Raises free cash flow¹ guidance range to $1.5 to $1.7 billion from $1.2 to $1.5 billion.

¹Hewlett Packard Enterprise provides certain guidance on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results. Refer to the discussion of non-GAAP financial measures below for more information.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise is the global edge-to-cloud platform as-a-service company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way people live and work, HPE delivers unique, open and intelligent technology solutions, with a consistent experience across all clouds and edges, to help customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.

Use of non-GAAP financial information and key performance metrics

To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (GAAP) basis, Hewlett Packard Enterprise provides revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP income tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net debt, net cash, operating company net debt and operating company net cash financial measures. Hewlett Packard Enterprise also provides forecasts of non-GAAP diluted net earnings per share and free cash flow. A reconciliation of adjustments to GAAP financial measures for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin, net earnings, diluted net earnings per share, cash, cash equivalents and restricted cash, cash flow from operations, investments in property, plant and equipment, or total company debt prepared in accordance with GAAP.

In addition to the supplemental non-GAAP financial information, Hewlett Packard Enterprise also presents annualized revenue run-rate ("ARR") and as-a-Service ("AAS") orders as performance metrics. ARR is a financial metric used to assess the growth of the Consumption Services ("CS") offerings. ARR represents the annualized value of all recurring net GreenLake services revenue, related financial services revenue (which includes rental income for operating leases and interest income for capital leases), and Software-as-a-Service ("SaaS"), subscription, and other as-a-Service offerings recognized during a quarter and multiplied by four. AAS orders are an overlay across all business segments contributing to HPE's consumption based services (both recurring and non-recurring revenues), and includes hardware, as well as GreenLake as-a-Service, Aruba SaaS, CMS SaaS, and other Software assets. ARR & AAS orders should be viewed independently of net revenue and deferred revenue and are not intended to be combined with any of these items.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries ("Hewlett Packard Enterprise") may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words "believe", "expect", "anticipate", "optimistic", "intend", "aim", "will", "should" and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to the scope and duration of the novel coronavirus pandemic ("COVID-19") and its impact on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results and the world economy; any projections of revenue, margins, expenses, investments, effective tax rates, interest rates, the impact of the U.S. Tax Cuts and Jobs Act of 2017 and related guidance or regulations, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; any projections of the amount, execution, timing and results of any transformation or impact of cost savings, restructuring plans, including estimates and assumptions related to the anticipated benefits, cost savings, or charges of implementing transformation and restructuring plans; any statements of the plans, strategies and objectives of management for future operations, as well as the execution of corporate transactions or contemplated acquisitions, research and development expenditures, and any resulting benefit, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Hewlett Packard Enterprise and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise's businesses; the competitive pressures faced by Hewlett Packard Enterprise's businesses; risks associated with executing Hewlett Packard Enterprise's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers, the distribution of Hewlett Packard Enterprise's products and the delivery of Hewlett Packard Enterprise's services effectively; the protection of Hewlett Packard Enterprise's intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise's international operations (including pandemics and public health problems, such as the outbreak of COVID-19); the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients and partners, including any impact thereon resulting from events such as the COVID-19 pandemic; the hiring and retention of key employees; the execution, integration, and other risks associated with business combination and investment transactions; the impact of changes to environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining revenue recognition; impact of company policies and related compliance; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending investigations, claims and disputes; and other risks that are described herein, including but not limited to the risks described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the Hewlett Packard Enterprise Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2021. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
		Three months ended
		July 31, 2021				April 30, 2021				July 31, 2020
Net revenue		$	6,897			$	6,700			$	6,816
Costs and expenses:
Cost of sales			4,515				4,413				4,749
Research and development			506				503				455
Selling, general and administrative			1,291				1,199				1,131
Amortization of intangible assets			82				84				95
Transformation costs			213				209				357
Disaster charges			5				1				2
Acquisition, disposition and other related charges			3				13				15
Total costs and expenses			6,615				6,422				6,804
Earnings from operations			282				278				12
Interest and other, net			(50	)			(11	)			(71	)
Tax indemnification and related adjustments			76				—				(30	)
Non-service net periodic benefit credit			19				17				28
Earnings from equity interests			79				4				27
Earnings (loss) before taxes			406				288				(34	)
(Provision) benefit from taxes			(14	)			(29	)			43
Net earnings		$	392			$	259			$	9
Net earnings per share:
Basic		$	0.30			$	0.20			$	0.01
Diluted		$	0.29			$	0.19			$	0.01
Cash dividends declared per share		$	0.12			$	0.12			$	—
Weighted-average shares used to compute net earnings per share:
Basic			1,314				1,309				1,292
Diluted			1,338				1,331				1,300

