What changed in this filing

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Item 1. Financial Statements

2026-09-03 compared with 2026-06-02 · 224 added, 224 removed, 975 unchanged (31% of the section changed)

Financial Statements.

Condensed Consolidated Statements of Earnings for the three and six months ended April 30, 2026 and 2025 (Unaudited)

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended April 3 0 , 2026 and 2025 (Unaudited)

Condensed Consolidated Balance Sheets as of April 3 0 , 2026 (Unaudited) and October 31, 2025 (Audited)

Condensed Consolidated Statements of Cash Flows for the six months ended April 3 0 , 2026 and 2025 (Unaudited)

Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended April 3 0 , 2026 and 2025 (Unaudited)

Condensed Consolidated Statements of Earnings for the three and nine months ended July 3 1 , 2026 and 2025 (Unaudited)

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended July 31 , 2026 and 2025 (Unaudited)

Condensed Consolidated Balance Sheets as of July 31 , 2026 (Unaudited) and October 31, 2025 (Audited)

Condensed Consolidated Statements of Cash Flows for the nine months ended July 31 , 2026 and 2025 (Unaudited)

Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended July 31 , 2026 and 2025 (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

13 unchanged sentences

Condensed Consolidated Statements of Earnings

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

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

2026 2025 2026 2025

16 unchanged sentences

Interest and other, net ( 75 ) 8 ( 202 ) 86

Gain on sale of equity interest 444 — 444 —

Gain on sale of a business — 1 — 245

1 unchanged sentence

Earnings (loss) before provision for taxes 1,762 288 2,894 ( 24 )

Provision for taxes ( 75 ) ( 5 ) ( 56 ) ( 111 )

(Provision) benefit for taxes ( 222 ) 17 ( 278 ) ( 94 )

Net earnings (loss) attributable to HPE 1,540 305 2,616 ( 118 )

11 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income

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

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

2026 2025 2026 2025

1 unchanged sentence

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 )

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

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

1 1 ( 1 ) ( 5 )

4 unchanged sentences

Change in Unrealized Components of Defined Benefit Plans:

Net unrealized losses arising during the period ( 1 ) ( 20 ) ( 1 ) ( 20 )

Net unrealized gains (losses) arising during the period 6 10 5 ( 10 )

Amortization of net actuarial loss and prior service benefit 25 32 74 91

3 unchanged sentences

Other Comprehensive Income (Loss), Before Taxes 21 93 66 ( 47 )

(Provision) Benefit for Taxes ( 18 ) 37 ( 14 ) 23

Provision for Taxes ( 6 ) ( 23 ) ( 20 ) —

Other Comprehensive Income (Loss), Net of Taxes 15 70 46 ( 47 )

4 unchanged sentences

Condensed Consolidated Balance Sheets

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

(Unaudited) (Audited)

18 unchanged sentences

Employee compensation and benefits 2,880 1,871

Taxes on earnings 387 319

Deferred revenue 5,561 5,358

5 unchanged sentences

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)

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

1,328,115,106 and 1,318,292,428 shares issued and outstanding as of July 31, 2026 and October 31, 2025, respectively)

Additional paid-in capital 30,151 30,234

9 unchanged sentences

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the six months ended April 30,

For the nine months ended July 31,

Cash Flows from Operating Activities:

Net earnings (loss) attributable to HPE $ 2,616 $ ( 118 )

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

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

Depreciation and amortization 2,613 1,860

6 unchanged sentences

Gain on sale of a business — ( 245 )

Gain on sale of equity interest ( 444 ) —

Dividends received from equity investees 100 —

7 unchanged sentences

Accounts payable 5,870 ( 2,595 )

Taxes on earnings 137 ( 36 )

Other assets and liabilities ( 455 ) ( 1,087 )

Net cash provided by (used in) operating activities 2,588 ( 851 )

Net cash provided by operating activities 4,229 454

Cash Flows from Investing Activities:

3 unchanged sentences

Proceeds from sale of available-for-sale securities and other investments 10 47

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

Proceeds from sale of equity interest 1,357 —

Financial collateral posted ( 737 ) ( 755 )

Financial collateral received 789 518

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

Proceeds from sale of a business — 210

9 unchanged sentences

Other ( 8 ) ( 8 )

Net cash used in financing activities ( 2,091 ) ( 1,492 )

Net cash (used in) provided by financing activities ( 3,576 ) 2,743

Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 39 ) 9

7 unchanged sentences

Common Stock Preferred Stock

For the three months ended April 30, 2026 Number of Shares Par Value Number of 7.625 %

