Hewlett Packard Enterprise (HPE) Q3 2026 Earnings
How Did HPE Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +0.77%.
Did HPE Beat Earnings? Q3 2026 Results
Yes. Hewlett Packard Enterprise reported Q3 2026 earnings of $1.11 a share on Sep 2, 2026, beating the $0.93 consensus estimate by 19.9%. Revenue was $12.2B against a $11.9B estimate.
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.
- 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
What Is Hewlett Packard Enterprise's 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
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $12.2B | $9.2B | +32.7% |
| Gross Profit | $4.9B | $2.6B | +87.6% |
| Operating Income | $1.4B | $494.0M | +182.0% |
| Net Income | $1.5B | $305.0M | +404.9% |
HPE Revenue by Segment
When Does Hewlett Packard Enterprise Report Next?
Figures from SEC filings and company reports. Not investment advice.