Hewlett Packard Enterprise Co (HPE)

Hewlett Packard Enterprise Raises Growth Targets as AI Demand Fuels Strong Results (HPE)June 2, 2026 6:17 AM
IH Market News Hewlett Packard Enterprise (NYSE:HPE) delivered record second-quarter results on Monday, prompting the company to bring forward key long-term financial objectives by two years as surging investment in AI data centres drives demand for its server and networking solutions. The strong performance sent HPE shares up around 28% in premarket trading on Tuesday. Revenue and Earnings Beat Expectations The company, which competes with Dell (NYSE:DELL) and Super Micro Computer (NASDAQ:SMCI), reported quarterly revenue of $10.68 billion, representing year-on-year growth of 40% and comfortably exceeding analysts’ consensus forecast of $9.79 billion. Adjusted earnings came in at 79 cents per share, well ahead of Wall Street expectations of 53 cents per share. Outlook Upgraded Following Strong Demand Reflecting continued momentum across its business, HPE increased its fiscal 2026 revenue growth forecast to a range of 29% to 33%, compared with previous guidance of 17% to 22%. The company also lifted its expectations for annual growth in its networking division, now forecasting expansion of 72% to 75%, versus an earlier range of 68% to 73%. “HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business,” said Antonio Neri, president and CEO of HPE. HPE also raised its fiscal 2026 adjusted earnings-per-share guidance to between $3.35 and $3.45, up from its prior outlook of $2.30 to $2.50. Management noted that its updated targets for adjusted EPS and free cash flow now exceed the levels previously projected for fiscal 2028. Traditional Server Business Drives Growth Analysts at Wolfe Research highlighted the strength of HPE’s core server operations as a key contributor to the earnings beat. “Like Dell last week, HPE beat expectations significantly on Traditional Server sales,” Wolfe Research analysts commented. “We believe customers are rushing to secure supply ahead of memory price hikes (and concerns about availability).” The company said demand from enterprise customers remained particularly strong, helping to support profitability and cash generation during the quarter. New 2027 Targets Introduced Alongside its upgraded near-term outlook, HPE unveiled a new growth framework for fiscal 2027. The company is targeting revenue growth of between 8% and 12%, adjusted EPS growth of 12% to 16%, and free cash flow of at least $4.5 billion. Chief Financial Officer Marie Myers said the quarter’s performance was driven largely by the strength of HPE’s traditional enterprise server business. “We drove high profitability and cash generation this quarter through continued operational discipline as well as executing ahead of schedule against Juniper Networks and Catalyst cost synergies,” said Marie Myers, executive vice president and CFO of HPE. Analysts Turn More Bullish Following the results, Bank of America sharply increased its price target on HPE shares, raising it to $80 from $38. The bank said the latest performance demonstrated a “growth inflection driven by agentic AI.” “We see potential upside to F27 on topline growth due to the strength of demand, cont. inflation/pricing, and further wins in Networking,” Bank of America analysts wrote. The upgraded targets and stronger-than-expected results underscore growing investor confidence that HPE is benefiting from the rapid expansion of AI infrastructure spending, positioning the company for sustained growth over the coming years. Hewlett Packard Enterprise stock price Original: Hewlett Packard Enterprise Raises Growth Targets as AI Demand Fuels Strong Results (HPE)

Markets Cautious as Iran Diplomacy Remains Unclear; HPE Surges on AI-Fueled Results: Dow Jones, S&P, Nasdaq, Wall Street FuturesJune 2, 2026 5:37 AM
IH Market News U.S. stock index futures traded little changed on Tuesday as investors assessed conflicting signals surrounding negotiations between Washington and Tehran. Meanwhile, Hewlett Packard Enterprise (NYSE:HPE) delivered stronger-than-expected quarterly results driven by artificial intelligence-related demand, while Alphabet (NASDAQ:GOOG) unveiled plans for a major capital raise to expand its AI infrastructure. Futures Drift Lower Ahead of Market Open By 03:54 ET, futures tied to the major U.S. benchmarks were slightly lower. Dow Jones futures slipped 60 points, or 0.1%, while S&P 500 and Nasdaq 100 futures each eased by around 0.1%. The subdued start followed modest gains on Wall Street during the previous session. Markets recovered after U.S. President Donald Trump said diplomatic discussions with Iran remained active, despite earlier reports suggesting Tehran had suspended indirect communications with Washington. Technology stocks continued to provide support, helped by persistent enthusiasm surrounding artificial intelligence. Investor appetite for the sector was further highlighted after Anthropic, the creator of Claude, announced plans for a massive initial public offering at a valuation approaching $1 trillion. Recent economic data also suggested that U.S. manufacturing activity has remained relatively resilient despite the uncertainty generated by the ongoing conflict involving Iran. Conflicting Signals Surround Iran Negotiations Developments in the Middle East remained a central focus for investors. Lebanon announced a partial ceasefire between Israel and the Iran-backed Hezbollah movement. However, according to Reuters, Israel’s military reported intercepting two projectiles launched from Lebanon on Tuesday, underscoring the fragile nature of the situation. President Trump told ABC News that he believes a peace agreement with Iran could be reached within the next week. He stated that there “was a little glitch” in the negotiations, a remark widely interpreted as referring to Iran’s objections to Israeli military actions in Lebanon, which reportedly led Tehran to threaten to withdraw from the talks. The status of negotiations remained uncertain, with no confirmation that discussions between the United States and Iran had officially resumed. Earlier, Trump told CNBC that he was unconcerned by reports that Iran had halted participation in the talks, before later asserting that negotiations were “progressing rapidly.” Oil Prices Retreat After Recent Rally Crude oil prices moved lower as traders attempted to assess the likelihood of a diplomatic breakthrough. By 04:13 ET, Brent crude futures had fallen 1.6% to $93.42 per barrel, retreating from recent highs above $100 while remaining well above levels seen before the conflict began in late February. U.S. West Texas Intermediate crude also declined, falling 1.4% to $90.90 per barrel. Oil prices had risen sharply on Monday following reports from Iranian media that Tehran had suspended communications with the United States through intermediaries. Although the state of negotiations remains unclear, disruptions to energy shipments through the Strait of Hormuz continue to affect global markets. Traffic through the strategic waterway remains significantly below pre-conflict levels, supporting oil prices and raising concerns over broader inflationary pressures. HPE Shares Jump After Record Quarter Hewlett Packard Enterprise (NYSE:HPE) emerged as one of the session’s biggest gainers after reporting record second-quarter results and bringing forward its long-term financial targets by two years. The company, which competes with Dell and Super Micro Computer, benefited from strong demand for servers and networking equipment used in artificial intelligence data centres. Shares surged 36% in after-hours trading following the announcement. Revenue climbed 40% year-over-year to a record $10.68 billion, comfortably exceeding analyst expectations of $9.79 billion. Adjusted earnings per share reached 79 cents, well ahead of the 53 cents forecast by Wall Street analysts. HPE also upgraded its outlook for fiscal 2026, forecasting revenue growth of between 29% and 33%, compared with previous guidance of 17% to 22%. The company now expects revenue growth in its networking division of between 72% and 75%, versus its earlier projection of 68% to 73%. Alphabet Launches Massive AI Funding Initiative Alphabet (NASDAQ:GOOG) announced plans to raise $80 billion in equity capital as it ramps up investment in artificial intelligence infrastructure. The proposed fundraising includes a $30 billion underwritten public offering consisting of depositary shares tied to mandatory convertible preferred stock, Class A common stock and Class C capital stock. The company also plans to launch a $40 billion at-the-market offering during the third quarter of 2026. In addition, Berkshire Hathaway has agreed to provide $10 billion through a private placement transaction. The scale of the fundraising effort highlights the enormous capital requirements associated with the rapid expansion of generative AI technologies. Alphabet said demand for its artificial intelligence products from both enterprise customers and consumers is currently exceeding the computing capacity available to support those services, reinforcing the need for substantial additional investment. Alphabet stock price Hewlett Packard Enterprise stock price Original: Markets Cautious as Iran Diplomacy Remains Unclear; HPE Surges on AI-Fueled Results: Dow Jones, S&P, Nasdaq, Wall Street Futures

Great results!!!