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
		Nine months ended July 31,
		2021				2020
Net revenue		$	20,430			$	19,774
Costs and expenses:
Cost of sales			13,473				13,511
Research and development			1,477				1,390
Selling, general and administrative			3,649				3,458
Amortization of intangible assets			276				299
Impairment of goodwill			—				865
Transformation costs			733				646
Disaster charges			6				24
Acquisition, disposition and other related charges			34				55
Total costs and expenses			19,648				20,248
Earnings (loss) from operations			782				(474	)
Interest and other, net			(105	)			(158	)
Tax indemnification and related adjustments			60				(86	)
Non-service net periodic benefit credit			53				101
Earnings from equity interests			109				50
Earnings (loss) before taxes			899				(567	)
(Provision) benefit from taxes			(25	)			88
Net earnings (loss)		$	874			$	(479	)
Net earnings (loss) per share:
Basic		$	0.67			$	(0.37	)
Diluted		$	0.66			$	(0.37	)
Cash dividends declared per share		$	0.36			$	0.24
Weighted-average shares used to compute net earnings (loss) per share:
Basic			1,308				1,294
Diluted			1,328				1,294

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(In millions, except percentages and per share amounts)
		Three months ended July 31, 2021				Diluted net earnings per share				Three months ended April 30, 2021				Diluted net earnings per share				Three months ended July 31, 2020				Diluted net earnings per share
GAAP net earnings		$	392			$	0.29			$	259			$	0.19			$	9			$	0.01
Non-GAAP adjustments:
Amortization of initial direct costs			2				—				2				—				3				—
Amortization of intangible assets			82				0.06				84				0.06				95				0.07
Transformation costs			213				0.16				209				0.15				357				0.27
Disaster charges			5				—				1				—				2				—
Stock-based compensation expense (a)			86				0.06				98				0.08				55				0.04
Acquisition, disposition and other related charges			3				—				13				0.01				15				0.01
Tax indemnification and related adjustments			(76	)			(0.05	)			—				—				30				0.03
Non-service net periodic benefit credit			(19	)			(0.01	)			(17	)			(0.01	)			(28	)			(0.02	)
Earnings from equity interests (b)			23				0.02				34				0.03				36				0.03
Adjustments for taxes			(88	)			(0.06	)			(71	)			(0.05	)			(107	)			(0.08	)
Non-GAAP net earnings		$	623			$	0.47			$	612			$	0.46			$	467			$	0.36
GAAP earnings from operations		$	282							$	278							$	12
Non-GAAP adjustments
Amortization of initial direct costs			2								2								3
Amortization of intangible assets			82								84								95
Transformation costs			213								209								357
Disaster charges			5								1								2
Stock-based compensation expense (a)			86								98								55
Acquisition, disposition and other related charges			3								13								15
Non-GAAP earnings from operations		$	673							$	685							$	539
GAAP operating profit margin			4.1	%							4.1	%							0.2	%
Non-GAAP adjustments			5.7	%							6.1	%							7.7	%
Non-GAAP operating profit margin			9.8	%							10.2	%							7.9	%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(In millions, except percentages and per share amounts)
		Three months ended
		July 31, 2021				April 30, 2021				July 31, 2020
GAAP net revenue		$	6,897			$	6,700			$	6,816
GAAP cost of sales			4,515				4,413				4,749
GAAP gross profit		$	2,382			$	2,287			$	2,067
Non-GAAP adjustments
Amortization of initial direct costs		$	2			$	2			$	3
Stock-based compensation expense (a)			9				11				8
Non-GAAP gross profit		$	2,393			$	2,300			$	2,078
GAAP gross profit margin			34.5	%			34.1	%			30.3	%
Non-GAAP adjustments			0.2	%			0.2	%			0.2	%
Non-GAAP gross profit margin			34.7	%			34.3	%			30.5	%
Net cash provided by operating activities		$	1,130			$	822			$	1,472
Investment in property, plant and equipment			(684	)			(535	)			(620	)
Proceeds from sale of property, plant and equipment			80				81				72
Free cash flow		$	526			$	368			$	924