For the three months ended July 31, 2026 Number of Shares Par Value Number of 7.625 %

Series C Mandatory

3 unchanged sentences

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

Balance as of April 30, 2026

1,323,295 $ 13 30,000 $ 30,207 $ ( 2,211 ) $ ( 2,717 ) $ 25,292 $ 61 $ 25,353

Net earnings attributable to HPE 1,540 1,540 1 1,541

10 unchanged sentences

( 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

Balance as of July 31, 2026

1,328,115 $ 13 30,000 $ 30,151 $ ( 948 ) $ ( 2,702 ) $ 26,514 $ 62 $ 26,576

Common Stock Preferred Stock

For the six months ended April 30, 2026

Number of Shares Par Value Number of 7.625 %

For the nine months ended July 31, 2026 Number of Shares Par Value Number of 7.625 %

Series C Mandatory

4 unchanged sentences

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 2,616 2,616 4 2,620

10 unchanged sentences

( 568 ) ( 568 ) ( 8 ) ( 576 )

Balance as of April 30, 2026 1,323,295 $ 13 30,000 $ 30,207 $ ( 2,211 ) $ ( 2,717 ) $ 25,292 $ 61 $ 25,353

Balance as of July 31, 2026

1,328,115 $ 13 30,000 $ 30,151 $ ( 948 ) $ ( 2,702 ) $ 26,514 $ 62 $ 26,576

Table of Content

Common Stock Preferred Stock

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

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

Series C Mandatory

3 unchanged sentences

In millions, except number of shares in thousands

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

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

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

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

Balance as of April 30, 2025

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

Net earnings attributable to HPE 305 305 5 310

Other comprehensive income 70 70 70

Comprehensive income 375 5 380

Stock-based compensation expense 177 177 177

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

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

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

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

Dividend on preferred stock accrued / declared

3 unchanged sentences

( 171 ) ( 171 ) ( 171 )

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

Balance as of July 31, 2025

1,318,815 $ 13 30,000 $ 30,199 $ ( 2,786 ) $ ( 3,024 ) $ 24,402 $ 65 $ 24,467

Common Stock Preferred Stock

For the six months ended April 30, 2025

Number of Shares Par Value Number of 7.625 %

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

Series C Mandatory

4 unchanged sentences

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 ( 118 ) ( 118 ) 9 ( 109 )

3 unchanged sentences

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

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

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

5 unchanged sentences

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

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

Balance as of July 31, 2025

1,318,815 $ 13 30,000 $ 30,199 $ ( 2,786 ) $ ( 3,024 ) $ 24,402 $ 65 $ 24,467

Table of Content

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

45 unchanged sentences

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

In May 2025, the FASB issued guidance to clarify the accounting for share-based consideration payable to a customer in conjunction with selling goods or services.

The amendment is effective for annual and interim periods beginning after December 15, 2026, 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.

27 unchanged sentences

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.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

Corporate Investments and Other includes the Advisory and Professional Services (“A & PS”) business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities;

2 unchanged sentences

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)

intangible assets, H3C divestiture related severance costs, severance costs associated with the cost reduction program, acquisition, disposition and other charges, and impairment charges.

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

3 unchanged sentences

Investments and Other Total

Three months ended April 30, 2026:

Three months ended July 31, 2026:

Total segment net revenue $ 2,893 $ 9,042 $ 278 $ 12,213

2 unchanged sentences

Segment earnings (loss) from operations $ 637 $ 1,539 $ ( 67 ) $ 2,109

Three months ended April 30, 2025 (1) :

Three months ended July 31, 2025 (1) :

Total segment net revenue $ 1,654 $ 7,212 $ 270 $ 9,136

2 unchanged sentences

Segment earnings (loss) from operations $ 365 $ 504 $ ( 19 ) $ 850

Six months ended April 30, 2026:

Nine months ended July 31, 2026:

Total segment net revenue $ 8,289 $ 23,083 $ 820 $ 32,192

2 unchanged sentences

Segment earnings (loss) from operations $ 1,858 $ 3,138 $ ( 88 ) $ 4,908

Six months ended April 30, 2025 (1) :

Nine months ended July 31, 2025 (1) :

Total segment net revenue $ 3,814 $ 19,994 $ 809 $ 24,617

9 unchanged sentences

The reconciliation of segment operating results to Condensed Consolidated Statements of Earnings was as follows:

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

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

2026 2025 2026 2025

9 unchanged sentences

Acquisition, disposition and other charges (1)

( 75 ) ( 225 ) ( 342 ) ( 345 )

Interest and other, net (2)

( 75 ) 8 ( 202 ) 86

Gain on sale of equity interest 444 — 444 —

Earnings from equity interests — 32 42 74

Total earnings (loss) before provision for taxes $ 1,762 $ 288 $ 2,894 $ ( 24 )

(1) For the three and nine months ended July 31, 2025, Acquisition, disposition and other charges include non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, which was recorded in cost of sales.

