Hewlett Packard Enterprise Co

Latest Results (29.08.2026):

Hewlett Packard Enterprise Co's fiscal 2026 second quarter (Q2 FY26) results delivered a record quarter: revenue of $10.7 billion (+40% year‑over‑year), materially stronger margins and EPS, and the highest-ever Q2 free cash flow — prompting HPE to raise FY26 guidance and introduce a FY27 growth framework while noting the company is two years ahead of its fiscal 2028 long‑term plan.

Top-line and profitability

Q2 revenue $10.7B (+40% YoY). GAAP gross margin 36.5% (+810 bps YoY) and non‑GAAP gross margin 36.9% (+750 bps YoY). GAAP diluted EPS $0.44 (above outlook) and non‑GAAP diluted EPS $0.79 (above outlook).

Cash generation and returns

Cash flow from operations $1.4B (up $1.9B YoY); free cash flow $0.9B (up $1.8B YoY). Returned $343M to common shareholders via dividends and repurchases.

Networking segment

Networking revenue $2.7B (+148.2% YoY) with a 21.6% operating margin. Notable subcategory performance: Campus & Branch $1.3B (+50.2%), Data Center Networking $320M (+233.3%), Security $273M (+155.1%), Routing $775M (vs $1M prior year).

Cloud & AI segment

Cloud & AI revenue $7.7B (+22.9% YoY) with a 12.4% operating margin (vs 6.6% a year ago). Server revenue $5.5B (+32.7%), Storage $1.2B (+2.4%), Financial Services $0.9B (+5.6%).

Dividend

Board declared a regular cash dividend of $0.1425 per share, payable on or about July 15, 2026, to holders of record as of June 16, 2026.

Updated FY26 outlook

HPE raised FY26 guidance: revenue growth now 29%–33%; Networking revenue growth 72%–75%; GAAP diluted EPS $2.42–$2.52; non‑GAAP diluted EPS $3.35–$3.45; free cash flow expected at least $3.5B. Company also projects very strong operating profit growth for FY26.

FY27 framework and progress vs plan

Introduced FY27 framework: revenue growth 8%–12%; non‑GAAP diluted EPS growth 12%–16%; non‑GAAP operating margin 12%–16%; free cash flow at least $4.5B. HPE says these FY26 updates exceed the targets it had forecast for FY28, putting the company two years ahead of plan.

H3C divestiture

Divestiture of remaining H3C stake completed May 28, 2026; cash proceeds ~ $1.357B for this tranche and ~ $3.5B total pretax consideration received since the exit announcement.