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(In millions, except percentages and per share amounts)
		Nine months ended July 31, 2021				Diluted net earnings per share				Nine months ended July 31, 2020				Diluted net earnings per share
GAAP net earnings (loss)		$	874			$	0.66			$	(479	)		$	(0.37	)
Non-GAAP adjustments:
Amortization of initial direct costs			6				—				9				—
Amortization of intangible assets			276				0.21				299				0.23
Impairment of goodwill			—				—				865				0.67
Transformation costs			733				0.56				646				0.49
Disaster charges			6				0.01				24				0.02
Stock-based compensation expense (a)			294				0.22				215				0.18
Acquisition, disposition and other related charges			34				0.02				82				0.06
Tax indemnification and related adjustments			(60	)			(0.05	)			86				0.07
Non-service net periodic benefit credit			(53	)			(0.04	)			(101	)			(0.08	)
Earnings from equity interests (b)			91				0.07				110				0.09
Adjustments for taxes			(287	)			(0.22	)			(288	)			(0.23	)
Non-GAAP net earnings		$	1,914			$	1.44			$	1,468			$	1.13
GAAP earnings (loss) from operations		$	782							$	(474	)
Non-GAAP adjustments
Amortization of initial direct costs			6								9
Amortization of intangible assets			276								299
Impairment of goodwill			—								865
Transformation costs			733								646
Disaster charges			6								24
Stock-based compensation expense (a)			294								215
Acquisition, disposition and other related charges			34								82
Non-GAAP earnings from operations		$	2,131							$	1,666
GAAP operating profit margin			3.8	%							(2.4	)%
Non-GAAP adjustments			6.6	%							10.8	%
Non-GAAP operating profit margin			10.4	%							8.4	%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(In millions, except percentages and per share amounts)
		Nine months ended July 31,
		2021				2020
GAAP net revenue		$	20,430			$	19,774
GAAP cost of sales			13,473				13,511
GAAP gross profit		$	6,957			$	6,263
Non-GAAP adjustments
Amortization of initial direct costs		$	6			$	9
Acquisition, disposition and other related charges (c)			—				27
Stock-based compensation expense (a)			33				30
Non-GAAP gross profit		$	6,996			$	6,329
GAAP gross profit margin			34.1	%			31.7	%
Non-GAAP adjustments			0.1	%			0.3	%
Non-GAAP gross profit margin			34.2	%			32.0	%
Net cash provided by operating activities		$	2,915			$	1,493
Investment in property, plant and equipment			(1,732	)			(1,779	)
Proceeds from sale of property, plant and equipment			274				623
Free cash flow		$	1,457			$	337

