What does cloud & AI — segment operating expenses mean?

This metric represents the indirect costs required to support the Cloud and AI segment, including research and development, sales and marketing, and administrative overhead. It reflects the level of investment the company is making to innovate and capture market share in the cloud and AI space. High operating expenses are often necessary to sustain long-term growth in these competitive sectors.

Hewlett Packard Enterprise HPE Cloud & AI — Segment operating expenses

Other segment segments

Server

$2.36B+5.5%

Hybrid Cloud

$1.8B-6.8%

Financial Services

$287M+5.1%

Corporate Investments and Other

$73M-2.7%

Similar metrics at other companies

MSFTIntelligent Cloud — Operating Expenses

$5.81B+8.6%

IRENAI Cloud Services — Other direct expenses

$803K+985%

INTCDCAI — Cost of sales and operating expenses

$3.51B-1.2%

ORCLCloud And Software Expenses

$5.22B+56.3%

ORCLCloud And Software Business — Cloud And Software Expenses

$5.05B+59.8%

GOOGGoogle Cloud — Operating Expenses

$13.43B+33.2%

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

See full

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:OperatingExpenses.

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

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What is Hewlett Packard Enterprise's cloud & AI — segment operating expenses?: Hewlett Packard Enterprise (HPE) reported cloud & AI — segment operating expenses of $1.29B in Q1 2026.
What does cloud & AI — segment operating expenses mean?: This metric represents the indirect costs required to support the Cloud and AI segment, including research and development, sales and marketing, and administrative overhead. It reflects the level of investment the company is making to innovate and capture market share in the cloud and AI space. High operating expenses are often necessary to sustain long-term growth in these competitive sectors.