×

CNBC Exclusive: CNBC Transcript: Hewlett Packard Enterprise CEO Meg Whitman Speaks with CNBC’s David Faber on “Squawk on the Street” Today

WHEN: Today, Friday, March 4th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Hewlett Packard Enterprise CEO Meg Whitman on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today, Friday, March 4th. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000499021.

All references must be sourced to CNBC.

DAVID FABER: SPEAKING OF THE STRONG DOLLAR, OF COURSE, THAT HAS HAD AN IMPACT ON HEWLETT PACKARD ENTERPRISE AND WE ARE GOING TO GET TO THAT RIGHT NOW. SHARES OF HEWLETT PACKARD ENTERPRISE RISING. THAT COMPANY EXCEEDED ESTIMATES ON THE TOP AND BOTTOM LINE YESTERDAY AFTER THE BELL WHEN IT REPORTED ITS FIRST QUARTER AS A STANDALONE COMPANY SINCE ITS SPLIT FROM HP INC. BACK IN NOVEMBER. CEO MEG WHITMAN, WHO BY THE WAY, WAS THE REPUBLICAN CANDIDATE FOR GOVERNOR OF CALIFORNIA IN 2010, I WOULD REMIND EVERYBODY, JOINS ME NOW. WE ARE GOING TO TALK A BIT ABOUT YOUR STATEMENTS FROM SUNDAY, MS. WHITMAN. BUT FIRST, OF COURSE, TO THE QUARTER ITSELF. AS I SAID, THE FIRST REPORTED SINCE THE SPLIT. DOES THIS QUARTER IN A WAY JUSTIFY THE MANY THINGS YOU SPOKE ABOUT AS THE VIRTUES OF SPLITTING, INCLUDING THE FOCUS, YOU SAID, THAT THIS COMPANY WOULD HAVE AS A RESULT OF NO LONGER BEING PART OF A LARGER ORGANIZATION?

MEG WHITMAN: WELL, I THINK THE STRENGTH OF THE QUARTER, AND IT WAS A REALLY STRONG QUARTER FOR OUR COMPANY, DOES UNDERLIE THE PREMISE OF THE SPLIT, WHICH IS TWO DIFFERENT BUSINESSES WITH MORE FOCUS FROM SENIOR LEADERS, MORE FOCUS ON OUR CUSTOMERS. I THINK IT'S AT LEAST THE FIRST PROOF POINT THAT THIS WAS THE RIGHT THING DO FOR BOTH HP INC. AS WELL AS HEWLETT PACKARD ENTERPRISE. SO WE ARE REALLY PROUD OF THE QUARTER AND WE FEEL LIKE WE'RE FIRING ON ALL CYLINDERS.

FABER: WELL, WHEN YOU SAY THE VALUE OF FOCUS, AND IT'S SOMETHING YOU AND I SPOKE BRIEFLY ABOUT YESTERDAY WHEN WE WERE TALKING A BIT ABOUT THE QUARTER, WHAT DOES THAT ACTUALLY MEAN? I MEAN, DOES THAT TRANSLATE INTO WHAT? WHEN IT COMES DOWN TO ACTUALLY SELLING MORE SERVERS AND MORE SERVICES.

WHITMAN: YEAH, WELL, LET ME JUST GIVE YOU A PERSONAL EXAMPLE. I MEAN, I WENT FROM REALLY RUNNING ABOUT SORT OF SIX DIFFERENT BUSINESSES TO REALLY FOCUSING ON THREE BUSINESSES. IT MEANS I SPEND THE SAME AMOUNT OF TIME WITH CUSTOMERS, IT'S JUST ALL TALKING ABOUT HEWLETT PACKARD ENTERPRISE PRODUCTS AND SERVICES AND SOFTWARE. SO CUSTOMERS FEEL LIKE THEY GET MORE ATTENTION. THE SENIOR LEADERSHIP TEAM IS MORE FOCUSED ON THE PRODUCT DEVELOPMENT ROADMAP, MAKING SURE WE ARE DOING EVERYTHING WE CAN TO SUPPORT THESE BUSINESES AND THAT DOES PAY OFF IN REVENUE AND IT PAYS OFF IN OPERATING PROFIT. IT IS JUST WHEN THE MARKET IS MOVING THIS FAST, AND I'VE NEVER SEEN TECHNOLOGY MOVE THIS FAST IN MY ENTIRE CAREER, THAT ABILITY TO BE FAST, BE NIMBLE, BE AGILE, BE ABLE TO MAKE DECISIONS MUCH MORE QUICKLY IN THE HEAT OF THE BATTLE IN THE MARKET IS A BIG PLUS I THINK FOR A SMALLER, MORE AGILE COMPANY.