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except par value)
		As of
		July 31, 2021				October 31, 2020
ASSETS
Current assets:
Cash and cash equivalents		$	5,293			$	4,233
Accounts receivable, net of allowances			3,297				3,386
Financing receivables, net of allowances			3,814				3,794
Inventory			3,942				2,674
Assets held for sale			1				77
Other current assets			2,398				2,392
Total current assets			18,745				16,556
Property, plant and equipment			5,510				5,625
Long-term financing receivables and other assets			10,912				10,544
Investments in equity interests			2,286				2,170
Goodwill and intangible assets			18,984				19,120
Total assets		$	56,437			$	54,015
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable and short-term borrowings		$	3,736			$	3,755
Accounts payable			6,526				5,383
Employee compensation and benefits			1,585				1,391
Taxes on earnings			152				148
Deferred revenue			3,434				3,430
Accrued restructuring			267				366
Other accrued liabilities			3,941				4,265
Total current liabilities			19,641				18,738
Long-term debt			12,489				12,186
Other non-current liabilities			7,234				6,995
Stockholders’ equity
HPE stockholders’ equity:
Preferred stock, $0.01 par value (300 shares authorized; none issued)			—				—
Common stock, $0.01 par value (9,600 shares authorized; 1,307 and 1,287 shares issued and outstanding at July 31, 2021 and October 31, 2020, respectively)			13				13
Additional paid-in capital			28,632				28,350
Accumulated deficit			(7,994	)			(8,375	)
Accumulated other comprehensive loss			(3,631	)			(3,939	)
Total HPE stockholders’ equity			17,020				16,049
Non-controlling interests			53				47
Total stockholders’ equity			17,073				16,096
Total liabilities and stockholders’ equity		$	56,437			$	54,015

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
		Three months ended July 31, 2021				Nine months ended July 31, 2021
Cash flows from operating activities:
Net earnings		$	392			$	874
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			643				1,956
Stock-based compensation expense			86				304
Provision for doubtful accounts and inventory			51				149
Restructuring charges			126				492
Deferred taxes on earnings			(61	)			(156	)
Earnings from equity interests			(79	)			(109	)
Dividends received from equity investees			38				38
Other, net			55				117
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable			(371	)			61
Financing receivables			130				26
Inventory			(855	)			(1,352	)
Accounts payable			986				1,150
Taxes on earnings			24				(6	)
Restructuring			(102	)			(426	)
Other assets and liabilities			67				(203	)
Net cash provided by operating activities			1,130				2,915
Cash flows from investing activities:
Investment in property, plant and equipment			(684	)			(1,732	)
Proceeds from sale of property, plant and equipment			80				274
Purchases of available-for-sale securities and other investments			(25	)			(44	)
Maturities and sales of available-for-sale securities and other investments			1				11
Financial collateral posted			(242	)			(873	)
Financial collateral received			483				780
Payments made in connection with business acquisitions, net of cash acquired			(99	)			(133	)
Net cash used in investing activities			(486	)			(1,717	)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net			(69	)			(30	)
Proceeds from debt, net of issuance costs			1,066				2,698
Payment of debt			(597	)			(2,341	)
Net proceeds (payments) related to stock-based award activities			9				(18	)
Cash dividends paid to non-controlling interests			—				(8	)
Cash dividends paid to shareholders			(157	)			(468	)
Net cash provided by (used in) financing activities			252				(167	)
Increase in cash, cash equivalents and restricted cash			896				1,031
Cash, cash equivalents and restricted cash at beginning of period			4,756				4,621
Cash, cash equivalents and restricted cash at end of period		$	5,652			$	5,652

