What does cloud & AI — segment cost of sales mean?

This metric captures the direct costs associated with producing and delivering the hardware, software, and services within the Cloud and AI segment. It includes expenses such as raw materials, manufacturing overhead, and direct labor costs. Monitoring this helps evaluate the segment's direct production efficiency and supply chain management.

Hewlett Packard Enterprise HPE Cloud & AI — Segment cost of sales

Other segment segments

Server

$14.04B+16.4%

Hybrid Cloud

$3.62B+9.8%

Financial Services

$2.86B-2.3%

Corporate Investments and Other

$217M+6.4%

Similar metrics at other companies

LITECloud & Networking — Cost of Sales

$231.1M+24.3%

WYF

WYFICloud Services — Segment Cost Of Revenue

$6.79M—

IRENAI Cloud Services — Cost of Revenue

$4.6M+1,268%

INTCDCAI — Cost of sales and operating expenses

$3.51B-1.2%

IRENAI Cloud Services — Other direct expenses

$803K+985%

MSFTIntelligent Cloud — Cost of Goods Sold

$15.12B+46.7%

Other financials

Income statement

See full

Revenue$10.7B+40.0%

Operating income$747.0M+167%

Net income$624.0M+159%

EPS (diluted)$0.44+154%

Balance sheet

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Cash & equivalents$5.4B-54.6%

Total debt$23.5B+40.3%

Total equity$25.3B+6.0%

Total assets$79.5B+17.2%

Cash flow

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Operating cash flow$1.4B+406%

CapEx$583.0M+6.6%

Free cash flow$827.0M+182%

Valuation

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Market cap$61.87B+163%

Enterprise value$80.01B+180%

P/E39.8×+23.6×

P/S1.6×+0.8×

Profitability

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Gross margin31.4%—

Operating margin3.8%+2.0pp

Net margin4%-0.6pp

FCF margin10.3%+9.9pp

Returns & leverage

See full

Return on equity6.3%-0.1pp

Debt / equity0.9×+0.2×

Current ratio1.1×-0.2×

Where this comes from

Reported directly by Hewlett Packard Enterprise in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The official record: Hewlett Packard Enterprise’s 10-Q, filed June 2, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Hewlett Packard Enterprise's cloud & AI — segment cost of sales?: Hewlett Packard Enterprise (HPE) reported cloud & AI — segment cost of sales of $5.47B in Q1 2026.
What does cloud & AI — segment cost of sales mean?: This metric captures the direct costs associated with producing and delivering the hardware, software, and services within the Cloud and AI segment. It includes expenses such as raw materials, manufacturing overhead, and direct labor costs. Monitoring this helps evaluate the segment's direct production efficiency and supply chain management.