HPE Reports Fiscal 2026 Second Quarter ResultsJune 1, 2026 4:05 PM
Business Wire Record quarter puts HPE two years ahead of fiscal 2028 long-term financial plan HPE (NYSE: HPE) today announced financial results for the second quarter ended April 30, 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260601866494/en/ “HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business,” said Antonio Neri, president and CEO of HPE. “Customers continue to invest in modernizing their infrastructure and scaling AI, and our performance shows the strength of our combined networking portfolio and the value we are delivering to our shareholders.” “We drove high profitability and cash generation this quarter through continued operational discipline as well as executing ahead of schedule against Juniper Networks and Catalyst cost synergies,” said Marie Myers, executive vice president and CFO of HPE. “Based on our performance, we are raising our fiscal 2026 guidance and introducing a fiscal 2027 financial growth framework. These updates reflect the durability of our performance and continued operational excellence – and point to faster progress toward our long-term financial plan.” In the quarter, HPE achieved record revenue, gross margin, and non-GAAP diluted net EPS, as well as its highest-ever free cash flow generation for a second quarter. Second Quarter Fiscal 2026 Financial Results Revenue: $10.7 billion, up 40% from the prior-year period Gross margins: GAAP of 36.5%, up 810 basis points from the prior-year period and up 60 basis points sequentially Non-GAAP(1) of 36.9%, up 750 basis points from the prior-year period and up 30 basis points sequentially Diluted net earnings per share (“EPS”): GAAP of $0.44, up $1.26 from the prior-year period and above our outlook range of $0.09 - $0.13 Non-GAAP(1) of $0.79, up $0.41 from the prior-year period and above our outlook range of $0.51 - $0.55 Cash flow from operations: $1.4 billion, an increase of $1.9 billion from the prior-year period Free cash flow(1)(2): $0.9 billion, an increase of $1.8 billion from the prior-year period Capital returns to common shareholders: $343 million in the form of dividends and share repurchases Second Quarter Fiscal 2026 Segment Results Networking revenue was $2.7 billion, up 148.2% from the prior-year period, with 21.6% operating profit margin, compared to 25.0% from the prior-year period. Within Networking, revenue from: Campus & Branch was $1.3 billion, up 50.2% from the prior-year period. Data Center Networking was $320 million, up 233.3% from the prior-year period. Security was $273 million, up 155.1% from the prior-year period. Routing was $775 million, compared to $1 million in the prior-year period. Cloud & AI revenue was $7.7 billion, up 22.9% from the prior-year period, with 12.4% operating profit margin, compared to 6.6% from the prior-year period. Within Cloud & AI, revenue from: Server was $5.5 billion, up 32.7% from the prior-year period. Storage was $1.2 billion, up 2.4% from the prior-year period. Financial Services was $0.9 billion, up 5.6% from the prior-year period. Corporate Investments and Other revenue was $281 million, up 3.3% from the prior-year period, with -3.2% of operating profit margin, compared to -2.6% from the prior-year period. Dividend The HPE Board of Directors declared a regular cash dividend of $0.1425 per share on the company’s common stock, payable on or about July 15, 2026, to stockholders of record as of the close of business on June 16, 2026. Fiscal 2026 Third Quarter Outlook
HPE estimates revenue to be in the range of $11.5 billion to $12.1 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.84 to $0.89 and non-GAAP diluted net EPS(1) to be in the range of $0.88 to $0.93. Fiscal 2026 third quarter non-GAAP diluted net EPS estimate excludes net after-tax adjustments of approximately $0.04 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments related to the sale of H3C. Fiscal 2026 Full Year Outlook
HPE is raising its FY26 revenue growth outlook range to 29% to 33%. HPE is raising revenue growth expectations for the Networking segment to 72% to 75%. HPE estimates GAAP operating profit growth to be 885% to 930% and non-GAAP operating profit growth between 80% to 85%(1)(3). HPE is raising both GAAP diluted net EPS to be in the range of $2.42 to $2.52 and non-GAAP diluted net EPS(1)(4) to be in the range of $3.35 to $3.45. Fiscal 2026 non-GAAP diluted net EPS estimate excludes net after-tax adjustments of approximately $0.93 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments related to the sale of H3C. HPE is also raising its free cash flow(1)(2)(4) guidance and now expects free cash flow to be at least $3.5 billion. The updated FY26 outlook ranges for non-GAAP diluted net EPS and free cash flow are higher than what HPE projected the company would achieve by FY28 when it released long-term financial guidance at the HPE Securities Analyst Meeting in October 2025. The company had expected to generate at least $3.00 in non-GAAP diluted net EPS and more than $3.5 billion in free cash flow by FY28. Fiscal 2027 Outlook Framework
The company is introducing its growth framework for FY27. HPE estimates revenue growth to be in the range of 8% to 12%. HPE estimates non-GAAP diluted net EPS(1)(4) growth to be in the range of 12% to 16% and non-GAAP operating margin rate to be in the range of 12% to 16%(1)(4). HPE estimates it will generate free cash flow(1)(2)(4) of at least $4.5 billion. H3C Technologies Co., Limited Update
HPE also notes that the divestiture of its stake in H3C Technologies Co., Limited was completed on May 28. Cash proceeds totaling approximately $1.357 billion were received in exchange for the sale of HPE’s remaining 19% of total H3C shares outstanding. HPE received a total pretax consideration of approximately $3.5 billion for its stake in the company since it announced its intention to exit the joint venture. 1 A description of HPE’s use of non-GAAP financial information is provided below under “Use of non-GAAP financial information and key performance metrics.”
2 Free cash flow represents cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash.?
3 FY26 non-GAAP operating profit excludes costs of approximately $2.6 billion primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, and cost reduction program.
4 HPE provides certain guidance on a non-GAAP basis. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, Hewlett Packard Enterprise is unable to provide a reconciliation to the most directly comparable GAAP financial measure without unreasonable efforts, as the Company cannot predict some elements that are included in such directly comparable GAAP financial measure. These elements could have a material impact on the Company’s reported GAAP results for the guidance period. Refer to the discussion of non-GAAP financial measures below for more information. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. Use of non-GAAP financial information and key performance metrics To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (“GAAP”) basis, Hewlett Packard Enterprise provides financial measures, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP income tax rate, non-GAAP net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders, non-GAAP diluted net earnings per share attributable to common stockholders, and free cash flow (“FCF”). Hewlett Packard Enterprise also provides forecasts of non-GAAP operating profit growth, non-GAAP diluted net earnings per share, and FCF. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables below or elsewhere in the materials accompanying this news release. In addition an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide supplemental useful information to investors is included further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin (earnings from operations as a percentage of net revenue), net earnings, diluted net earnings (loss) per share (“EPS”), and cash flow from operations prepared in accordance with GAAP. Forward-looking statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, “guide”, “optimistic”, “intend”, “aim”, “will”, “estimates”, “may”, “likely”, “could”, “should” and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any statements regarding the ongoing integration of Juniper Networks, Inc., and any projections, estimates, or expectations of savings or synergy realizations in connection therewith; any projections, estimations, or expectations of addressable markets and their sizes, revenue (including annualized revenue run-rate), margins, expenses (including stock-based compensation expenses), investments, effective tax rates, interest rates, the impact of tax law changes and related guidance and regulations, the impact of changes in trade policies and restrictions and the uncertainty created thereby, component costs, commodity shortage, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; recent amendments to accounting guidance and any potential impacts on our financial reporting therefrom; any projections or estimations of orders; any projections of the amount, timing, or impact of cost saving actions and anticipated benefits to be realized if any; any statements of the plans, strategies, and objectives of management for future operations, as well as the execution and consummation of corporate transactions or contemplated acquisitions and dispositions (including but not limited to the disposition of shares of H3C Technologies Co., Limited (“H3C”) and the use of proceeds received therefrom), research and development expenditures, and any resulting benefits, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share, or competitive performance relating to products or services; any statements concerning technological and market trends, the pace of technological innovation, and adoption of new technologies, including quantum and artificial intelligence-related developments and any impacts of such developments on products and services offered by Hewlett Packard Enterprise; any statements regarding current or future macroeconomic trends or events and the impacts of those trends and events on Hewlett Packard Enterprise and our financial performance, including but not limited to supply chain dynamics (including but not limited to worldwide component availability), uncertain global trade policies and/or restrictions, and demand for our products and services, and our actions to mitigate such impacts to our business; the scope and duration of geopolitical tensions, including but not limited to the ongoing conflict between Russia and Ukraine, instability and conflicts in the Middle East, and the relationship between China and the U.S., and our actions in response thereto, and their impacts on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results, and the world economy; any statements regarding future regulatory trends and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues, among others; any statements regarding pending litigation, investigations, claims, or disputes, including but not limited to the legal proceedings relating to the acquisition of Juniper Networks; any statements of expectation or belief, including those relating to future guidance and the financial performance of Hewlett Packard Enterprise; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties, and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events, including but not limited to those mentioned above; the need to effectively manage third-party suppliers and distribute Hewlett Packard Enterprise's products and services; the protection of Hewlett Packard Enterprise's intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise's international operations (including from geopolitical events and macroeconomic uncertainties); the development of and transition to new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution of Hewlett Packard Enterprise’s ongoing transformation and mix shift of its portfolio of offerings; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients, and partners, including any impact thereon resulting from macroeconomic or geopolitical events, including inflation and rising commodity costs; the prospect of a shutdown of the U.S. federal government; the hiring and retention of key employees; the execution, integration, consummation, and other risks associated with business combination, disposition, and investment transactions, including but not limited to successful integration of Juniper Networks, Inc., including our ability to integrate and implement our plans and forecasts and realize our anticipated financial and operational benefits with respect to the consolidated business; the execution, timing, and results of any cost reduction actions, including estimates and assumptions related to the costs and anticipated benefits of implementing such actions; the impact of changes to privacy, cybersecurity, environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property, or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining certain financial metrics; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending litigation, investigations, claims, and disputes; the impacts of tax law changes and related guidance or regulations; and other risks that are described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission. As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law. HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited)           For the three months ended     April 30, 2026   January 31, 2026   April 30, 2025     In millions, except per share amounts Net revenue   $ 10,678     $ 9,301     $ 7,627   Costs and Expenses:             Cost of sales (exclusive of amortization shown separately below)     6,778       5,961       5,458   Research and development     922       744       540   Selling, general and administrative     1,830       1,698       1,298   Amortization of intangible assets     323       311       37   Impairment charges     —       —       1,361   Acquisition, disposition and other charges     78       117       42   Total costs and expenses     9,931       8,831       8,736   Earnings (loss) from operations     747       470       (1,109 ) Interest and other, net(1)     (73 )     (54 )     39   Earnings from equity interests     25       17       25   Earnings (loss) before provision for taxes     699       433       (1,045 ) (Provision) benefit for taxes     (75 )     19       (5 ) Net earnings (loss) attributable to HPE     624       452       (1,050 ) Preferred stock dividends     (29 )     (29 )     (29 ) Net earnings (loss) attributable to common stockholders   $ 595     $ 423     $ (1,079 ) Net Earnings (Loss) Per Share Attributable to Common Stockholders:             Basic   $ 0.45     $ 0.32     $ (0.82 ) Diluted     0.44       0.31       (0.82 ) Cash dividends declared per share     0.14       0.14       0.13   Cash dividends accrued per preferred share   $ 0.95     $ 0.95     $ 0.95   Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share:             Basic     1,335       1,334       1,322   Diluted     1,432       1,356       1,322   HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited)           For the six months ended     April 30, 2026   April 30, 2025     In millions, except per share amounts Net revenue   $ 19,979     $ 15,481   Costs and Expenses:         Cost of sales (exclusive of amortization shown separately below)     12,739       11,017   Research and development     1,666       1,015   Selling, general and administrative     3,528       2,566   Amortization of intangible assets     634       75   Impairment charges     —       1,361   Acquisition, disposition and other charges     195       123   Total costs and expenses     18,762       16,157   Earnings (loss) from operations     1,217       (676 ) Interest and other, net(1)     (127 )     78   Gain on sale of a business     —       244   Earnings from equity interests     42       42   Earnings (loss) before provision for taxes     1,132       (312 ) Provision for taxes     (56 )     (111 ) Net earnings (loss) attributable to HPE     1,076       (423 ) Preferred stock dividends     (58 )     (58 ) Net earnings (loss) attributable to common stockholders   $ 1,018     $ (481 ) Net Earnings (Loss) Per Share Attributable to Common Stockholders:         Basic   $ 0.76     $ (0.36 ) Diluted     0.75       (0.36 ) Cash dividends declared per share     0.29       0.26   Cash dividends accrued per preferred share   $ 1.91     $ 1.91   Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share:         Basic     1,335       1,319   Diluted     1,356       1,319   HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP measures (Unaudited)                   For the three months ended     April 30, 2026   January 31, 2026   April 30, 2025     Dollars in millions GAAP net revenue   $ 10,678     $ 9,301     $ 7,627   GAAP cost of sales     6,778       5,961       5,458   GAAP gross profit     3,900       3,340       2,169   Non-GAAP Adjustments             Stock-based compensation expense     23       24       13   Acquisition, disposition and other charges(2)     6       34       —   Cost reduction program     8       5       46   H3C divestiture related severance costs     —       —       16   Non-GAAP gross profit   $ 3,937     $ 3,403     $ 2,244                 GAAP gross profit margin     36.5 %     35.9 %     28.4 % Non-GAAP adjustments     0.4 %     0.7 %     1.0 % Non-GAAP gross profit margin     36.9 %     36.6 %     29.4 %     For the six months ended     April 30, 2026   April 30, 2025     Dollars in millions GAAP net revenue   $ 19,979     $ 15,481   GAAP cost of sales     12,739       11,017   GAAP gross profit     7,240       4,464   Non-GAAP Adjustments         Stock-based compensation expense     47       30   Acquisition, disposition and other charges(2)     40       (3 ) Cost reduction program     13       46   H3C divestiture related severance costs     —       17   Non-GAAP gross profit   $ 7,340     $ 4,554             GAAP gross profit margin     36.2 %     28.8 % Non-GAAP adjustments     0.5 %     0.6 % Non-GAAP gross profit margin     36.7 %     29.4 %     For the three months ended     April 30, 2026   January 31, 2026   April 30, 2025     Dollars in millions GAAP earnings (loss) from operations   $ 747     $ 470     $ (1,109 ) Non-GAAP Adjustments             Amortization of intangible assets     323       311       37   Impairment charges     —       —       1,361   Stock-based compensation expense     218       216       116   H3C divestiture related severance costs     —       —       20   Cost reduction program     30       23       146   Acquisition, disposition and other charges(2)     105       162       42   Non-GAAP earnings from operations   $ 1,423     $ 1,182     $ 613                 GAAP operating profit margin     7.0 %     5.1 %     (14.5 )% Non-GAAP adjustments     6.3 %     7.6 %     22.5 % Non-GAAP operating profit margin     13.3 %     12.7 %     8.0 %     For the six months ended     April 30, 2026   April 30, 2025     Dollars in millions GAAP earnings (loss) from operations   $ 1,217     $ (676 ) Non-GAAP Adjustments         Amortization of intangible assets     634       75   Impairment charges     —       1,361   Stock-based compensation expense     434       270   H3C divestiture related severance costs     —       97   Cost reduction program     53       146   Acquisition, disposition and other charges(2)     267       120   Non-GAAP earnings from operations   $ 2,605     $ 1,393             GAAP operating profit margin     6.1 %     (4.4 )% Non-GAAP adjustments     6.9 %     13.4 % Non-GAAP operating profit margin     13.0 %     9.0 % HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP measures (Unaudited)       For the three months ended     April 30, 2026   Diluted Net EPS(7)   January 31, 2026   Diluted Net EPS(7)   April 30, 2025   Diluted Net EPS(7)     Dollars in millions, except per share amounts GAAP net earnings (loss) attributable to common stockholders   $ 595         $ 423     $ 0.31     $ (1,079 )   $ (0.82 ) Preferred stock dividends     29           29           29       GAAP net earnings (loss) attributable to HPE   $ 624     $ 0.44     $ 452         $ (1,050 )     Non-GAAP Adjustments:                         Amortization of intangible assets     323       0.23       311       0.23       37       0.03   Impairment charges     —       —       —       —       1,361       1.03   Stock-based compensation expense     218       0.15       216       0.16       116       0.09   H3C divestiture related severance costs     —       —       —       —       20       0.02   Cost reduction program     30       0.02       23       0.02       146       0.11   Acquisition, disposition and other charges(2)     105       0.08       162       0.12       42       0.03   Adjustments for equity interests     (25 )     (0.02 )     (17 )     (0.01 )     —       —   Loss (gain) on equity investments, net     3       —       (14 )     (0.01 )     (7 )     (0.01 ) Adjustments for taxes     (110 )     (0.07 )     (170 )     (0.14 )     (91 )     (0.08 ) Other adjustments(3)     (32 )     (0.04 )     (33 )     (0.03 )     (29 )     (0.02 ) Non-GAAP net earnings attributable to HPE(4)     1,136     $ 0.79       930     $ 0.65       545     $ 0.38   Preferred stock dividends     (29 )         (29 )         (29 )     Non-GAAP net earnings attributable to common stockholders   $ 1,107         $ 901         $ 516           For the six months ended     April 30, 2026   Diluted Net EPS(7)   April 30, 2025   Diluted Net EPS(7)     Dollars in millions, except per share amounts GAAP net earnings (loss) attributable to common stockholders   $ 1,018     $ 0.75     $ (481 )   $ (0.36 ) Preferred stock dividends     58           58       GAAP net earnings (loss) attributable to HPE   $ 1,076         $ (423 )     Non-GAAP Adjustments:                 Amortization of intangible assets     634       0.47       75       0.06   Impairment charges     —       —       1,361       1.03   Stock-based compensation expense     434       0.32       270       0.20   Gain on sale of a business     —       —       (244 )     (0.18 ) H3C divestiture related severance costs     —       —       97       0.07   Cost reduction program     53       0.04       146       0.11   Acquisition, disposition and other charges(2)     267       0.19       120       0.08   Adjustments for equity interests     (42 )     (0.03 )     —       —   Gain on equity investments, net     (11 )     (0.01 )     (9 )     (0.01 ) Adjustments for taxes     (280 )     (0.21 )     (106 )     (0.09 ) Other adjustments(3)     (65 )     (0.08 )     (58 )     (0.04 ) Non-GAAP net earnings attributable to HPE(4)     2,066       1.44       1,229       0.87   Preferred stock dividends     (58 )         (58 )     Non-GAAP net earnings attributable to common stockholders   $ 2,008         $ 1,171           For the three months ended     April 30, 2026   January 31, 2026   April 30, 2025     In millions Net cash provided by (used in) operating activities   $ 1,410     $ 1,178     $ (461 ) Investment in property, plant and equipment and software assets     (583 )     (569 )     (547 ) Proceeds from sale of property, plant and equipment     130       66       80   Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (42 )     33       81   Free cash flow   $ 915     $ 708     $ (847 )     For the six months ended     April 30, 2026   April 30, 2025     In millions Net cash provided by (used in) operating activities   $ 2,588     $ (851 ) Investment in property, plant and equipment and software assets     (1,152 )     (1,075 ) Proceeds from sale of property, plant and equipment     196       164   Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (9 )     38   Free cash flow   $ 1,623     $ (1,724 ) HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets       As of     April 30, 2026   October 31, 2025     (Unaudited)   (Audited)     In millions, except par value ASSETS         Current Assets:         Cash and cash equivalents   $ 5,292     $ 5,773   Accounts receivable, net of allowances     6,286       5,290   Financing receivables, net of allowances     3,694       3,826   Inventory     9,034       6,352   Other current assets     5,053       3,753   Total current assets     29,359       24,994   Property, plant and equipment, net     5,597       6,002   Long-term financing receivables and other assets     13,992       13,817   Investments in equity interests     916       955   Goodwill and intangible assets     29,648       30,138   Total assets   $ 79,512     $ 75,906   LIABILITIES AND STOCKHOLDERS’ EQUITY         Current Liabilities:         Notes payable and short-term borrowings   $ 3,009     $ 4,609   Accounts payable     11,311       7,731   Employee compensation and benefits     1,957       1,871   Taxes on earnings     387       319   Deferred revenue     5,621       5,358   Other accrued liabilities     4,690       4,755   Total current liabilities     26,975       24,643   Long-term debt     18,237       17,756   Other non-current liabilities     8,947       8,753   Commitments and Contingencies         Stockholders’ Equity         HPE stockholders' Equity:         7.625% Series C mandatory convertible preferred stock, $0.01 par value (30 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively)     —       —   Common stock, $0.01 par value (9,600 shares authorized; 1,323 and 1,318 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively)     13       13   Additional paid-in capital     30,207       30,234   Accumulated deficit     (2,211 )     (2,811 ) Accumulated other comprehensive loss     (2,717 )     (2,748 ) Total HPE stockholders’ equity     25,292       24,688   Non-controlling interests     61       66   Total stockholders’ equity     25,353       24,754   Total liabilities and stockholders’ equity   $ 79,512     $ 75,906   HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited)       