Item 1. Financial Statements.

Index

			Page
Condensed Consolidated Statements of Earnings for the three and six months ended April 30, 2026 and 2025 (Unaudited)			7
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended April 30, 2026 and 2025 (Unaudited)			8
Condensed Consolidated Balance Sheets as of April 30, 2026 (Unaudited) and October 31, 2025 (Audited)			9
Condensed Consolidated Statements of Cash Flows for the six months ended April 30, 2026 and 2025 (Unaudited)			10
Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended April 30, 2026 and 2025 (Unaudited)			11
Notes to Condensed Consolidated Financial Statements (Unaudited)			13
Note 1: Overview and Summary of Significant Accounting Policies			13
Note 2: Segment Information			14
Note 3: Retirement Benefit Plans			17
Note 4: Taxes on Earnings			17
Note 5: Balance Sheet Details			19
Note 6: Accounting for Leases as a Lessor			23
Note 7: Acquisitions and Dispositions			26
Note 8: Goodwill			27
Note 9: Fair Value			28
Note 10: Financial Instruments			30
Note 11: Borrowings			34
Note 12: Stockholders' Equity			35
Note 13: Net Earnings (Loss) Per Share			35
Note 14: Litigation, Contingencies, and Commitments			36

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

			For the three months ended April 30,												For the six months ended April 30,
			2026						2025						2026						2025
			In millions, except per share amounts
Net Revenue:
Products			$	7,219					$	4,769					$	13,080					$	9,739
Services			3,266						2,670						6,511						5,368
Financing income			193						188						388						374
Total net revenue			10,678						7,627						19,979						15,481
Costs and Expenses:
Cost of products (exclusive of amortization shown separately below)			4,840						3,631						8,929						7,393
Cost of services (exclusive of amortization shown separately below)			1,820						1,703						3,570						3,372
Financing cost			118						124						240						252
Research and development			922						540						1,666						1,015
Selling, general and administrative			1,830						1,298						3,528						2,566
Amortization of intangible assets			323						37						634						75
Impairment charges			—						1,361						—						1,361
Acquisition, disposition and other charges			78						42						195						123
Total costs and expenses			9,931						8,736						18,762						16,157
Earnings (loss) from operations			747						(1,109)						1,217						(676)
Interest and other, net			(73)						39						(127)						78
Gain on sale of a business			—						—						—						244
Earnings from equity interests			25						25						42						42
Earnings (loss) before provision for taxes			699						(1,045)						1,132						(312)
Provision for taxes			(75)						(5)						(56)						(111)
Net earnings (loss) attributable to HPE			624						(1,050)						1,076						(423)
Preferred stock dividends			(29)						(29)						(58)						(58)
Net earnings (loss) attributable to common stockholders			$	595					$	(1,079)					$	1,018					$	(481)
Net Earnings (Loss) Per Share Attributable to Common Stockholders:
Basic			$	0.45					$	(0.82)					$	0.76					$	(0.36)
Diluted			$	0.44					$	(0.82)					$	0.75					$	(0.36)
Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share:
Basic			1,335						1,322						1,335						1,319
Diluted			1,432						1,322						1,356						1,319

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

			For the three months ended April 30,												For the six months ended April 30,
			2026						2025						2026						2025
			In millions
Net earnings (loss) attributable to HPE			$	624					$	(1,050)					$	1,076					$	(423)
Other Comprehensive Income (Loss), Before Taxes
Change in Net Unrealized Losses on Available-for-sale Securities:
Net unrealized losses arising during the period			(3)						(5)						(2)						(6)
			(3)						(5)						(2)						(6)
Change in Net Unrealized Components of Cash Flow Hedges:
Net unrealized gains (losses) arising during the period			126						(465)						(65)						(195)
Net (gains) losses reclassified into earnings			(53)						244						85						31
			73						(221)						20						(164)
Change in Unrealized Components of Defined Benefit Plans:
Net unrealized losses arising during the period			(1)						(20)						(1)						(20)
Amortization of net actuarial loss and prior service benefit			25						29						49						59
Curtailments, settlements and other			2						3						2						3
			26						12						50						42
Change in Cumulative Translation Adjustment:			(23)						10						(23)						(12)
Other Comprehensive Income (Loss), Before Taxes			73						(204)						45						(140)
(Provision) Benefit for Taxes			(18)						37						(14)						23
Other Comprehensive Income (Loss), Net of Taxes			55						(167)						31						(117)
Comprehensive Income (Loss)			$	679					$	(1,217)					$	1,107					$	(540)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

			As of
			April 30, 2026						October 31, 2025
			(Unaudited)						(Audited)
			In millions, except par value and shares
ASSETS
Current Assets:
Cash and cash equivalents			$	5,292					$	5,773
Accounts receivable, net of allowances			6,286						5,290
Financing receivables, net of allowances			3,694						3,826
Inventory			9,034						6,352
Other current assets			5,053						3,753
Total current assets			29,359						24,994
Property, plant and equipment, net			5,597						6,002
Long-term financing receivables and other assets			13,992						13,817
Investments in equity interests			916						955
Goodwill			23,828						23,770
Intangible assets, net			5,820						6,368
Total assets			$	79,512					$	75,906
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and short-term borrowings			$	3,009					$	4,609
Accounts payable			11,311						7,731
Employee compensation and benefits			1,957						1,871
Taxes on earnings			387						319
Deferred revenue			5,621						5,358
Other accrued liabilities			4,690						4,755
Total current liabilities			26,975						24,643
Long-term debt			18,237						17,756
Other non-current liabilities			8,947						8,753
Commitments and Contingencies
HPE Stockholders' Equity:
7.625% Series C mandatory convertible preferred stock, $0.01 par value (30,000,000 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively)			—						—
Common stock, $0.01 par value (9,600,000,000 shares authorized; 1,323,294,768 and 1,318,292,428 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively)			13						13
Additional paid-in capital			30,207						30,234
Accumulated deficit			(2,211)						(2,811)
Accumulated other comprehensive loss			(2,717)						(2,748)
Total HPE stockholders' equity			25,292						24,688
Non-controlling interests			61						66
Total stockholders' equity			25,353						24,754
Total liabilities and stockholders' equity			$	79,512					$	75,906

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

			For the six months ended April 30,
			2026						2025
			In millions
Cash Flows from Operating Activities:
Net earnings (loss) attributable to HPE			$	1,076					$	(423)
Adjustments to Reconcile Net Earnings (Loss) Attributable to HPE to Net Cash Provided by (Used in) Operating Activities:
Depreciation and amortization			1,749						1,173
Impairment charges			—						1,361
Stock-based compensation expense			434						270
Provision for inventory and credit losses			305						190
Cost reduction program			53						146
Deferred taxes on earnings			(266)						(43)
Earnings from equity interests			(42)						(42)
Gain on sale of a business			—						(244)
Dividends received from equity investees			76						—
H3C divestiture related severance costs			—						97
Amortization of inventory fair value adjustment			31						—
Other, net			100						28
Changes in Operating Assets and Liabilities, Net of Acquisitions:
Accounts receivable			(1,098)						(372)
Financing receivables			282						25
Inventory			(2,956)						(435)
Accounts payable			3,562						(1,698)
Taxes on earnings			137						(36)
Other assets and liabilities			(855)						(848)
Net cash provided by (used in) operating activities			2,588						(851)
Cash Flows from Investing Activities:
Investment in property, plant and equipment and software assets			(1,152)						(1,075)
Proceeds from sale of property, plant and equipment			196						164
Purchases of equity investments			(4)						(1)
Proceeds from sale of available-for-sale securities and other investments			5						41
Financial collateral posted			(491)						(638)
Financial collateral received			453						287
Proceeds from sale of a business			—						210
Net cash used in investing activities			(993)						(1,012)
Cash Flows from Financing Activities:
Short-term borrowings with original maturities less than 90 days, net			(10)						(11)
Proceeds from debt, net of issuance costs			2,230						257
Payment of debt			(3,371)						(1,061)
Net payments related to stock-based award activities			(183)						(171)
Repurchases of common stock			(312)						(102)
Cash dividends paid to preferred stockholders			(58)						(54)
Cash dividends paid to common stockholders			(379)						(342)
Other			(8)						(8)
Net cash used in financing activities			(2,091)						(1,492)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(9)						38
Change in cash, cash equivalents and restricted cash			(505)						(3,317)
Cash, cash equivalents and restricted cash at beginning of period			5,859						15,105
Cash, cash equivalents and restricted cash at end of period			$	5,354					$	11,788

