Hewlett Packard Enterprise Posts 40% Revenue Jump to $10.7B, Raises EPS Guidance
HPE•Hewlett Packard Enterprise reported record fiscal Q2 revenue of $10.7 billion, up 40%, driven by a 22.9% rise in Cloud & AI and 32.7% growth in server sales. Non-GAAP earnings were $0.79 per share, and full-year EPS guidance rose to $3.35–3.45 with free cash flow at least $3.5 billion.
1. Record Q2 Results
Hewlett Packard Enterprise posted $10.7 billion in Q2 revenue, a 40% increase year-over-year, and delivered non-GAAP earnings of $0.79 per share, surpassing its $0.51–0.55 guidance range. The quarter produced a GAAP profit of $624 million, or $0.44 per diluted share, compared to a $1.05 billion loss a year ago.
2. Segment Performance
The Cloud & AI segment generated $7.7 billion in revenue, up 22.9%, while server sales climbed 32.7% to $5.45 billion on strong AI infrastructure demand. The Networking unit achieved revenue of $2.7 billion, marking a 148.2% year-over-year gain.
3. Upgraded Guidance
HPE raised its full-year non-GAAP EPS forecast to $3.35–3.45 from $2.30–2.50 and lifted its free cash flow target to at least $3.5 billion, outpacing its previous long-term targets by roughly two years.
4. Future Outlook
For fiscal Q3, the company projects revenue between $11.5 billion and $12.1 billion with non-GAAP EPS of $0.88–0.93. HPE also introduced a fiscal 2027 framework targeting 8–12% annual revenue growth and at least $4.5 billion in free cash flow.