For the six months ended     April 30, 2026   April 30, 2025     In millions Cash Flows from Operating Activities:         Net earnings (loss) attributable to HPE   $ 1,076     $ (423 ) Adjustments to Reconcile Net Earnings (Loss) Attributable to HPE to Net Cash Provided by (Used in) Operating Activities:         Depreciation and amortization     1,749       1,173   Impairment charges     —       1,361   Stock-based compensation expense     434       270   Provision for inventory and credit losses     305       190   Cost reduction program     53       146   Deferred taxes on earnings     (266 )     (43 ) Earnings from equity interests     (42 )     (42 ) Gain on sale of a business     —       (244 ) Dividends received from equity investees     76       —   H3C divestiture related severance costs     —       97   Amortization of inventory fair value adjustment     31       —   Other, net     100       28   Changes in Operating Assets and Liabilities, Net of Acquisitions:         Accounts receivable     (1,098 )     (372 ) Financing receivables     282       25   Inventory     (2,956 )     (435 ) Accounts payable     3,562       (1,698 ) Taxes on earnings     137       (36 ) Other assets and liabilities     (855 )     (848 ) Net cash provided by (used in) operating activities     2,588       (851 ) Cash Flows from Investing Activities:         Investment in property, plant and equipment and software assets     (1,152 )     (1,075 ) Proceeds from sale of property, plant and equipment     196       164   Purchases of equity investments     (4 )     (1 ) Proceeds from sale of available-for-sale securities and other investments     5       41   Financial collateral posted     (491 )     (638 ) Financial collateral received     453       287   Proceeds from sale of a business     —       210   Net cash used in investing activities     (993 )     (1,012 ) Cash Flows from Financing Activities:         Short-term borrowings with original maturities less than 90 days, net     (10 )     (11 ) Proceeds from debt, net of issuance costs     2,230       257   Payments of debt     (3,371 )     (1,061 ) Net payments related to stock-based award activities     (183 )     (171 ) Repurchases of common stock     (312 )     (102 ) Cash dividends paid to preferred stockholders     (58 )     (54 ) Cash dividends paid to common stockholders     (379 )     (342 ) Other     (8 )     (8 ) Net cash used in financing activities     (2,091 )     (1,492 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (9 )     38   Change in cash, cash equivalents and restricted cash     (505 )     (3,317 ) Cash, cash equivalents and restricted cash at beginning of period     5,859       15,105   Cash, cash equivalents and restricted cash at end of period   $ 5,354     $ 11,788   HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Segment Information (Unaudited)           For the three months ended     April 30, 2026   January 31, 2026   April 30, 2025     In millions Net Revenue(5):             Networking   $ 2,690     $ 2,706     $ 1,084   Cloud & AI     7,707       6,334       6,271   Corporate Investments and Other     281       261       272   Total segment net revenue     10,678       9,301       7,627                 Earnings Before Taxes(5):             Networking     581       640       271   Cloud & AI     954       645       414   Corporate Investments and Other     (9 )     (12 )     (7 ) Total segment earnings from operations     1,526       1,273       678   Unallocated corporate costs and eliminations     (103 )     (91 )     (65 ) Stock-based compensation expense     (218 )     (216 )     (116 ) Amortization of intangible assets     (323 )     (311 )     (37 ) Impairment charges     —       —       (1,361 ) H3C divestiture related severance costs     —       —       (20 ) Cost reduction program     (30 )     (23 )     (146 ) Acquisition, disposition and other charges(2)     (105 )     (162 )     (42 ) Interest and other, net(1)     (73 )     (54 )     39   Earnings from equity interests     25       17       25   Total pretax earnings (loss)   $ 699     $ 433     $ (1,045 ) HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Segment Information (Unaudited)           For the six months ended     April 30, 2026   April 30, 2025     In millions Net Revenue(5):         Networking   $ 5,396     $ 2,160   Cloud & AI     14,041       12,782   Corporate Investments and Other     542       539   Total segment net revenue     19,979       15,481             Earnings Before Taxes(5):         Networking     1,221       591   Cloud & AI     1,599       961   Corporate Investments and Other     (21 )     (15 ) Total segment earnings from operations     2,799       1,537   Unallocated corporate costs and eliminations     (194 )     (144 ) Stock-based compensation expense     (434 )     (270 ) Amortization of intangible assets     (634 )     (75 ) Impairment charges     —       (1,361 ) Gain on sale of a business     —       244   H3C divestiture related severance costs     —       (97 ) Cost reduction program     (53 )     (146 ) Acquisition, disposition and other charges(2)     (267 )     (120 ) Interest and other, net(1)     (127 )     78   Earnings from equity interests     42       42   Total pretax earnings (loss)   $ 1,132     $ (312 ) HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Segment Information (Unaudited)           For the three months ended   Change (%)   April 30, 2026   January 31, 2026   April 30, 2025   Q/Q   Y/Y   Dollars in millions Net Revenue:                   Networking(5)                   Campus & Branch $ 1,322   $ 1,227   $ 880   7.7%   50.2% Data Center Networking   320     444     96   (27.9)   233.3 Security   273     255     107   7.1   155.1 Routing   775     780     1   (0.6)   N/M Total   2,690     2,706     1,084   (0.6)   148.2 Cloud & AI(5)                   Server   5,454     4,232     4,109   28.9   32.7 Storage   1,175     1,061     1,148   10.7   2.4 Financial Services   904     876     856   3.2   5.6 Other   174     165     158   5.5   10.1 Total   7,707     6,334     6,271   21.7   22.9 Corporate Investments and Other   281     261     272   7.7   3.3 Total consolidated net revenue $ 10,678   $ 9,301   $ 7,627   14.8%   40.0%     For the six months ended   Change (%)     April 30, 2026   April 30, 2025   Y/Y     Dollars in millions Net Revenue:             Networking(5)             Campus & Branch   $ 2,549   $ 1,744   46.2% Data Center Networking     764     188   306.4 Security     528     226   133.6 Routing     1,555     2   N/M Total     5,396     2,160   149.8 Cloud & AI(5)             Server     9,686     8,457   14.5 Storage     2,236     2,203   1.5 Financial Services     1,780     1,729   2.9 Other     339     393   (13.7) Total     14,041     12,782   9.8 Corporate Investments and Other     542     539   0.6 Total consolidated net revenue   $ 19,979   $ 15,481   29.1% HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Segment Operating Margin Summary Data (Unaudited)                       For the three months ended   Change in operating profit margin (pts)     April 30, 2026   January 31, 2026   April 30, 2025   Q/Q   Y/Y Segment Operating Profit Margin:                     Networking   21.6 %   23.7 %   25.0 %   (2.1 )   (3.4 ) Cloud & AI   12.4 %   10.2 %   6.6 %   2.2     5.8   Corporate Investments and Other   (3.2 %)   (4.6 %)   (2.6 %)   1.4     (0.6 ) Total segment operating profit margin   14.3 %   13.7 %   8.9 %   0.6     5.4       For the six months ended   Change in operating profit margin (pts)     April 30, 2026   April 30, 2025   Y/Y Segment Operating Profit Margin:             Networking   22.6 %   27.4 %   (4.8 ) Cloud & AI   11.4 %   7.5 %   3.9   Corporate Investments and Other   (3.9 )%   (2.8 )%   (1.1 ) Total segment operating profit margin   14.0 %   9.9 %   4.1   HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Calculation of Diluted Net Earnings Per Share (Unaudited)           For the three months ended     April 30, 2026   January 31, 2026   April 30, 2025     In millions, except per share amounts Numerator:             GAAP net earnings (losses) attributable to common stockholders - Basic   $ 595   $ 423   $ (1,079 ) Plus: 7.625% Series C mandatory convertible preferred stock dividends     29     —     —   GAAP net earnings (losses) attributable to HPE - Diluted   $ 624   $ 423   $ (1,079 )               Non-GAAP net earnings attributable to common stockholders - Basic   $ 1,107   $ 901   $ 516   Plus: 7.625% Series C mandatory convertible preferred stock dividends     29     29     29   Non-GAAP net earnings attributable to HPE - Diluted   $ 1,136   $ 930   $ 545                 Denominator:             GAAP Weighted-average shares used to compute basic net EPS     1,335     1,334     1,322   Dilutive effect of employee stock plans(6)     21     22     —   Dilutive effect of 7.625% Series C mandatory convertible preferred stock(6)     76     —     —   GAAP Weighted-average shares used to compute diluted net EPS     1,432     1,356     1,322                 Non-GAAP Weighted-average shares used to compute basic net EPS     1,335     1,334     1,322   Dilutive effect of employee stock plans(6)     21     22     10   Dilutive effect of 7.625% Series C mandatory convertible preferred stock(6)     76     76     87   Non-GAAP Weighted-average shares used to compute diluted net EPS     1,432     1,432     1,419                 GAAP Net EPS             Basic   $ 0.45   $ 0.32   $ (0.82 ) Diluted   $ 0.44   $ 0.31   $ (0.82 )               Non-GAAP Net EPS             Basic   $ 0.83   $ 0.68   $ 0.39   Diluted(4)   $ 0.79   $ 0.65   $ 0.38       For the six months ended     April 30, 2026   April 30, 2025     In millions, except per share amounts Numerator:         GAAP net earnings (losses) attributable to common stockholders - Basic   $ 1,018   $ (481 ) Plus: 7.625% Series C mandatory convertible preferred stock dividends     —     —   GAAP net earnings (losses) attributable to HPE - Diluted   $ 1,018   $ (481 )           Non-GAAP net earnings attributable to common stockholders - Basic   $ 2,008   $ 1,171   Plus: 7.625% Series C mandatory convertible preferred stock dividends     58     58   Non-GAAP net earnings attributable to HPE - Diluted   $ 2,066   $ 1,229             Denominator:         Weighted-average shares used to compute basic net EPS     1,335     1,319   Dilutive effect of employee stock plans(7)     21     —   Dilutive effect of 7.625% Series C mandatory convertible preferred stock(7)     —     —   Weighted-average shares used to compute diluted net EPS     1,356     1,319             Denominator(Non-GAAP):         Weighted-average shares used to compute basic net EPS     1,335     1,319   Dilutive effect of employee stock plans(7)     21     14   Dilutive effect of 7.625% Series C mandatory convertible preferred stock(7)     76     76   Weighted-average shares used to compute diluted net EPS     1,432     1,409             GAAP Net EPS         Basic   $ 0.76   $ (0.36 ) Diluted   $ 0.75   $ (0.36 )           Non-GAAP Net EPS         Basic   $ 1.50   $ 0.89   Diluted(4)   $ 1.44   $ 0.87   _________________________ (1)   Interest and other, net includes tax indemnification and other adjustments, non-service net periodic benefit credit, and interest and other, net. (2)   For the six months ended April 30, 2026 and for the three months ended January 31, 2026, Acquisition, disposition and other charges include non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, which was recorded in cost of sales. (3)   Other adjustments includes non-service net periodic benefit credit and tax indemnification and other adjustments. (4)   For purposes of calculating diluted net EPS, the preferred stock dividends are added back to the net earnings attributable to common stockholders and the diluted weighted average share calculation assumes the preferred stock was converted at issuance or as of the beginning of the reporting period. (5)   Effective at the beginning of the first quarter of fiscal 2026, HPE implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI and (ii) transferring the Telco and Instant On businesses to Corporate Investments and Other from Networking. The Company reflected these changes to its segment information retrospectively. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share or total assets. (6)   The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the preferred stock is calculated under the if-converted method. For the six months ended April 30, 2026 and 2025; and for the three months ended January 31, 2026 and April 30, 2025, the effect of preferred stock is excluded as it would be anti-dilutive. (7)   For the six months ended April 30, 2026 and 2025; and for the three months ended January 31, 2026 and April 30, 2025, the diluted net EPS adjustment includes the impact to Non-GAAP net earnings attributable to HPE for the dilutive effect of preferred stock. N/M - Not Meaningful. Use of non-GAAP financial measures To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a GAAP basis, Hewlett Packard Enterprise provides non-GAAP financial measures, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP income tax rate, non-GAAP net earnings attributable to HPE, non-GAAP net earnings attributable to common stockholders, non-GAAP diluted net earnings per share attributable to common stockholders, and FCF. Hewlett Packard Enterprise also provides, non-GAAP diluted net earnings per share, non-GAAP operating profit growth, and FCF. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. The GAAP measure most directly comparable to non-GAAP gross profit is gross profit. The GAAP measure most directly comparable to non-GAAP gross profit margin is gross profit margin. The GAAP measure most directly comparable to non-GAAP operating profit (non-GAAP earnings from operations) is earnings from operations. The GAAP measure most directly comparable to non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) is operating profit margin (earnings from operations as a percentage of net revenue). The GAAP measure most directly comparable to non-GAAP income tax rate is income tax rate. The GAAP measure most directly comparable to non-GAAP net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share attributable to common stockholders is diluted net earnings per share attributable to common stockholders. The GAAP measure most directly comparable to FCF is cash flow from operations. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables above or elsewhere in the materials accompanying this news release. Usefulness of non-GAAP financial measures to investors Hewlett Packard Enterprise believes that providing the non-GAAP financial measures stated above, in addition to the related GAAP measures provides investors with greater transparency to the information used by Hewlett Packard Enterprise’s management in its financial and operational decision making and allows investors to see Hewlett Packard Enterprise’s results “through the eyes” of management. Hewlett Packard Enterprise further believes that providing this information provides Hewlett Packard Enterprise’s investors with a supplemental view to understand the Company’s historical and prospective operating performance and to evaluate the efficacy of the methodology and information used by Hewlett Packard Enterprise’s management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates the comparisons of Hewlett Packard Enterprise’s operating performance with the performance of other companies in the same industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner. Economic substance of and material limitations associated with non-GAAP financial measures used by Hewlett Packard Enterprise Non-GAAP gross profit and non-GAAP gross profit margin are defined to exclude charges related to the stock-based compensation expense, acquisition, disposition and other charges, severance costs associated with the cost reduction program, and H3C divestiture related severance costs. Non-GAAP operating profit (non-GAAP earnings from operations) and non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) consist of earnings from operations or earnings from operations as a percentage of net revenue excluding the items mentioned above and charges relating to the amortization of intangible assets, and impairment charges. Non-GAAP net earnings, net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders and non-GAAP diluted net earnings per share attributable to common stockholders consist of net earnings or diluted net earnings per share excluding the charges previously stated, as well as gain on sale of a business, adjustments for equity interests, litigation judgments, gain or loss on equity investments, other adjustments, and adjustments for taxes. Non-GAAP net earnings attributable to HPE and non-GAAP diluted net earnings per share attributable to common stockholders includes preferred stock dividends added back to non-GAAP net earnings attributable to HPE. The Adjustments for taxes line item includes certain income tax valuation allowances and separation taxes, the impact of tax reform, structural rate adjustment, excess tax benefit from stock-based compensation, and adjustments for additional taxes or tax benefits associated with each non-GAAP item. Hewlett Packard Enterprise believes that excluding the items mentioned above from the non-GAAP financial measures provides a supplemental view to management and investors of its consolidated financial performance and presents the financial results of the business without costs that Hewlett Packard Enterprise’s management does not believe to be reflective of ongoing operating results. Exclusion of these items can have a material impact on the equivalent GAAP measure and cash flows thus limiting their use as analytical tools. These limitations are discussed below or elsewhere in the materials accompanying this news release. More specifically, Hewlett Packard Enterprise’s management excludes each of those items mentioned above for the following reasons: Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to employees, HPE excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses, and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding stock-based compensation expense. HPE incurred costs related to its acquisition, disposition and other charges. Charges include expenses associated with acquisitions, non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, Inc., exit costs associated with disposal activities, transformation costs (credits), and disaster (recovery) charges. HPE excludes these costs because the Company’s management considers these charges to be discrete events and does not believe they are reflective of normal continuing business operations. For the three and six months ended April 30, 2026 and January 31, 2026, acquisition charges were driven by costs associated with the acquisition of Juniper Networks and miscellaneous disposition related charges. For the three and six months ended April 30, 2025, acquisition charges were driven by costs associated with the pending acquisition of Juniper Networks and miscellaneous disposition related charges. We incurred severance and other charges pursuant to cost management initiatives. We exclude these charges because we do not believe they are reflective of normal continuing business operations. We believe eliminating these adjustments for the purposes of calculating non-GAAP measures facilitates the evaluation of our current operating performance. HPE incurred H3C divestiture related severance costs in connection with the disposition of issued share capital of H3C held by HPE. On September 4, 2024, HPE divested 30% of the total issued share capital of H3C and received proceeds of $2.1 billion of pre-tax consideration ($2.0 billion post-tax). The divestiture resulted in decreased future investment earnings and cash dividend inflows resulting in a decision to implement offsetting cost savings measures. These measures include severance for certain of the Company’s employees. The non-GAAP adjustment represents our costs to execute these related exit actions to offset the loss in equity earnings and related cash flows. HPE expects future annualized cost savings of approximately $120 million following the completion of these actions. HPE incurs charges relating to the amortization of intangible assets and excludes these charges for purposes of calculating these non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of the Company’s acquisitions. HPE excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect HPE’s cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure. In fiscal 2025, HPE recorded non-cash impairment charges for the goodwill associated with its Cloud & AI reporting unit and the impairment of certain fixed assets. HPE believes that these non-cash charges do not reflect the Company’s operating results and is not indicative of the underlying performance of the business. HPE excludes these charges for purposes of calculating these non-GAAP measures to facilitate a supplemental evaluation of the Company’s current operating performance and comparisons to past operating results. Although this does not directly affect the Company’s cash position, the loss in value of goodwill over time can have a material impact on the equivalent GAAP earnings measure. Gain on sale of a business represents the gain associated with certain disposal activities. On December 1, 2024, HPE completed the disposition of the Company’s Communication Technology Group which resulted in a gain of $248 million. The Company’s management considers this divestiture to be a discrete event and believes eliminating this adjustment for the purposes of calculating non-GAAP measures facilitates the evaluation of its current operating performance. As of April 30, 2026, HPE possessed a 19% equity interest in H3C, however, the Company entered into share purchase agreements to divest all of the remaining issued share capital of H3C held by HPE through its subsidiaries. Beginning in fiscal 2026, the Company stopped reporting H3C earnings in its non-GAAP results due to the planned divestiture of the H3C investment. In May 2026, the Company sold the remaining equity interest in H3C. The Company believes that eliminating these amounts for purposes of calculating non-GAAP financial measures facilitates the evaluation of its current operating performance. HPE excludes gains and losses (including impairments) on its non-marketable equity investments because the Company does not believe they are reflective of normal continuing business operations. These adjustments are reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings. The Company believes eliminating these adjustments for the purposes of calculating non-GAAP measures facilitates the evaluation of its current operating performance. Hewlett Packard Enterprise utilizes a structural long-term projected non-GAAP income tax rate in order to provide consistency across the interim reporting periods and to eliminate the effects of items not directly related to the Company’s operating structure that can vary in size, frequency and timing. When projecting this long-term rate, HPE evaluated a three-year financial projection. The projected rate assumes no incremental acquisitions in the three-year projection period and considers other factors including the Company’s expected tax structure, its tax positions in various jurisdictions and current impacts from key legislation implemented in major jurisdictions where HPE operates. For fiscal 2026, HPE will use a projected non-GAAP income tax rate of 14%, which reflects currently available information as well as other factors and assumptions. For fiscal 2025, HPE used a projected non-GAAP income tax rate of 15%. The non-GAAP income tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the Company’s geographic earnings mix including due to acquisition activity, or other changes to the Company’s strategy or business operations. HPE will re-evaluate its long-term rate as appropriate. HPE believes that making these adjustments for purposes of calculating non-GAAP measures, facilitates a supplemental evaluation of the Company’s current operating performance and comparisons to past operating results. FCF is defined as cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash. FCF does not represent the total increase or decrease in cash for the period. Hewlett Packard Enterprise’s management and investors can use FCF for the purpose of determining the amount of cash available for investment in the Company’s businesses, repurchasing stock and other purposes as well as evaluating its historical and prospective liquidity. Compensation for material limitations with use of non-GAAP financial measures These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hewlett Packard Enterprise’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are that they can have a material impact on the equivalent GAAP earnings measures and cash flows, they may be calculated differently by other companies (limiting the usefulness of those measures for comparative purposes) and may not reflect the full economic effect of the loss in value of certain assets. Hewlett Packard Enterprise compensates for these limitations on the use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Hewlett Packard Enterprise also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure for this quarter and prior periods within this news release and in other written materials that include these non-GAAP financial measures, and Hewlett Packard Enterprise encourages investors to review those reconciliations carefully. View source version on businesswire.com: https://www.businesswire.com/news/home/20260601866494/en/ Media Contact:
Laura Keller
Laura.Keller@hpe.com Investor Contact:
Paul Glaser
investor.relations@hpe.com Original: HPE Reports Fiscal 2026 Second Quarter Results

