Segment Information (Tables)

6 Months Ended

Apr. 30, 2026

Schedule of Segment Operating Results from Continuing Operations

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.

Schedule of Reconciliation of Segment Operating Results

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)

Schedule of Net Revenue by Geographic Areas

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

Schedule of 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.