Name: Hewlett Packard Enterprise Co. (NYSE:HPE) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

Hewlett Packard Enterprise Co., consolidated income statement

US$ in millions

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Products	18,100)	17,794)	17,011)	16,264)	18,170)	19,504)
Services	10,488)	10,219)	10,279)	10,249)	10,507)	10,901)
Financing income	547)	483)	494)	469)	458)	447)
Net revenue	29,135)	28,496)	27,784)	26,982)	29,135)	30,852)
Cost of products	(11,958)	(12,463)	(11,892)	(11,698)	(12,533)	(14,079)
Cost of services	(6,555)	(6,217)	(6,304)	(6,544)	(6,812)	(7,203)
Financing cost	(383)	(310)	(212)	(271)	(297)	(278)
Cost of revenue	(18,896)	(18,990)	(18,408)	(18,513)	(19,642)	(21,560)
Gross profit	10,239)	9,506)	9,376)	8,469)	9,493)	9,292)
Research and development	(2,349)	(2,045)	(1,979)	(1,874)	(1,842)	(1,663)
Selling, general and administrative	(5,160)	(4,941)	(4,929)	(4,624)	(4,907)	(4,851)
Amortization of intangible assets	(288)	(293)	(354)	(379)	(267)	(294)
Impairment of goodwill	—)	(905)	—)	(865)	—)	(88)
Restructuring charges	—)	—)	—)	—)	—)	(19)
Transformation costs	(283)	(473)	(930)	(950)	(453)	(425)
Disaster (charges) recoveries	(1)	(48)	(16)	(26)	7)	—)
Acquisition, disposition and other related charges	(69)	(19)	(36)	(80)	(757)	(82)
Separation costs	—)	—)	—)	—)	—)	(12)
Earnings (loss) from operations	2,089)	782)	1,132)	(329)	1,274)	1,858)
Interest and other, net	181)	77)	87)	128)	150)	75)
Interest expense	(326)	(260)	(289)	(332)	(311)	(353)
Tax indemnification and other adjustments	55)	(67)	65)	(101)	377)	(1,354)
Non-service net periodic benefit credit (cost)	(3)	134)	70)	136)	59)	—)
Litigation judgment	—)	—)	2,351)	—)	—)	—)
Earnings from equity interests	245)	215)	180)	67)	20)	38)
Earnings (loss) before (provision) benefit for taxes	2,241)	881)	3,596)	(431)	1,569)	264)
(Provision) benefit for taxes	(205)	(8)	(160)	120)	(504)	1,744)
Net earnings (loss) from continuing operations	2,036)	873)	3,436)	(311)	1,065)	2,008)
Net loss from discontinued operations	—)	—)	—)	—)	—)	(104)
Net earnings (loss)	2,036)	873)	3,436)	(311)	1,065)	1,904)
Net (earnings) loss attributable to non-controlling interests	(11)	(5)	(9)	(11)	(16)	4)
Net earnings (loss) attributable to HPE	2,025)	868)	3,427)	(322)	1,049)	1,908)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

The financial performance over the analyzed six-year period is characterized by a cyclical revenue trend and significant volatility in net earnings, primarily driven by non-recurring items and strategic cost adjustments. After a period of contraction that bottomed in 2020, there has been a consistent recovery in both top-line revenue and operational profitability leading into 2023.

Revenue Dynamics: Net revenue followed a U-shaped trajectory, declining from 30,852 million USD in 2018 to a low of 26,982 million USD in 2020, before recovering to 29,135 million USD by 2023. This recovery was driven largely by the products segment, which rebounded from 16,264 million USD in 2020 to 18,100 million USD in 2023. In contrast, services revenue remained remarkably stable, fluctuating minimally around the 10.2 to 10.9 billion USD range throughout the period.
Gross Profitability and Cost Management: Gross profit demonstrated an upward trend, reaching a peak of 10,239 million USD in 2023. This indicates an expansion in gross margins, as gross profit increased even during years when net revenue was lower than 2018 levels. Cost of revenue showed a general downward trend from 2018 (21,560 million USD) to 2023 (18,896 million USD), suggesting improved cost efficiencies in product and service delivery.
Operating Expenses and Strategic Investment: Research and development (R&D) expenditures increased steadily every year, rising from 1,663 million USD in 2018 to 2,349 million USD in 2023, signaling a sustained commitment to innovation. Transformation costs peaked in 2020 and 2021 at 950 million USD and 930 million USD, respectively, before declining sharply to 283 million USD by 2023, indicating a transition out of a heavy restructuring phase.
Operational Earnings Volatility: Earnings from operations were highly volatile, swinging from a loss of 329 million USD in 2020 to a peak gain of 2,089 million USD in 2023. The 2020 deficit was exacerbated by significant impairment of goodwill (865 million USD) and high transformation costs. The return to operational profitability by 2023 reflects the combination of revenue recovery and reduced one-time restructuring charges.
Net Income and Non-Recurring Impacts: Net earnings attributable to the company were heavily influenced by non-operational events. A significant spike occurred in 2021, with net earnings reaching 3,427 million USD, largely due to a one-time litigation judgment of 2,351 million USD. Excluding such anomalies, the trend shows a recovery from the 2020 net loss of 322 million USD to a normalized net earning of 2,025 million USD in 2023.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?