Companies /Technology

Hewlett Packard Enterprise Company

NYSE: HPE Communication Equipment
$54.47
▼ $0.77 (−1.39%) today
Markets closed · 4:24pm ET

Q2 2026 Earnings

Reported Jun 1, 2026, 4:09pm ET · SEC source
$0.79
Beat +47.77%
EPS · est. $0.53
$10.7B
Beat +9.31%
Revenue · est. $9.8B
−10.5%
Trailing market
HPE vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%−10%0+10%Jun 1Jun 2report 4:09pm ETearnings+0.1%−1.9%
−20%−10%0+10%Jun 1Jun 2earnings+0.1%−1.9%
HPE −1.9%S&P 500 +0.1%
−20%0Jun 1Jun 2report 4:09pm ETearnings+0.5%−1.9%
−20%0Jun 1Jun 2earnings+0.5%−1.9%
HPE −1.9%NASDAQ +0.5%
−27%−18%−9%0Jun 1Jun 9report 4:09pm ETearnings−3.0%−25.0%
−27%−18%−9%0Jun 1Jun 9earnings−3.0%−25.0%
HPE −25.0%S&P 500 −3.0%
−30%−20%−10%0Jun 1Jun 9report 4:09pm ETearnings−4.8%−25.0%
−30%−20%−10%0Jun 1Jun 9earnings−4.8%−25.0%
HPE −25.0%NASDAQ −4.8%
+9.20%
Day of report
+19.47%
Next session
+6.11%
One week
−12.28%
30 days

S&P 500 over the same 30 days: −1.81%.

Did HPE Beat Earnings? Q2 2026 Results

Hewlett Packard Enterprise delivered a blowout fiscal second quarter for 2026, posting revenue of $10.68 billion, up 40% year-over-year, while non-GAAP diluted EPS of $0.79 flew well past the company's own guidance range of $0.51 to $0.55, a gap that signals not just execution but genuine operational momentum. The single biggest force behind the quarter was the Juniper Networks integration, which supercharged the Networking segment to $2.69 billion in revenue, up 148.2% year-over-year, with routing alone going from near-zero contribution to $775 million. Cloud and AI infrastructure also carried weight, with Server revenue climbing 32.7% to $5.45 billion and non-GAAP operating margins expanding to 13.3% from 8.0% a year ago. Free cash flow reached $915 million for the quarter. Looking ahead, HPE raised its full-year FY26 non-GAAP EPS guidance to $3.35 to $3.45 and now expects free cash flow of at least $3.50 billion, figures the company had originally targeted for FY28, while Q3 revenue guidance of $11.50 billion to $12.10 billion points to continued momentum.

Key Takeaways
  • Juniper Networks acquisition driving 148.2% Networking revenue growth
  • Strong AI and infrastructure modernization demand driving 32.7% Server revenue growth
  • Ahead-of-schedule realization of Juniper Networks and Catalyst cost synergies
  • Non-GAAP operating profit margin expansion to 13.3% from 8.0% year-over-year
  • GAAP gross margin expansion of 810 basis points year-over-year to 36.5%
  • Operational discipline driving higher-than-anticipated profitability

“HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business.”

Hewlett Packard Enterprise CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026, HPE estimates revenue of $11.5 billion to $12.1 billion, GAAP diluted EPS of $0.84 to $0.89, and non-GAAP diluted EPS of $0.88 to $0.93. For full-year FY2026, HPE raised its revenue growth outlook to 29% to 33%, raised non-GAAP diluted EPS guidance to $3.35 to $3.45, raised GAAP diluted EPS guidance to $2.42 to $2.52, and now expects free cash flow of at least $3.5 billion. Networking segment revenue growth is expected at 72% to 75% for the full year, with non-GAAP operating profit growth of 80% to 85%. HPE also introduced an FY2027 framework projecting 8% to 12% revenue growth, 12% to 16% non-GAAP diluted EPS growth, 12% to 16% non-GAAP operating margin, and free cash flow of at least $4.5 billion. The updated FY26 outlook for non-GAAP EPS and free cash flow exceeds what HPE had projected to achieve by FY28 in its October 2025 long-term financial plan.

HPE YoY Financials

Revenue$10.7B
Gross Profit$3.9B
Operating Income$747.0M
Net Income$624.0M

HPE Revenue by Segment

Server$5.5B+32.7%
Networking$2.7B+148.2%
Hybrid Cloud
Campus & Branch$1.3B+50.2%
Storage$1.2B+2.4%
Cloud & AI
Financial Services$904.0M+5.6%
Routing$775.0M

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