FABER: AND SO HOW SHOULD WE GO ABOUT MEASURING THE ABILITY OR THE AGILITY THAT YOU'RE TALKING ABOUT? IS IT IN THE ENTERPRISE GROUP ITSELF? IN TERMS OF LOOKING AT WHAT IS, IN MANY WAYS, THE GROWTH ENGINE FOR YOUR COMPANY?

WHITMAN: SO THAT'S CERTAINLY PART OF IT. ENTERPRISE GROUP, WHICH IS OUR SERVER STORAGE NETWORKING CONVERGED INFRASTRUCTURE CLOUD BUSINESS, IS ACTUALLY THE GROWTH ENGINE OF THE COMPANY. BUT LOOK FOR A VERY ROBUST PRODUCT ROADMAP OVER THE NEXT 12 MONTHS. WE'VE GOT SOME INCREDIBLE PRODUCTS COMING DOWN THE PIKE. AND THEN LOOK FOR ENTERPRISE SERVICES TO STABILIZE REVENUE AND INCREASE MARGIN AS THEY BEGIN TO BRING MORE STRATEGIC ENTERPRISE SERVICES. AND THIS QUARTER, REALLY IN A GREAT WAY, OUR APPS BUSINESS, OUR APPS MODERNIZATION BUSINESS, GREW NICELY AND THAT IS A PROFITABLE PART, A MUCH MORE PROFITABLE PART, OF OUR ENTERPRISE SERVICES BUSINESS. AND THEN SOFTWARE IS CONTINUING TO MAKE REAL PROGRESS, IF YOU ADJUST FOR M&A, IT GREW ACTUALLY 1% IN CONSTANT CURRENCY AND THEY'RE IN THE MIDDLE OF A BIG TRANSITION. SO YEAH, YOU'LL SEE THAT AND I THINK YOU'LL SEE CHANGES IN HOW WE WORK WITH THE CHANNEL. AND WE'RE JUST MORE FOCUSED, AND I THINK MORE ENERGIZED AS A COMPANY. IT'S ACTUALLY GREAT FUN TO BE HERE.

FABER: IT'S GREAT FUN? REALLY? WAS IT NOT GREAT FUN OVER THE LAST FEW YEARS, MEG?

WHITMAN: WELL, IT WAS FUN, BUT IT WAS A FAIR AMOUNT OF HEAVY LIFTING. I MEAN, YOU KNOW, WE FACED A NUMBER OF DIFFICULTIES GOING BACK TO THE FALL OF 2011. BUT I FEEL LIKE WE'VE TURNED THE CORNER ACTUALLY AT BOTH COMPANIES.

FABER: YOU'VE MADE NO – YOU'VE TAKE ANY OPPORTUNITY YOU CAN TO SORT OF TAKE SHOTS TO A CERTAIN EXTENT AT DELL AND EMC. OF COURSE, THEY WERE AND ARE CONTINUED COMPETITOR OF HP INC., BUT THEY ARE ALSO A COMPETITOR OF YOUR COMPANY AS WELL. YOU SAY, HEY, THEY ARE GOING BIGGER WHEN WE ARE GOING SMALLER, THEY ARE LEVERING UP WHILE WE ARE DELEVERING. ARE YOU SEEING SIGNS THOUGH THAT YOU'RE MAKING INROADS IN TERMS OF THE SAME CUSTOMER BASE AND TAKING SHARE?

