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Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) is expected to report fiscal Q3 2026 results at 4:05 PM ET. Fresh off a 47.77% EPS beat and record networking growth, tonight tests whether Juniper synergies and AI orders can continue compounding.
Momentum Meets a Rerated Stock
Q2 delivered $10.678 billion in revenue, up 40% year over year, and non-GAAP EPS of $0.79, well above the $0.5346 consensus. Non-GAAP operating margin expanded to 13.3% from 8.0% a year earlier, and free cash flow reached $915 million.
Management raised FY26 free cash flow guidance to at least $3.5 billion, up from the prior $2 billion outlook. Shares trade at $50.18, though they slipped 4.81% over the past week. Polymarket traders assign a 94% probability to another beat.
Consensus Estimates
| Metric |
Q3 FY2026 Estimate |
YoY Change |
FY2026 Estimate |
FY2027 Estimate |
| Revenue |
$11.91B |
+35% |
$44.98B |
$50.21B |
| EPS (Non-GAAP) |
$0.9261 |
+122% |
$3.4236 |
$4.0368 |
Q3 EPS consensus has climbed from $0.5724 ninety days ago to $0.9261 today, reflecting the post-Juniper reset. Analysts’ revisions have skewed upward across every fiscal period, and the Street sits above the top of HPE’s $0.88-$0.93 guided EPS range.
What I’m Watching Tonight: AI Backlog, Networking Margins, and Capital Return
Tonight, I’m watching 5 things. First, AI systems traction. HPE booked $1.8 billion in new AI orders last quarter and entered Q3 with $5.9 billion in backlog. I’ll watch whether the enterprise and sovereign mix continues expanding margins over classic service-provider work.
Second, networking normalized growth. Reported growth is currently inflated by the acquisition of Juniper Networks. Normalized networking revenue grew 10% last quarter, with campus and branch orders in the upper 20% range.
Third, Catalyst savings pace. Headcount sits just over 65,000, down over 9% since programs began, and Juniper synergies are running ahead of the $200 million annual target.
Fourth, supply constraints. CEO Antonio Neri flagged DRAM and NAND inflation as the binding constraint on order-to-revenue conversion. I’ll be watching for any insights on FY27 capacity.
Fifth, we’re of course going to be watching HPE’s capital return. HPE guided to reach 2x net leverage by fiscal year-end, one year early, unlocking a 75% free cash flow payout policy.
Earnings History
| Quarter |
EPS Surprise |
1-Day Move |
7-Day Move |
30-Day Move |
| Q2 2026 |
+47.77% |
+19.47% |
+6.11% |
-12.28% |
| Q1 2026 |
+10.75% |
-3.26% |
+0.18% |
+13.85% |
| Q4 2025 |
+6.55% |
+2.27% |
+2.31% |
-5.62% |
| Q3 2025 |
+5.41% |
+1.55% |
+7.34% |
+7.04% |
On average, shares moved 3.99% seven days after earnings over the past year.
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