HPE Names Chris Hsu to Board of DirectorsJune 1, 2026 4:07 PM
Business Wire HPE (NYSE: HPE) today announced the appointment of Christopher (Chris) Hsu, a Partner at Elliott Investment Management L.P., to its Board of Directors, effective immediately. Hsu will join the Board's Strategy Committee, as well as its Finance & Investment Committee. Hsu serves as Head of Portfolio Operations and Co-Lead of Private Equity at Elliott. Prior to joining the investment firm, he was CEO of Azibo, CEO of Micro Focus International and held leadership positions at HPE and Hewlett-Packard Company. He currently serves on the boards of Nielsen, Syneos Health, Cloud Software Group and Redaptive. “We look forward to Chris bringing his past and current experiences to the Board in the execution of HPE’s strategy and driving value for shareholders,” said Pat Russo, chair of the Board of Directors, HPE. “HPE’s recent results reflect the strength of its strategy and strong execution by management, especially as the company integrates the Juniper acquisition. We look forward to Chris’s contributions to the Board’s work and HPE’s ongoing progress.” “Having spent valuable years of my career at HPE, I have an appreciation for what this company has built and for the opportunities ahead,” Hsu said. “HPE has strong assets that are well positioned for today’s networking, cloud, and AI needs. We have been encouraged by the meaningful progress HPE has made on the execution of its strategy. I look forward to working with the HPE board and management team.” “HPE is well positioned to benefit from the AI infrastructure buildout and strong enterprise IT demand,” said Jesse Cohn, Managing Partner at Elliott. “Today’s addition of Chris to the Board reflects our commitment to the company’s success. HPE has strategic and operational opportunities available to it, and we look forward to supporting the company as it executes on that potential.” The appointment was made in connection with HPE’s cooperation agreement with Elliott and reflects the Board’s ongoing commitment to long-term shareholder value creation. The agreement was filed on Form 8-K with the Securities and Exchange Commission in July 2025. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, "guide", “optimistic”, “intend”, “aim”, “will”, "estimates", “may”, “could”, “should” and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any statements related to expectations of operational and/or financial performance; capital allocation strategies and actions; the ability of HPE to integrate and implement its plans, forecasts and other expectations with respect to the business and realize additional opportunities for growth and innovation; and the unpredictability and uncertainty of macroeconomic and geopolitical events, including but not limited to global conflicts and heightened trade restrictions. Risks, uncertainties, and assumptions include those that are described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260601723215/en/ Media Contact:
Laura Keller
Laura.Keller@hpe.com Investor Contact:
Paul Glaser
Investor.Relations@hpe.com Original: HPE Names Chris Hsu to Board of Directors

