Hewlett Packard Enterprise 8-K
PositiveEarningsGuidance raised
Strong demand and ahead-of-schedule Juniper and Catalyst synergies lift FY2026 revenue growth guidance to 29%-33%.
Filed 2026-06-01 16:09 ET
- 1.01 Entry into a Material Agreement
- 2.02 Results of Operations
- 5.02 Officer/director change
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY2026 results with higher FY2026 guidance and a new FY2027 growth framework. HPE reported record quarterly revenue and raised several FY2026 outlook measures after strong demand and execution, including ahead-of-schedule Juniper and Catalyst cost synergies; Q2 diluted EPS exceeded the company’s stated outlook ranges. HPE completed its H3C divestiture on 5/28/2026, appointed Christopher Hsu to the Board and two committees effective immediately, and amended its Elliott cooperation agreement to cap the Board at 14 directors immediately after the 2026 Annual Meeting through the 2027 Annual Meeting. The Board declared a $0.1425-per-share dividend, payable on or about 7/15/2026 to holders of record 6/16/2026.
Key Figures
| Metric | Q2 FY2026 | H1 FY2026 |
|---|---|---|
| Revenue | $10.7B, +40.0% Y/Y | $20.0B, +29.1% Y/Y |
| GAAP gross margin | 36.5%, vs 28.4% | 36.2%, vs 28.8% |
| GAAP operating income | $747M, vs $(1.11)B | $1.22B, vs $(676)M |
| Net earnings attributable to HPE | $624M, vs $(1.05)B | $1.08B, vs $(423)M |
| Diluted EPS | $0.44, vs $(0.82) | $0.75, vs $(0.36) |
| Operating cash flow | $1.41B, vs $(461)M | $2.59B, vs $(851)M |
| Non-GAAP free cash flow | $915M, vs $(847)M | $1.62B, vs $(1.72)B |
- Segment revenue: Networking $2.69B, +148.2% Y/Y, with a 21.6% operating margin; Cloud & AI $7.71B, +22.9%, with a 12.4% margin. HPE cited healthy demand, including customer investment in infrastructure modernization and AI, and strong Networking performance.
- HPE received ≈$1.357B in cash for its remaining 19% stake in H3C; total pretax consideration for its H3C stake since announcing its exit was ≈$3.5B. HPE also completed a sale of 5.2% of H3C’s issued share capital to UNIS for ≈$370.4M.
- H1 share repurchases were $312M. Common shares issued and outstanding were 1.323B at 4/30/2026, vs 1.318B at 10/31/2025. Cash and cash equivalents were $5.29B; short-term borrowings and long-term debt, on a balance-sheet basis, totaled $21.2B.
Guidance
| Metric | Period | Guidance | Prior | Direction | Q2 FY2026 actual |
|---|---|---|---|---|---|
| Revenue | Q3 FY2026 | $11.5B-$12.1B | — | — | — |
| GAAP diluted EPS | Q3 FY2026 | $0.84-$0.89 | — | — | — |
| Non-GAAP diluted EPS | Q3 FY2026 | $0.88-$0.93 | — | — | — |
| Revenue growth | FY2026 | 29%-33% | — | Raised | — |
| Networking revenue growth | FY2026 | 72%-75% | — | Raised | — |
| GAAP operating profit growth | FY2026 | 885%-930% | — | — | — |
| Non-GAAP operating profit growth | FY2026 | 80%-85% | — | — | — |
| GAAP diluted EPS | FY2026 | $2.42-$2.52 | — | Raised | — |
| Non-GAAP diluted EPS | FY2026 | $3.35-$3.45 | — | Raised | — |
| Non-GAAP free cash flow | FY2026 | At least $3.5B | — | Raised | — |
| Revenue growth | FY2027 | 8%-12% | — | Initiated | — |
| Non-GAAP diluted EPS growth | FY2027 | 12%-16% | — | Initiated | — |
| Non-GAAP operating margin | FY2027 | 12%-16% | — | Initiated | — |
| Non-GAAP free cash flow | FY2027 | At least $4.5B | — | Initiated | — |
Results vs Outlook
| Metric | Period | Outlook | Actual |
|---|---|---|---|
| GAAP diluted EPS | Q2 FY2026 | $0.09-$0.13 | $0.44 |
| Non-GAAP diluted EPS | Q2 FY2026 | $0.51-$0.55 | $0.79 |
Investor Takeaways
- Track Q3 FY2026 revenue and diluted EPS against the guided ranges.
- FY2026 results will show whether HPE delivers its raised revenue, EPS and free cash flow outlook; FY2027 performance will be measured against the newly introduced growth framework.
The summary is written by an AI model reading the filing.
Model 005 · prompt 8caf0d6673 · 2026-10-15 20:09:35Z