Key Highlights
● Third-quarter fiscal 2026 revenue was US$12.2 billion, up 34% year on year.
● Networking revenue rose 74.9% to US$2.9 billion with a 22.0% operating margin.
● HPE announced a US$1.2 billion order from Vultr for AMD Helios AI rack systems.
● The fiscal 2027 framework calls for free cash flow of at least US$5.0 billion.
Recent company news
Hewlett Packard Enterprise Company (NYSE:HPE) has had a run of positive news. On 30 September it announced a US$1.2 billion order from Vultr for AMD (NASDAQ:AMD) Helios AI rack systems, and on 7 October it launched four ProLiant Gen13 servers powered by AMD EPYC processors.
Mizuho has also selected 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, revenue was US$41.87 billion, up 26.6%, net income was US$2.68 billion and earnings per share were US$1.96.
Outlook
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. The midpoint of the revenue range is about 18% above the third-quarter figure. 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.
Fiscal 2027 framework against fiscal 2026 guidance
HPE 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 quarterly dividend is US$0.1425 per share, paid on or about 16 October.
The step down from fiscal 2026 revenue growth of 34% to 37% to the 13% to 17% framework is sharp, while the free cash flow floor rises from US$3.75 billion to US$5.0 billion.






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