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

			Common Stock												Preferred Stock
For the three months ended April 30, 2026			Number of Shares						Par Value						Number of 7.625% Series C Mandatory Convertible Shares						Additional Paid-in Capital						Accumulated Deficit						Accumulated Other Comprehensive Loss						Equity Attributable to the Company						Non- controlling Interests						Total Equity
			In millions, except number of shares in thousands
Balance as of January 31, 2026			1,328,922						$	13					30,000						$	30,126					$	(2,593)					$	(2,772)					$	24,774					$	60					$	24,834
Net earnings attributable to HPE																											624												624						1						625
Other comprehensive income																																	55						55												55
Comprehensive income																																							679						1						680
Stock-based compensation expense																					218																		218												218
Tax withholding related to vesting of employee stock plans																					(11)																		(11)												(11)
Issuance of common stock in connection with employee stock plans and other			897																		(1)						2												1												1
Repurchases of common stock			(6,524)																		(125)						(26)												(151)												(151)
Dividends on preferred stock accrued/declared ($0.9531 per preferred share)																											(29)												(29)												(29)
Cash dividends declared ($0.1425 per share)																											(189)												(189)						—						(189)
Balance as of April 30, 2026			1,323,295						$	13					30,000						$	30,207					$	(2,211)					$	(2,717)					$	25,292					$	61					$	25,353

			Common Stock												Preferred Stock
For the six months ended April 30, 2026			Number of Shares						Par Value						Number of 7.625% Series C Mandatory Convertible Shares						Additional Paid-in Capital						Accumulated Deficit						Accumulated Other Comprehensive Loss						Equity Attributable to the Company						Non- controlling Interests						Total Equity
			In millions, except number of shares in thousands
Balance as of October 31, 2025			1,318,292						$	13					30,000						$	30,234					$	(2,811)					$	(2,748)					$	24,688					$	66					$	24,754
Net earnings attributable to HPE																											1,076												1,076						3						1,079
Other comprehensive income																																	31						31												31
Comprehensive income																																							1,107						3						1,110
Stock-based compensation expense																					434																		434												434
Tax withholding related to vesting of employee stock plans																					(207)																		(207)												(207)
Issuance of common stock in connection with employee stock plans and other			18,587																		19						1												20												20
Repurchases of common stock			(13,584)																		(273)						(40)												(313)												(313)
Dividends on preferred stock accrued/declared ($1.9063 per preferred share)																											(58)												(58)												(58)
Cash dividends declared ($0.2850 per share)																											(379)												(379)						(8)						(387)
Balance as of April 30, 2026			1,323,295						$	13					30,000						$	30,207					$	(2,211)					$	(2,717)					$	25,292					$	61					$	25,353

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			Common Stock																		Preferred Stock
For the three months ended April 30, 2025			Number of Shares						Par Value												Number of 7.625% Series C Mandatory Convertible Shares						Additional Paid-in Capital						Accumulated Deficit						Accumulated Other Comprehensive Loss						Equity Attributable to the Company						Non- controlling Interests						Total Equity
			In millions, except number of shares in thousands
Balance as of January 31, 2025			1,313,391						$	13											30,000						$	29,780					$	(1,642)					$	(2,927)					$	25,224					$	58					$	25,282
Net (loss) earnings attributable to HPE																																	(1,050)												(1,050)						2						(1,048)
Other comprehensive loss																																							(167)						(167)												(167)
Comprehensive (loss) income																																													(1,217)						2						(1,215)
Stock-based compensation expense																											116																		116												116
Tax withholding related to vesting of employee stock plans																											(5)																		(5)												(5)
Issuance of common stock in connection with employee stock plans and other			473																								(1)																		(1)												(1)
Repurchases of common stock			(3,332)																								(50)																		(50)												(50)
Dividend on preferred stock accrued/declared ($0.9531 per preferred share)																																	(29)												(29)												(29)
Cash dividends declared ($0.13 per share)																																	(171)												(171)												(171)
Balance as of April 30, 2025			1,310,532						$	13											30,000						$	29,840					$	(2,892)					$	(3,094)					$	23,867					$	60					$	23,927

			Common Stock												Preferred Stock
For the six months ended April 30, 2025			Number of Shares						Par Value						Number of 7.625% Series C Mandatory Convertible Shares						Additional Paid-in Capital						Accumulated Deficit						Accumulated Other Comprehensive Loss						Equity Attributable to the Company						Non- controlling Interests						Total Equity
			In millions, except number of shares in thousands
Balance as of October 31, 2024			1,297,258						$	13					30,000						$	29,848					$	(2,068)					$	(2,977)					$	24,816					$	64					$	24,880
Net (loss) earnings attributable to HPE																											(423)												(423)						4						(419)
Other comprehensive loss																																	(117)						(117)												(117)
Comprehensive (loss) income																																							(540)						4						(536)
Stock-based compensation expense																					270																		270												270
Tax withholding related to vesting of employee stock plans																					(197)																		(197)												(197)
Issuance of common stock in connection with employee stock plans and other			18,901																		17						1												18												18
Repurchases of common stock			(5,627)																		(98)						(2)												(100)												(100)
Dividend on preferred stock accrued/declared ($1.9063 per preferred share)																											(58)												(58)												(58)
Cash dividends declared ($0.26 per share)																											(342)												(342)						(8)						(350)
Balance as of April 30, 2025			1,310,532						$	13					30,000						$	29,840					$	(2,892)					$	(3,094)					$	23,867					$	60					$	23,927

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1: Overview and Summary of Significant Accounting Policies

Background

Hewlett Packard Enterprise Company (“HPE,” or the “Company”) is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge-to-cloud. HPE enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. HPE's customers range from small- and medium-sized businesses to large global enterprises and governmental entities.

Basis of Presentation and Consolidation

The Condensed Consolidated Financial Statements of the Company were prepared in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”). The Company’s unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all subsidiaries and affiliates in which the Company has a controlling financial interest or is the primary beneficiary. All intercompany transactions and accounts within the consolidated businesses of the Company have been eliminated. Certain prior period financial statement amounts have been reclassified to conform to current period presentation. This interim information should be read in conjunction with the Consolidated Financial Statements for the fiscal year ended October 31, 2025 in HPE’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on December 18, 2025. The Condensed Consolidated Balance Sheet for October 31, 2025 was derived from audited financial statements.

Segment Realignment

Effective November 1, 2025, HPE implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & Artificial Intelligence (“AI”) and (ii) transferring the Telco and Instant On businesses from the Networking segment to the Corporate Investments and Other segment. As a result, the Company’s organizational structure consists of the following segments: (i) Cloud & AI; (ii) Networking; and (iii) Corporate Investments and Other. The Company has reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on HPE’s previously reported consolidated net revenue, net earnings, net earnings per share (“EPS”) or total assets. Refer to Note 2, “Segment Information” for further information.

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HPE’s Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ materially from those estimates.

Significant Accounting Policies

There have been no significant changes to the Company's significant accounting policies described in Part II, Item 8, Note 1, “Overview and Summary of Significant Accounting Policies,” of the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2025.

Recently Enacted Accounting Pronouncements

In May 2026, the Financial Accounting Standards Board (“FASB”) issued guidance to provide recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

In December 2025, the FASB issued guidance to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendment is effective for interim periods with annual reporting periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

In December 2025, the FASB issued guidance to establish the accounting for a government grant received by a business entity. The amendment is effective for annual and interim periods beginning after December 15, 2028, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

In September 2025, the FASB issued guidance to target improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages and clarifies the criteria to begin capitalizing cost. The amendment is effective for annual and interim periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

In November 2024, the FASB issued guidance to provide disaggregated expense disclosures in the Consolidated Financial Statements. The Company is required to adopt the guidance for its annual period ending October 31, 2028 and all interim periods thereafter, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Consolidated Financial Statements.

In December 2023, the FASB issued guidance to provide disaggregated income tax disclosures on the effective tax rate reconciliation and income taxes paid. The guidance is applicable to the Company’s annual filings beginning October 31, 2026. Adoption of this new guidance will result in increased disclosures in the “Taxes on Earnings” note in the Company’s Consolidated Financial Statements but will not impact the consolidated financial results.

