Hewlett Packard Enterprise Q2 EPS $0.79, Raises 2026 Outlook on AI Surge
HPE•HPE posted $0.79 non-GAAP EPS on $10.7 billion revenue, topping estimates by $0.26 per share and $900 million in sales, fueled by 40% AI-driven server growth and generating $900 million in free cash flow. The company raised its 2026 outlook, pulled forward its 2028 targets by two years and issued fiscal 2027 guidance citing record backlog, durable AI demand, constrained supply agreements and deep NVIDIA-powered GreenLake integration.
1. Q2 Financial Performance
Hewlett Packard Enterprise delivered non-GAAP EPS of $0.79 on revenue of $10.7 billion, surpassing analyst expectations by $0.26 per share and $900 million in sales. The 40% surge in AI server sales propelled earnings, and the company swung from negative to $900 million positive free cash flow, reflecting strong order growth ahead of revenue.
2. Guidance Raises
HPE raised its fiscal 2026 outlook, accelerated its 2028 financial targets by two years and provided first-ever fiscal 2027 guidance, backed by a record backlog and a sales pipeline multiple times larger than current orders. Management incorporated known supply constraints and secured capacity agreements to ensure delivery, signaling durable demand across networking, cloud and AI infrastructure.
3. AI Strategy and Partnerships
The company emphasized its GreenLake AI Factory solution, which integrates NVIDIA’s software stack with HPE infrastructure to simplify on-premises deployment and lifecycle management under customer governance. With over 1,200 AI use cases identified and 250 already in production internally, plus progress on Juniper integration, HPE is leveraging its ecosystem to drive both product adoption and operational efficiency.