WHITMAN: ABSOLUTELY. I MEAN, IN THE LAST QUARTER, WE HAD ABOUT 107 DEALS THAT WE ACTUALLY TOOK FROM DELL EMC, WHETHER THEY WERE PARTNER DEALS OR CUSTOMERS. AND WE'RE CAPITALIZING ON THE FACT THERE'S A LOT OF INTEGRATION CHALLENGES AND A LOT OF THINGS GOING ON AT DELL EMC. AND I THINK WE'VE GOT ANOTHER GOOD YEAR AND A HALF TO TWO YEARS TO CAPITALIZE ON THAT. BUT I WOULD SAY FUNDAMENTALLY, THESE TWO COMPANIES HAVE TAKEN ENTIRELY DIFFERENT STRATEGIES. AS YOU SAID, WE CHOSE TO GET SMALLER IN THE CONTEXT OF THIS RAPIDLY EVOLVING MARKET, THEY CHOSE TO GET BIGGER. WE CHOSE TO DELEVER THE COMPANY, THEY WILL NOW HAVE ABOUT 65, I THINK 60 TO $65 BILLION OF DEBT ON THE COMPANY. WE ARE INVESTING IN LEANING IN TO NEW TECHNOLOGY, THEY'RE DOUBLING DOWN ON OLD TECHNOLOGY WITH A BIG COST TAKE OUT PLAY. AND IN MANY WAYS, YOU HAVE TO REMEMBER THAT A BIG SHAREHOLDER OF THIS NEW COMPANY IS A PRIVATE EQUITY COMPANY. WHAT DO PRIVATE EQUITY COMPANIES DO? THEY RIP COST OUT. SO WE'RE INVESTING IN R&D, WE ARE INVESTING IN NEW TECHNOLOGIES. SO TWO ENTIRELY DIFFERENT STRATEGIES, I LIKE OUR STRATEGY.

FABER: DOUBLING DOWN ON OLD TECHNOLOGY, I'M SURE THEY WOULD DISPUTE THAT.

WHITMAN: I'M NOT SURE THEY WOULD ACTUALLY. I MEAN, THAT IS WHAT THEY ARE DOING. THEY ARE DOUBLING DOWN ON A LOT OF OLDER STORAGE PRODUCTS, SERVER PRODUCTS, AND THEN THEY ARE GOING TO TAKE COST OUT. THEIR MAJOR OBJECTIVE HAS GOT TO GET COST OUT OF THAT COMPANY SO THAT THEY CAN BEGIN TO PARE DOWN THAT DEBT.

FABER: YEAH, WHEREAS YOU ARE LEVERED AT ABOUT ONE AND A HALF TO TWO TIMES. THAT SAID, THERE IS A BELIEF THAT YOU ALSO WILL NEED TO PURSUE M&A. PARTICULARLY AS IT RELATES TO YOUR CLOUD STRATEGY. YOU KNOW, I'VE TALKED TO A COUPLE OF YOUR INVESTORS WHO POINT OUT YOU HAVE AS MUCH AS 13 BILLION OF FINANCE RECEIVABLES AND LEASES ON YOUR BALANCE SHEET, WHICH COULD BE AN ASSET THAT YOU COULD EITHER SELL TO A BANK OR SECURITIZE AND THEN ALLOW YOU TO HAVE A WAR CHEST TO GO OUT AND DO SOME M&A. ON THE CALL, YOU KEEP TALKING ABOUT REALLY FOCUS MORE ON ORGANIC GROWTH, BUT I WONDER, DO YOU NEED TO PURSUE AN M&A OPPORTUNITY PARTICULARLY AS IT RELATES TO YOUR CLOUD STRATEGY?

