement, HP and HPE 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 HPE and HP Inc., HPE and DXC, and HPE and Seattle SpinCo, the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties’ businesses. The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. (in the case of the separation of HPE from HP Inc.) or of HPE (in the case of the separation of DXC from HPE and the separation of Micro Focus from HPE), in each case arising prior to the applicable separation. 
 Environmental 
 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; environmental claims and statements; the management, movement, and disposal of hazardous substances and wastes; the clean-up of contaminated sites; 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, 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. 
 In particular, the Company may become a party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), known as “Superfund,” or other federal, state or foreign laws and regulations addressing the clean-up of contaminated sites, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. The Company is also contractually obligated to make financial contributions to address actions related to certain environmental liabilities, both ongoing and arising in the future, pursuant to its Separation and Distribution Agreement with HP Inc. 
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 Notes to Condensed Consolidated Financial Statements (Continued) 
 (Unaudited) 

 Unconditional Purchase Obligations 
 As of April 30, 2026, the Company had unconditional purchase obligations of approximately $ 5.7 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction, as well as settlements that the Company has reached with third parties, requiring it to pay determined amounts over a specified period of time. These unconditional purchase obligations are related principally to inventory purchases, software maintenance and support services and other items. Unconditional purchase obligations exclude agreements that are cancellable without penalty. The Company expects the commitments to total $ 3.4 billion, $ 1.1 billion, $ 568 million, $ 426 million, $ 187 million, and $ 96 million for fiscal years 2026, 2027, 2028, 2029, 2030, and thereafter, respectively. 
 Guarantees 
 In the ordinary course of business, the Company may issue performance guarantees to certain of its clients, customers, and other parties pursuant to which the Company has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, the Company would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. The Company believes the likelihood of having to perform under a material guarantee is remote. 
 The Company has entered into service contracts with certain of its clients that are supported by financing arrangements. If a service contract is terminated as a result of the Company's non-performance under the contract or failure to comply with the terms of the financing arrangement, the Company could, under certain circumstances, be required to acquire certain assets related to the service contract. The Company believes the likelihood of having to acquire a material amount of assets under these arrangements is remote. 
 The maximum potential future payments under performance guarantees and financing arrangements was $ 353 million as of April 30, 2026. 
 Indemnifications 
 In the ordinary course of business, the Company enters into contractual arrangements under which the Company may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of the Company or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. The Company also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the use by such vendors and customers of the Company's software products and support services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. 
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 Table of Contents
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Hewlett Packard Enterprise Co 10-Q

Item 1. Financial Statements