Note 2: Segment Information

HPE's operations are organized into three segments for financial reporting purposes: Cloud & AI, Networking, and Corporate Investments and Other. HPE’s organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), Antonio F. Neri, who is the President and Chief Executive Officer, uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The three segments are based on this structure and information reviewed by HPE's management to evaluate segment results. A summary of the types of products and services within each segment is as follows:

Networking develops and sells high-performance network and security products and services that empower customers of all sizes to build scalable, reliable, secure, agile, and efficient automated networks. HPE’s platforms are purpose-built using AI to deliver secure and sustainable user experiences from the edge to the data center and cloud. Networking’s solutions include hardware products such as Wi-Fi and private cellular access points; QFX, EX, and CX switches; MX and PTX routers; and gateways. Additionally, HPE provides software products, such as Mist and Aruba Central for cloud-based and on-premise management, network access control, software-defined wide area networking, network security, analytics and assurance, and private cellular core software. The Company also offers professional and support services and education and training programs, as well as as-a-service (“aaS”) and flexible consumption models through HPE GreenLake.

Cloud & AI includes server and storage offerings. The Cloud & AI server portfolio includes general-purpose servers for multi-workload computing and workload-optimized servers to deliver the best performance and value for demanding applications, and integrated systems comprised of software and hardware designed to address High-Performance Computing and Supercomputing (including exascale applications), AI, Data Analytics, and Transaction Processing workloads for government and commercial customers globally. The Cloud & AI comprehensive storage portfolio offers a wide variety of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service (“SaaS”) space. The storage product line includes data storage and data management offerings with the HPE Alletra Storage portfolio; unstructured data solutions and analytics for AI; data protection and archiving. Storage offerings also include the Company’s GreenLake Flex and software solutions. Financial services provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from HPE and others.

Corporate Investments and Other includes the Advisory and Professional Services (“A & PS”) business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities; Telco, Instant On, and Hewlett Packard Labs.

Segment Policy

HPE does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated operating costs include certain corporate costs and eliminations, stock-based compensation expense, amortization of

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

intangible assets, H3C divestiture related severance costs, severance costs associated with the cost reduction program, acquisition, disposition and other charges, and impairment charges. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by the CODM.

Segment Operating Results

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.

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

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)

Geographic Information

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

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

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.

Note 3: Retirement Benefit Plans

The Company's net pension benefit credit for defined benefit plans recognized in the 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
Service cost			$	15					$	12					$	30					$	24
Interest cost(1)			95						89						188						178
Expected return on plan assets(1)			(159)						(146)						(315)						(295)
Amortization and Deferrals(1):
Actuarial loss			24						31						48						62
Prior service cost (benefit)			2						(1)						2						(2)
Net periodic benefit credit			(23)						(15)						(47)						(33)
Settlement loss and special termination benefits(1)			2						3						2						3
Total net benefit credit			$	(21)					$	(12)					$	(45)					$	(30)

(1)These non-service components were included in Interest and other, net in the Condensed Consolidated Statements of Earnings.

Note 4: Taxes on Earnings

Provision for Taxes

For the three months ended April 30, 2026 and 2025, the Company recorded income tax expense of $75 million and $5 million, respectively, which reflects an effective tax rate of 10.7% and (0.5)%, respectively. For the six months ended April 30,

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

2026 and 2025, the Company recorded income tax expense of $56 million and $111 million, respectively, which reflects an effective tax rate of 4.9% and (35.6)%, respectively. The effective tax rate generally differs from the U.S. federal statutory rate of 21% due to favorable tax rates associated with certain earnings from the Company’s operations in lower tax jurisdictions throughout the world but is also impacted by discrete tax adjustments during each fiscal period. For the three and six months ended April 30, 2025, the effective tax rate also included the effects of the non-deductible goodwill impairment.

For the three and six months ended April 30, 2026, the Company recorded $42 million of net income tax charges and $43 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended April 30, 2026, this amount primarily included $29 million of net income tax charges related to the increase in uncertain tax positions with respect to federal and state impacts of the U.S. income tax audit for fiscal 2020 to 2022. For the six months ended April 30, 2026, this amount primarily included $66 million of net income tax benefits related to the costs incurred as a result of the acquisition of Juniper Networks Inc. (“Juniper Networks”) (which was inclusive of a $24 million net income tax benefit from the tax impact of integration transactions) and $23 million of net excess tax benefits related to stock-based compensation, partially offset by $29 million of net income tax charges related to the increase in uncertain tax positions with respect to federal and state impacts of the U.S. income tax audit for fiscal 2020 to 2022.

For the three and six months ended April 30, 2025, the Company recorded $94 million and $111 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended April 30, 2025, this amount primarily included $33 million of net income tax benefits related to the cost reduction program, $33 million of net income tax benefits related to the favorable resolution of non-U.S. tax litigation matters, and $16 million of net income tax benefits related to the settlement of U.S. tax audit matters. For the six months ended April 30, 2025, this amount primarily included $33 million of net income tax benefits related to the cost reduction program, $33 million of net income tax benefits related to the favorable resolution of non-U.S. tax litigation matters, $31 million of net excess tax benefits related to stock-based compensation, $16 million of net income tax benefits related to the settlement of U.S. tax audit matters, and $14 million of net income tax benefits related to acquisition, disposition and other charges, partially offset by $22 million of net income tax charges resulting from the gain on the Communications Technology Group (“CTG”) divestiture.

Uncertain Tax Positions

As of April 30, 2026 and October 31, 2025, the amount of unrecognized tax benefits was $875 million and $474 million, respectively, of which up to $413 million and $326 million, respectively, would affect the Company's effective tax rate if realized as of their respective periods.

For tax liabilities pertaining to unrecognized tax benefits, the Company recognizes interest income from favorable settlements and interest expense and penalties in Provision for taxes in the Condensed Consolidated Statements of Earnings. The Company recognized $10 million of interest expense and $19 million of interest income for the six months ended April 30, 2026 and 2025, respectively. As of April 30, 2026 and October 31, 2025, the Company had accrued $52 million and $42 million, respectively for interest and penalties in the Condensed Consolidated Balance Sheets.

The Company engages in continuous discussion and negotiation with tax authorities regarding tax matters in various jurisdictions. The Company is no longer subject to U.S. federal tax audits for years prior to 2020. The Internal Revenue Service (“IRS”) is conducting audits of the Company's fiscal 2020 through 2022 U.S. federal income tax returns. During the second quarter of fiscal 2026, the IRS issued notices of proposed adjustments (“NOPAs”) for fiscal 2020, 2021, and 2022 relating to the Company’s intercompany transfer pricing. During the second quarter of fiscal 2026, the Company submitted a formal settlement offer to the IRS to facilitate the closing of the audit and recorded increased reserves for unrecognized tax benefits of $318 million. The impact of the increase in reserves is almost entirely offset with a valuation allowance release, and the net impact to income tax expense for the three and six months ended April 30, 2026 was not material. It is reasonably possible that the IRS audit for fiscal 2020 through 2022 may be concluded in the next 12 months, and it is reasonably possible that existing unrecognized tax benefits related to these years may be reduced by an amount up to $369 million within the next 12 months; the majority of these unrecognized tax benefits are offset by adjustments to foreign tax credits that carry a full valuation allowance, which does not affect the Company’s effective tax rate.

With respect to major state and foreign tax jurisdictions, the Company is no longer subject to tax authority examinations for years prior to 2005. As a result of the IRS audit for fiscal 2020 through 2022, the Company is recording additional state reserves of $57 million for the changes to federal taxable income. It is reasonably possible that certain foreign and state tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions and

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

other matters. Juniper Networks is no longer subject to U.S. federal tax audits for years prior to 2022 and is not currently under examination by the IRS for other tax years.

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities included in the Condensed Consolidated Balance Sheets were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Deferred tax assets			$	3,099					$	2,952
Deferred tax liabilities			(446)						(473)
Deferred tax assets net of deferred tax liabilities			$	2,653					$	2,479

Note 5: Balance Sheet Details

Cash, Cash Equivalents and Restricted Cash

			As of
			April 30, 2026						October 31, 2025
			In millions
Cash and cash equivalents			$	5,292					$	5,773
Restricted cash(1)			62						86
Total			$	5,354					$	5,859

(1) The Company included restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.

Inventory

			As of
			April 30, 2026						October 31, 2025
			In millions
Purchased parts and fabricated assemblies			$	6,210					$	4,139
Finished goods			2,824						2,213
Total			$	9,034					$	6,352

The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $233 million and $282 million for the three and six months ended April 30, 2026, respectively.

