Hewlett Packard Enterprise Q2 Beats Estimates, Raises FY2026 Guidance to 29–33%
HPE•Hewlett Packard Enterprise reported Q2 adjusted earnings of $0.79 per share on $10.7 billion revenue, beating estimates of $0.53 and $9.77 billion, and saw Cloud & AI revenue of $7.71 billion. The company raised fiscal 2026 revenue growth guidance to 29–33% and pushed long-term targets ahead by two years.
1. Record Second-Quarter Results
Hewlett Packard Enterprise delivered Q2 adjusted earnings of $0.79 per share on revenue of $10.7 billion, surpassing consensus estimates of $0.53 per share and $9.77 billion. Cloud & AI segment revenue reached $7.71 billion while server revenue hit $5.45 billion, both topping forecasts.
2. Upgraded Fiscal 2026 and Q3 Guidance
The company raised its fiscal 2026 revenue growth outlook to 29–33%, up from the prior 17–22% forecast. For Q3, HPE anticipates revenue between $11.5 billion and $12.1 billion and non-GAAP EPS of $0.88 to $0.93.
3. AI Demand Fuels Infrastructure Backlog
Surging demand for AI data centers drove triple-digit growth in traditional server bookings, creating HPE’s largest-ever backlog. CEO Antonio Neri highlighted strong free cash flow and record profitability as customers accelerate infrastructure modernization.
4. Shares Jump on Earnings Catalyst
HPE shares climbed 9% in regular trading then surged over 35% after hours following the earnings release and guidance boost. Competitors Dell and Super Micro also rallied as sector-wide enterprise AI spending momentum intensified.