WHITMAN: WELL, WE HAVE, I THINK, QUITE A BALANCED APPROACH TO OUR CAPITAL ALLOCATION STRATEGY. IT IS A RETURNS BASED STRATEGY. REMEMBER, WE ARE DOING THIS TO ADD VALUE TO SHAREHOLDERS. SO THE FIRST THING IS WE DID BUY BACK A LOT OF SHARES IN Q1 BECAUSE AT THESE STOCK PRICES, THIS IS ONE OF THE BEST RETURNS THAT WE CAN GET FOR SHAREHOLDERS. BUT WE ALSO INVESTED IN R&D, IN ORGANIC INNOVATION, YOU SAW WE JUST INTRODUCED A HYPER CONVERGED PRODUCT, WE'VE GOT A LOT OF PRODUCTS THAT ARE COMING DOWN THE PIKE. BY THE WAY, WE'RE REAPING THE BENEFITS OF HAVING INCREASED R&D ALMOST EVERY QUARTER FOR THE LAST FOUR AND A HALF YEARS. AND THEN WE WILL DO M&A. LISTEN, WE BOUGHT ARUBA. ITS COMPLEMENTARY TECHNOLOGY THAT WE CAN PUT THROUGH OUR DISTRIBUTION SYSTEM, WE ARE ALL IN FOR DOING THOSE KINDS OF ACQUISITIONS, AND WE HAVE MADE SOME SMALL ACQUISITIONS LIKE CONTEXTREAM FOR OUR OPEN NFV BUSINESS IN THE TELCO SPACE. SO WE WILL CONTINUE TO DO TECH TUCK INS. BUT I HAVE TO SAY, WHAT I'VE LEARNED AT THIS COMPANY IS A DOLLAR INVESTED IN ORGANIC INNOVATION IS ABOUT THE BEST DOLLAR I HAVE IN NORMAL CIRCUMSTANCES BECAUSE YOU END UP WITH A CONSISTENT ARCHITECTURE. LOOK AT OUR THREE-PAR ALL FLASH STORAGE ARRAY. WE NOW HAVE A COMMON STORAGE ARCHITECTURE FROM HIGH-END STORAGE, TO MID-TIER, TO ALL FLASH, TO LOW END. WHAT THAT MEANS FOR THE CUSTOMER IS LOWER TOTAL COST OF OWNERSHIP, LOWER SERVICE COST, SIMPLICITY OF OPERATING OUR STORAGE PRODUCT. AS OPPOSED TO SOME OF OUR COMPETITORS WHO HAVE DIFFERENT ARCHITECTURES BECAUSE THEY HAVE ACQUIRED THOSE PRODUCTS OVERTIME. AND SO WHILE IN THE NEAR-TERM ACQUISITIONS CAN – YOU KNOW, YOU CAN BUY GROWTH, YOU END UP WITH A BIT OF A FRANKENSTEIN ON THE BACK END IF YOU DON'T CHANGE AROUND THE ARCHITECTURE.

FABER: NOW THAT SAID OF COURSE, YOU SAID YOU ARE GOING TO DEVOTE 100% OF YOUR FREE CASH FLOW TO CAPITAL RETURNS, LARGELY IN THE FORM OF BUYBACKS. WHY IS NOW A GOOD TIME TO BE BUYING BACK YOUR STOCK?

WHITMAN: BECAUSE THE STOCK PRICE IS SO LOW. AND YOU KNOW, I THINK THERE WAS SOME QUESTION ABOUT HOW THESE TWO NEW COMPANIES WOULD DO. THE STOCK PRICE IS REALLY QUITE LOW. SO FROM A RETURN SPACE PERSPECTIVE, THAT'S THE RIGHT THING DO FOR SHAREHOLDERS. AND IT DOESN'T MEAN THAT WE WON'T DO AN ACQUISITION OR TWO IF WE FIND THE RIGHT SIZED ACQUISITION. BUT RIGHT NOW, WE THINK THIS YEAR, BUYING – USING ABOUT 100% OF OUR FREE CASH FLOW TO BUY BACK SHARES IS THE RIGHT THING DO. AND IN ADDITION AS YOU KNOW, WE'LL HAVE SOME CASH COMING IN FROM THE SALE OF HALF OF OUR CHINESE BUSINESS TO XINHUA UNIVERSITY. AND IN ALL LIKELIHOOD, WE WILL USE THE VAST MAJORITY OF THAT TO BUY BACK SHARES AS WELL.

FABER: RIGHT. AS YOU SAID, THE TWO BILLION THAT DEAL NOW EXPECTED TO CLOSE, I BELIEVE, YOU SAID IN MAY.

WHITMAN: YES.