Property, Plant and Equipment, net

			As of
			April 30, 2026						October 31, 2025
			In millions
Land			$	254					$	309
Internal use software			2,396						2,259
Buildings and leasehold improvements			1,906						2,075
Machinery and equipment, including equipment held for lease			7,811						7,987
Gross property, plant and equipment			12,367						12,630
Accumulated depreciation			(6,770)						(6,628)
Property, plant and equipment, net			$	5,597					$	6,002

Supplier Financing Arrangements

The Company enters into supplier financing arrangements with external financial institutions. Under these arrangements,

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

suppliers can choose to settle outstanding payment obligations at a discount. The Company holds no economic interest in suppliers' participation, nor does it provide guarantees or pledge assets under these arrangements. Invoices are settled with the financial institutions based on the original supplier payment terms. These arrangements do not alter the Company's rights and obligations towards suppliers, including scheduled payment terms. Liabilities associated with the funded participation in these arrangements, presented within Accounts payable on the Condensed Consolidated Balance Sheets, amounted to $599 million, and $488 million as of April 30, 2026 and October 31, 2025, respectively.

The rollforward of outstanding obligations confirmed as valid under its supplier finance program for the six months ended April 30, 2026, and the fiscal year ended October 31, 2025 were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Balance at beginning of period			$	488					$	466
Invoices confirmed during the year			1,001						1,895
Confirmed invoices paid during the year			(890)						(1,873)
Balance at end of period			$	599					$	488

Warranties

The Company's aggregate product warranty liabilities and changes for the six months ended April 30, 2026, and the fiscal year ended October 31, 2025 were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Balance at beginning of period			$	284					$	301
Charges			68						206
Adjustments related to pre-existing warranties			—						(55)
Settlements made			(65)						(168)
Balance at end of period(1)			$	287					$	284

(1)The Company included the current portion in Other accrued liabilities, and amounts due after one year in Other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets.

Severance Charges

The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. As of April 30, 2026, $124 million and $23 million was recorded in Other Accrued Liabilities and Other Non-current liabilities, respectively. As of October 31, 2025, $204 million and $34 million was recorded in Other accrued liabilities and Other Non-current liabilities, respectively.

The following table presents the activity related to the Company’s severance liability for the period indicated:

			As of
			April 30, 2026						October 31, 2025
			In millions
Balance at beginning of period			$	238					$	49
Severance charges			82						418
Cash paid and other			(173)						(229)
Balance at end of period			$	147					$	238

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The following table presents severance charges as included in the Condensed Consolidated Statements of Earnings for the periods indicated:

			For the three months ended April 30,												For the six months ended April 30,
			2026						2025						2026						2025
			In millions
Cost of sales			$	7					$	62					$	12					$	63
Research and development			3						23						7						31
Selling, general and administrative			17						79						26						147
Acquisition, disposition and other charges			10						—						37						—
Total severance charges			$	37					$	164					$	82					$	241

Transformation Programs

Restructuring activities related to the Company's employees and infrastructure under the Cost Optimization and Prioritization Plan and HPE Next Plan are presented in the table below:

			Cost Optimization and Prioritization Plan												HPE Next Plan
			Employee Severance						Infrastructure and other						Infrastructure and other
			In millions
Balance at October 31, 2025			$	37					$	61					$	14
Cash paid and other			(13)						(8)						(2)
Balance at April 30, 2026			$	24					$	53					$	12

The current restructuring liability related to the transformation programs, reported in Other accrued liabilities in the Consolidated Balance Sheets as of April 30, 2026 and October 31, 2025 was $35 million and $42 million, respectively. The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Consolidated Balance Sheets as of April 30, 2026 and October 31, 2025 was $54 million and $70 million, respectively.

Contract Balances

The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.

Contract Assets

A summary of accounts receivable, net, including unbilled receivables was as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Accounts receivable			$	5,919					$	4,916
Unbilled receivables			391						396
Allowances			(24)						(22)
Total			$	6,286					$	5,290

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The allowances for credit losses related to accounts receivable and changes for the six months ended April 30, 2026, and the fiscal year ended October 31, 2025 were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Balance at beginning of period			$	22					$	10
Provision for credit losses			12						33
Adjustments to existing allowances, including write offs			(10)						(21)
Balance at end of period			$	24					$	22

Sale of Trade Receivables

For the three and six months ended April 30, 2026, the Company sold $1.2 billion and $2.4 billion of trade receivables, respectively, and received gross proceeds of $1.1 billion and $2.3 billion, respectively. For the fiscal year ended October 31, 2025, the Company sold $3.7 billion of trade receivables. The Company recorded an obligation of $53 million and $59 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of April 30, 2026 and October 31, 2025, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

Contract Liabilities and Remaining Performance Obligations

Contract liabilities consist of deferred revenue and customer deposits. A summary of contract liabilities were as follows:

						As of
						April 30, 2026						October 31, 2025
			Location			In millions
Customer deposits			Other accrued liabilities			$	313					$	616
Customer deposits - non-current			Other non-current liabilities			34						72
Total customer deposits						$	347					$	688
Deferred revenue			Deferred revenue			$	5,621					$	5,358
Deferred revenue - non-current			Other non-current liabilities			5,220						4,980
Total deferred revenue						$	10,841					$	10,338

For the six months ended April 30, 2026, approximately $3.2 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2025.

Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency. As of April 30, 2026, the aggregate amount of deferred revenue, was $10.8 billion. The Company expects to recognize approximately 37% of this balance over fiscal 2026, 26% over fiscal 2027, 17% over fiscal 2028, 10% over fiscal 2029, and 8% over fiscal 2030 and thereafter. The Company receives payments in advance of completion of its contractual obligations; these payments are considered customer deposits. As customer acceptance milestones are met, the Company will recognize revenue and reduce the amount of contract liabilities. As of April 30, 2026, the aggregate amount of customer deposits was $347 million. The Company expects to recognize $313 million over the next twelve months and the remaining balance thereafter.

Costs to Obtain a Contract

As of April 30, 2026, the current and non-current portions of the capitalized costs to obtain a contract were $96 million and $140 million, respectively. As of October 31, 2025, the current and non-current portions of the capitalized costs to obtain a contract were $109 million and $128 million, respectively. The current and non-current portions of the capitalized costs to

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheets. For the three and six months ended April 30, 2026 the Company amortized $28 million and $56 million, of capitalized costs to obtain a contract. For the three and six months ended April 30, 2025 the Company amortized $27 million and $54 million, of capitalized costs to obtain a contract. The amortized capitalized costs to obtain a contract are included in Selling, general and administrative expense in the Condensed Consolidated Statements of Earnings.

Note 6: Accounting for Leases as a Lessor

Financing receivables represent sales-type and direct-financing leases of the Company and third-party products. These receivables typically have terms ranging from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The allowance for credit losses represents future expected credit losses over the life of the receivables based on past experience, current information and forward-looking economic considerations. The components of financing receivables were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Minimum lease payments receivable			$	9,897					$	10,310
Unguaranteed residual value			719						694
Unearned income			(1,191)						(1,264)
Financing receivables, gross			9,425						9,740
Allowance for credit losses			(210)						(198)
Financing receivables, net			9,215						9,542
Less: current portion			(3,694)						(3,826)
Amounts due after one year, net			$	5,521					$	5,716

Sale of Financing Receivables

The Company enters into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions. For the three and six months ended April 30, 2026, the Company sold $20 million and $103 million, respectively. For the fiscal year ended October 31, 2025, the Company sold $196 million of financing receivables.

Credit Quality Indicators

Due to the homogeneous nature of its leasing transactions, the Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. The Company assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction and periodically updates the risk ratings when there is a change in the underlying credit quality. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits.

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The credit risk profile of gross financing receivables, based on internal risk ratings as of April 30, 2026, presented on amortized cost basis by year of origination was as follows:

			As of April 30, 2026
			Risk Rating
			Low						Moderate						High
Fiscal Year			In millions
2026			$	829					$	538					$	10
2025			2,183						1,046						28
2024			1,728						795						31
2023			853						475						43
2022 and prior			454						334						78
Total			$	6,047					$	3,188					$	190

The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2025, presented on amortized cost basis by year of origination was as follows:

			As of October 31, 2025
			Risk Rating
			Low						Moderate						High
Fiscal Year			In millions
2025			$	2,245					$	1,016					$	17
2024			2,160						942						36
2023			1,189						645						47
2022			579						347						26
2021 and prior			213						206						72
Total			$	6,386					$	3,156					$	198

Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB– or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment. The credit quality indicators do not reflect any mitigation actions taken to transfer credit risk to third parties.

