Hewlett Packard Enterprise Co at Barclays Global Technology Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Long - Barclays Capital Inc. - Analyst : <_ALACRA_META_ABSTRACT>Excellent. So thanks, Marie. I got a big list here, but I want to start with kind of the three popular ones we get most. And obviously, you guys just reported, so it's good we have fresh numbers and outlooks. But a lot of focus on networking, obviously, with the Juniper acquisition and it being half of profitability at this point, much different complexion for HP as a whole. So talk to us a little bit about kind of that growth expectation, I think, kind of mid-single digit. maybe the moving parts now. There's a lot of -- you've got Campus, you got data center, you've got telco, you've got cloud routing. You got a lot of pieces. So maybe walk us through your view of kind of what's going to inform that number higher or lower when thinking about the key end markets that you're playing in? Marie Myers - Hewlett Packard Enterprise Co - Chief Financial Officer, Executive Vice President Yeah. No, first of all, excited to be here and obviously coming off a big transformative year. I think there's no doubt that this deal has transformed HPE into an AI-led networking company. And moreover, as you said, like 50% of our operating profit now comes from networking and about 30% of the revenue. So a very different company going into '26 than what we were in '25. In terms of what's sort of underpinning and driving the mid-single digits, I think what's really important, we'll disclose this, obviously, when we get to our Q1 results, we're now going to look at the business in really four different segments. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:50PM, HPE.N - Hewlett Packard Enterprise Co at Barclays Global Technology Conference So maybe I'll take it segment by segment. So breaking it down by Campus and Branch, data center, routing, and security, and then we're going to give you a split around service provider and enterprise from a customer perspective. So I think you're going to get plenty of disclosure in terms of how to think about the business and then how do we think about the customer profile. In terms of just what's underpinning the mid-single digit, I would add that in the earnings announcement, I did clarify for folks as we're going through the whole resegmentation, we did move out $300 million of sort of revenue into our corporate others. So those were businesses that we consider somewhat stranded that we took out of the networking segment. So going forward for '26, we really anchored the guide around $11 billion. So that's the number we're looking at in terms of networking. And thinking about that on an as-reported basis, that 65% to 70% growth on a year-on-year or mid-single-digit as I said on the call. So obviously, a significant opportunity. I would couch it and say we're pleased with the performance that we saw in Q4. But what could tip that either way, let me talk about sort of tailwinds and headwinds. We are early days in the integration. And our folks are super excited about the numbers we posted, that we do have a really significant signpost in terms of the integration coming up in January. So we're in the middle of combining both of our sales organization. So the first couple of weeks of January, we will actually go live with our integrated sales force. So by the time we get done with Q1 earnings, Tim, hopefully we can give you more color on how that's going. But we're being prudent because candidly, integrating two sales organizations of the scale and the magnitude of these two companies is no small undertaking. And for the most part, we don't have significant overlap, but there is a heavy lift, I'd say, plenty of wood to chop in North America. So that's going to be the one that we've got to watch and spread the needle on very carefully. And obviously, we've done all the work that we need to do to get in place the right sales plan, but still in an integration of this scale and magnitude, there's just a lot to get through in terms of sales day one. So that's one of the biggest milestones in the integration. Like I said, we'll be done with that by the time we get through Q1 earnings. So we'll be able to give you an update on how it's going. But I'd say that's one of the bigger integration milestones that could impact the performance of the business. And then obviously, I think you and I are going to get into a breakdown of all the different subsegments and how they're going. But there's clearly opportunity in data center. I think it's one we're super excited about. We're seeing new opportunities that we never saw before where we can actually bid contiguously together on deals that are bringing both server and networking in. So lots of excitement and growth opportunities on both data center routing. And then I know we'll talk more about all the other segments.