FABER: MEG, I MENTIONED IN THE OUTSET, OF COURSE, YOU RAN FOR GOVERNOR OF CALIFORNIA IN 2010. AND I DID SO BECAUSE YOU ALSO CHOSE ON SUNDAY TO BE ONE OF THE FEW CORPORATE LEADERS OUT THERE THAT I'M AWARE OF TO COME OUT STRONGLY AGAINST DONALD TRUMP. YOU DID IT SPECIFICALLY IN RESPONSE TO GOVERNOR CHRISTIE'S ENDORSEMENT OF TRUMP BECAUSE YOU HAD BEEN A SUPPORTER, I THINK, CO-FINANCE CHAIR OF CHRIS CHRISTIE'S PRESIDENTIAL CAMPAIGN. YOU SAID, "HIS ENDORSEMENT IS AN ASTONISHING DISPLAY OF POLITICAL OPPORTUNISM." YOU WENT ON TO SAY, "DONALD TRUMP IS UNFIT TO BE PRESIDENT. HE IS A DISHONEST DEMAGOGUE WHO PLAYS TO OUR WORST FEARS. TRUMP WOULD TAKE AMERICA ON A DANGEROUS JOURNEY." WHY DID YOU CHOOSE TO TAKE A STAND LIKE THAT PARTICULARLY WHEN THERE MAY BE SOME CUSTOMER OUT THERE WHO IS A TRUMP SUPPORTER WHO SAYS HEY, YOU KNOW WHAT, I'M NOT DOING BUSINESS WITH HPE ANYMORE WHEN ITS CEO DOESN'T LIKE THE GUY I LIKE.

WHITMAN: SURE. WELL, FIRST OF ALL, I MADE THAT STATEMENT AS A PRIVATE CONCERNED CITIZEN. BUT THE REASON THAT I DID WAS WE NEEDED TO STAND UP. AND YOU CAN SEE NOW MANY PEOPLE ACROSS THE COUNTRY ARE STANDING UP AGAINST WHO I THINK WOULD BE A VERY DANGEROUS PRESIDENT. I DO THINK DONALD TRUMP IS A DISHONEST DEMAGOGUE. LOOK AT COMMENTS HE HAS MADE ABOUT WOMEN, MUSLIMS, DISABLED PEOPLE, REPORTERS. IT IS JUST REPUGNANT. BASICALLY ANYONE WHO DOESN'T AGREE WITH HIM, HE ATTACKS THEM VICIOUSLY. AND SINCE YOUR AUDIENCE IS A BUSINESS AUDIENCE, LET'S TAKE A LOOK AT HIS PLANS FOR THE ECONOMY. I THINK IF HIS 35% – PLAN TO PUT ON A 35% TARIFF OR GOODS IMPORTED INTO THE UNITED STATES FROM MEXICO AND CHINA WOULD SINK THIS COUNTRY INTO A RECESSION.

FABER: WHY DO YOU THINK THAT?

WHITMAN: IT WOULD PENALIZE GLOBAL COMPANIES WHO ARE TRYING TO BE COMPETITIVE GLOBALLY. AND FOR EXAMPLE, LISTEN, MANY OF THESE COMPANIES HAVE A LOT OF WORKERS STILL RIGHT HERE IN AMERICA AND IT WOULD HURT THOSE COMPANIES. THINK ABOUT HIS TAX PLAN AND HIS REFUSAL TO REFORM THE ENTITLEMENTS PROGRAM THAT WOULD INCREASE THE NATIONAL DEFICIT AND INCREASE THE NATIONAL DEBT, WHICH IS NOT GOOD FOR AMERICAN FAMILIES AND AMERICAN WORKERS. SO JUST, LET'S TAKE FOR THE PURPOSES OF THIS PROGRAM HIS ECONOMIC POLICIES, I THINK THEY ARE INCREDIBLY DANGEROUS. AND LOOK AT SOME OF THE STATEMENTS THAT HE'S MADE. IT'S JUST WRONG.

FABER: YEAH, BUT, YOU KNOW, HIS, I THINK, CONTENTION WOULD BE LISTEN, I'M GOING TO CREATE MORE JOBS HERE AS A RESULT OF KEEPING MORE CAPITAL HERE, CONCEIVABLY, AND HAVING MORE CONSUMPTION HERE AS A RESULT OF THE FACT THAT WE ARE GOING TO MAKE A LOT MORE FOREIGN PRODUCTS MORE EXPENSIVE. I MEAN, YOU'VE CUT A LOT OF JOBS OVER THE LAST FEW YEARS, MEG. YOU HAD TO DO IT, YOU WOULD SAY, AT HP TO MAKE IT COMPETITIVE. BUT MANY WOULD SAY YOU'RE PART OF THE PROBLEM IN TERMS OF NOT REWARDING THE AMERICAN WORKER.