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

Geographic Information

Net revenue by geographic region was as follows:

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

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

2026 2025 2026 2025

10 unchanged sentences

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,

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

2026 2025 2026 2025

15 unchanged sentences

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,

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

2026 2025 2026 2025

12 unchanged sentences

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,

(Provision) Benefit for Taxes

For the three months ended July 31, 2026 and 2025, the Company recorded income tax expense of $ 222 million and income tax benefit of $ 17 million, respectively, which reflects an effective tax rate of 12.6 % and ( 6.5 )%, respectively.

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1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Continued)

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.

nine months ended July 31, 2026 and 2025, the Company recorded income tax expense of $ 278 million and $ 94 million, respectively, which reflects an effective tax rate of 9.6 % and ( 359.9 )%, 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.

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

For the three and nine months ended July 31, 2026, the Company recorded $ 84 million and $ 41 million of net income tax charges, respectively, related to various items discrete to the period.

For the three months ended July 31, 2026, this amount primarily included $ 118 million of net income tax charges resulting from the gain on the H3C divestiture, partially offset by $ 44 million of net excess tax benefits related to stock-based compensation.

For the nine months ended July 31, 2026, this amount primarily included $ 118 million of net income tax charges resulting from the gain on the H3C divestiture, partially offset by $ 66 million of net excess tax benefits related to stock-based compensation.

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

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

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

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

tax audit matters, and $ 9 million of net income tax benefits related to acquisition, disposition and other 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.

As of July 31, 2026 and October 31, 2025, the amount of unrecognized tax benefits was $ 1.1 billion and $ 474 million, respectively, of which up to $ 522 million and $ 326 million, respectively, would affect the Company's effective tax rate if realized as of their respective periods.

Unrecognized tax benefits increased $ 204 million due to the current and prior H3C divestitures.

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

The Company recognized $ 10 million of interest expense and $ 7 million of interest income for the nine months ended July 31, 2026 and 2025, respectively.

As of July 31, 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.

1 unchanged sentence

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.

The Internal Revenue Service (“IRS”) is conducting audits of the Company's fiscal 2020 through 2022 and fiscal 2024 through 2025 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 first 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.

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 nine months ended July 31, 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 $ 366 million within the next 12 months;

1 unchanged sentence

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

As a result of the IRS audit for fiscal 2020 through 2022, the Company recorded additional state unrecognized tax benefits of $ 51 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

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1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Continued)

other matters.

transactions and 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.

federal tax audits for years prior to 2022.

The IRS is conducting an audit of Juniper’s 2024 U.S.

federal income tax return.

Deferred Tax Assets and Liabilities

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

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Deferred tax assets $ 3,165 $ 2,952

3 unchanged sentences

Cash, Cash Equivalents and Restricted Cash

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Cash and cash equivalents $ 6,216 $ 5,773

2 unchanged sentences

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

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Purchased parts and fabricated assemblies $ 8,419 $ 4,139

1 unchanged sentence

Total $ 11,823 $ 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.

The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $ 158 million and $ 440 million for the three and nine months ended July 31, 2026, respectively.

Property, Plant and Equipment, net

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Land $ 249 $ 309

15 unchanged sentences

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:

April 30, 2026 October 31, 2025

Liabilities associated with the funded participation in these arrangements, presented within Accounts payable on the Condensed Consolidated Balance Sheets, amounted to $ 791 million and $ 488 million as of July 31, 2026 and October 31, 2025, respectively.

