Hewlett Packard Enterprise (HPE) risk factors: FY2025 10-K

Item 1A of the 10-K for the period ending 2025-10-31, filed 2025-12-18. 33 risk factor headings as filed. Read Item 1A in full · The whole 10-K · What changed since FY2024

10new since FY2024
3reworded
9removed
20unchanged

Headings mentioning a theme: Tariffs 0 · AI 1 · Cybersecurity 1 · China 0 · Interest rates 0. Compare across the S&P 500.

Risks Related to Our Business Strategy and Industry

12
  1. Our success depends on our ability to successfully execute our go-to-market strategy, including offering solutions as-a-Service, effectively planning and managing our resources, and continuing to develop and manage our offerings to integrate new features and solutions.new
  2. We depend on third-party suppliers, contract manufacturers (including original equipment and original design manufacturers), as well as single-source and limited source suppliers, and our financial results could suffer if we fail to manage these third party relationships effectively.new
  3. System security risks, data protection incidents, cyberattacks and systems integration issues could disrupt our internal operations or IT services provided to customers, and any such disruption could reduce our revenue, increase our expenses, damage our reputation, and adversely affect our stock price.Cybersecurity
  4. We operate in an intensely competitive industry, and competitive pressures could harm our business and financial performance.
  5. Any failure by us to identify, manage, and complete acquisitions and subsequent integrations (including the integration of Juniper Networks following the Merger), divestitures, and other significant transactions successfully could harm our financial results, business, prospects, and stock price.reworded
  6. Uncertainty and fluctuations in geopolitical and macroeconomic conditions may adversely impact our business, financial condition, and operating results.new
  7. If we experience or fail to properly manage disruption in the distribution of our products and services properly, our business and financial performance could suffer.reworded
  8. Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses.
  9. Long sales and implementation cycles for our offerings and dynamics related to large orders may cause our revenues and operating results to vary significantly from quarter-to-quarter.new
  10. Our uneven sales cycle and supply chain disruptions make planning and inventory management difficult and future financial results less predictable.
  11. Our ability to achieve our strategy could be harmed if we are unable to attract, retain, train, motivate, develop, and transition key personnel.new
  12. Risks arising from climate change and the transition to a lower-carbon economy may impact our business.

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Risks Related to Our Technology and Business Operations

8
  1. Issues in the development and use of artificial intelligence may result in reputational harm, liability, or impact to our results of operations.AI
  2. Our financial performance may suffer if we cannot continue to develop, license, or enforce the intellectual property rights on which our businesses depend.
  3. Due to the international nature of our business, political or economic changes and the laws and regulatory regimes applying to international transactions or other factors could harm our future revenue, costs and expenses, financial condition, and results of operations.reworded
  4. We may not achieve some or all of the expected benefits of our cost reduction actions, some or all of which may be disruptive to our business.new
  5. Our products and services depend in part on intellectual property and technology licensed from third parties.
  6. We rely on the performance of our business systems and processes, as well as those of third-parties with whom we do business.new
  7. If we cannot continue to produce quality products and services, our reputation, business, and financial performance may suffer.
  8. Our sustainable and responsible business expectations and actions towards achieving our Living Progress objectives may expose us to operational, legal, or reputational risks and could adversely affect our business, results of operations, financial condition, or stock price.new

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Financial Risks

6
  1. Our revenue, profitability, and margins have historically varied, and we expect them to continue to vary over time.new
  2. We are exposed to fluctuations in foreign currency exchange rates.
  3. Adverse developments affecting our liquidity, capital position, borrowing costs, and access to capital markets could adversely impact our business, financial condition, and results of operations or those of the third parties with whom we do business.
  4. Our debt obligations may adversely affect our business and our ability to meet our obligations and pay dividends.
  5. We make estimates and assumptions in connection with the preparation of our Consolidated Financial Statements and any changes to those estimates and assumptions could adversely affect our results of operations.
  6. Declaration, payment and amounts of dividends, if any, to holders of our shares will be uncertain.

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Legal, Regulatory, and Compliance Risks

5
  1. Unfavorable results of legal proceedings, investigations, and other disputes could harm our business and result in substantial costs.new
  2. Third-party claims of intellectual property infringement, including patent infringement, are commonplace in our industry and successful third-party claims may limit or disrupt our ability to sell our products and services.
  3. Our business is subject to various federal, state, local, and foreign laws and regulations that could result in costs or other sanctions that adversely affect our business and results of operations.
  4. Contracts with federal, state, provincial, and local governments are subject to a number of challenges and risks that may adversely impact our business.
  5. Unanticipated changes in our tax provisions, the adoption of new tax legislation, or exposure to additional tax liabilities could affect our financial performance.

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Risks Related to Our Prior Separations

1
  1. We continue to face a number of risks related to our separation from HP Inc., our former parent, including those associated with ongoing indemnification obligations, which could adversely affect our financial condition and results of operations, and shared use of certain intellectual property rights, which could in the future adversely impact our reputation.

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General Risks

1
  1. Our stock price has fluctuated and may continue to fluctuate, which may make future prices of our stock difficult to predict.

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No longer in Item 1A

9

Headings in the FY2024 10-K with no match this year.

  1. If we cannot successfully execute our go-to-market strategy, including offering our entire portfolio as-a-Service, our business, operating results, and financial performance may suffer.
  2. We depend on third-party suppliers, and our financial results could suffer if we fail to manage our supplier relationships properly.
  3. Failure to complete the Merger with Juniper Networks may adversely affect our business and our stock price.
  4. Failure to realize the benefits expected from the Merger with Juniper Networks could adversely affect our business or our stock price.
  5. In order to be successful, we must attract, retain, train, motivate, develop, and transition key employees, and failure to do so could seriously harm us.
  6. Changes in the macroeconomic environment have, at times, impacted and may in the future negatively impact our results of operations.
  7. Failure to meet responsible and sustainable business expectations or standards or achieve our Living Progress goals could adversely affect our business, results of operations, financial condition, or stock price.
  8. The revenue and profitability of our operations have historically varied, which makes our future financial results less predictable.
  9. The stock distribution in either or both of the completed separations of our former Enterprise Services business and our former Software segment could result in significant tax liability, and DXC Technology Company or Micro Focus International plc (as applicable) may in certain cases be obligated to indemnify us for any such tax liability imposed on us.

Headings are the lines of Item 1A set wholly in bold or italics, as the parser reads them, without the introductory paragraph that opens the section. A heading is new when no heading in the prior 10-K matches it after ignoring case and punctuation, and reworded when it shares at least 60 percent of its words with one that went away. Source: the filing on sec.gov.