WHITMAN: YEAH, NO, I THINK HE'S JUST WRONG ON THAT. LISTEN, WE HAVE TO CREATE COMPANIES IN THE UNITED STATES THAT ARE COMPETITIVE GLOBALLY. WE HAVE TO BE ABLE TO EXPORT OUR GOODS FREELY, WE CANNOT BE IN A TRADE WAR. AND BY THE WAY, WHEN/IF HE WERE TO DO THAT INCREASE TARIFFS BY 35%, WHAT DOES THAT DO? THAT MAKES GOODS COMING INTO THE UNITED STATES MORE PRICEY FOR AMERICAN CONSUMERS. AND IF BUSINESSES ARE BUYING THOSE GOODS, IT'S MORE EXPENSIVE FOR BUSINESS. SO I THINK HE DOESN'T FULLY GRASPS THE LAW OF UNINTENDED CONSEQUENCES OF WHAT SEEMS LIKE A SILVER BULLET, A QUICK FIX. THERE ARE NO SILVER BULLETS AND QUICK FIXES TO OUR PROBLEMS IN THE UNITED STATES. IT IS GOING TO TAKE SOMEONE WHO IS THOUGHTFUL, WHO HAS EXPERIENCE, WHO HAS THE TEMPERAMENT TO LEAD THIS COUNTRY IN A WAY THAT CAN UNITE THE PEOPLE OF THIS COUNTRY TO BE GREAT AGAIN. I KNOW THERE'S A PERSON OR TWO WHO OUT THERE WHO COULD DO THIS. I JUST DON'T BELIEVE IT'S DONALD TRUMP.

FABER: YOU MENTIONED HIS TAG LINE, TO BE GREAT AGAIN. I WONDER WHEN YOU GO OVERSEAS VISITING WITH CLIENTS, AS I KNOW YOU DO. AND YOU REFERENCED, OF COURSE, THAT YOU'RE DOING EVEN MORE OF NOW. WHAT ARE THEY SAYING? IS THERE A CONCERN ON THEIR PART? IS A LOT OF THIS SIMPLY GINNED UP CONCERN, OR IS THERE REAL CONCERN DO YOU THINK THAT THEY WILL PULL BACK IN SOME WAY? SHOULD HE EVEN BE NOMINATED OR BECOME PRESIDENT?

WHITMAN: WELL, THERE'S REAL CONCERN OUT THERE. I'VE BEEN IN EUROPE TWICE SINCE THE BEGINNING OF THE YEAR FOR A WEEK EACH. AND VIRTUALLY EVERY EXECUTIVE FROM EUROPE, WHETHER THEY ARE A CUSTOMER OR A PARTNER OR ANOTHER MEMBER OF OUR INDUSTRY, ALMOST THEIR FIRST QUESTION TO VIRTUALLY EVERY AMERICAN EXECUTIVE IS WHAT IS GOING ON OVER THERE AND ARE YOU REALLY GOING TO NOMINATE DONALD TRUMP? BECAUSE THEY DON'T THINK –

FABER: WHAT DO YOU SAY? WHAT DO YOU ACTUALLY SAY TO THEM WHEN THEY ASK YOU THAT?

WHITMAN: I SAY, YOU KNOW WHAT, IT'S INCREDIBLY SURPRISING. THE TRACTION HE'S GOTTEN. MY BELIEF IS THAT IF THE AMERICAN PEOPLE COULD REALLY UNDERSTAND HIS RECORD, UNDERSTAND WHAT HE STANDS FOR, UNDERSTAND WHO HE IS, UNDERSTAND THE REALITY OF HIS BUSINESS SUCCESS, WHICH IS NOT STRONG, THEN ACTUALLY, WE WILL NOT NOMINATE DONALD TRUMP. BUT TO YOUR POINT, THERE IS TREMENDOUS CONCERN OVER THERE IN ALL PARTS OF EUROPE ABOUT WHAT WILL HAPPEN BECAUSE THEY RELY ON AMERICAN LEADERSHIP. THEY RELY ON SOMEONE WHO CAN BE PRESENT ON THE NATIONAL STAGE IN A WAY THAT REPRESENTS THE BEST OF AMERICA.

FABER: I CAN COMBINE YOUR RESULTS AND THIS CONVERSATION BECAUSE YOU HAD A GOOD QUARTER IN CHINA. YOU HAD STRENGTH THERE. ON THE CALL THOUGH, YOU DID SAY THAT COULD CHANGE AT ANY MINUTE. NOW, I HAVE NO IDEA IF THAT HAS SOMETHING TO DO WITH MR. TRUMP OR SOMETHING ELSE. BUT I AM CURIOUS ON BOTH FRONTS, WHETHER YOU THINK THERE WOULD BE AN IMPACT ON YOUR CHINA BUSINESS AS WELL.

