Key Highlights

  • HPE's fiscal third-quarter Revenue was $12.2 billion, up 34% year on year, with non-GAAP diluted EPS of $1.11.
  • Networking revenue rose 74.9% to $2.9 billion, and server revenue rose 35.3% to $6.8 billion.
  • HPE raised fiscal 2026 guidance and lifted its Juniper-related cost synergy target to $800 million by the end of fiscal 2028.

Latest reported quarter

Hewlett Packard Enterprise Company (NYSE:HPE) last reported results on 2 September 2026 for its fiscal third quarter, ended 31 July. Revenue was $12.2 billion, up 34% year on year and the highest quarterly total to date. Non-GAAP Diluted Earnings per Share were $1.11, above the company's $0.88 to $0.93 outlook, and GAAP diluted earnings per share were $1.06.

The non-GAAP gross Margin was 40.4%, up 1,050 basis points, and non-GAAP Operating Margin was 16.2%, up 770 basis points. Cash Flow from operations was $1.6 billion and free cash flow was $1.0 billion. The company returned $324 million to shareholders through dividends and buybacks.

Where growth came from

Networking revenue was $2.9 billion, up 74.9%, at a 22.0% operating margin. Within it, routing rose 270.0% to $788 million, data centre networking rose 112.2% to $382 million, security rose 75.6% to $281 million and campus and branch rose 31.0% to $1.4 billion.

Cloud and AI revenue was $9.0 billion, up 25.4%, with server revenue up 35.3% to $6.8 billion and an operating margin of 17.0%, compared with 7.0% a year earlier. Financial services revenue was about $0.9 billion, down 0.3%. The company described its order Backlog but gave no figure.

Guidance and targets

For the fourth quarter, HPE guided to revenue of $13.9 billion to $14.8 billion and non-GAAP diluted earnings per share of $1.20 to $1.30. It raised fiscal 2026 guidance to revenue growth of 34% to 37%, non-GAAP diluted earnings per share of $3.75 to $3.85 and free cash flow of at least $3.75 billion. Its fiscal 2027 framework calls for revenue growth of 13% to 17% and free cash flow of at least $5.0 billion. All of these are forecasts, not reported results.

The fourth-quarter range has a midpoint of $14.35 billion, about 17.6 per cent above the third quarter's $12.2 billion. That would be a steep sequential step, so delivery against it will be a central test for the full-year numbers. The non-GAAP earnings range of $1.20 to $1.30 compares with $1.11 reported in the third quarter, a smaller proportional step than revenue.

At a networking investor event on 30 September 2026, HPE raised its target for Juniper-related annual run-rate cost synergies to $800 million by the end of fiscal 2028, from at least $600 million. It also set fiscal 2027 networking revenue growth in the high teens to low twenties per cent, with a segment operating margin of roughly 25% to 29%.

Recent developments

On 30 September 2026 HPE announced a $1.2 billion order from Vultr for AMD Helios AI racks. In October it reported collaborations with Nvidia and the selection of HPE by Mizuho Securities for advanced financial simulations, among other announcements.

What to watch

Points to follow include fourth-quarter revenue against the $13.9 billion to $14.8 billion range, networking margins as Juniper integration continues, server profitability, free cash flow conversion, the order backlog the company has described only qualitatively, and the pace of Shareholder returns, given the stated aim to return at least 75 per cent of free cash flow in the fourth quarter.