Hewlett Packard Enterprise 8-K
PositiveEarningsGuidance raised
Networking and Cloud & AI demand drove record orders and backlog; management raised FY2026 and FY2027 outlooks.
Filed 2026-09-02 16:06 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
Summary
Q3 FY2026 results with higher FY2026 and FY2027 outlooks. HPE reported record revenue, orders, backlog and profitability amid strong demand across its portfolio, led by Networking and Cloud & AI.
Key Figures
| Metric | Q3 2026 | Q3 2025 | Y/Y |
|---|---|---|---|
| Revenue | $12.2B | $9.14B | 33.7% |
| GAAP operating income | $1.39B | $247M | 464% |
| Non-GAAP operating income | $1.98B | $777M | 155% |
| Net earnings attributable to HPE | $1.54B | $305M | 405% |
| GAAP diluted EPS | $1.06 | $0.21 | 405% |
| Non-GAAP diluted EPS | $1.11 | $0.44 | 152% |
| Operating cash flow | $1.64B | $1.31B | 25.7% |
| Free cash flow | $958M | $790M | 21.3% |
- Networking revenue rose 74.9% to $2.89B and Cloud & AI revenue rose 25.4% to $9.04B. GAAP gross margin was 40.1% (+1,090 bp Y/Y); non-GAAP gross margin was 40.4% (+1,050 bp).
- GAAP net earnings attributable to HPE included a $444M gain on the sale of its remaining H3C equity interest. Capital returns to common shareholders were $324M in Q3. HPE declared a $0.1425-per-share dividend, payable on or about 10/16/2026 to holders of record on 9/17/2026.
- FY2026 non-GAAP operating profit guidance excludes ≈$2.5B of costs. Non-GAAP diluted EPS guidance excludes after-tax adjustments of ≈$0.82 per share for FY2026 and ≈$0.08 per share for Q4.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 FY2026 | $13.9B-$14.8B | — | — |
| GAAP diluted EPS | Q4 FY2026 | $1.12-$1.22 | — | — |
| Non-GAAP diluted EPS | Q4 FY2026 | $1.20-$1.30 | — | — |
| FCF returned to shareholders | Q4 FY2026 | At least 75% of FCF | — | — |
| Revenue growth | FY2026 | 34%-37% | — | Raised |
| Networking segment revenue growth | FY2026 | 73%-74% | — | Raised |
| GAAP operating profit growth | FY2026 | 1,070%-1,105% | — | — |
| Non-GAAP operating profit growth | FY2026 | 100%-105% | — | — |
| GAAP diluted EPS | FY2026 | $2.93-$3.03 | — | Raised |
| Non-GAAP diluted EPS | FY2026 | $3.75-$3.85 | — | Raised |
| FCF | FY2026 | At least $3.75B | — | Raised |
| Revenue growth | FY2027 | 13%-17% | — | Raised |
| Non-GAAP diluted EPS growth | FY2027 | 16%-20% | — | Raised |
| Non-GAAP operating margin | FY2027 | 14%-15% | — | — |
| FCF | FY2027 | At least $5.0B | — | Raised |
Investor Takeaways
- Q4 revenue and EPS versus the guided ranges, alongside FCF generation and the planned shareholder return, will show whether record demand and backlog translate into cash.
- FY2027 revenue growth and FCF delivery are key measures of whether the growth outlook is sustained.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3