Will this follow DELL as it doubled on earnings?

Earnings release After the close

AI Enthusiasm Set to Support Wall Street Open: Dow Jones, S&P, Nasdaq, FuturesJune 1, 2026 9:17 AM
IH Market News U.S. stock futures traded modestly higher on Monday, pointing to a positive start for the new trading week as investors continued to embrace artificial intelligence-related opportunities following another major product announcement from Nvidia (NASDAQ:NVDA). The upbeat tone comes after Wall Street ended Friday’s volatile session with gains across the major benchmarks, pushing all three leading indices to fresh record closing highs. Nvidia and Microsoft Unveil New AI-Powered PC Platform Investor sentiment received a boost after Nvidia (NASDAQ:NVDA) introduced RTX Spark, a new AI-focused “superchip” developed in partnership with Microsoft (NASDAQ:MSFT). The company said the platform is designed to transform Windows-based personal computers for the age of AI-powered digital assistants. “The PC is being reinvented,” said NVIDIA founder and CEO Jensen Huang. “For forty years, you launched apps. Click. Type. With RTX Spark and Microsoft Windows, you ask — and the PC does the work.” The announcement fueled premarket gains in several technology names. Nvidia shares advanced 2.4%, while Microsoft climbed 3.8%. Computer manufacturers Dell (NYSE:DELL) and HP (NYSE:HPE) also traded sharply higher ahead of the opening bell as investors assessed the potential impact of AI-enabled PCs on future demand. Middle East Tensions Continue to Limit Risk Appetite Despite the optimism surrounding artificial intelligence, investors remained cautious as geopolitical uncertainty persisted in the Middle East. Oil prices moved sharply higher after U.S. Central Command announced it had carried out “self-defense strikes” against Iranian radar installations and drone command facilities during the weekend. Iran’s Islamic Revolutionary Guard Corps responded by saying it had targeted an air base allegedly linked to a U.S. attack on a telecommunications facility located on Sirik Island in southern Hormozgan province. The renewed hostilities added another layer of uncertainty to global markets and helped push crude prices higher. Trump Signals Confidence in Ongoing Negotiations Amid the escalating tensions, President Donald Trump sought to reassure markets that diplomatic efforts remain active. In a post published on Truth Social early Monday, Trump said that “Iran really wants to make a deal” while encouraging patience as negotiations continue. “Just sit back and relax, it will all work out well in the end – It always does!” Trump said. Investors continue to monitor developments closely for signs that a broader agreement could ease geopolitical risks and stabilize energy markets. Wall Street Closed Last Week at Record Highs Stocks finished Friday’s session in positive territory despite intraday volatility. The Dow Jones Industrial Average led the gains, advancing 363.49 points, or 0.7%, to close at 51,032.46. The Nasdaq Composite added 55.15 points, or 0.2%, ending at 26,972.62, while the S&P 500 gained 16.43 points, or 0.2%, to finish at 7,580.06. All three benchmarks ended the session at record closing levels. For the shortened trading week, the Nasdaq surged 2.4%, the S&P 500 gained 1.4%, and the Dow rose 0.9%. Investors Await Clarity on Potential U.S.-Iran Agreement Market participants remain broadly optimistic that Washington and Tehran can reach an agreement, although many appear reluctant to take aggressive positions until more details emerge. Recent reports have indicated that both countries may have agreed to a framework for extending the current ceasefire by 60 days. The reported arrangement could pave the way for reopening the Strait of Hormuz and restarting negotiations over Iran’s nuclear program, although President Trump has not yet formally approved the proposal. In another social media post, Trump said he would meet with advisors in the situation room to make a “final determination” regarding the agreement. Trump added that some less significant issues had already been resolved but reiterated that Iran must agree never to obtain a nuclear weapon and must immediately reopen the Strait of Hormuz without imposing tolls. Dell’s Rally Highlights Ongoing Technology Momentum Technology shares received additional support from Dell Technologies (NYSE:DELL), which surged more than 33.7% on Friday after posting stronger-than-expected fiscal first-quarter results and increasing its full-year guidance. The rally helped propel computer hardware stocks sharply higher, with the NYSE Arca Computer Hardware Index jumping 8.6% to a new record closing high. NetApp and Software Stocks Also Post Strong Gains NetApp (NASDAQ:NTAP) was another standout performer, soaring 22.4% after reporting quarterly results that exceeded expectations and issuing optimistic guidance. Software companies also attracted significant buying interest, with the Dow Jones U.S. Software Index climbing 6.2% to its highest closing level in four months. Elsewhere, gold and brokerage stocks moved higher, while telecom, retail and natural gas shares underperformed during the session. Nvidia stock price Microsoft stock price Dell stock price Hewlett Packard Enterprise stock price NetApp stock price Original: AI Enthusiasm Set to Support Wall Street Open: Dow Jones, S&P, Nasdaq, Futures

HPE Introduces CPU Server with NVIDIA Vera CPU, Purpose-built for Agentic AIJune 1, 2026 1:30 AM
Business Wire  New HPE ProLiant Compute DL394 Gen12 combines the capabilities of NVIDIA Vera CPUs with industry-leading security and management to accelerate agentic-driven operations HPE announces new HPE ProLiant Compute DL394 Gen12 with the latest NVIDIA Vera CPU, built for the age of agentic AI and for reinforcement learning and data processing at AI-factory scale. New HPE ProLiant server provides extreme single core performance and high-memory bandwidth required for sequential logic and complex financial modeling and is engineered to support customers shifting from generative AI to reinforcement learning and agentic AI workloads. HPE’s advanced security capabilities and intuitive server management expertise is integral to organizations looking to tackle demanding AI workloads with confidence. COMPUTEX – HPE (NYSE: HPE) today announced the expansion of its industry-leading server portfolio with the introduction of the HPE ProLiant Compute DL394 Gen12, powered by NVIDIA Vera CPU. This next-generation server is engineered specifically to address the compute demands of emerging high-performance AI and data processing workloads delivering industry-leading agentic AI CPU performance, memory bandwidth, and low latency. Built on a foundation of advanced architecture, the platform also features HPE’s enterprise-grade Integrated Lights-Out (iLO) as security, while HPE Compute Ops Management provides a unified dashboard to manage and automate server environments. The HPE ProLiant Compute DL394 Gen12, based on NVIDIA Vera CPU, was launched at COMPUTEX 2026 as part of a new collaboration with NVIDIA and Redpanda that is being explored by the New York Stock Exchange (NYSE). The new server features technology optimized for the specific demands of agentic AI, across data storage and processing, monitoring, management and security capabilities, ensuring smooth and secure operation for agentic AI. “The shift from generative models to agentic systems is redefining the role of compute across the enterprise,” said Antonio Neri, president and CEO of HPE. “These workloads require high-performance servers with exceptional CPU performance to enable real-time reasoning across agentic AI and financial services applications. With our new HPE ProLiant Compute server, we are delivering a new class of infrastructure to help customers accelerate insights and operate with confidence in the most demanding environments.” “At the NYSE, our focus is to optimize the latency, throughput, and reliability of the systems underpinning our unrivaled infrastructure,” said Lynn Martin, President of NYSE Group. “NYSE processes more than 1.1 trillion messages per day, and in collaboration with Redpanda and HPE, using NVIDIA Vera CPUs, we will be scaling our capacity while further optimizing latency to power a high-performance, resilient, and AI-ready market infrastructure.” “Agentic AI has arrived, and it needs a new CPU,” said Jensen Huang, founder and CEO, NVIDIA. “Vera was built to orchestrate AI factories—delivering 2x the efficiency and faster task completion than x86. With HPE ProLiant Compute DL394 Gen12, enterprises can put Vera to work, and NYSE shows what purpose-built AI infrastructure can do in the world’s most demanding environments.” Solving the Memory Challenge HPE ProLiant Compute DL394 Gen12 is a 2U server that helps customers advance the adoption of AI computing in their organization. The server leverages NVIDIA Vera CPUs with a monolithic design, unlike traditional high-core-count chiplet architectures that suffer from non-uniform memory access (NUMA) issues, which results in variable latencies and non-deterministic performance can develop latency in multi-processor systems. By leveraging low-power double data rate 5X (LPDDR5X), a highly efficient form of dynamic random-access memory (DRAM), the HPE server achieves 1.2 TB/s aggregate bandwidth—up to 14 GB/s per core—enabling the HPE ProLiant Compute DL394 Gen12 to ingest and process data at high speed. This architecture enables NVIDIA Vera CPU to act as a high-speed orchestrator, ensuring resources are efficiently balanced to meet the most demanding AI workloads, while reducing capacity waste. Embedded Security and AI-Driven Operations with HPE ProLiant HPE ProLiant Compute DL394 Gen12 embeds security at every level with Silicon Root of Trust, HPE’s firmware technology. Additionally, HPE ProLiant Compute servers with iLO 7—like the HPE ProLiant Compute DL394 Gen12, are enabled by the secure enclave, an HPE innovation that safeguards servers at every phase of its lifecycle. These next-generation servers are the first to meet NIST’s quantum computing resistant security requirements, giving organizations a more secure and future-ready platform for protecting sensitive workloads and regulated environments. To enable AI-driven insights and enhance operational agility, the server is also equipped with HPE Compute Ops Management which provides a single, unified solution for overseeing distributed environments. This management layer provides customers with AI-driven operations that can reduce server management time and minimize the risk of revenue loss due to downtime. Availability The HPE ProLiant Compute DL394 Gen12 will be available in fall 2026, as a new addition to the NVIDIA AI Computing by HPE portfolio. This server can also be acquired through HPE Financial Service’s 90/9 Advantage program that offers no payments for 90 days and an additional nine months at one percent. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260531373807/en/ Media Contact:
Ashleigh Artist
ashleigh.artist@hpe.com Original: HPE Introduces CPU Server with NVIDIA Vera CPU, Purpose-built for Agentic AI

Hewlett Packard Enterprise jumps as Dell’s AI-driven outlook boosts sector sentiment (HPE)May 29, 2026 10:30 AM
IH Market News AI infrastructure stocks rally following Dell results Hewlett Packard Enterprise (NYSE:HPE) surged 18% on Friday, while Super Micro Computer (NASDAQ:SMCI) advanced 10%, as investors responded positively to Dell Technologies’ (NYSE:DELL) stronger-than-expected earnings and upgraded outlook. The gains reflected growing optimism across the artificial intelligence infrastructure sector, with traders betting that robust demand trends seen by Dell could extend to other server and data centre hardware providers. Dell delivers major forecast upgrade The rally was triggered by Dell’s quarterly results, which highlighted accelerating demand for AI-focused server systems powered by Nvidia technology. Dell shares jumped nearly 40% after management raised both revenue and profit expectations for the year, adding more than $81 billion to the company’s market value in a single session. The company increased its annual revenue forecast to between $165 billion and $169 billion, significantly above its previous outlook of $138 billion to $142 billion. AI server demand continues to accelerate A key driver behind Dell’s upgraded guidance was stronger demand for artificial intelligence infrastructure. The company raised its forecast for fiscal 2027 AI server revenue to approximately $60 billion, compared with its previous estimate of $50 billion. The revision reinforced investor confidence that spending on AI computing capacity remains robust as businesses continue to expand data centre infrastructure to support increasingly complex AI workloads. Data centre spending supports industry growth Dell has benefited from large-scale investment programmes by major technology companies, including Alphabet and Amazon, which continue to allocate substantial capital toward AI-related infrastructure. The company has also supported profitability through pricing actions and improved supply chain management, helping it navigate ongoing demand growth across the server market. HPE and Super Micro gain from sector read-through The strength in Dell’s results spilled over into the broader AI infrastructure ecosystem, lifting shares of companies with exposure to enterprise servers, networking equipment and data centre solutions. Investors viewed Dell’s performance as a positive indicator for sector-wide demand, prompting strong buying interest in both Hewlett Packard Enterprise and Super Micro Computer. The rally reflected expectations that elevated spending on AI systems, cloud infrastructure and data centre expansion could continue to support growth opportunities across the industry. AI investment theme remains a key market driver The latest moves highlight the extent to which investor sentiment remains tied to the ongoing buildout of artificial intelligence infrastructure. As technology companies continue investing heavily in computing capacity, server manufacturers and hardware suppliers are increasingly being viewed as major beneficiaries of the AI adoption cycle. Friday’s gains in HPE and Super Micro suggest investors expect the favourable demand environment highlighted by Dell to extend across much of the AI hardware sector in the months ahead. Hewlett Packard Enterprise stock price Original: Hewlett Packard Enterprise jumps as Dell’s AI-driven outlook boosts sector sentiment (HPE)

HPE to Present Live Webcast of Investor Relations Summit at HPE Discover 2026May 21, 2026 7:45 AM
Business Wire HPE (NYSE: HPE) will conduct a live audio webcast of the Investor Relations Summit at HPE Discover 2026 on June 16, 2026. HPE also invites investors to view additional live programming from the event, including HPE president and CEO Antonio Neri’s keynote address. HPE Discover 2026 programming for investors will start at 11 a.m. CT (12 p.m. ET) on June 16 with Neri’s keynote address. The keynote will be broadcast live, as will the HPE Networking General Session later that day with Rami Rahim, executive vice president, president and general manager, Networking. Neri will then host the Investor Relations Summit, where he will discuss HPE’s strategy. Investors are invited to access live coverage for all three events. The schedule and links are as follows: 11 a.m. – 12:15 p.m. CT (12 – 1:15 p.m. ET): Antonio Neri’s HPE Discover 2026 Keynote at www.hpe.com/discover 3 – 4:30 p.m. CT (4 – 5:30 p.m. ET): Rami Rahim’s HPE Networking General Session at www.hpe.com/discover 4:45 – 5:45 p.m. CT (5:45 – 6:45 p.m. ET): Investor Relations Summit Q&A Session at www.hpe.com/investor/IRSummit2026 A replay of the Investor Relations Summit audio webcast will be available at the link above on the HPE Investor Relations website shortly after the event and will remain available for approximately one year. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260521066229/en/ Media Contact:
Laura Keller
Laura.Keller@hpe.com Investor Contact:
Paul Glaser
investor.relations@hpe.com Original: HPE to Present Live Webcast of Investor Relations Summit at HPE Discover 2026

HPE Positioned Highest in Execution and Furthest in Vision in 2026 Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure by Gartner® for Fifth Consecutive TimeMay 20, 2026 11:30 AM
Business Wire HPE positioned as a Leader for 20 times running in 2026 Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure Report HPE (NYSE: HPE) today announced Gartner has recognized HPE as a Leader in the 2026 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, positioning the company furthest in "Completeness of Vision" and highest for "Ability to Execute." This marks the fifth consecutive time that Gartner has placed HPE in this position, and the 20th time in a row that HPE has been in the Leaders Quadrant of this report. Completeness of Vision is evaluated on criteria such as market understanding, marketing and sales strategy, offering (product) strategy, innovation, Business Model, Vertical Strategy and Geographic Strategy. Ability to Execute criteria includes product or service, market responsiveness/record, marketing execution, Overall Viability, Sales Execution and Pricing and Customer Experience. “We believe HPE's position in the Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure reflects the strong customer momentum behind our vision for AI-native, self-driving networks that are purpose-built to support AI workloads, rapidly expanding device connectivity, increasingly complex environments, and evolving security challenges,” said Sujai Hajela, executive vice president, campus and branch, Networking, HPE. “Customers are increasingly embracing autonomous networking to simplify operations, improve user experiences, and accelerate outcomes at global scale by bringing together HPE Mist and HPE Aruba Central platforms under a common self-driving umbrella.” Powered by a unified AI-native platform and advanced agentic AI, HPE enables self-driving networks that proactively prevent issues before users are impacted. Customers are reducing trouble tickets, lowering operational costs, and accelerating resolution times through autonomous operations across wired, wireless, and WAN environments. For nearly a decade, HPE has provided AI-driven networking with closed-loop automation that continuously learns, adapts, and improves through real-world deployments. A complimentary copy of the Gartner Magic Quadrant Enterprise Wired and Wireless LAN Infrastructure report is available here. Gartner Disclaimer Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure, Mike Leibovitz, Christian Canales, Tim Zimmerman, May 18, 2026 and Gartner® Magic Quadrant™ Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. Gartner and Magic Quadrant are a trademark of Gartner, Inc., and/or its affiliates. HPE acquired Juniper Networks in 2025
Recognized as Aruba Wireless Networks in 2005
Recognized as Aruba Networks in 2006-8, 2010-13
Recognized as Aruba in 2014
Recognized as HPE(Aruba Networks) in 2015
Recognized as HPE(Aruba) in 2016-22 and 2024 Recent HPE News: HPE accelerates self-driving network operations with new HPE Mist agentic AI-native innovations HPE disrupts networking industry with expanded AI-native portfolio; reimagines future of IT operations with self-driving networks strategy HPE introduces sweeping security advancements to secure AI adoption and strengthen enterprise resiliency About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260520307206/en/ Media Contact:
Ben Stricker
ben.stricker@hpe.com Original: HPE Positioned Highest in Execution and Furthest in Vision in 2026 Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure by Gartner® for Fifth Consecutive Time