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
		Three months ended
		July 31, 2021				April 30, 2021				July 31, 2020
Net revenue: (d)
Compute		$	3,104			$	2,976			$	3,409
HPC & MCS			741				685				667
Storage			1,176				1,137				1,132
Intelligent Edge			867				799				684
Financial Services			844				839				811
Corporate Investments and Other			332				350				303
Total segment net revenue			7,064				6,786				7,006
Elimination of intersegment net revenue			(167	)			(86	)			(190	)
Total Hewlett Packard Enterprise consolidated net revenue		$	6,897			$	6,700			$	6,816
Earnings before taxes: (a)(d)
Compute		$	347			$	335			$	318
HPC & MCS			29				19				47
Storage			178				191				170
Intelligent Edge			137				124				71
Financial Services			94				91				66
Corporate Investments and Other			(28	)			(25	)			(68	)
Total segment earnings from operations			757				735				604
Unallocated corporate costs and eliminations			(84	)			(50	)			(65	)
Stock-based compensation expense (a)			(86	)			(98	)			(55	)
Amortization of initial direct costs			(2	)			(2	)			(3	)
Amortization of intangible assets			(82	)			(84	)			(95	)
Transformation costs			(213	)			(209	)			(357	)
Disaster charges			(5	)			(1	)			(2	)
Acquisition, disposition and other related charges			(3	)			(13	)			(15	)
Interest and other, net			(50	)			(11	)			(71	)
Tax indemnification and related adjustments			76				—				(30	)
Non-service net periodic benefit credit			19				17				28
Earnings from equity interests			79				4				27
Total Hewlett Packard Enterprise consolidated earnings (loss) before taxes		$	406			$	288			$	(34	)

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
		Nine months ended July 31,
		2021				2020
Net revenue: (d)
Compute		$	9,066			$	9,094
HPC & MCS			2,188				2,113
Storage			3,506				3,470
Intelligent Edge			2,472				2,069
Financial Services			2,543				2,503
Corporate Investments and Other			1,003				958
Total segment net revenue			20,778				20,207
Elimination of intersegment net revenue			(348	)			(433	)
Total Hewlett Packard Enterprise consolidated net revenue		$	20,430			$	19,774
Earnings before taxes: (a)(d)
Compute		$	1,024			$	797
HPC & MCS			91				156
Storage			604				592
Intelligent Edge			413				240
Financial Services			269				218
Corporate Investments and Other			(84	)			(172	)
Total segment earnings from operations			2,317				1,831
Unallocated corporate costs and eliminations			(186	)			(165	)
Stock-based compensation expense (a)			(294	)			(215	)
Amortization of initial direct costs			(6	)			(9	)
Amortization of intangible assets			(276	)			(299	)
Impairment of goodwill			—				(865	)
Transformation costs			(733	)			(646	)
Disaster charges			(6	)			(24	)
Acquisition, disposition and other related charges			(34	)			(82	)
Interest and other, net			(105	)			(158	)
Tax indemnification and related adjustments			60				(86	)
Non-service net periodic benefit credit			53				101
Earnings from equity interests			109				50
Total Hewlett Packard Enterprise consolidated earnings (loss) before taxes		$	899			$	(567	)

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions, except percentages)
		Three months ended												Change (%)
		July 31, 2021				April 30, 2021				July 31, 2020				Q/Q			Y/Y
Net revenue: (d)
Compute		$	3,104			$	2,976			$	3,409			4	%		(9	%)
HPC & MCS			741				685				667			8	%		11	%
Storage			1,176				1,137				1,132			3	%		4	%
Intelligent Edge			867				799				684			9	%		27	%
Financial Services			844				839				811			1	%		4	%
Corporate Investments and Other			332				350				303			(5	%)		10	%
Total segment net revenue			7,064				6,786				7,006			4	%		1	%
Elimination of intersegment net revenue			(167	)			(86	)			(190	)		94	%		(12	%)
Total Hewlett Packard Enterprise consolidated net revenue		$	6,897			$	6,700			$	6,816			3	%		1	%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions, except percentages)
		Nine months ended July 31,
		2021				2020				Y/Y
Net revenue: (d)
Compute		$	9,066			$	9,094			—	%
HPC & MCS			2,188				2,113			4	%
Storage			3,506				3,470			1	%
Intelligent Edge			2,472				2,069			19	%
Financial Services			2,543				2,503			2	%
Corporate Investments			1,003				958			5	%
Total segment net revenue			20,778				20,207			3	%
Elimination of intersegment net revenue			(348	)			(433	)		(20	%)
Total Hewlett Packard Enterprise consolidated net revenue		$	20,430			$	19,774			3	%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY DATA
(Unaudited)
		Three months ended			Change in Operating Profit Margin (pts)
		July 31, 2021			Q/Q		Y/Y
Segment operating profit margin: (a)(d)
Compute		11.2	%		-0.1		1.9
HPC & MCS		3.9	%		1.1		-3.1
Storage		15.1	%		-1.7		0.1
Intelligent Edge		15.8	%		0.3		5.4
Financial Services		11.1	%		0.3		3.0
Corporate Investments and Other		(8.4	%)		-1.3		14.0
Total segment operating profit margin		10.7	%		-0.1		2.1

