HPE's server and hybrid cloud revenue go into reverse amid historical hardware splurge

HPE has revealed its revenue from servers and hybrid cloud products has gone backwards but insisted that’s nothing to worry because it’s now poised to profit from its acquisition of Juniper Networks.

The jolly green enterprise tech giant on Thursday reported [PDQF] Q4 2025 revenue of $9.7 billion, up 14 percent year-over year thanks largely to the acquisition of Juniper which in its final quarter as an independent entity won $1.28 billion of revenue. HPE’s Q4 revenue grew $1.22 billion compared to last year’s result.

But revenue from servers fell five percent to $4.5 billion, and hybrid cloud revenue tumbled twelve percent to $1.4 billion. Rivals Dell and Lenovo recently posted much faster growth, and HPE did likewise in last year's Q4 when it reported 32 percent growth in server revenue and an 18 percent jump in cash from hybrid cloud products.

On the company’s earnings call, CEO Antonio Neri appeared unconcerned by the revenue reversal, pointing to improved margins, strong demand for the company’s latest generation servers, and a deep book of orders for AI servers.

On hybrid cloud, the CEO pointed to annual revenue growth of five percent, and the addition of “approximately” 7,000 new customers for the GreenLake IT-as-a-service offering – which helped annual recurring revenue to jump 63 percent to $3.2 billion – as evidence that HPE is on the right track.

The company’s path, he added, has led it to become a “networking-centric company” poised to “deliver great experiences or growth opportunities in both cloud and AI.”

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• HPE pumps AI cloud lineup with extra Nvidia capabilities

The road ahead does, however, have some visible bumps. Neri said rising memory prices will mean price hikes of around 15 percent for servers. CFO Marie Myers revealed the company is currently integrating its own sales force with Juniper’s, a task she described as “a critical milestone.”

Full year revenue landed at $34.3 billion, a 14 percent year-over-year jump. Myers offered guidance of 17 to 22 percent revenue growth across FY 2026. HPE will have to do that without any contribution from its Chinese joint venture H3C, as last week it announced [PDF] a plan to sell the remainder of its stake in the company. The deal should see $643 million land in HPE’s coffers next year. ®