HPE Unifies Global Distribution With Ingram Micro and TD SYNNEXMay 14, 2026 10:00 AM
Business Wire Global model anchored by strong regional and specialist distributors positions partners to capture opportunities across HPE’s full portfolio HPE (NYSE: HPE) today named Ingram Micro and TD SYNNEX as its two global distribution partners, accelerating HPE’s move to a unified distribution model that delivers greater simplicity and consistency for partners. The unified model is expected to drive additional investment in dedicated HPE enablement resources, strengthen operational support, and help partners sell, deliver, and service solutions across HPE’s portfolio. The scale and expertise of two global distribution leaders, Ingram Micro and TD SYNNEX, complemented by regional and specialist distributors, will help maximize partner capabilities and expand cross-sell opportunities, particularly for the HPE Networking portfolio. HPE will help both distributors build greater expertise across networking, cloud, and AI, making it easier for partners to create solutions and capture new opportunities across the full HPE portfolio, delivering greater value to customers worldwide. HPE’s breadth of portfolio is uniquely positioned to meet customers where they are, across company size, industry, and geography, while giving partners the flexibility to choose the right solution set for each customer. From networking to cloud and AI, partners can build the combination that best fits a customer’s needs and expand over time as priorities evolve. “HPE has always believed in the power of distribution to extend our reach, accelerate innovation, and deliver value to customers across the entire HPE portfolio,” said Simon Ewington, senior vice president, Channel and Partner Ecosystem, HPE. “With Ingram Micro and TD SYNNEX as our global distribution partners, augmented by a strong mix of regional and specialist distributors, we’re building a simpler, more scalable model that supports long-term success for our partners and customers.” Built for Scale and Flexibility This announcement marks the next phase of HPE’s distribution evolution, building on last year’s acquisition of Juniper Networks. Together, HPE and Juniper bring highly complementary distributor networks, which creates a unique opportunity to thoughtfully shape a more unified distribution landscape that balances growth, continuity, and partner choice. “As HPE evolves toward a more unified global distribution model, Ingram Micro is proud to be selected as a global distribution partner,” said Eric Kohl, vice president, Global Networking and Security, Ingram Micro. “Together, we will help partners accelerate time to value using our Xvantage™ platform, delivering consistent enablement, flexible procurement and financing options, and the operational scale needed to support customers across HPE’s end-to-end portfolio. We look forward to building on our success with HPE and delivering a streamlined experience that helps partners grow and capture more value.” “TD SYNNEX is honored to be chosen as one of HPE’s two global distribution partners and to expand our longstanding relationship,” said Sergio Farache, chief strategy and technology officer, TD SYNNEX. “This unified model creates a clearer, more consistent path for partners to build, sell, and support solutions across HPE’s portfolio. By combining HPE innovation with TD SYNNEX’s global logistics, partner services, and digital enablement, we’ll help partners across our global footprint scale their practices, accelerate adoption, and deliver outcomes for customers, while continuing to benefit from the local expertise and market proximity that make the channel strong.” In the months ahead, HPE will continue working at the country level to identify the right mix of distribution partners to support its long-term priorities, ensuring the model reflects regional needs while maintaining global consistency. HPE will continue to engage partners throughout the transition and share country updates as decisions are finalized. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514498975/en/ Media Contact:
Kari Curto
kari.curto@hpe.com Original: HPE Unifies Global Distribution With Ingram Micro and TD SYNNEX

HPE to Present Live Audio Webcast of Fiscal 2026 Second Quarter Earnings Conference CallMay 11, 2026 7:45 AM
Business Wire HPE (NYSE: HPE) will conduct a live audio webcast of a conference call with analysts to review financial results for the second quarter of fiscal 2026, ending April 30, 2026. The call is scheduled for Monday, June 1, at 4:00 p.m. CT (5:00 p.m. ET), and the webcast will be available at www.hpe.com/investor/2026Q2Webcast. A replay of the webcast will be available at the same website shortly after the call and will remain available for approximately one year. For additional information, see investors.hpe.com. About HPE HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511810877/en/ Media Contact:
Laura Keller
Laura.Keller@hpe.com Investor Contact:
Paul Glaser
investor.relations@hpe.com Original: HPE to Present Live Audio Webcast of Fiscal 2026 Second Quarter Earnings Conference Call

HPE shares fall as analysts flag slower growth outlookApril 13, 2026 10:28 AM
IH Market News
Hewlett Packard Enterprise (NYSE:HPE) shares dropped more than 3% on Monday after analysts raised concerns about the company’s near-term growth trajectory.Raymond James downgraded the stock from “Strong Buy” to “Outperform,” citing softer growth expectations while maintaining a constructive long-term view.The firm said the move reflects “less certainty around growth and catalysts,” even as it continues to see value in the shares. “We continue to see significant upside to the share price and consider it an attractive value stock,” the analysts noted.HPE’s Cloud & AI division, previously seen as a key engine for expansion, has underdelivered relative to expectations. Analysts pointed out that the company’s emphasis on profitability over market share—particularly in artificial intelligence—has limited its exposure to large-scale AI deployments, weighing on overall growth potential.Raymond James added that while the networking segment shows promise, especially in data center infrastructure linked to AI workloads, performance has yet to fully meet expectations. Weakness in campus networking and integration challenges tied to Juniper Networks have also constrained progress.The brokerage lowered its financial forecasts for HPE, highlighting uncertainty around demand trends, pricing sensitivity, and supply chain issues, including memory shortages.It also trimmed its price target slightly to $29 from $30, implying only modest upside from current levels.Despite the downgrade, analysts said the company’s valuation remains attractive, with forward price-to-earnings multiples below many peers. However, they stressed that valuation alone is not enough to support a more bullish stance without clearer growth drivers.Looking ahead, Raymond James expects HPE to deliver mid-single-digit revenue growth in the coming years, with stronger upside dependent on successful execution of its AI and “as-a-service” strategies.Hewlett Packard Enterprise stock price

Original: HPE shares fall as analysts flag slower growth outlook

HPE Transforms Distributed AI Factories Into Intelligent AI grid Powered by NVIDIAMarch 17, 2026 2:00 PM
Business Wire
New solution has critical application for AI services and use cases that rely on low-latency, real-time connectivity, including retail personalization, predictive maintenance in manufacturing, localized edge inference in healthcare, and carrier-grade AI services


NVIDIA GTC 2026 – HPE (NYSE: HPE) today announced the HPE AI Grid, an end-to-end solution built on the NVIDIA reference architecture to securely connect AI factories and distributed inference clusters across regional and far-edge sites. The HPE AI Grid enables service providers to deploy and operate thousands of distributed inference sites, turning AI installations into a single intelligent system.


AI-native applications require predictable, low-latency, distributed infrastructure. The HPE AI Grid solution, part of NVIDIA AI Computing by HPE portfolio, delivers predictable, ultra-low latency performance at scale for real-time AI services, zero-touch provisioning, and automated security with integrated orchestration.


“We’re redefining how AI is delivered by moving intelligence to where data and users live and making the network the dependable fabric for real-time experiences,” said Rami Rahim, executive vice president, president and general manager, Networking, HPE. “HPE AI Grid with NVIDIA gives service providers a secure, scalable way to operate distributed inference as a single system—delivering predictable, ultra-low latency performance so customers can innovate faster, reduce risk, and create new services.”


“An AI Grid unifies geographically distributed AI clusters to place AI workloads where they run best—balancing performance, cost, and latency across AI factories, regional sites, and the edge,” said Chris Penrose, global vice president, Telco, NVIDIA. “Together with HPE, we’re bringing that vision to life by combining NVIDIA’s accelerated computing and networking with HPE’s telco-grade multicloud routing and edge infrastructure to create a single, intelligent fabric for distributed inference.”


HPE delivers end-to-end AI grid solution that speeds time to value for deployment


The HPE AI Grid aligns with NVIDIA AI Grid reference architecture to provide a unified hardware and software stack for service providers. The HPE AI Grid is differentiated by HPE’s ability to offer full-stack AI servers and AI networks. The HPE AI Grid includes:



HPE Juniper’s telco-grade multicloud routing and coherent optics for predictable long-haul and metro connectivity; cloud-native and multi-tenant security; firewalls; WAN automation; and orchestration to deliver zero-touch deployment and lifecycle operations



HPE ProLiant Compute edge and rack servers with NVIDIA accelerated computing, including NVIDIA RTX PRO 6000 Blackwell GPUs, as well as NVIDIA BlueField DPUs, Spectrum-X Ethernet switches, Connect-X SuperNICs, and AI blueprints for rapid AI inference



HPE AI Grid creates new opportunities for service providers


Service provider use cases—from retail personalization and predictive maintenance to edge healthcare and carrier-grade AI services—demand predictable, ultra-low latency connectivity. HPE AI Grid lets operators convert existing sites with power and connectivity into RAN-ready AI grids, enabling distributed inference and new services at scale.


As part of advancing its AI grid strategy, Comcast announced today new AI field trials on its highly distributed network for real-time edge AI inferencing to unlock faster, more responsive experiences for the next wave of AI applications. The initial trials addressed several use cases, including leveraging HPE ProLiant servers running small language models from Personal AI, part of HPE’s Unleash AI parter program, on NVIDIA GPUs to deliver AI-powered “front desk” services for small businesses.


Industry Reactions to HPE AI Grid with NVIDIA


“HPE and NVIDIA have been strategic partners in building TELUS’ Sovereign AI Factory, Canada’s fastest and most powerful supercomputer, which is enabling researchers, businesses, and institutions to innovate at scale,” said Nazim Benhadid, Executive Vice-president and Chief Technology Officer, TELUS. “As TELUS looks to bring AI closer to customers, advance AI-powered network optimization and deliver faster service, HPE AI Grid powered by NVIDIA is a solution we are interested in exploring further as we continue our transformational AI journey.”


"Our customers increasingly expect millisecond responsiveness, low-latency connectivity and comprehensive security to support their applications and services,” said Neil McRae, CTIO at CityFibre. “We’re exploring how AI Grid from HPE, based on NVIDIA’s reference architecture, could support distributed AI inferencing and bring intelligence closer to users and data. By leveraging our fiber network assets, we see potential to combine high-performance connectivity with intelligent services for customers.”


HPE Financial Services accelerates AI-ready networking and distributed AI infrastructure


To further accelerate adoption of AI-ready networks and distributed AI infrastructure, HPE Financial Services is also extending its 0% financing on networking AIOps software including HPE Juniper Networking Mist, and its financing providing the equivalent of 10% cash savings on AI-ready networking leases.


Related Resources:



Blog: HPE Unveils AI Factory Grid Solution to Securely Scale Edge AI with NVIDIA’s Reference Architecture?



Blog: Shaping the future: How HPE is evolving its telco strategy



Press Release: HPE accelerates secure, scalable production-ready AI through new innovations with NVIDIA



Related HPE News:



HPE accelerates service provider modernization with AI infrastructure innovations at MWC 2026



About HPE


HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260317314426/en/
Media Contact:

Victor O’Brien

victor.obrien@hpe.com


Original: HPE Transforms Distributed AI Factories Into Intelligent AI grid Powered by NVIDIA

HPE Reports Fiscal 2026 First Quarter ResultsMarch 9, 2026 4:05 PM
Business Wire
Strong Networking Q1 results and increased profitability in Cloud & AI drive higher fiscal 2026 outlook


HPE (NYSE: HPE) today announced financial results for the first quarter ended January 31, 2026.


“HPE delivered a strong first quarter, outperforming in our networking business and posting one of our most profitable quarters on record,” said Antonio Neri, president and CEO of HPE. “Our Q1 results reflect our newly combined networking innovation, and effective operational discipline in a dynamic commodity supply environment. Demand for our products and solutions was strong, with orders increasing double digits year over year across all segments.”


“We successfully delivered on our commitments in the quarter, and exceeded our expectations for profitability and cash flow measures,” said Marie Myers, executive vice president and CFO of HPE. “Strong demand, prudent cost management, and faster-than-planned Juniper and Catalyst synergies contributed to our performance and underscore our confidence that we will drive profitable, sustainable growth while transforming the way we operate.”


