What the changes say
- HPE highlights ongoing integration and risks from the Juniper Networks acquisition, supply chain execution, and cost reduction programs.
What changed since the prior 10-K
New
- NewRisks Related to Our Business Strategy and Industry
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
The Juniper Networks acquisition completed on July 2, 2025, heightens execution risks regarding our edge-to-cloud platform as-a-Service and networking solutions strategy.
- NewRisks Related to Our Business Strategy and Industry
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
Reliance on single-source suppliers and contract manufacturers creates vulnerability to production delays and inventory issues.
- NewRisks Related to Our Business Strategy and Industry
Uncertainty and fluctuations in geopolitical and macroeconomic conditions may adversely impact our business, financial condition, and operating results
Geopolitical instability, macroeconomic uncertainty, and U.S. tariffs threaten to constrain customer IT spending and disrupt revenue forecasts.
- NewRisks Related to Our Business Strategy and Industry
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
Lengthy sales and implementation cycles, alongside concentrated AI system purchases by a few large cloud providers, introduce quarterly cash flow variability.
- NewRisks Related to Our Business Strategy and Industry
Our ability to achieve our strategy could be harmed if we are unable to attract, retain, train, motivate, develop, and transition key personnel
Failure to deliver competitive equity-based compensation could impair our ability to attract and retain key engineering and management personnel.
- NewRisks Related to Our Technology and Business Operations
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
Our Catalyst cost reduction program may fail to deliver anticipated savings and could cause operational disruptions and loss of institutional knowledge.
- NewRisks Related to Our Technology and Business Operations
We rely on the performance of our business systems and processes, as well as those of third-parties with whom we do business
IT system migrations and reliance on third-party SaaS applications expose us to operational interruptions that can delay order fulfillment.
- NewRisks Related to Our Technology and Business Operations
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
Our Living Progress sustainability strategy exposes us to operational costs and potential legal liabilities if we fail to meet our stated objectives.
- NewRisks Related to Our Technology and Business Operations
required disclosures associated with such laws and regulations (including the scope of reporting requirements and the related costs to comply with the emerging regulations)
Evolving and potentially conflicting regulatory reporting requirements regarding sustainability could trigger investigations, litigation, and reputational damage.
- NewFinancial Risks
Our revenue, profitability, and margins have historically varied, and we expect them to continue to vary over time
Revenue, gross margin, and profitability will continue to fluctuate due to diverse product mixes and uneven macroeconomic market dynamics.
- NewLegal, Regulatory, and Compliance Risks
Unfavorable results of legal proceedings, investigations, and other disputes could harm our business and result in substantial costs
Unpredictable legal proceedings, regulatory investigations, and compliance inquiries could impose substantial costs and divert management attention.
Dropped
- DroppedBusiness and Operational Risks
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
Go-to-market strategy execution risks regarding as-a-Service offerings.
- DroppedBusiness and Operational Risks
We depend on third-party suppliers, and our financial results could suffer if we fail to manage our supplier relationships properly
Dependence on third-party suppliers and proper relationship management.
- DroppedBusiness and Operational Risks
on price increases to our customers. If we cannot adequately address supply issues, we may have to reengineer some product or service offerings, which could result in further costs and delays
Excess supply and advance payments for component inventory.
- DroppedBusiness and Operational Risks
Failure to complete the Merger with Juniper Networks may adversely affect our business and our stock price
- DroppedBusiness and Operational Risks
Failure to realize the benefits expected from the Merger with Juniper Networks could adversely affect our business or our stock price
- DroppedBusiness and Operational Risks
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
Risks of failing to complete the Juniper Networks merger.
- DroppedBusiness and Operational Risks
Issues in the development and use of artificial intelligence may result in reputational harm, liability or impact to our results of operations
Risks of failing to realize expected benefits from the Juniper Networks merger.
- DroppedBusiness and Operational Risks
Changes in the macroeconomic environment have, at times, impacted and may in the future negatively impact our results of operations
- DroppedBusiness and Operational Risks
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
- DroppedIndustry Risks
competitors in the markets in which we operate. Additionally, our competitors may affect our business by entering into exclusive arrangements with our existing or potential customers or suppliers
Necessity of attracting, retaining, and motivating key employees.
- DroppedFinancial Risks
The revenue and profitability of our operations have historically varied, which makes our future financial results less predictable
Reworded
- 73% rewrittenLegal, Regulatory, and Compliance Risks
Contracts with federal, state, provincial, and local governments are subject to a number of challenges and risks that may adversely impact our business
Added explicit mention that U.S. government contractor status subjects IT systems to federal security and privacy compliance regulations.
- 66% rewrittenFinancial Risks
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
Updated accounting estimates language to explicitly include purchase price and purchase price adjustments related to acquisitions.
- 66% rewrittenRisks Related to Our Business Strategy and Industry
Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses
Expanded disaster disruption triggers to specifically include trade tensions, tariffs, quotas, and import or export restrictions.
- 66% rewrittenRisks Related to Our Business Strategy and Industry
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
Broadened cyberattack disclosures to specify the storage of sensitive data across third-party cloud services and data centers.
- 65% rewrittenRisks Related to Our Business Strategy and Industry
We operate in an intensely competitive industry, and competitive pressures could harm our business and financial performance
Added networking-related offerings alongside cloud and AI as rapidly evolving technological areas in competitive markets.
