Highlights

  • On 30 September HPE announced a US$1.2 billion order from Vultr for AMD Helios AI rack systems, and on.
  • HPE reported third-quarter fiscal 2026 results, for the quarter ended 31 July, on 2 September..
  • GAAP diluted earnings per share were US$1.06 and non-GAAP diluted earnings per share were US$1.11, both above the company's.
  • Cloud and AI revenue was US$9.0 billion, up 25.4%, with a 17.0% margin, and server revenue rose 35.3%, storage.

Hewlett Packard Enterprise (NYSE:HPE) is at a consequential point in its latest reported developments. The supplied material does not find a company announcement on the day, and we have not read the Barclays note, so we cannot say how much of the fall it explains. market-data listings does not tie the 15 October decline to any single cause.

Recent company news

The pull-back follows a run of positive news. On 30 September HPE announced a US$1.2 billion order from Vultr for AMD Helios AI rack systems, and on 7 October it launched four ProLiant Gen13 servers powered by AMD EPYC processors. market-data listings also records Mizuho selecting HPE to build a liquid-cooled data centre using HPE Cray XD2000 systems.

Latest reported results

HPE reported third-quarter fiscal 2026 results, for the quarter ended 31 July, on 2 September. Revenue was US$12.2 billion, up 34% year on year. GAAP diluted earnings per share were US$1.06 and non-GAAP diluted earnings per share were US$1.11, both above the company's own outlook. Free cash flow was US$958 million on operating cash flow of US$1.6 billion.

Networking revenue was US$2.9 billion, up 74.9%, with a 22.0% operating margin. Cloud and AI revenue was US$9.0 billion, up 25.4%, with a 17.0% margin, and server revenue rose 35.3%, storage 10.2% and financial services slipped 0.3%. Within networking, routing grew 270.0%, data centre networking 112.2%, security 75.6% and campus and branch 31.0%. Non-GAAP earnings per share rose US$0.67 from a year earlier. Management said order backlog was at a record level. On a trailing twelve-month basis Available information indicates revenue of US$41.87 billion, up 26.6%, net income of US$2.68 billion and earnings per share of US$1.96.

Outlook

These are forecasts. Based on the reported figures,, the midpoint of the fourth-quarter revenue range is about 18% above the third-quarter figure. For the fourth quarter HPE guided revenue of US$13.9 billion to US$14.8 billion and non-GAAP diluted earnings per share of US$1.20 to US$1.30. For fiscal 2026 it expects revenue growth of 34% to 37%, non-GAAP earnings per share of US$3.75 to US$3.85 and free cash flow of at least US$3.75 billion.

It also set a framework for fiscal 2027 of revenue growth of 13% to 17%, non-GAAP earnings-per-share growth of 16% to 20% and free cash flow of at least US$5.0 billion. The step down in growth from fiscal 2026 is worth noting, since expectations embedded in the share price may have assumed a different slope. The quarterly dividend is US$0.1425 per share, paid on or about 16 October.

What to watch

Available information indicates the next earnings report for 3 December 2026, though the company has not confirmed it in the sources we reviewed. Barclays's cited concern about memory price normalisation is one theme; investors may also watch memory costs and pricing, AI server order conversion into revenue, networking margins and free cash flow against the stated fiscal 2027 framework.

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