Allowance for Credit Losses

The allowance for credit losses for financing receivables as of April 30, 2026 and October 31, 2025 and the respective changes for the six and twelve months then ended were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Balance at beginning of period			$	198					$	194
Provision for credit losses			14						77
Adjustment to the existing allowance			8						(1)
Deductions			(10)						(72)
Balance at end of period			$	210					$	198

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Non-Accrual and Past-Due Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:

			As of
			April 30, 2026						October 31, 2025
			In millions
Billed:(1)
Current 1-30 days			$	368					$	349
Past due 31-60 days			17						26
Past due 61-90 days			19						13
Past due > 90 days			70						70
Unbilled sales-type and direct-financing lease receivables			8,951						9,282
Total gross financing receivables			$	9,425					$	9,740
Gross financing receivables on non-accrual status(2)			$	120					$	168
Gross financing receivables 90 days past due and still accruing interest(2)			$	90					$	114

(1)Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.

(2)Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.

The following table presents amounts included in the Condensed Consolidated Statements of Earnings related to lessor activity:

									For the three months ended April 30,												For the six months ended April 30,
									2026						2025						2026						2025
			Location						In millions
Interest income from sales-type leases and direct financing leases			Financing Income						$	193					$	188					$	388					$	374
Lease income from operating leases			Services						500						539						1,008						1,086
Total lease income									$	693					$	727					$	1,396					$	1,460

Variable Interest Entities

The Company has issued asset-backed debt securities under a fixed-term securitization program to private investors. The asset-backed debt securities are collateralized by the U.S. fixed-term financing receivables and leased equipment in the offering, which is held by a Special Purpose Entity (“SPE”). The SPE meets the definition of a Variable Interest Entity (“VIE”) and is consolidated, along with the associated debt, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the VIE. The SPE is a bankruptcy-remote legal entity with separate assets and liabilities. The purpose of the SPE is to facilitate the funding of customer receivables and leased equipment in the capital markets.

The Company’s risk of loss related to securitized receivables and leased equipment is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The following table presents the assets and liabilities held by the consolidated VIE as of April 30, 2026 and October 31, 2025, which are included in the Condensed Consolidated Balance Sheets. The assets in the table below include those that can be used to settle the obligations of the VIE. Additionally, general creditors of the Company do not have recourse to the assets of the VIE.

			As of
			April 30, 2026						October 31, 2025
Assets held by VIE:			In millions
Other current assets			$	52					$	73
Financing receivables
Short-term			678						885
Long-term			928						1,283
Property, plant and equipment, net			504						775
Liabilities held by VIE:
Notes payable and short-term borrowings, net of unamortized debt issuance costs			933						1,159
Long-term debt, net of unamortized debt issuance costs			$	861					$	1,287

For the six months ended April 30, 2026, the Company did not transfer any financing receivables and leased equipment via securitization through the SPE. For the fiscal year ended October 31, 2025, financing receivables and leased equipment transferred via securitization through the SPE were $1.3 billion and $0.4 billion, respectively.

Note 7: Acquisitions and Dispositions

Pending Telco Solutions Divestiture

On December 18, 2025, the Company announced an agreement to divest its Telco Solutions business to HCLTech.

Divestiture of H3C Shares

On November 17, 2025, HPE’s subsidiary, H3C Holdings Limited (“H3C Holdings”), entered into (i) share purchase agreements with five counterparties, including Unisplendour International Technology Limited (“UNIS”), whereby such counterparties, in the aggregate, agreed to purchase 10% of the total issued share capital of H3C Technologies Co., Limited (“H3C”) for cash consideration of approximately $714 million and (ii) a side letter with UNIS, amending the Agreement on Subsequent Arrangements that was previously entered into on May 24, 2024, whereby, among other things, H3C Holdings and UNIS shall retain their put option and call option, respectively, relating to the remaining issued share capital of H3C held by H3C Holdings and have the right to exercise their respective option rights in respect of such shares up to three times, subject to the timing and terms as set forth therein. The agreement referenced in clause (ii) above revises the arrangements governing the sale of all of the remaining issued share capital of H3C held by us through H3C Holdings. On November 28, 2025, H3C Holdings entered into three additional share purchase agreements, including one with UNIS, whereby such counterparties, in the aggregate, agreed to purchase the remaining 9% of the total issued share capital of H3C for cash consideration of approximately $643 million.

On May 13, 2026, the Company closed on the sale and disposition of 13.8% of the total issued share capital of H3C for approximately $987 million. On May 28, 2026, the Company closed on the sale of the remaining 5.2% of the total issued share capital of H3C for approximately $370 million.

Acquisition of Juniper Networks

On July 2, 2025, the Company completed the Juniper Networks merger (the “Merger”). Under the terms of the Agreement and Plan of Merger (the “Merger Agreement”), HPE agreed to pay $40.00 per share of Juniper Networks common stock, issued and outstanding as of July 2, 2025, representing a cash consideration of approximately $13.4 billion, which was paid through cash on hand, including proceeds and term loan drawdowns from the financings in fiscal 2024, and commercial paper issuances. During the first half of fiscal 2026, the Company recorded measurement period adjustments resulting in an increase to goodwill of $111 million, primarily related to adjustments to deferred tax assets.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Acquisition costs related to the Merger were primarily included within Acquisition, disposition and other charges in the Condensed Consolidated Statements of Earnings. For the three and six months ended April 30, 2026, acquisition costs were $108 million and $231 million, respectively. For three and six months ended April 30, 2025, acquisition costs were $39 million and $72 million, respectively.

Note 8: Goodwill

Goodwill is tested for impairment at the reporting unit level. As of November 1, 2025, the Company reassessed its reporting units and determined that the former Server and Hybrid Cloud reporting units met the criteria to qualify as a single Cloud & AI (excluding Financial Services) reporting unit, and Intelligent Edge and Juniper Networks met the criteria to qualify as a single Networking reporting unit. The Cloud & AI segment contains the Cloud & AI (excluding Financial Services) and Financial Services reporting units. The Corporate Investments and Other segment contains the A & PS, Telco Solutions and Instant On reporting units. The following table represents the carrying value of goodwill, by segment as of April 30, 2026 and October 31, 2025.

			Networking						Cloud & AI						Corporate Investments and Other						Total
			In millions
Balance as of October 31, 2025(1)			$	10,121					$	13,599					$	50					$	23,770
Goodwill reclassified as held for sale(2)			—						—						(46)						(46)
Purchase price and other currency adjustments			104						—						—						104
Balance as of April 30, 2026(1)			$	10,225					$	13,599					$	4					$	23,828

(1) There has been no change to the accumulated impairment loss from the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2025.

(2) Reclassified to assets held for sale and is reported in Other current assets in the Condensed Consolidated Balance Sheets.

Goodwill is tested annually for impairment, as of the first day of the fourth quarter, at the reporting unit level. Additionally, an interim impairment test was performed as of November 1, 2025 based on organizational changes impacting the reporting units. The interim impairment test did not result in any impairment of goodwill. For all reporting units other than Cloud & AI (excluding Financial Services), a qualitative test was performed and there were no indicators of impairment of goodwill. For the Cloud & AI (excluding Financial Services) reporting unit a quantitative assessment was performed, and the excess of fair value over carrying amount was 10%. In order to evaluate the sensitivity of the estimated fair value of the reporting units in the goodwill impairment test, the Company applied a 10% decrease to the fair value of the Cloud & AI, (excluding Financial Services) reporting unit. Based on the results of this hypothetical 10% decrease, this reporting unit did not have an excess of fair value over carrying value.

The Cloud & AI (excluding Financial Services) reporting unit has goodwill of $13.5 billion as of April 30, 2026. In the current macroeconomic and inflationary environment, customers are investing selectively. This has resulted in moderate unit growth in server offerings offset by expansion of average unit selling prices as a result of higher commodity and input costs. In addition, the business is managing a storage product model transition to a more cloud-native, software-defined platform with HPE Alletra. Translating this growth to revenue and operating income will take time because a greater mix of high margin business, such as ratable software and services, are deferred and recognized in future periods. The Cloud & AI (excluding Financial Services) reporting unit continues to focus on capturing market share in both traditional and AI servers and storage while maintaining operating margin and leveraging its strong portfolio of products and services. If the global macroeconomic or geopolitical conditions worsen, projected revenue growth rates or operating margins decline, weighted average cost of capital increases, or if the Company has significant or sustained decline in its stock price, it is possible its estimates about this reporting unit's ability to successfully address the current challenges may change, which could result in the carrying value of the Cloud & AI (excluding Financial Services) reporting unit exceeding its estimated fair value and potential impairment charges.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 9: Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use.