The rollforward of outstanding obligations confirmed as valid under its supplier finance program for the nine months ended July 31, 2026, and the fiscal year ended October 31, 2025 were as follows:

July 31, 2026 October 31, 2025

Balance at beginning of period

3 unchanged sentences

Balance at end of period

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:

April 30, 2026 October 31, 2025

The Company's aggregate product warranty liabilities and changes for the nine months ended July 31, 2026, and the fiscal year ended October 31, 2025 were as follows:

July 31, 2026 October 31, 2025

Balance at beginning of period $ 284 $ 301

6 unchanged sentences

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 July 31, 2026, $ 92 million and $ 29 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:

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Balance at beginning of period $ 238 $ 49

6 unchanged sentences

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,

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

2026 2025 2026 2025

4 unchanged sentences

Total severance charges $ 38 $ 15 $ 120 $ 256

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

Severance Infrastructure

and other Infrastructure

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

2 unchanged sentences

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

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Accounts receivable $ 5,821 $ 4,916

2 unchanged sentences

Total $ 6,185 $ 5,290

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

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:

April 30, 2026 October 31, 2025

The allowances for credit losses related to accounts receivable and changes for the nine months ended July 31, 2026, and the fiscal year ended October 31, 2025 were as follows:

July 31, 2026 October 31, 2025

Balance at beginning of period $ 22 $ 10

3 unchanged sentences

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.

For the three and nine months ended July 31, 2026, the Company sold $ 1.4 billion and $ 3.8 billion of trade receivables, 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.

The Company recorded an obligation of $ 49 million and $ 59 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of July 31, 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

1 unchanged sentence

A summary of contract liabilities were as follows:

April 30, 2026 October 31, 2025

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

July 31, 2026 October 31, 2025

Location In millions

5 unchanged sentences

Total deferred revenue $ 10,920 $ 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.

For the nine months ended July 31, 2026, approximately $ 4.8 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.

As of July 31, 2026, the aggregate amount of deferred revenue, was $ 10.9 billion.

The Company expects to recognize approximately 26 % of this balance over fiscal 2026, 31 % over fiscal 2027, 20 % over fiscal 2028, 12 % over fiscal 2029, and 10 % over fiscal 2030 and thereafter.

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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.

As of July 31, 2026, the aggregate amount of customer deposits was $ 405 million.

The Company expects to recognize $ 348 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 July 31, 2026, the current and non-current portions of the capitalized costs to obtain a contract were $ 101 million and $ 153 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

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

For the three and nine months ended July 31, 2026 the Company amortized $ 30 million and $ 86 million, of capitalized costs to obtain a contract.

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

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

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Notes to Condensed Consolidated Financial Statements (Continued)

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.

Accounting for Leases as a Lessor

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The components of financing receivables were as follows:

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Minimum lease payments receivable $ 10,440 $ 10,310

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

For the three and six months ended April 30, 2026, the Company sold $ 20 million and $ 103 million, respectively.

For the three and nine months ended July 31, 2026, the Company sold $ 24 million and $ 127 million, respectively.

For the fiscal year ended October 31, 2025, the Company sold $ 196 million of financing receivables.

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

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Notes to Condensed Consolidated Financial Statements (Continued)

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

The credit risk profile of gross financing receivables, based on internal risk ratings as of July 31, 2026, presented on amortized cost basis by year of origination was as follows:

As of July 31, 2026

Low Moderate High

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Total $ 6,404 $ 3,324 $ 180

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

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

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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:

April 30, 2026 October 31, 2025

The allowance for credit losses for financing receivables as of July 31, 2026 and October 31, 2025 and the respective changes for the nine and twelve months then ended were as follows:

July 31, 2026 October 31, 2025

Balance at beginning of period $ 198 $ 194

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

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Current 1-30 days $ 352 $ 349

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

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

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

2026 2025 2026 2025

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Notes to Condensed Consolidated Financial Statements (Continued)

The following table presents the assets and liabilities held by the consolidated VIE as of April 30, 2026 and October 31, 2025, which are included in the Condensed Consolidated Balance Sheets.

The following table presents the assets and liabilities held by the consolidated VIE as of July 31, 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.

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Assets held by VIE:

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Long-term debt, net of unamortized debt issuance costs $ 639 $ 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 nine months ended July 31, 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.

Acquisitions and Dispositions

Pending Telco Solutions Divestiture

On December 18, 2025, the Company announced an agreement to divest its Telco Solutions business to HCLTech.

Telco Solutions Divestiture

On August 1, 2026, the Company completed the sale of its Telco Solutions business to HCLTech pursuant to the divestiture agreement announced on December 18, 2025.

Divestiture of H3C Shares

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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.

In connection with these sales, the Company recorded a gain on sale of equity interest of $ 444 million during t he three and nine months ended July 31, 2026.

Acquisition of Juniper Networks

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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.

