Biggest Stories From HPE’s Q3 Earnings

That wraps up our initial coverage of HPE’s Q3 results. Thank you for stopping by!

Hewlett Packard Enterprise just reported earnings, and shares were initially flat after the report. Here are the key numbers:

• Revenue: $12.2 billion vs. $11.91 billion expected
• Adjusted EPS: $1.11 vs. $0.93 expected
• Non-GAAP Gross Margin: 40.4%, up 1,050 basis points YoY
• Free Cash Flow: $1.0 billion

Guidance:

• Q4 revenue: $13.9 billion to $14.8 billion vs. $12.96 billion expected
• Q4 adjusted EPS: $1.20 to $1.30 vs. $1.07 expected
• FY26 adjusted EPS: $3.75 to $3.85 vs. $3.43 expected
• FY26 free cash flow: At least $3.75 billion

Quick Read:

• HPE delivered a strong beat and raise, topping Q3 revenue and EPS estimates while guiding Q4 revenue and earnings substantially above Wall Street expectations.
• Networking remains a major growth engine, with revenue surging 74.9% YoY, while Cloud & AI revenue climbed 25.4% and management called AI a “multi-year growth driver.”

Ahead of tonight’s call, here’s what to watch as Hewlett Packard Enterprise (NYSE:HPE) tries to defend a 113.67% YTD run. Polymarket puts odds of a beat at 95%.

Top 5 Analyst Questions

• Sustainability of AI systems demand given the $5.9 billion backlog and pipeline described as multiples of it.
• Pace of Juniper synergy capture beyond the $200 million annual target.
• Networking margin trajectory after Q2’s 21.6% result.
• Conservatism of the FY27 framework: 8% to 12% revenue growth.
• Capital return timing once 2x net leverage is reached.

Key Topics and Buzzwords

• Listen for: “Catalyst savings,” “GreenLake ARR,” “scale-up Ethernet,” and Elliott board dynamics.

Red Flags

• Any Q4 guide softening, server margin compression, tariff commentary, or AI order cancellations.

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. Simply stay on this page, and new updates will appear below automatically.

We expect HPE to release Q3 earnings shortly after 4:05 p.m. ET.

Hewlett Packard Enterprise reports Q3 earnings after the bell today, with Wall Street expecting $0.93 in EPS on $11.91 billion of revenue.

Expectations are high after networking revenue soared 148.2% year over year last quarter, helped by the Juniper acquisition, while HPE’s AI systems backlog reached $5.9 billion. Shares have responded by climbing nearly 120% year to date.

A clean beat and higher FY26 guidance could extend HPE’s transformation from a slow-growth hardware company into an AI-and-networking growth story.

But with consensus already above management’s guidance midpoint, any slowdown in networking growth or AI backlog conversion could hit the stock hard.