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:

			As of April 30, 2026																								As of October 31, 2025
			Fair Value Measured Using																								Fair Value Measured Using
			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Remaining Inputs (Level 2)						Significant Other Unobservable Remaining Inputs (Level 3)						Total						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Remaining Inputs (Level 2)						Significant Other Unobservable Remaining Inputs (Level 3)						Total
			In millions
Assets
Cash Equivalents:
Time deposits			$	—					$	846					$	—					$	846					$	—					$	997					$	—					$	997
Money market funds			2,603						—						—						2,603						2,741						—						—						2,741
Total cash equivalents			2,603						846						—						3,449						2,741						997						—						3,738
Available-for-sale Debt Investments:
Foreign bonds			—						111						—						111						—						111						—						111
Other debt securities(1)			—						—						44						44						—						—						46						46
Total available-for-sale debt investments			—						111						44						155						—						111						46						157
Equity Investments:
Mutual funds			—						61						—						61						—						59						—						59
Equity securities in public companies			8						—						—						8						6						—						—						6
Total equity investments			8						61						—						69						6						59						—						65
Derivatives Instruments:
Foreign currency contracts			—						171						—						171						—						193						—						193
Other derivatives			—						9						—						9						—						2						—						2
Total assets			2,611						1,198						44						3,853						2,747						1,362						46						4,155
Liabilities
Derivatives Instruments:
Interest rate contracts			—						58						—						58						—						51						—						51
Foreign currency contracts			—						326						—						326						—						238						—						238
Total liabilities			$	—					$	384					$	—					$	384					$	—					$	289					$	—					$	289

(1) Available-for-sale debt securities with carrying values that approximate fair value.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Other Fair Value Disclosures

Short-Term and Long-Term Debt: As of April 30, 2026, the estimated fair value and carrying value of the Company's short-term and long-term debt was $21.1 billion and $21.2 billion, respectively. As of October 31, 2025, the estimated fair value and carrying value of the Company's short-term and long-term debt was $22.5 billion and $22.4 billion, respectively. If measured at fair value in the Condensed Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy.

Other Financial Instruments: For the balance of the Company's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short-term nature. If measured at fair value in the Condensed Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy.

Non-Recurring Fair Value Measurements

Equity Investments without Readily Determinable Fair Value: Equity investments are recorded at cost and adjusted for impairments or observable price changes. For the three and six months ended April 30, 2026 and 2025, the Company recognized immaterial unrealized gains or losses. Cumulative adjustments as of April 30, 2026 were immaterial. Refer to Note 10, “Financial Instruments” for further information.

Non-Financial Assets: The Company's non-financial assets, such as intangible assets, goodwill, and property, plant and equipment, are recorded at cost. The Company records right-of-use assets based on the lease liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized.

In the second quarter of fiscal 2025, the Company recorded a goodwill impairment charge of $1.4 billion associated with the Cloud & AI (excluding Financial Services) reporting unit. The fair values of the Company's reporting units were classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 10: Financial Instruments

Cash Equivalents and Available-for-Sale Debt Investments

Cash equivalents and available-for-sale debt investments were as follows:

			As of April 30, 2026																		As of October 31, 2025
			Cost						Gross Unrealized Gains												Fair Value						Cost						Gross Unrealized Gains												Fair Value
			In millions
Cash Equivalents
Time deposits			$	846					$	—											$	846					$	997					$	—											$	997
Money market funds			2,603						—												2,603						2,741						—												2,741
Total cash equivalents			3,449						—												3,449						3,738						—												3,738
Available-for-sale Investments
Debt Securities:
Foreign bonds			110						1												111						107						4												111
Other debt securities			41						3												44						44						2												46
Total debt securities			151						4												155						151						6												157
Equity Securities:
Equity securities in public companies			8						—												8						6						—												6
Mutual funds			61						—												61						59						—												59
Total equity securities			69						—												69						65						—												65
Total available-for-sale investments			220						4												224						216						6												222
Total cash equivalents and available-for-sale investments			$	3,669					$	4											$	3,673					$	3,954					$	6											$	3,960

As of April 30, 2026 and October 31, 2025, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions outside the U.S. as of April 30, 2026 and October 31, 2025. The estimated fair value of the available-for-sale debt investments may not be representative of values that will be realized in the future.

Contractual maturities of investments in available-for-sale debt securities were as follows:

			As of April 30, 2026
			Amortized Cost						Fair Value
			In millions
Due in one year			$	34					$	34
Due in one to five years			1						1
Due in more than five years			116						120
Total			$	151					$	155

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Equity Investments

Non-marketable equity investments in privately held companies are included in Long-term financing receivables and other assets in the Condensed Consolidated Balance Sheets. These non-marketable equity investments are carried at cost under measurement alternative and adjusted for impairments or observable price changes. The carrying amount of investments was $73 million and $61 million as of April 30, 2026 and October 31, 2025, respectively. For the three and six months ended April 30, 2026 and 2025, the Company recognized immaterial unrealized gains or losses that are reflected in Interest and other, net in the Condensed Consolidated Statement of Earnings.

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:

			As of April 30, 2026																														As of October 31, 2025
									Fair Value																														Fair Value
			Outstanding Gross Notional						Other Current Assets						Long-Term Financing Receivables and Other Assets						Other Accrued Liabilities						Long-Term Other Liabilities						Outstanding Gross Notional						Other Current Assets						Long-Term Financing Receivables and Other Assets						Other Accrued Liabilities						Long-Term Other Liabilities
			In millions
Derivatives Designated as Hedging Instruments
Fair Value Hedges:
Interest rate contracts			$	1,200					$	—					$	—					$	—					$	58					$	600					$	—					$	—					$	—					$	51
Cash Flow Hedges:
Foreign currency contracts			7,610						62						27						113						74						7,062						81						29						95						67
Net Investment Hedges:
Foreign currency contracts			2,125						22						26						44						44						2,126						20						24						30						20
Total derivatives designated as hedging instruments			10,935						84						53						157						176						9,788						101						53						125						138
Derivatives Not Designated as Hedging Instruments
Foreign currency contracts			6,232						30						4						38						13						7,167						37						2						22						4
Other derivatives			146						9						—						—						—						153						2						—						—						—
Total derivatives not designated as hedging instruments			6,378						39						4						38						13						7,320						39						2						22						4
Total derivatives			$	17,313					$	123					$	57					$	195					$	189					$	17,108					$	140					$	55					$	147					$	142

Offsetting of Derivative Instruments

The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

			As of April 30, 2026
			In the Condensed Consolidated Balance Sheets
			(i)						(ii)						(iii) = (i)–(ii)						(iv)						(v)									(vi) = (iii)–(iv)–(v)
																					Gross Amounts Not Offset
			Gross Amount Recognized						Gross Amount Offset						Net Amount Presented						Derivatives						Financial Collateral									Net Amount
			In millions
Derivative assets			$	180					$	—					$	180					$	144					$	6		(1)						$	30
Derivative liabilities			$	384					$	—					$	384					$	144					$	164		(2)						$	76

			As of October 31, 2025
			In the Condensed Consolidated Balance Sheets
			(i)						(ii)						(iii) = (i)–(ii)						(iv)						(v)									(vi) = (iii)–(iv)–(v)
																					Gross Amounts Not Offset
			Gross Amount Recognized						Gross Amount Offset						Net Amount Presented						Derivatives						Financial Collateral									Net Amount
			In millions
Derivative assets			$	195					$	—					$	195					$	121					$	16		(1)						$	58
Derivative liabilities			$	289					$	—					$	289					$	121					$	136		(2)						$	32

(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2)Represents the collateral posted by the Company in cash or through the re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of April 30, 2026, of the $164 million of collateral posted, $158 million was in cash and $6 million was through the re-use of counterparty collateral. As of October 31, 2025, of the $136 million of collateral posted, $120 million was in cash and $16 million was through the re-use of counterparty collateral.