Question: Timothy Long - Barclays Capital Inc. - Analyst : Okay. Great, great. Yeah. We'll probably come back to some networking, but let's hit on a few others. AI servers, I feel like particularly investor perception of this business has done a little bit of a yoyo over the last two years. Initially, HP wasn't participating like some of the peers in the really low-margin stuff and then margins seem to have gone down even more. So maybe talk high level about the strategy with much more of the focus on some of the enterprise and sovereign opportunities, obviously, being more careful about margin and working capital. So maybe just walk us through kind of your view of how you can play in your own way in the AI server world. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:50PM, HPE.N - Hewlett Packard Enterprise Co at Barclays Global Technology Conference

Question: Timothy Long - Barclays Capital Inc. - Analyst : Okay. And I, imagine in the non-sovereign or like neocloud where it's more competitive, HP will still look and if there's opportunities that fit the framework, then you can participate. It's just whether or not it fits the margin framework. Is that how to think about it?

Question: Timothy Long - Barclays Capital Inc. - Analyst : Okay. Great, great. Maybe one of the other topics, GreenLake and kind of the ARR and the whole SaaS type of model. It's done really well for HP. I think HP is kind of a little bit more at the forefront of that transition for the larger hardware-related companies. So approaching 10% of revenues if you do a little ARR math. Talk to us about what you're seeing there, how you see that business progressing. And is there a ceiling? Or how should we think about the mix of ARR type business of the total as we move through the next several years?

Question: Timothy Long - Barclays Capital Inc. - Analyst : And is this the type of area where maybe there's different sales compensation or incentives to move it along? Or is that something that doesn't necessarily need to happen and still --? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:50PM, HPE.N - Hewlett Packard Enterprise Co at Barclays Global Technology Conference

Question: Timothy Long - Barclays Capital Inc. - Analyst : Great. Maybe if we touch on kind of traditional enterprise end markets, and we have to talk about NAND and DRAM and commodity cost --

Question: Timothy Long - Barclays Capital Inc. - Analyst : Yes, it's not a huge focus for me. I know it is for a lot of investors. But maybe just give your perspectives on, call it, DRAM for servers and NAND for storage more or less. Is it pass-through? What are the near-term, midterm impacts, pricing changes? What's the strategy around a rapidly changing commodity environment?

Question: Timothy Long - Barclays Capital Inc. - Analyst : Right. Okay. That's helpful. Maybe on to storage. It's been pretty good moves on own IP storage. So maybe walk us through how that evolution has gone and how much more room there is. And it seems like it's been pretty decent growth as well for the business.

Question: Timothy Long - Barclays Capital Inc. - Analyst : Okay, great. And then maybe on the server side, a lot of discussion about server upgrades for power reasons. And it's also been a fairly good enterprise server year for the industry. So maybe touch on how sustainable you think that business would be.

Question: Timothy Long - Barclays Capital Inc. - Analyst : Okay, great. Wanted to go back to networking with our last time here. One of the things that was interesting is Juniper deal took a while to close and there's overlap in Campus and Branch and Wi-Fi. But both businesses did pretty well, which is kind of rare because your competitors are going to go in and say, you can't go with them, you don't know what's going to happen. So walk us through, from your standpoint, how is that business different now that's it's all done and you're starting the integration? Does that position the combined asset to be even stronger than the two pieces before? Or any color on that would be helpful.

Question: Timothy Long - Barclays Capital Inc. - Analyst : Right, rightight. Okay, good. Maybe we'll end with financial one or two for you. You talked about some of this at SAM, but when you think high level about margin opportunities for the company, obviously, you have some of the restructuring that's happening or the cost savings from Juniper. What do you think are the big drivers when thinking about gross and operating margin in the next few years?

Question: Timothy Long - Barclays Capital Inc. - Analyst : Okay, great. You took my follow up on cash flow, I didn't even have to ask you.

Question: Timothy Long - Barclays Capital Inc. - Analyst : All right. I think we're coming up on time here. So really appreciate the time. Thank you for coming. Thank you everybody for joining.