Hewlett Packard Enterprise Co Q3 2025 Earnings Call Transcript

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

Question: Aaron Rakers - Wells Fargo Securities LLC - Analyst : Yeah. Thanks for taking the question and congrats on the close of the Juniper acquisition. I guess I want to just dive a little bit deeper into the server margin profile that you guys see. I think -- and Tony, in your prepared comments, you said that we've returned to more of a normalized operating margin on the traditional server line. I guess if I look back, I would assume that's kind of in that low double digit, let's call it, 11% to 13% range. I guess if I'm to do that math, it leaves me to question the profitability of the AI server business. And so I guess as you think about that 10%, maybe you can unpack the drivers of getting to that level? And how should we think about that AI server margin profile? Thank you.

Question: Wamsi Mohan - Bank of America - Analyst : Yes, thank you so much. Now that Juniper is closed, can you maybe just talk about some of the early progress on integration and go-to-market changes that we should expect? And any top line synergies and early customer feedback? And Marie, maybe if you could Talk about just the longer-term opportunity for HPE in AI or Antonio. Just relative to networking versus servers, where do you see the larger opportunity for both from a revenue TAM and from a margin or profitability standpoint? Thank you so much.

Question: Samik Chatterjee - JPMorgan Chase & Co - Analyst : Yeah. Hi, thanks for taking my question. Antonio, you talked about -- just following up here on the Juniper sort of line of topics. Your networking overall margins are taking a bit of a step down to the sort of low 20 range, where the segment historically has been about mid-20s. How should we think about with the synergy road map that you have when the segment gets back to that sort of mid-20s level because some of the back of the envelope math on the synergies would suggest you could actually probably go north of that as well long term, but maybe just lay REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 9:00PM, HPE.N - Q3 2025 Hewlett Packard Enterprise Co Earnings Call out the roadmap for us in terms of how to think about the progress on the margin front from the new sort of level that you have post consolidation of Juniper? And Marie, if I can quickly squeeze in one on cash, get the headwinds in terms of closing Juniper on the cash flow this year. But -- how should we think about sort of the impact on next year's cash flow in relation to any closing costs or integration costs? Thank you.

Question: David Vogt - UBS - Analyst : Great. Thanks guys for taking the question. So, Antonio, I want to go back to the networking piece and maybe Marie can chime in on this. I think you talked about the traction that Juniper is getting with some of these AI model builders and sort of that part of the network. How much of sort of the opportunity to grow is predicated on Juniper's traction with those customers? And then maybe along those lines, I think

Question: Erik Woodring - Morgan Stanley - Analyst : Hey guys, thanks so much for taking my question. Antonio, I was wondering if you could maybe -- just take a step back and share some details on what you're hearing from customers, what you're seeing in the pipeline as it relates to kind of end market growth for your three core end markets, networking, server and storage. And really, what I'm trying to understand is there are some maybe concerns that the markets could be rolling over. There's obviously a lot of aged infrastructure that can be refreshed. What are you hearing from your customers about prioritizing those types of upgrades. And from the HPE perspective, if we put networking to the side because you've talked to nauseum there, just where do you see the biggest opportunity to take share with the core HPE portfolio in those respective end markets? Thanks so much.

Question: Simon Leopold - Raymond James - Analyst : Thanks for taking the question. I wanted to see if you could revisit the topic of Juniper's position in AI. On the call, you hosted in July, Rami had indicated that Juniper had landed some deals in the back end. I'm wondering if you could unpack and give us a little bit more detail on that particular part of the business. Thank you.