The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:

			Carrying Amount of the Hedged Liabilities												Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
			As of												As of
			April 30, 2026						October 31, 2025						April 30, 2026						October 31, 2025
			In millions
Long-term debt			$	(1,345)					$	(754)					$	3					$	(4)

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income (“OCI”) were as follows:

			Gains (Losses) Recognized in OCI on Derivatives
			For the three months ended April 30,												For the six months ended April 30,
			2026						2025						2026						2025
			In millions
Derivatives in Cash Flow Hedging Relationship:
Foreign exchange contracts			$	126					$	(465)					$	(65)					$	(195)
Derivatives in Net Investment Hedging Relationship:
Foreign exchange contracts			(108)						(64)						(49)						(21)
Total			$	18					$	(529)					$	(114)					$	(216)

As of April 30, 2026, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $15 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings

The following table represents the pre-tax effect of derivative instruments on total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value hedges and derivatives not designated as hedging instruments are recorded:

			Gains (Losses) Recognized in Income
			For the three months ended April 30,																								For the six months ended April 30,
			2026												2025												2026												2025
			Net Revenue						Interest and Other, net						Net Revenue						Interest and Other, net						Net Revenue						Interest and Other, net						Net Revenue						Interest and Other, net
			In millions
Total net revenue and interest and other, net			$	10,678					$	(73)					$	7,627					$	39					$	19,979					$	(127)					$	15,481					$	78
Gains (Losses) on Derivatives in Fair Value Hedging Relationships:
Interest Rate Contracts
Hedged items			$	—					$	8					$	—					$	(15)					$	—					$	7					$	—					$	(30)
Derivatives designated as hedging instruments			—						(8)						—						15						—						(7)						—						30
Gains (Losses) on Derivatives in Cash Flow Hedging Relationships:
Foreign Exchange Contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income			6						47						39						(283)						(4)						(81)						83						(113)
Interest Rate Locks
Amount of losses reclassified from accumulated other comprehensive income into income			—						—						—						—						—						—						—						(1)
Gains (Losses) on Derivatives not Designated as Hedging Instruments:
Foreign exchange contracts			—						59						—						(130)						—						(1)						—						(76)
Other derivatives			—						8						—						—						—						8						—						4
Total gains (losses)			$	6					$	114					$	39					$	(413)					$	(4)					$	(74)					$	83					$	(186)

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 11: Borrowings

Notes Payable, Short-Term Borrowings and Long-Term Debt

Notes payable, short-term borrowings, including the current portion of long-term debt, and long-term debt were as follows:

			As of
			April 30, 2026						October 31, 2025
			In millions
Current portion of long-term debt(1)			$	2,249					$	3,796
Commercial paper			637						681
Notes payable to banks, lines of credit and other			123						132
Total notes payable and short-term borrowings			3,009						4,609
Long-term debt			18,237						17,756
Total			$	21,246					$	22,365

(1) As of April 30, 2026 and October 31, 2025, the Current portion of long-term debt, net of discount and issuance costs, included $0.9 billion and $1.2 billion respectively, both associated with the asset-backed debt securities issued by the Company.

Unsecured Senior Notes

In March 2026, the Company issued (i) $300 million of floating rate notes due March 23, 2028, with interest payable quarterly beginning June 23, 2026; (ii) $500 million of 4.5% Senior Notes due March 23, 2028, with interest payable semi-annually beginning September 23, 2026; (iii) $600 million of 4.6% Senior Notes due March 23, 2029, with interest payable semi-annually beginning September 23, 2026; and (iv) $600 million of 5.25% Senior Notes due April 1, 2033, with interest payable semi-annually beginning October 1, 2026.

In April 2026, the Company repaid $750 million of 1.75% Senior Notes on their original maturity date.

Financing arrangements

The Company maintains two commercial paper programs (the “Parent Programs”) and third program managed by a wholly-owned subsidiary, together with a revolving credit facility, and an uncommitted credit facility. There have been no changes to either of these financing arrangements since October 31, 2025. As of April 30, 2026 and October 31, 2025, no borrowings were outstanding under the Parent Programs, the revolving credit facility, or the uncommitted credit facility. Outstanding borrowings under the subsidiary’s commercial paper program were $637 million and $681 million, respectively.

Juniper Networks Acquisition Financing

In March 2026, the Company prepaid $1.25 billion against the outstanding balance under the three-year delayed draw term loan credit facility. The repayment was made at par, along with accrued interest. As of April 30, 2026, $0.75 billion was outstanding under this facility. In May 2026, the Company fully repaid this amount at par, along with accrued interest.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 12: Stockholders' Equity

The components of accumulated other comprehensive loss, net of taxes as of April 30, 2026, and changes for the six months ended April 30, 2026 were as follows:

			Net unrealized gains (losses) on available-for-sale securities						Net unrealized (losses) gains on cash flow hedges						Unrealized components of defined benefit plans						Cumulative translation adjustment						Accumulated other comprehensive loss
			In millions
Balance at beginning of period			$	6					$	(26)					$	(2,058)					$	(670)					$	(2,748)
Other comprehensive loss before reclassifications			(2)						(65)						(1)						(23)						(91)
Reclassifications of losses into earnings			—						85						51						—						136
Tax provision			—						(1)						(11)						(2)						(14)
Balance at end of period			$	4					$	(7)					$	(2,019)					$	(695)					$	(2,717)

The components of accumulated other comprehensive loss, net of taxes as of April 30, 2025, and changes for the six months ended April 30, 2025 were as follows:

			Net unrealized gains (losses) on available-for-sale securities						Net unrealized (losses) gains on cash flow hedges						Unrealized components of defined benefit plans						Cumulative translation adjustment						Accumulated other comprehensive loss
			In millions
Balance at beginning of period			$	8					$	(16)					$	(2,342)					$	(627)					$	(2,977)
Other comprehensive loss before reclassifications			(6)						(195)						(20)						(12)						(233)
Reclassifications of losses into earnings			—						31						62						—						93
Tax benefit (provision)			—						30						(6)						(1)						23
Balance at end of period			$	2					$	(150)					$	(2,306)					$	(640)					$	(3,094)

Share Repurchase Program

For the six months ended April 30, 2026, the Company repurchased and settled 13.5 million shares under its share repurchase program through open market repurchases. As of April 30, 2026, the Company’s unsettled open market repurchases were immaterial. Shares repurchased for the six months ended April 30, 2026 were recorded as a $313 million reduction to stockholders’ equity. As of April 30, 2026, the Company had a remaining authorization of approximately $3.3 billion for future share repurchases.

Note 13: Net Earnings (Loss) Per Share

The Company calculates basic EPS using net earnings (loss) and the weighted-average number of shares outstanding during the reporting period.

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(Unaudited)

The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

			For the three months ended April 30,												For the six months ended April 30,
			2026						2025						2026						2025
			In millions, except per share amounts
Numerator:
Net earnings (loss) attributable to common stockholders - Basic			$	595					$	(1,079)					$	1,018					$	(481)
Plus: 7.625% Series C mandatory convertible preferred stock dividends			29						—						—						—
Net earnings (loss) - Diluted			$	624					$	(1,079)					$	1,018					$	(481)
Denominator:
Weighted-average shares used to compute basic net EPS			1,335						1,322						1,335						1,319
Dilutive effect of 7.625% Series C mandatory convertible preferred stock(1)			76						—						—						—
Dilutive effect of employee stock plans(1)			21						—						21						—
Weighted-average shares used to compute diluted net EPS			1,432						1,322						1,356						1,319
Net EPS:
Basic			$	0.45					$	(0.82)					$	0.76					$	(0.36)
Diluted			$	0.44					$	(0.82)					$	0.75					$	(0.36)
Anti-dilutive Share Count(1)(2):
Employee stock plans			9						49						7						51
7.625% Series C mandatory convertible preferred stock			—						87						76						76
Total anti-dilutive weighted-average stock			9						136						83						127

(1)The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the 7.625% Series C mandatory convertible preferred stock (“Preferred Stock”) is calculated under the if-converted method.

(2)The Company excludes shares potentially issuable under employee stock plans and Preferred Stock that could dilute basic net EPS in the future from the calculation of diluted net EPS, as their effect, if included, would have been anti-dilutive for the periods presented.

Note 14: Litigation, Contingencies, and Commitments

Litigation

HPE is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits, and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement (the “Separation and Distribution Agreement”) entered into in connection with HPE’s spin-off from HP Inc. (formerly known as “Hewlett-Packard Company”) (the “Separation”), HPE and HP Inc. agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. HPE records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. HPE reviews these matters at least quarterly and adjusts these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other updated information and events pertaining to a particular matter. Litigation is inherently unpredictable. However, HPE believes it has valid defenses with respect to legal matters pending against us. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. HPE believes it has

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recorded adequate provisions for any such matters and, as of April 30, 2026, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements.