- 64% rewrittenRisks Related to Our Business Strategy and Industry
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
Streamlined distribution channel risk descriptions without altering core channel conflict and financial performance warnings.
Was: If we fail to manage the distribution of our products and services properly, our business and financial performance could suffer
- 56% rewrittenRisks Related to Our Technology and Business Operations
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
Clarified that international economic weakness includes a volatile geopolitical environment alongside inflationary pressures.
Was: 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, and financial condition
- 54% rewrittenLegal, Regulatory, and Compliance Risks
Unanticipated changes in our tax provisions, the adoption of new tax legislation, or exposure to additional tax liabilities could affect our financial performance
Retained core tax audit and intercompany pricing risk language with minor stylistic updates.
- 49% rewrittenRisks Related to Our Business Strategy and Industry
competitive, or if we do not obtain the stockholder approval required to continue granting equity-based incentive awards in the amounts we believe are necessary
Was: viewed as being competitive, or if we do not obtain the stockholder approval needed to continue granting equity-based incentive awards in the amounts we believe are necessary, our ability to attract, retain, and motivate executives and key employees could be weakened
- 48% rewrittenRisks Related to Our Business Strategy and Industry
Our uneven sales cycle and supply chain disruptions make planning and inventory management difficult and future financial results less predictable
- 45% rewrittenLegal, Regulatory, and Compliance Risks
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
- 43% rewrittenRisks Related to Our Business Strategy and Industry
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
Was: Any failure by us to identify, manage, and complete acquisitions and subsequent integrations, divestitures, and other significant transactions successfully could harm our financial results, business and prospects
- 37% rewrittenRisks Related to Our Business Strategy and Industry
Risks arising from climate change and the transition to a lower-carbon economy may impact our business
- 31% rewrittenRisks Related to Our Technology and Business Operations
If we cannot continue to produce quality products and services, our reputation, business, and financial performance may suffer
- 26% rewrittenFinancial Risks
Our debt obligations may adversely affect our business and our ability to meet our obligations and pay dividends
- 21% rewrittenFinancial Risks
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
All 33 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business Strategy and Industry
- 01Our 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 solutionsNew
- 02We 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 effectivelyNew
- 03System 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 price66% rewritten
- 04We operate in an intensely competitive industry, and competitive pressures could harm our business and financial performance65% rewritten
- 05Any 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 price43% rewritten
- 06Uncertainty and fluctuations in geopolitical and macroeconomic conditions may adversely impact our business, financial condition, and operating resultsNew
- 07If we experience or fail to properly manage disruption in the distribution of our products and services properly, our business and financial performance could suffer64% rewritten
- 08Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses66% rewritten
- 09Long 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-quarterNew
- 10Our uneven sales cycle and supply chain disruptions make planning and inventory management difficult and future financial results less predictable48% rewritten
- 11Our ability to achieve our strategy could be harmed if we are unable to attract, retain, train, motivate, develop, and transition key personnelNew
- 12competitive, or if we do not obtain the stockholder approval required to continue granting equity-based incentive awards in the amounts we believe are necessary49% rewritten
- 13Risks arising from climate change and the transition to a lower-carbon economy may impact our business37% rewritten
Risks Related to Our Technology and Business Operations
- 14Our financial performance may suffer if we cannot continue to develop, license, or enforce the intellectual property rights on which our businesses depend
- 15Due 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 operations56% rewritten
- 16We 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 businessNew
- 17Our products and services depend in part on intellectual property and technology licensed from third parties
- 18We rely on the performance of our business systems and processes, as well as those of third-parties with whom we do businessNew
- 19If we cannot continue to produce quality products and services, our reputation, business, and financial performance may suffer31% rewritten
- 20Our 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 priceNew
- 21required disclosures associated with such laws and regulations (including the scope of reporting requirements and the related costs to comply with the emerging regulations)New
Financial Risks
- 22Our revenue, profitability, and margins have historically varied, and we expect them to continue to vary over timeNew
- 23We are exposed to fluctuations in foreign currency exchange rates
- 24Adverse 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 business21% rewritten
- 25Our debt obligations may adversely affect our business and our ability to meet our obligations and pay dividends26% rewritten
- 26We 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 operations66% rewritten
- 27Declaration, payment and amounts of dividends, if any, to holders of our shares will be uncertain
Legal, Regulatory, and Compliance Risks
- 28Unfavorable results of legal proceedings, investigations, and other disputes could harm our business and result in substantial costsNew
- 29Third-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
- 30Our 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 operations45% rewritten
- 31Contracts with federal, state, provincial, and local governments are subject to a number of challenges and risks that may adversely impact our business73% rewritten
- 32Unanticipated changes in our tax provisions, the adoption of new tax legislation, or exposure to additional tax liabilities could affect our financial performance54% rewritten
General Risks
- 33Our stock price has fluctuated and may continue to fluctuate, which may make future prices of our stock difficult to predict
Other Hewlett Packard Enterprise 10-Ks
- FY2024 10-K risk factors33 risks
The company's primary risks center on executing its edge-to-cloud as-a-Service strategy and integrating the pending acquisition of Juniper Networks.
Filed Dec 19, 2024
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.