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Hewlett Packard Enterprise

HPE Q2 2026 Earnings

Reported Jun 1, 2026 at 4:09 PM ET · SEC Source

Q2 26 EPS

$0.79

Q2 26 Revenue

$10.68B

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… Read more 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 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.

24/7 Wall St

HPE YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

HPE Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“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.”

— Antonio Neri, Q2 2026 Earnings Press Release

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