01—Abstract
Summary
Summary of the 8-K/A filed October 16, 2025. Cited figures are marked; the original filing is the authoritative source.
Hewlett Packard Enterprise (HPE) filed this Form 8-K/A to correct a scrivener's error in footnote 2 of its October 15, 2025 Securities Analyst Meeting press release (furnished as Exhibit 99.1).
The corrected footnote clarifies that the revenue growth outlook of 5%a to 10% for FY26 and 5% to 7% long-term CAGR (FY25-FY28) is normalized to include eight months of Juniper results pre-acquisition close. Without that treatment, revenue growth is expected to be 17% to 22% for FY26 and 8% to 11% long-term. No other changes were made to the press release, so the filing itself is administrative, but it matters for investors because it changes how the headline growth figures should be read.
The substantive news from the Analyst Meeting is a capital-return and profitability story. HPE raised its FY26 annual dividend by 10% (subject to Board approval) and added $3 billionb to its share repurchase authorization, bringing total capacity to roughly $3.7 billion. Management targets more than $3.5 billion of free cash flow by FY28, non-GAAP diluted EPS of at least $3.00, and GAAP diluted EPS of about $1.93.
For FY26 it guided non-GAAP diluted EPS to $2.20 to $2.40c and free cash flow to $1.5 billion to $2.0 billion. Management is positioning networking (driven by the Juniper acquisition) as a major growth and margin contributor, alongside AI infrastructure, GreenLake software and services, and Catalyst cost savings of at least $350 million by FY28, plus at least $600 million of Juniper synergies. Investors should note several cautions.
The FY26 interest and other headwind is about $650 milliond, and the structural non-GAAP tax rate of 14% depends on current tax laws. GAAP EPS guidance excludes any gains or losses from the planned disposition of HPE's remaining H3C interest, so GAAP results could shift materially if that sale closes.
The company also says GAAP operating profit for FY25 is expected to be negative, which is why it cannot present a meaningful GAAP operating profit CAGR. Non-GAAP-to-GAAP reconciliations for forward guidance are not provided, as is common with forward-looking metrics.
02—Key points
Key Highlights
- Corrected footnote: FY26 revenue growth is 5% to 10% on a pro forma basis (including eight months of pre-close Juniper results in FY25); without that treatment, growth is expected to be 17% to 22%. Long-term CAGR is 5% to 7% pro forma, or 8% to 11% without the treatment.
- Capital return: Annual dividend raised 10% for FY26 (subject to Board approval), and share repurchase authorization increased by $3 billion to approximately $3.7 billion total.
- FY28 targets: Free cash flow above $3.5 billion, non-GAAP diluted EPS of at least $3.00, GAAP diluted EPS of approximately $1.93, and non-GAAP operating profit CAGR of 11% to 17%.
- FY26 guidance: Non-GAAP diluted EPS of $2.20 to $2.40, GAAP diluted EPS of $0.57 to $0.77, free cash flow of $1.5 billion to $2.0 billion, and non-GAAP operating profit growth of 10% to 18% pro forma.
- Cost and synergy programs: Catalyst is expected to deliver at least $350 million in gross savings by FY28, and Juniper-related synergies are still targeted at at least $600 million by FY28.
- Headwinds: About $650 million of FY26 interest and other expense, and a structural non-GAAP tax rate of 14% that relies on current tax law.
- Potential GAAP swing factor: GAAP EPS guidance excludes any gains or losses from the planned disposition of HPE's remaining H3C interest.
03—Questions
Frequently Asked Questions
Why did HPE file this 8-K amendment, and does it change the outlook?
The filing corrects a scrivener's error in footnote 2 of the October 15, 2025 press release. The correction clarifies the basis for the revenue growth figures (pro forma with eight months of pre-close Juniper results in FY25 versus without that treatment). The company states no other changes were made, so the underlying financial outlook is unchanged.
What is the difference between the pro forma and non-pro forma revenue growth figures?
Pro forma growth normalizes FY25 to include eight months of Juniper results from before the acquisition closed, which makes the year-over-year comparison like-for-like. That yields 5% to 10% growth for FY26 and 5% to 7% long-term CAGR. Without that normalization, reported growth is expected to be much higher, at 17% to 22% for FY26 and 8% to 11% long-term, because Juniper's revenue only appears in the reported base after the close. Investors should focus on the pro forma figures for underlying momentum.
How much capital will HPE return to shareholders?
HPE raised its annual dividend 10% for FY26, subject to Board approval, and its total share repurchase authorization is now about $3.7 billion after a $3 billion increase. Management says it plans to return significant free cash flow via dividends and buybacks over the long term, and its capital return is tied to free cash flow generation and a commitment to reducing net leverage.
Why is GAAP EPS so much lower than non-GAAP EPS?
The gap comes mainly from non-cash and deal-related items. Non-GAAP EPS excludes after-tax costs of about $1.63 per share in FY26 (primarily amortization of intangibles, stock-based compensation, and acquisition, disposition, and other charges). By FY28, the gap is about $1.07 per share. Investors should weigh GAAP results alongside non-GAAP guidance, since the company notes these non-GAAP measures should not be considered in isolation.
What could cause results to differ from this guidance?
Key risks include the timing and results of Catalyst and Juniper synergy programs, Juniper integration execution, macroeconomic and geopolitical conditions, trade policy changes, and competitive pressures in networking, AI infrastructure, and servers. Results could also shift if the H3C disposition closes, since GAAP guidance excludes any gains or losses from it, and tax-rate assumptions depend on current law.
04—Continue