Hewlett Packard Enterprise (HPE) Q2 2026 Earnings
How Did HPE Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −1.81%.
Did HPE Beat Earnings? Q2 2026 Results
Yes. Hewlett Packard Enterprise reported Q2 2026 earnings of $0.79 a share on Jun 1, 2026, beating the $0.53 consensus estimate by 47.8%. Revenue was $10.7B against a $9.8B estimate.
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.
- 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
What Was Hewlett Packard Enterprise's Outlook in Q2 2026?
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
HPE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.