During the nine months ended July 31, 2026, the Company finalized the purchase price allocation.

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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.

For the three and nine months ended July 31, 2026, acquisition costs were $ 69 million and $ 300 million, respectively.

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

Goodwill is tested for impairment at the reporting unit level.

2 unchanged sentences

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.

The following table represents the carrying value of goodwill, by segment as of July 31, 2026 and October 31, 2025.

Networking Cloud & AI Corporate Investments and Other Total

4 unchanged sentences

Purchase price and other currency adjustments 183 — ( 6 ) 177

Balance as of April 30, 2026 (1)

Balance as of July 31, 2026 (1)

$ 10,304 $ 13,599 $ 4 $ 23,907

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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.

The Cloud & AI (excluding Financial Services) reporting unit has goodwill of $ 13.5 billion as of July 31, 2026.

In the current macroeconomic and inflationary environment, customers are investing selectively.

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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.

If the global macroeconomic or geopolitical conditions worsen, projected revenue growth rates or operating margins decline, or weighted average cost of capital increases, 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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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

As of July 31, 2026 As of October 31, 2025

Measured Using Fair Value

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Foreign currency contracts — 265 — 265 — 238 — 238

Other derivatives — 2 — 2 — — — —

Total liabilities $ — $ 344 $ — $ 344 $ — $ 289 $ — $ 289

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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 July 31, 2026, the estimated fair value and carrying value of the Company's short-term and long-term debt was $ 19.9 billion and $ 20.2 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.

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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:

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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

As of July 31, 2026 As of October 31, 2025

Cost Gross Unrealized Gains (Losses) Fair

Value Cost Gross Unrealized Gains Fair

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Total cash equivalents and available-for-sale investments $ 4,688 $ 2 $ 4,690 $ 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.

As of July 31, 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.

as of July 31, 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

As of July 31, 2026

Amortized Cost Fair Value

Due in one year $ 36 $ 36

Due in one to five years 1 1

Due in more than five years 113 118

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Notes to Condensed Consolidated Financial Statements (Continued)

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

As of July 31, 2026 As of October 31, 2025

Fair Value Fair Value

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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)

As of April 30, 2026

As of July 31, 2026

In the Condensed Consolidated Balance Sheets

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Derivative liabilities $ 344 $ — $ 344 $ 142 $ 102 (2)

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Notes to Condensed Consolidated Financial Statements (Continued)

As of October 31, 2025

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

As of April 30, 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 July 31, 2026, of the $ 102 million of collateral posted, $ 68 million was in cash and $ 34 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.

1 unchanged sentence

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

April 30, 2026 October 31, 2025 April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025 July 31, 2026 October 31, 2025

Long-term debt $ ( 1,330 ) $ ( 754 ) $ 22 $ ( 4 )

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Notes to Condensed Consolidated Financial Statements (Continued)

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,

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

2026 2025 2026 2025

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Total $ 91 $ ( 6 ) $ ( 23 ) $ ( 222 )

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.

As of July 31, 2026, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $ 28 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.

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Notes to Condensed Consolidated Financial Statements (Continued)

Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings

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Gains (Losses) Recognized in Income

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

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

2026 2025 2026 2025

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Total gains (losses) $ 32 $ 89 $ ( 66 ) $ 9 $ 28 $ 15 $ 17 $ ( 177 )

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Notes to Condensed Consolidated Financial Statements (Continued)

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:

April 30, 2026 October 31, 2025

July 31, 2026 October 31, 2025

Current portion of long-term debt (1)

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Total $ 20,244 $ 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.

(1) As of July 31, 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.

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Notes to Condensed Consolidated Financial Statements (Continued)

Financing arrangements

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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.

As of July 31, 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 $ 622 million and $ 681 million, respectively.

1 unchanged sentence

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)

In May 2026, the Company repaid the remaining $ 0.75 billion that was outstanding under this facility.

The repayments were made at par, along with accrued interest.

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:

The components of accumulated other comprehensive loss, net of taxes as of July 31, 2026, and changes for the nine months ended July 31, 2026 were as follows:

Net unrealized gains (losses)

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Balance at beginning of period $ 6 $ ( 26 ) $ ( 2,058 ) $ ( 670 ) $ ( 2,748 )

Other comprehensive loss before reclassifications ( 2 ) ( 65 ) ( 1 ) ( 23 ) ( 91 )

Other comprehensive (loss) income before reclassifications ( 1 ) 26 5 ( 43 ) ( 13 )

Reclassifications of losses into earnings — 3 76 — 79

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Balance at end of period $ 5 $ 1 $ ( 1,995 ) $ ( 713 ) $ ( 2,702 )

The components of accumulated other comprehensive loss, net of taxes as of April 30, 2025, and changes for the six months ended April 30, 2025 were as follows:

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

Net unrealized

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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.

