Hewlett Packard Enterprise (HPE) Q2 earnings: Taking a look at key metrics versus estimates

Hewlett Packard Enterprise reported $7.63 billion in revenue for the quarter ended April 2025, representing a year-over-year increase of 5.9%. EPS of $0.38 for the same period compares to $0.42 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $7.47 billion, representing a surprise of +2.13%. The company delivered an EPS surprise of +11.76%, with the consensus EPS estimate being $0.34.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Hewlett Packard Enterprise performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Financial services: $856 million compared to the $873.87 million average estimate based on three analysts. The reported number represents a change of -1.3% year over year.
• Revenue- Corporate investments and other: $194 million versus the three-analyst average estimate of $208.01 million. The reported number represents a year-over-year change of -23%.
• Revenue - Hybrid Cloud: $1.45 billion compared to the $1.36 billion average estimate based on three analysts.
• Revenue- Intelligent Edge: $1.16 billion compared to the $1.15 billion average estimate based on three analysts. The reported number represents a change of +7% year over year.
• Revenue - Server: $4.06 billion versus $3.98 billion estimated by three analysts on average.
• Elimination of intersegment net revenue and other: -$96 million versus -$105.48 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -22.6% change.
• Earnings from operations- Financial Services: $89 million compared to the $74.64 million average estimate based on two analysts.
• Earnings from operations- Corporate Investments and other: -$10 million versus -$19.29 million estimated by two analysts on average.
• Earnings from operations- Hybrid Cloud: $78 million compared to the $77.21 million average estimate based on two analysts.
• Earnings from operations- Server: $241 million versus the two-analyst average estimate of $187.50 million.
• Earnings from operations- Intelligent Edge: $274 million versus $287.63 million estimated by two analysts on average.

Shares of Hewlett Packard Enterprise have returned +4% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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