HPE Q1 Revenue Rises 18% to $9.3B, Lifts FY26 EPS Outlook
HPE’s Q1 non-GAAP EPS $0.65 topped forecasts, though GAAP EPS $0.31 missed, as revenue rose 18% to $9.3 billion, below its $9.6–10 billion guidance. Networking revenue surged 152% to $2.7 billion; Cloud & AI fell 2.7% to $6.3 billion, and FY26 non-GAAP EPS guidance was raised to $2.30–2.50.
1. First Quarter Financial Results
In Q1 FY26, HPE posted GAAP EPS of $0.31 and non-GAAP EPS of $0.65 on revenue of $9.3 billion, marking an 18% year-over-year increase yet falling short of the company’s $9.6–10 billion guidance range.
2. Networking and Cloud & AI Segments
Networking revenue jumped 152% to $2.7 billion, driven by Campus & Branch, Data Center Networking, Security and Routing, while Cloud & AI revenue slipped 2.7% to $6.3 billion but saw operating margin improve to 10.2%.
3. Updated Full-Year Guidance
HPE reaffirmed FY26 revenue growth of 17–22%, raised GAAP EPS guidance to $1.02–1.22 and non-GAAP EPS to $2.30–2.50, and projected at least $2 billion in free cash flow.