Hewlett Packard Enterprise raises fiscal 2026 and 2027 outlook on third-quarter results

On September 2, 2026, Hewlett Packard Enterprise reported results for its fiscal third quarter ended July 31, 2026, and raised its financial outlook for fiscal 2026 and fiscal 2027. Revenue was $12.2 billion, up 34% from the prior-year period.

GAAP diluted earnings per share were $1.06 and non-GAAP diluted earnings per share were $1.11, above the company's outlook ranges of $0.84 to $0.89 and $0.88 to $0.93. Cash flow from operations was $1.6 billion and free cash flow was $1 billion. Capital returned to common shareholders totaled $324 million, in dividends and share repurchases. The board declared a regular cash dividend of $0.1425 per share, payable on or about October 16, 2026, to stockholders of record as of the close of business on September 17, 2026.

Networking revenue was $2.9 billion, up 74.9% from the prior-year period. Cloud & AI revenue was $9 billion, up 25.4%. Antonio Neri, president and CEO, said AI is becoming a multi-year growth driver for the company.

Hewlett Packard Enterprise said it expects fourth-quarter fiscal 2026 revenue of $13.9 billion to $14.8 billion, GAAP diluted EPS of $1.12 to $1.22, and non-GAAP diluted EPS of $1.20 to $1.30. The company said its fourth-quarter non-GAAP diluted EPS estimate excludes after-tax adjustments of approximately $0.08 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, and cost reduction program.

Hewlett Packard Enterprise said it is raising its fiscal 2026 revenue growth outlook to 34% to 37%, its GAAP diluted EPS range to $2.93 to $3.03, and its non-GAAP diluted EPS range to $3.75 to $3.85. It now expects fiscal 2026 free cash flow of at least $3.75 billion. For fiscal 2027, the company is raising its revenue growth outlook to 13% to 17% and its non-GAAP diluted EPS growth outlook to 16% to 20%. It also expects a non-GAAP operating margin of 14% to 15% and free cash flow of at least $5 billion.