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.

For the nine months ended July 31, 2026, the Company repurchased and settled 16.5 million shares under its share repurchase program through open market repurchases.

As of July 31, 2026, the Company’s unsettled open market repurchases were immaterial.

Shares repurchased for the nine months ended July 31, 2026 were recorded as a $ 450 million reduction to stockholders’ equity.

As of July 31, 2026, the Company had a remaining authorization of approximately $ 3.2 billion for future share repurchases.

On July 2, 2026, the Company issued a warrant (the "Warrant") to Oracle Corp.

("Holder") to purchase up to an

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Notes to Condensed Consolidated Financial Statements (Continued)

aggregate of 4,156,466 shares of the Company’s common stock at an exercise price of $ 0.01 per share.

The Warrant was issued in connection with the Holder entering into a strategic collaboration with the Company to deploy the Company’s networking solutions in the Holder’s AI data centers.

The Warrant will vest and become exercisable in tranches, upon the achievement of specific milestones relating to purchases by the Holder and its affiliates of products and support from the Company.

Subject to the terms of the Warrant, the Warrant is exercisable through June 25, 2029.

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.

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

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

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

2026 2025 2026 2025

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

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

(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.

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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 included provisions that allocate liability and financial

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Notes to Condensed Consolidated Financial Statements (Continued)

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.

6 unchanged sentences

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

HPE believes it has

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Notes to Condensed Consolidated Financial Statements (Continued)

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.

HPE believes it has recorded adequate provisions for any such matters and, as of July 31, 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

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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.

On August 12, 2026, the Court issued its ruling finding the settlement to be in the public interest and granting the Motion for Entry of Final Judgment.

India Directorate of Revenue Intelligence Proceedings .

7 unchanged sentences

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

The hearing on the cross-appeals 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.

On June 29, 2026, the Bangalore Customs Tribunal issued its ruling (the “2026 Orders”).

The Tribunal overturned several significant duty, interest, penalty and confiscation findings, and eliminated all individual penalties.

The revised duty, interest and penalty amounts will be determined through a damage ruling by the Customs Authority.

That ruling is expected no earlier than September 2026 and could be issued significantly later.

The DRI is expected to appeal the 2026 Orders to the India Supreme Court.

HP India has filed its own appeal.

Pursuant to the terms of the 2015 Separation and Distribution Agreement, HPE is financially responsible for 43% of HP India’s liability in this matter.

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ECT Proceedings .

8 unchanged sentences

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)

sanctions that, if enforced, would have barred HPE Brazil from participating in public tenders for five years.

In September 2025, the Court of Appeals ruled in favor of HPE’s Civil Appeal, annulling the previously-stayed sanctions that, if enforced, would have barred HPE Brazil from participating in public tenders for five years.

HPE has filed a motion to recover legal costs incurred during the appeal.

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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.

On August 25, 2026, the Court of Appeal denied the Lynch Estate’s request for permission to appeal on fourteen of the eighteen issues requested by the Lynch Estate.

The issues on which the appeal will go forward relate primarily to the calculation of damages awarded by the U.K.

High Court and the currency in which damages will be awarded.

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

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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”).

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

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.

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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.

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 is and may in the future 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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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

Unconditional Purchase Obligations

As of April 30, 2026, the Company had unconditional purchase obligations of approximately $ 5.7 billion.

As of July 31, 2026, the Company had unconditional purchase obligations, including long-term agreements, of approximately $ 30.4 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.

Amounts payable under certain contracts with variable pricing provisions have been estimated primarily based on prevailing market prices for the underlying products as of the reporting date.

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.

The Company expects the commitments to total $ 4.2 billion, $ 11.6 billion, $ 4.4 billion, $ 4.2 billion, $ 4.0 billion, and $ 2.0 billion for fiscal years 2026, 2027, 2028, 2029, 2030, and thereafter, respectively.

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.

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

The maximum potential future payments under performance guarantees and financing arrangements was $ 353 million as of April 30, 2026.

The maximum potential future payments under performance guarantees and financing arrangements was $ 364 million as of July 31, 2026.

Indemnifications

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

What changed 10-Q

Item 1. Financial Statements