First Quarter Fiscal 2026 Financial Results



Revenue: $9.3 billion, up 18% from the prior-year period



Gross margins:


GAAP of 35.9%, up 670 basis points from the prior-year period and up 240 basis points sequentially



Non-GAAP(1) of 36.6%, up 720 basis points from the prior-year period and up 20 basis points sequentially






Diluted net earnings per share (“EPS”):


GAAP of $0.31, down $0.13 from the prior-year period and above our outlook range of $0.09 and $0.13



Non-GAAP(1) of $0.65, up $0.16 from the prior-year period and above our outlook range of $0.57 - $0.61






Cash flow from operations: $1.2 billion, an increase of $1.6 billion from the prior-year period



Free cash flow (“FCF”)(1)(2): $0.7 billion, an increase of $1.6 billion from the prior-year period



Capital returns to common shareholders: $348 million in the form of dividends and share repurchases



First Quarter Fiscal 2026 Segment Results



Networking revenue was $2.7 billion, up 151.5% from the prior-year period, with 23.7% operating profit margin, compared to 29.7% from the prior-year period. This segment incorporates our former Intelligent Edge segment and Juniper Networks.


Within Networking, revenue from:


Campus & Branch was $1.2 billion, up 42.0% from the prior-year period.



Data Center Networking was $444 million, up 382.6% from the prior-year period.



Security was $255 million, up 114.3% from the prior-year period.



Routing was $780 million, compared to $1 million in the prior-year period.









Cloud & AI revenue was $6.3 billion, down 2.7% from the prior-year period, with 10.2% operating profit margin, compared to 8.4% from the prior-year period. This segment consolidates HPE’s server, storage, and financial services businesses, representing a new financial segment for FY26.


Within Cloud & AI, revenue from:


Server was $4.2 billion, down 2.7% from the prior-year period.



Storage was $1.1 billion, up 0.6% from the prior-year period.



Financial Services was $0.9 billion, up 0.3% from the prior-year period.









Corporate Investments and Other revenue was $261 million, down 2.2% from the prior-year period, with -4.6% of operating profit margin, compared to -3.0% from the prior-year period. This segment includes the Advisory and Professional Services business and Hewlett Packard Labs; the Telco and Instant On businesses have been incorporated into this segment, a change for FY26.



Dividend


The HPE Board of Directors declared a regular cash dividend of $0.1425 per share on the company’s common stock, payable on or about April 23, 2026, to stockholders of record as of the close of business on March 24, 2026.


Fiscal 2026 Second Quarter Outlook


HPE estimates revenue to be in the range of $9.6 billion to $10.0 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.09 to $0.13 and non-GAAP diluted net EPS(1) to be in the range of $0.51 to $0.55. Fiscal 2026 second quarter non-GAAP diluted net EPS estimate excludes net after-tax adjustments of approximately $0.42 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, and cost reduction program.


Fiscal 2026 Full Year Outlook


HPE is reaffirming its FY26 revenue growth outlook range of 17% to 22%, as previously provided at our Securities Analyst Meeting. HPE is raising revenue growth expectations for the Networking segment to 68% to 73%. HPE estimates GAAP operating profit growth to be 490% to 550% and non-GAAP operating profit growth between 32% to 40%(1)(3).


HPE is raising both GAAP diluted net EPS to be in the range of $1.02 to $1.22 and non-GAAP diluted net EPS(1)(4) to be in the range of $2.30 to $2.50. Fiscal 2026 full year non-GAAP diluted net EPS estimate excludes net after-tax adjustments of approximately $1.28 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments related to the sale of H3C. HPE is also raising its free cash flow(1)(2)(4) guidance and now expects free cash flow to be at least $2.0 billion.


1 A description of HPE’s use of non-GAAP financial information is provided below under “Use of non-GAAP financial information and key performance metrics.”


2 Free cash flow represents cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash.?


3 FY26 non-GAAP operating profit excludes costs of approximately $2.7 billion primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, and cost reduction program.


4 Hewlett Packard Enterprise provides certain guidance on a non-GAAP basis. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, Hewlett Packard Enterprise is unable to provide a reconciliation to the most directly comparable GAAP financial measure without unreasonable efforts, as the Company cannot predict some elements that are included in such directly comparable GAAP financial measure. These elements could have a material impact on the Company’s reported GAAP results for the guidance period. Refer to the discussion of non-GAAP financial measures below for more information.


About HPE


HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.


Use of non-GAAP financial information and key performance metrics


To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (“GAAP”) basis, Hewlett Packard Enterprise provides financial measures, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP income tax rate, non-GAAP net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders, non-GAAP diluted net earnings per share attributable to common stockholders, and free cash flow (“FCF”). Hewlett Packard Enterprise also provides forecasts of non-GAAP operating profit growth, non-GAAP diluted net earnings per share, and FCF. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables below or elsewhere in the materials accompanying this news release. In addition an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide supplemental useful information to investors is included further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin (earnings from operations as a percentage of net revenue), net earnings, diluted net earnings per share, and cash flow from operations prepared in accordance with GAAP.


Forward-looking statements


This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, “guide”, “optimistic”, “intend”, “aim”, “will”, “estimates”, “may”, ”likely”, “could”, “should” and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any statements regarding the ongoing integration of Juniper Networks, Inc., and any projections, estimates, or expectations of savings or synergy realizations in connection therewith; any projections, estimations, or expectations of addressable markets and their sizes, revenue (including annualized revenue run-rate), margins, expenses (including stock-based compensation expenses), investments, effective tax rates, interest rates, the impact of tax law changes and related guidance and regulations, the impact of changes in trade policies and restrictions and the uncertainty created thereby, component costs, commodity shortage, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; recent amendments to accounting guidance and any potential impacts on our financial reporting therefrom; any projections or estimations of orders; any projections of the amount, timing, or impact of cost saving actions and anticipated benefits to be realized if any; any statements of the plans, strategies, and objectives of management for future operations, as well as the execution and consummation of corporate transactions or contemplated acquisitions and dispositions (including but not limited to the disposition of shares of H3C Technologies Co., Limited (“H3C”) and the receipt of proceeds therefrom), research and development expenditures, and any resulting benefits, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share, or competitive performance relating to products or services; any statements concerning technological and market trends, the pace of technological innovation, and adoption of new technologies, including artificial intelligence-related and other products and services offered by Hewlett Packard Enterprise; any statements regarding current or future macroeconomic trends or events and the impacts of those trends and events on Hewlett Packard Enterprise and our financial performance, including but not limited to supply chain dynamics (including but not limited to worldwide memory shortages), uncertain global trade policies and/or restrictions, and demand for our products and services, and our actions to mitigate such impacts to our business; the scope and duration of geopolitical tensions, including but not limited to the ongoing conflict between Russia and Ukraine, instability and conflicts in the Middle East, and the relationship between China and the U.S., and our actions in response thereto, and their impacts on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results, and the world economy; any statements regarding future regulatory trends and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues, among others; any statements regarding pending litigation, investigations, claims, or disputes, including but not limited to the legal proceedings relating to the acquisition of Juniper Networks; any statements of expectation or belief, including those relating to future guidance and the financial performance of Hewlett Packard Enterprise; and any statements of assumptions underlying any of the foregoing.


Risks, uncertainties, and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events, including but not limited to those mentioned above; the need to effectively manage third-party suppliers and distribute Hewlett Packard Enterprise's products and services; the protection of Hewlett Packard Enterprise's intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise's international operations (including from geopolitical events and macroeconomic uncertainties); the development of and transition to new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution of Hewlett Packard Enterprise’s ongoing transformation and mix shift of its portfolio of offerings; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients, and partners, including any impact thereon resulting from macroeconomic or geopolitical events, including inflation and rising commodity costs; the prospect of a shutdown of the U.S. federal government; the hiring and retention of key employees; the execution, integration, consummation, and other risks associated with business combination, disposition, and investment transactions, including but not limited to the risks associated with the disposition of H3C shares and the receipt of proceeds therefrom and successful integration of Juniper Networks, Inc., including our ability to integrate and implement our plans and forecasts and realize our anticipated financial and operational benefits with respect to the consolidated business; the execution, timing, and results of any cost reduction actions, including estimates and assumptions related to the costs and anticipated benefits of implementing such actions; the impact of changes to privacy, cybersecurity, environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property, or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining certain financial metrics; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending litigation, investigations, claims, and disputes; the impacts of tax law changes and related guidance or regulations; and other risks that are described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission.


As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law.




HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Condensed Consolidated Statements of Earnings




(Unaudited)








 






 








 






For the three months ended








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025








 






In millions, except per share amounts








Net revenue






$






9,301






 






 






$






9,679






 






 






$






7,854






 








Costs and Expenses:






 






 






 






 






 








Cost of sales (exclusive of amortization shown separately below)






 






5,961






 






 






 






6,438






 






 






 






5,559






 








Research and development






 






744






 






 






 






881






 






 






 






475






 








Selling, general and administrative






 






1,698






 






 






 






1,642






 






 






 






1,268






 








Amortization of intangible assets






 






311






 






 






 






310






 






 






 






38






 








Impairment charges






 






—






 






 






 






260






 






 






 






—






 








Transformation costs






 






—






 






 






 






—






 






 






 






15






 








Acquisition, disposition and other charges






 






117






 






 






 






156






 






 






 






66






 








Total costs and expenses






 






8,831






 






 






 






9,687






 






 






 






7,421






 








Earnings (loss) from operations






 






470






 






 






 






(8






)






 






 






433






 








Interest and other, net(1)






 






(54






)






 






 






(261






)






 






 






39






 








Gain on sale of a business






 






—






 






 






 






3






 






 






 






244






 








Earnings from equity interests






 






17






 






 






 






5






 






 






 






17






 








Earnings (loss) before provision for taxes






 






433






 






 






 






(261






)






 






 






733






 








Benefit (provision) for taxes






 






19






 






 






 






436






 






 






 






(106






)








Net earnings attributable to HPE






 






452






 






 






 






175






 






 






$






627






 








Preferred stock dividends






 






(29






)






 






 






(29






)






 






 






(29






)








Net earnings attributable to common stockholders






$






423






 






 






$






146






 






 






$






598






 








Net Earnings Per Share Attributable to Common Stockholders:






 






 






 






 






 








Basic






$






0.32






 






 






$






0.11






 






 






$






0.45






 








Diluted






 






0.31






 






 






 






0.11






 






 






 






0.44






 








Cash dividends declared per share






 






0.14






 






 






 






0.13






 






 






 






0.13






 








Cash dividends accrued per preferred share






$






0.95






 






 






$






0.95






 






 






$






0.95






 








Weighted-average Shares Used to Compute Net Earnings Per Share:






 






 






 






 






 








Basic






 






1,334






 






 






 






1,332






 






 






 






1,316






 








Diluted






 






1,356






 






 






 






1,361






 






 






 






1,409






 









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Reconciliation of GAAP to Non-GAAP measures




(Unaudited)




 








 






 






 






 






 






 








 






For the three months ended








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025








 






Dollars in millions








GAAP net revenue






$






9,301






 






 






$






9,679






 






 






$






7,854






 








GAAP cost of sales






 






5,961






 






 






 






6,438






 






 






 






5,559






 








GAAP gross profit






 






3,340






 






 






 






3,241






 






 






 






2,295






 








Non-GAAP Adjustments






 






 






 






 






 








Stock-based compensation expense






 






24






 






 






 






9






 






 






 






17






 








Acquisition, disposition and other charges(2)






 






34






 






 






 






189






 






 






 






(3






)








Cost reduction program






 






5






 






 






 






80






 






 






 






—






 








H3C divestiture related severance costs






 






—






 






 






 






—






 






 






 






1






 








Non-GAAP gross profit






$






3,403






 






 






$






3,519






 






 






$






2,310






 








 






 






 






 






 






 








GAAP gross profit margin






 






35.9






%






 






 






33.5






%






 






 






29.2






%








Non-GAAP adjustments






 






0.7






%






 






 






2.9






%






 






 






0.2






%








Non-GAAP gross profit margin






 






36.6






%






 






 






36.4






%






 






 






29.4






%









 






For the three months ended








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025








 






Dollars in millions








GAAP earnings (loss) from operations






$






470






 






 






$






(8






)






 






$






433






 








Non-GAAP Adjustments






 






 






 






 






 








Amortization of intangible assets






 






311






 






 






 






310






 






 






 






38






 








Impairment charges






 






—






 






 






 






260






 






 






 






—






 








Transformation costs






 






—






 






 






 






—






 






 






 






15






 








Stock-based compensation expense






 






216






 






 






 






196






 






 






 






154






 








H3C divestiture related severance costs






 






—






 






 






 






—






 






 






 






77






 








Cost reduction program






 






23






 






 






 






127






 






 






 






—






 








Acquisition, disposition and other charges(2)






 






162






 






 






 






298






 






 






 






63






 








Non-GAAP earnings from operations






$






1,182






 






 






$






1,183






 






 






$






780






 








 






 






 






 






 






 








GAAP operating profit margin






 






5.1






%






 






 






(0.1






%)






 






 






5.5






%








Non-GAAP adjustments






 






7.6






%






 






 






12.3






%






 






 






4.4






%








Non-GAAP operating profit margin






 






12.7






%






 






 






12.2






%






 






 






9.9






%









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Reconciliation of GAAP to Non-GAAP measures




(Unaudited)








 






For the three months ended








 






January 31, 2026






 






Diluted Net EPS7






 






October 31, 2025






 






Diluted Net EPS7






 






January 31, 2025






 






Diluted Net EPS








 






Dollars in millions, except per share amounts








GAAP net earnings attributable to common stockholders






$






423






 






 






$






0.31






 






 






$






146






 






 






$






0.11






 






 






$






598






 






 






 








Preferred stock dividends






 






29






 






 






 






 






 






29






 






 






 






 






 






29






 






 






 








GAAP net earnings attributable to HPE






$






452






 






 






 






 






$






175






 






 






 






 






$






627






 






 






$






0.44






 








Non-GAAP Adjustments:






 






 






 






 






 






 






 






 






 






 






 








Amortization of intangible assets






 






311






 