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS (LOSS) PER SHARE
(Unaudited)
(In millions, except per share amounts)
		Three months ended
		July 31, 2021				April 30, 2021				July 31, 2020
Numerator:
GAAP net earnings		$	392			$	259			$	9
Non-GAAP net earnings		$	623			$	612			$	467
Denominator:
Weighted-average shares used to compute basic net earnings per share			1,314				1,309				1,292
Dilutive effect of employee stock plans			24				22				8
Weighted-average shares used to compute diluted net earnings per share			1,338				1,331				1,300
GAAP net earnings per share
Basic		$	0.30			$	0.20			$	0.01
Diluted		$	0.29			$	0.19			$	0.01
Non-GAAP net earnings per share
Basic		$	0.47			$	0.47			$	0.36
Diluted		$	0.47			$	0.46			$	0.36

		Nine months ended July 31,
		2021				2020
Numerator:
GAAP net earnings (loss)		$	874			$	(479	)
Non-GAAP net earnings		$	1,914			$	1,468
Denominator:
Weighted-average shares used to compute basic net earnings (loss) per share and diluted net loss per share			1,308				1,294
Dilutive effect of employee stock plans			20				10
Weighted-average shares used to compute diluted net earnings per share			1,328				1,304
GAAP net earnings (loss) per share
Basic		$	0.67			$	(0.37	)
Diluted		$	0.66			$	(0.37	)
Non-GAAP net earnings per share
Basic		$	1.46			$	1.13
Diluted		$	1.44			$	1.13

(a)		Effective at the beginning of the first quarter of fiscal 2021, Hewlett Packard Enterprise Company ("the Company") excluded stock-based compensation expense ("Non-GAAP Stock-Based Compensation Adjustment") from its segment earnings from operations and excluded stock-based compensation expense from consolidated non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP earnings from operations, non-GAAP operating profit margin, non-GAAP net earnings and non-GAAP net earnings per share. The Company reflected the Non-GAAP Stock-Based Compensation Adjustment to the earliest period presented. This change had no impact on the Company's previously reported consolidated GAAP results.
(b)		Represents the amortization of basis difference adjustments related to the H3C divestiture.
(c)		Acquisition, disposition and other related charges for the three and nine months ended July 31, 2020 related to a non-cash inventory fair value adjustment in connection with the acquisition of Cray, Inc., which was included in Cost of sales.
(d)		Effective at the beginning of the first quarter of fiscal 2021, the Company implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes are: (i) the transfer of the lifecycle event services business, previously reported within the Advisory and Professional Services ("A & PS") reportable segment to Compute, Storage and HPC & MCS reportable segments; (ii) the transfer of certain software and related services business, previously reported within the Compute, Storage and A & PS reportable segments, to the Corporate Investments and Other reportable segment, to form a new Software operating segment; and (iii) the transfer of the remaining A & PS operating segment, previously reported as a separate reportable segment, to the Corporate Investments and Other reportable segment. As a result of these changes, the Corporate Investments and Other Segment now includes the A & PS operating segment, the Communications and Media Solutions operating segment, the Software operating segment, and Hewlett Packard Enterprise Labs which is responsible for research and development.
		The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the transfer of net revenue and operating profit for each of the businesses as described above. These changes had no impact on the Company's previously reported consolidated results.

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