Litigation, Proceedings, and Investigations

DOJ Action on the Proposed Acquisition of Juniper Networks. As previously disclosed, on January 9, 2024, the Company entered into the Merger Agreement with Juniper Networks and Jasmine Acquisition Sub, Inc., providing for the acquisition of Juniper Networks by HPE. On January 30, 2025, the Antitrust Division of the United States Department of Justice (“DOJ”) filed a complaint in the United States District Court for the Northern District of California, seeking to enjoin the closing of the Merger, alleging that the Merger is likely to substantially lessen competition in violation of Section 7 of the Clayton Act. On February 10, 2025, HPE and Juniper Networks filed answers to the DOJ’s complaint, disputing these claims. On June 27, 2025, HPE, Juniper, and the DOJ filed an Asset Preservation and Hold Separate Stipulation and Order (“Stipulation”) and Proposed Final Judgment with the Court. Pursuant to the Stipulation, HPE has agreed to divest its global Instant On campus and branch business. HPE also has agreed to grant up to two licenses to the Mist AIOps source code, with the licensees determined through an auction process. In exchange, the DOJ agreed to dismiss its action to enjoin the Merger, subject to the Court’s approval of the Proposed Final Judgment under the Antitrust Procedures and Penalties Act (the “Tunney Act”). On June 30, 2025, the Court signed the Stipulation, allowing the Merger to proceed to closing. On October 14, 2025, the Attorneys General of twelve states and the District of Columbia (the “Attorneys General”) filed a motion to intervene in the Court’s Tunney Act process. Following a November 18, 2025 hearing, the Court issued an order granting the Attorneys General’s motion to intervene and set a status conference for December 16, 2025 to determine next steps, including the scope of the Attorneys General’s intervention rights under the Tunney Act. On November 18, 2025, the Attorneys General filed a motion to hold separate, seeking to enjoin further integration and consolidation of HPE and Juniper during the pendency of the Tunney Act proceedings. Following a January 8, 2026 hearing, the Court denied the Attorneys General’s motion to hold separate, allowing further integration of the companies to proceed. The Tunney Act hearing was held on March 23, 2026 to determine whether the Court will approve the settlement between HPE and the DOJ. The Court has taken the matter under advisement. The parties are awaiting the Court’s ruling.

India Directorate of Revenue Intelligence Proceedings*.* On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the “DRI”) issued notices to Hewlett-Packard India Sales Private Ltd (“HP India”), a subsidiary of HP Inc., seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related notices affirming duties and penalties against HP India and the named individuals for approximately $386 million (plus interest). On April 20, 2012, the Commissioner issued an order on the spare parts-related notice affirming duties and penalties against HP India and certain of the named individuals for approximately $17 million. HP India filed appeals of the Commissioner’s orders before the Customs Tribunal. The Customs Department filed cross-appeals before the Customs Tribunal. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP India's request to return the matter to the Commissioner on procedural grounds. After multiple delays and postponements over the last decade, the Customs Tribunal began hearing the parties’ cross-appeals on April 21, 2025. The hearing on the cross-appeals were completed in June 2025. The Company expects a ruling from the Customs Tribunal by 2026. Either party may appeal the ruling to the India Supreme Court.

ECT Proceedings*.* In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos (“ECT”), notified a former subsidiary of HP Inc. in Brazil (“HP Brazil”) that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT’s decision. In April 2013, ECT rejected HP Brazil’s appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT’s decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case, which was denied. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT’s sanctions until a final ruling on the merits of the case. In September 2025, the Court of Appeals ruled in favor of HPE’s Civil Appeal, annulling the previously-stayed

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sanctions that, if enforced, would have barred HPE Brazil from participating in public tenders for five years. HPE has filed a motion to recover legal costs incurred during the appeal. ECT has filed a motion requesting the Court to clarify the merits.

Autonomy-Related Legal Proceedings*.* In 2015, four HPE subsidiaries (Autonomy Corporation Limited, Hewlett Packard Vision BV, Autonomy Systems Limited, and Autonomy, Inc., hereinafter the “Claimants”) initiated civil proceedings in the U.K. High Court of Justice against two members of Autonomy’s former management, Michael Lynch and Sushovan Hussain, for breach of their fiduciary duties in causing Autonomy group companies to engage in improper transactions and accounting practices before and in connection with the 2011 acquisition of Autonomy. Trial concluded in January 2020. In May 2022, the court issued its liability judgment, finding that the Claimants had succeeded on substantially all claims against Messrs. Lynch and Hussain, and dismissing a counterclaim filed by Mr. Lynch. In February 2024, the court held a two-week trial on damages. The Claimants sought recovery for $4 billion in losses. In May 2025, Claimants reached an agreement with Mr. Hussain to resolve claims against him. On July 22, 2025, the court issued its ruling on the quantum of damages, finding that the Lynch estate owed £740 million. The court held a hearing during the week of November 17, 2025, addressing a number of matters including costs (including attorneys’ fees), pre-judgment interest, issues relating to the currency in which the judgment should be paid, and the Lynch Estate’s right to appeal discrete issues in the Court’s May 2022 liability judgment and its July 2025 quantum judgment. On March 24, 2026, the U.K. High Court entered a ruling that provides a total judgment against the Lynch Estate of approximately $1.24 billion when adding interest and currency effects. The judgment amount reflects an approximately $145 million offset for amounts previously recovered by HPE and does not include attorneys’ fees, which will be determined at a later time. The U.K. High Court also rejected the Estate’s request for permission to appeal the liability and damages judgments. On April 14, 2026, the Lynch Estate filed a request with the Court of Appeal for permission to appeal the liability and damages judgments. A ruling is expected in 2026. Pursuant to the terms of the 2015 Separation and Distribution Agreement, HP and HPE will share equally in any recovery.

Shared Litigation with HP Inc., DXC Technology Company and Micro Focus International plc.

As part of the Separation and Distribution Agreements between HPE and HP Inc., HPE and DXC, and HPE and Seattle SpinCo, the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties’ businesses. The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. (in the case of the separation of HPE from HP Inc.) or of HPE (in the case of the separation of DXC from HPE and the separation of Micro Focus from HPE), in each case arising prior to the applicable separation.

Environmental

The Company's operations and products are or may in the future become subject to various federal, state, local, and foreign laws and regulations concerning the environment, including laws addressing the discharge of pollutants into the air and water; supply chain due diligence; and sustainability, environment, and emissions-related reporting; environmental claims and statements; the management, movement, and disposal of hazardous substances and wastes; the clean-up of contaminated sites; product safety and compliance; the energy consumption of products, services, and operations; and the operational or financial responsibility for recycling, treatment, and disposal of those products. This includes legislation that makes producers of electrical goods, including servers and networking equipment, responsible for repairability requirements or financially responsible for specified collection, recycling, treatment, and disposal of past and future covered products (sometimes referred to as “product take-back legislation”). The Company could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws, including those related to addressing climate change, sustainability, and other environmental related issues, or if its products become non-compliant with such environmental laws. The Company's potential exposure includes impacts on revenue, fines and civil or criminal sanctions, third-party environmental or property damage or personal injury claims or actions, and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict.

In particular, the Company may become a party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), known as “Superfund,” or other federal, state or foreign laws and regulations addressing the clean-up of contaminated sites, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. The Company is also contractually obligated to make financial contributions to address actions related to certain environmental liabilities, both ongoing and arising in the future, pursuant to its Separation and Distribution Agreement with HP Inc.

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Unconditional Purchase Obligations

As of April 30, 2026, the Company had unconditional purchase obligations of approximately $5.7 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction, as well as settlements that the Company has reached with third parties, requiring it to pay determined amounts over a specified period of time. These unconditional purchase obligations are related principally to inventory purchases, software maintenance and support services and other items. Unconditional purchase obligations exclude agreements that are cancellable without penalty. The Company expects the commitments to total $3.4 billion, $1.1 billion, $568 million, $426 million, $187 million, and $96 million for fiscal years 2026, 2027, 2028, 2029, 2030, and thereafter, respectively.

Guarantees

In the ordinary course of business, the Company may issue performance guarantees to certain of its clients, customers, and other parties pursuant to which the Company has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, the Company would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. The Company believes the likelihood of having to perform under a material guarantee is remote.

The Company has entered into service contracts with certain of its clients that are supported by financing arrangements. If a service contract is terminated as a result of the Company's non-performance under the contract or failure to comply with the terms of the financing arrangement, the Company could, under certain circumstances, be required to acquire certain assets related to the service contract. The Company believes the likelihood of having to acquire a material amount of assets under these arrangements is remote.

The maximum potential future payments under performance guarantees and financing arrangements was $353 million as of April 30, 2026.

Indemnifications

In the ordinary course of business, the Company enters into contractual arrangements under which the Company may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of the Company or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. The Company also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the use by such vendors and customers of the Company's software products and support services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial.

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