WHITMAN: IT'S HARD TO KNOW. OBVIOUSLY, CHINA IS GOING THROUGH A LOT OF CHANGES RIGHT NOW. WE REMAIN CONFIDENT THAT WE ARE GOING TO CLOSE OUR DEAL THERE. OUR BUSINESS IS VERY STRONG. BUT CHINA IS VERY VOLATILE RIGHT NOW IN MY VIEW. SO YOU NEVER KNOW WHAT COULD HAPPEN NEXT. I DON'T THINK THAT'S NECESSARILY RELATED TO A TRUMP PRESIDENCY BECAUSE I THINK THERE IS A FAIR AMOUNT OF VOLATILITY IN THE NEXT NINE MONTHS OR SO.

FABER: TRUMP COULD VERY WELL BECOME THE NOMINEE OF THE REPUBLICAN PARTY. YOU'VE BEEN A LEADER IN THAT PARTY OR AT LEAST THE MAINSTREAM PART OF IT. I MENTIONED YOU OF COURSE RAN FOR GOVERNOR OF CALIFORNIA. IF HE'S THE NOMINEE, ARE YOU GOING TO VOTE FOR HILLARY CLINTON?

WHITMAN: SO, I WON'T BE SUPPORTING DONALD TRUMP. BUT MY FOCUS RIGHT NOW IS HOW CAN WE GET THE MESSAGE OUT TO THE AMERICAN PEOPLE ABOUT WHO DONALD TRUMP ACTUALLY IS, HIS REAL RECORD IN BUSINESS, WHAT THE IMPLICATIONS OF HIS POLICIES WOULD BE. AND THEN JUST, YOU KNOW, UNDERSCORE IS THIS THE KIND OF TEMPERAMENT THAT WE WANTED IN A LEADER.

FABER: BUT YOU'RE A PART OF THAT PARTY THAT WOULD SEEM TO ME TO ALMOST BE HAVING TO BE CAVED OFF FROM WHATEVER PART OF THE PARTY IS GOING TO BE SUPPORTING MR. TRUMP, A SIZABLE PART. IF HE IS NOMINATED, DO YOU FEEL LIKE YOU'VE GOT TO FIND A NEW HOME OR CREATE A NEW HOME?

WHITMAN: SO LET'S TAKE ONE STEP AT A TIME HERE. LET'S SEE WHAT HAPPENS IN THE NEXT ROUND OF PRIMARIES HERE. LET'S SEE WHETHER A LOT OF THE CONVERSATION THAT IS GOING ON NOW IS GOING TO MAKE A BIG DIFFERENCE. YOU SAW, I THINK IT WAS JUST YESTERDAY, 65 OR 70 FORMER NATIONAL SECURITY ADVISERS SIGNED A LETTER SAYING THEY THOUGHT THAT TRUMP WOULD BE DANGEROUS FOR THE WORLD. THAT MAY HAVE A PRETTY SIGNIFICANT IMPACT ON FOLKS. SO LET'S SEE WHERE THIS GOES AND WE'LL MAKE DECISIONS DOWN THE ROAD LATER IN TERMS OF DEPENDING ON WHERE THINGS END UP.

FABER: SO YOU WON'T SAY YOU'LL VOTE FOR HILLARY CLINTON?

WHITMAN: I HAVEN'T MADE THAT DECISION YET. LET'S SEE WHAT HAPPENS.

FABER: BUT YOU MIGHT.

WHITMAN: LET'S SEE WHAT HAPPENS. YOU KNOW, I WON'T BE VOTING FOR DONALD TRUMP. LET ME PUT IT THAT WAY.

FABER: ALRIGHT. MEG WHITMAN, AS ALWAYS, DIDN'T EXPECT US TO HAVE THIS MUCH OF THAT KIND OF A CONVERSATION. CERTAINLY APPRECIATE AS ALWAYS YOUR WILLINGNESS TO COME ON. MEG WHITMAN, CEO OF HEWLETT PACKARD ENTERPRISE.

About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.