Companies /Technology

Hewlett Packard Enterprise Company

NYSE: HPE Communication Equipment
$61.06
▲ $4.38 (+7.73%) today
Markets closed · 4:48pm ET

Q3 2026 Earnings

Reported Sep 2, 2026, 4:06pm ET · SEC source
$1.11
Beat +19.86%
EPS · est. $0.93 Adjusted
$12.2B
Beat +2.51%
Revenue · est. $11.9B
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−8%−4%0Sep 2Sep 3report 4:06pm ETearnings+1.0%+0.7%
−12%−8%−4%0Sep 2Sep 3earnings+1.0%+0.7%
HPE +0.7%S&P 500 +1.0%
−8%−4%0Sep 2Sep 3report 4:06pm ETearnings+1.1%+0.7%
−8%−4%0Sep 2Sep 3earnings+1.1%+0.7%
HPE +0.7%NASDAQ +1.1%
−7%0+7%+14%Sep 1Sep 10report 4:06pm ETearnings−0.8%+7.7%
−7%0+7%+14%Sep 1Sep 10earnings−0.8%+7.7%
HPE +7.7%S&P 500 −0.8%
−7%0+7%+14%Sep 1Sep 10report 4:06pm ETearnings+0.1%+7.7%
−7%0+7%+14%Sep 1Sep 10earnings+0.1%+7.7%
HPE +7.7%NASDAQ +0.1%
+5.04%
Day of report
−4.48%
Next session
+14.05%
One week

Did HPE Beat Earnings? Q3 2026 Results

Hewlett Packard Enterprise delivered a blowout fiscal third quarter, with results that left analyst estimates well behind across every key metric. The company reported adjusted non-GAAP EPS of $1.11, beating the $0.93 consensus by 19.86% and marking the fifth consecutive quarter HPE has topped Wall Street's earnings expectations. Revenue came in at $12.21 billion, up 32.7% year-over-year and ahead of the $11.91 billion consensus by 2.51%. The standout driver was the Networking segment, which surged 74.9% year-over-year to $2.89 billion, led by a 270% spike in Routing, while the Cloud & AI segment contributed $9.04 billion as server demand accelerated. Non-GAAP operating margin expanded dramatically to 16.2% from 8.5% a year ago, reflecting both revenue scale and improving mix. Confidence in the AI infrastructure build-out, evident in peers' record order backlogs, is providing a tailwind HPE appears well-positioned to capture. Looking ahead, the company raised its full-year FY26 non-GAAP EPS guidance to $3.75 to $3.85 and set FY27 free cash flow expectations at a minimum of $5.00 billion.

Key Takeaways
  • Surging customer demand across the portfolio
  • AI becoming a multi-year growth driver
  • Routing revenue surged 270% YoY
  • Data Center Networking revenue up 112.2% YoY
  • Server revenue up 35.3% YoY driven by AI demand
  • Non-GAAP gross margin expansion of 1,050 bps YoY to 40.4%
  • Non-GAAP operating margin expanded to 16.2% from 8.5% YoY
  • Record order backlog levels

“HPE's strategy is proving itself again this quarter. Our results demonstrate the durability of our profitable growth momentum. We delivered record revenue, orders, and profitability, fueled by surging customer demand across our portfolio.”

Hewlett Packard Enterprise CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY26, HPE estimates revenue of $13.9B to $14.8B, GAAP diluted EPS of $1.12 to $1.22, and non-GAAP diluted EPS of $1.20 to $1.30. For full-year FY26, HPE raised revenue growth guidance to 34%-37%, non-GAAP EPS to $3.75-$3.85, GAAP EPS to $2.93-$3.03, and free cash flow to at least $3.75B. Networking segment revenue growth is expected at 73%-74% for FY26. For FY27, HPE raised revenue growth expectations to 13%-17%, non-GAAP EPS growth to 16%-20%, non-GAAP operating margin of 14%-15%, and free cash flow of at least $5.0B.

HPE YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$4.0B$8.0B$12.0B$9.2B$12.2BRevenue$2.6B$4.9BGross Profit$494.0M$1.4BOperating Income$305.0M$1.5BNet Income
$0$4.0B$8.0B$12.0BRevenueGross ProfitOperating IncomeNet Income

HPE Revenue by Segment

Server$6.8B+35.3%
Networking$2.9B+74.9%
Hybrid Cloud
Campus & Branch$1.4B+31.0%
Storage$1.3B+10.2%
Cloud and AI
Financial Services$883.0M−0.3%
Routing$788.0M+270.0%

Figures from SEC filings and company reports. Not investment advice.