 






 






0.23






 






 






 






310






 






 






 






0.23






 






 






 






38






 






 






 






0.03






 








Impairment charges






 






—






 






 






 






—






 






 






 






260






 






 






 






0.19






 






 






 






—






 






 






 






—






 








Transformation costs






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






15






 






 






 






0.01






 








Stock-based compensation expense






 






216






 






 






 






0.16






 






 






 






196






 






 






 






0.14






 






 






 






154






 






 






 






0.11






 








Gain on sale of a business






 






—






 






 






 






—






 






 






 






(3






)






 






 






—






 






 






 






(244






)






 






 






(0.17






)








H3C divestiture related severance costs






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






77






 






 






 






0.05






 








Cost reduction program






 






23






 






 






 






0.02






 






 






 






127






 






 






 






0.09






 






 






 






—






 






 






 






—






 








Acquisition, disposition and other charges(2)






 






162






 






 






 






0.12






 






 






 






298






 






 






 






0.22






 






 






 






63






 






 






 






0.04






 








Adjustments for equity interests






 






(17






)






 






 






(0.01






)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








(Gain) loss on equity investments, net






 






(14






)






 






 






(0.01






)






 






 






148






 






 






 






0.10






 






 






 






(2






)






 






 






—






 








Adjustments for taxes






 






(170






)






 






 






(0.14






)






 






 






(594






)






 






 






(0.44






)






 






 






(15






)






 






 






—






 








Other adjustments(3)






 






(33






)






 






 






(0.03






)






 






 






(24






)






 






 






(0.02






)






 






 






(29






)






 






 






(0.02






)








Non-GAAP net earnings attributable to HPE(4)






 






930






 






 






$






0.65






 






 






 






893






 






 






$






0.62






 






 






 






684






 






 






$






0.49






 








Preferred stock dividends






 






(29






)






 






 






 






 






(29






)






 






 






 






 






(29






)






 






 








Non-GAAP net earnings attributable to common stockholders






$






901






 






 






 






 






$






864






 






 






 






 






$






655






 






 






 









 






For the three months ended








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025








 






In millions








Net cash provided by (used in) operating activities






$






1,178






 






 






$






2,465






 






 






$






(390






)








Investment in property, plant and equipment and software assets






 






(569






)






 






 






(641






)






 






 






(528






)








Proceeds from sale of property, plant and equipment






 






66






 






 






 






126






 






 






 






84






 








Effect of exchange rate changes on cash, cash equivalents, and restricted cash






 






33






 






 






 






(30






)






 






 






(43






)








Free cash flow






$






708






 






 






$






1,920






 






 






$






(877






)









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Condensed Consolidated Balance Sheets








 






As of








 






January 31, 2026






 






October 31, 2025








 






(Unaudited)






 






(Audited)








 






In millions, except par value








ASSETS






 






 






 








Current Assets:






 






 






 








Cash and cash equivalents






$






4,841






 






 






$






5,773






 








Accounts receivable, net of allowances






 






4,931






 






 






 






5,290






 








Financing receivables, net of allowances






 






3,835






 






 






 






3,826






 








Inventory






 






6,913






 






 






 






6,352






 








Other current assets






 






4,683






 






 






 






3,753






 








Total current assets






 






25,203






 






 






 






24,994






 








Property, plant and equipment, net






 






5,911






 






 






 






6,002






 








Long-term financing receivables and other assets






 






13,801






 






 






 






13,817






 








Investments in equity interests






 






924






 






 






 






955






 








Goodwill and intangible assets






 






29,929






 






 






 






30,138






 








Total assets






$






75,768






 






 






$






75,906






 








LIABILITIES AND STOCKHOLDERS’ EQUITY






 






 






 








Current Liabilities:






 






 






 








Notes payable and short-term borrowings






$






3,906






 






 






$






4,609






 








Accounts payable






 






8,379






 






 






 






7,731






 








Employee compensation and benefits






 






1,375






 






 






 






1,871






 








Taxes on earnings






 






375






 






 






 






319






 








Deferred revenue






 






5,483






 






 






 






5,358






 








Other accrued liabilities






 






4,839






 






 






 






4,755






 








Total current liabilities






 






24,357






 






 






 






24,643






 








Long-term debt






 






17,705






 






 






 






17,756






 








Other non-current liabilities






 






8,872






 






 






 






8,753






 








Commitments and Contingencies






 






 






 








HPE stockholders' Equity:






 






 






 








7.625% Series C mandatory convertible preferred stock, $0.01 par value (30 shares issued and outstanding as of January 31, 2026 and October 31, 2025, respectively)






 






—






 






 






 






—






 








Common stock, $0.01 par value (9,600 shares authorized; 1,329 and 1,318 shares issued and outstanding as of January 31, 2026 and October 31, 2025, respectively)






 






13






 






 






 






13






 








Additional paid-in capital






 






30,126






 






 






 






30,234






 








Accumulated deficit






 






(2,593






)






 






 






(2,811






)








Accumulated other comprehensive loss






 






(2,772






)






 






 






(2,748






)








Total HPE stockholders’ equity






 






24,774






 






 






 






24,688






 








Non-controlling interests






 






60






 






 






 






66






 








Total stockholders’ equity






 






24,834






 






 






 






24,754






 








Total liabilities and stockholders’ equity






$






75,768






 






 






$






75,906






 









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Condensed Consolidated Statements of Cash Flows




(Unaudited)








 






For the three months ended








 






January 31, 2026






 






January 31, 2025








 






In millions








Cash Flows from Operating Activities:






 






 






 








Net earnings attributable to HPE






$






452






 






 






$






627






 








Adjustments to Reconcile Net Earnings Attributable to HPE to Net Cash Provided by (Used in) Operating Activities:






 






 






 








Depreciation and amortization






 






872






 






 






 






599






 








Stock-based compensation expense






 






216






 






 






 






154






 








Provision for inventory and credit losses






 






61






 






 






 






67






 








Cost reduction program






 






23






 






 






 






—






 








Deferred taxes on earnings






 






(151






)






 






 






(2






)








Earnings from equity interests






 






(17






)






 






 






(17






)








Gain on sale of a business






 






—






 






 






 






(244






)








Dividends received from equity investees






 






51






 






 






 






—






 








H3C divestiture related severance costs






 






—






 






 






 






77






 








Amortization of inventory fair value adjustment






 






31






 






 






 






—






 








Other, net






 






23






 






 






 






60






 








Changes in Operating Assets and Liabilities, Net of Acquisitions:






 






 






 








Accounts receivable






 






274






 






 






 






91






 








Financing receivables






 






70






 






 






 






317






 








Inventory






 






(458






)






 






 






(811






)








Accounts payable






 






496






 






 






 






(264






)








Taxes on earnings






 






86






 






 






 






49






 








Other assets and liabilities






 






(851






)






 






 






(1,093






)








Net cash provided by (used in) operating activities






 






1,178






 






 






 






(390






)








Cash Flows from Investing Activities:






 






 






 








Investment in property, plant and equipment and software assets






 






(569






)






 






 






(528






)








Proceeds from sale of property, plant and equipment






 






66






 






 






 






84






 








Purchases of equity investments






 






(4






)






 






 






—






 








Proceeds from sale of available-for-sale securities and other investments






 






2






 






 






 






1






 








Financial collateral posted






 






(304






)






 






 






—






 








Financial collateral received






 






16






 






 






 






210






 








Proceeds from sale of a business






 






—






 






 






 






210






 








Net cash used in investing activities






 






(793






)






 






 






(23






)








Cash Flows from Financing Activities:






 






 






 








Short-term borrowings with original maturities less than 90 days, net






 






(3






)






 






 






9






 








Proceeds from debt, net of issuance costs






 






126






 






 






 






105






 








Payments of debt






 






(917






)






 






 






(486






)








Net payments related to stock-based award activities






 






(173






)






 






 






(169






)








Repurchases of common stock






 






(158






)






 






 






(52






)








Cash dividends paid to preferred stockholders






 






(29






)






 






 






(25






)








Cash dividends paid to common stockholders






 






(190






)






 






 






(171






)








Other






 






(8






)






 






 






(8






)








Net cash used in financing activities






 






(1,352






)






 






 






(797






)








Effect of exchange rate changes on cash, cash equivalents, and restricted cash






 






33






 






 






 






(43






)








Change in cash, cash equivalents and restricted cash






 






(934






)






 






 






(1,253






)








Cash, cash equivalents and restricted cash at beginning of period






 






5,859






 






 






 






15,105






 








Cash, cash equivalents and restricted cash at end of period






$






4,925






 






 






$






13,852






 









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Segment Information




(Unaudited)








 






 






 








 






 






For the three months ended








 






 






January 31, 2026






 






October 31, 2025






 






January 31, 2025








 






 






In millions








Net Revenue(5):






 






 






 






 






 






 








Networking






 






$






2,706






 






 






$






2,722






 






 






$






1,076






 








Cloud & AI






 






 






6,334






 






 






 






6,676






 






 






 






6,511






 








Corporate Investments and Other






 






 






261






 






 






 






281






 






 






 






267






 








Total segment net revenue






 






$






9,301






 






 






$






9,679






 






 






$






7,854






 








 






 






 






 






 






 






 








Earnings Before Taxes(5):






 






 






 






 






 






 








Networking






 






$






640






 






 






$






638






 






 






$






320






 








Cloud & AI






 






 






645






 






 






 






620






 






 






 






547






 








Corporate Investments and Other






 






 






(12






)






 






 






5






 






 






 






(8






)








Total segment earnings from operations






 






 






1,273






 






 






 






1,263






 






 






 






859






 








Unallocated corporate costs and eliminations






 






 






(91






)






 






 






(80






)






 






 






(79






)








Stock-based compensation expense






 






 






(216






)






 






 






(196






)






 






 






(154






)








Amortization of intangible assets






 






 






(311






)






 






 






(310






)






 






 






(38






)








Impairment charges






 






 






—






 






 






 






(260






)






 






 






—






 








Transformation costs






 






 






—






 






 






 






—






 






 






 






(15






)








Gain on sale of a business






 






 






—






 






 






 






3






 






 






 






244






 








H3C divestiture related severance costs






 






 






—






 






 






 






—






 






 






 






(77






)








Cost reduction program






 






 






(23






)






 






 






(127






)






 






 






—






 








Acquisition, disposition and other charges(2)






 






 






(162






)






 






 






(298






)






 






 






(63






)








Interest and other, net(1)






 






 






(54






)






 






 






(261






)






 






 






39






 








Earnings from equity interests






 






 






17






 






 






 






5






 






 






 






17






 








Total pretax earnings (loss)






 






$






433






 






 






$






(261






)






 






$






733






 









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Segment Information




(Unaudited)








 






 






 






 








 






For the three months ended






 






Change (%)








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025






 






Q/Q






 






Y/Y








 






Dollars in millions








Net Revenue:






 






 






 






 






 






 






 






 






 








Networking(5)






 






 






 






 






 






 






 






 






 








Campus & Branch






$






1,227






 






$






1,284






 






$






864






 






(4.4






%)






 






42.0






%








Data Center Networking






 






444






 






 






354






 






 






92






 






25.4






 






 






382.6






 








Security






 






255






 






 






273






 






 






119






 






(6.6






)






 






114.3






 








Routing






 






780






 






 






811






 






 






1






 






(3.8






)






 






N/M






 








Total






 






2,706






 






 






2,722






 






 






1,076






 






(0.6






)






 






151.5






 








Cloud & AI(5)






 






 






 






 






 






 






 






 






 








Server






 






4,232






 






 






4,514






 






 






4,348






 






(6.2






)






 






(2.7






)








Storage






 






1,061






 






 






1,106






 






 






1,055






 






(4.1






)






 






0.6






 








Financial Services






 






876






 






 






889






 






 






873






 






(1.5






)






 






0.3






 








Other






 






165






 






 






167






 






 






235






 






(1.2






)






 






(29.8






)








Total






 






6,334






 






 






6,676






 






 






6,511






 






(5.1






)






 






(2.7






)








Corporate Investments and Other






 






261






 






 






281






 






 






267






 






(7.1






)






 






(2.2






)








Total consolidated net revenue






$






9,301






 






$






9,679






 






$






7,854






 






(3.9






%)






 






18.4






%









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Segment Operating Margin Summary Data




(Unaudited)








 






 






 






 






 






 






 






 








 






For the three months ended






 






Change in operating profit margin (pts)








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025






 






Q/Q






 






Y/Y








Segment Operating Profit Margin:






 






 






 






 






 






 






 






 






 








Networking






23.7






%






 






23.4






%






 






29.7






%






 






0.3






 






 






(6.0






)








Cloud & AI






10.2






%






 






9.3






%






 






8.4






%






 






0.9






 






 






1.8






 








Corporate Investments and Other






(4.6






%)






 






1.8






%






 






(3.0






%)






 






(6.4






)






 






(1.6






)








Total segment operating profit margin






13.7






%






 






13.0






%






 






10.9






%






 






0.7






 






 






2.8






 









HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES




Calculation of Diluted Net Earnings Per Share




(Unaudited)








 






 








 






For the three months ended








 






January 31, 2026






 






October 31, 2025






 






January 31, 2025








 






In millions, except per share amounts








Numerator:






 






 






 






 






 








GAAP net earnings attributable to common stockholders - Basic






$






423






 






$






146






 






$






598








Plus: 7.625% Series C mandatory convertible preferred stock dividends






 






—






 






 






—






 






 






29








GAAP net earnings attributable to HPE - Diluted






$






423






 






$






146






 






$






627








 






 






 






 






 






 








Non-GAAP net earnings attributable to common stockholders - Basic






$






901






 






$






864






 






$






655








Plus: 7.625% Series C mandatory convertible preferred stock dividends






 






29






 






 






29






 






 






29








Non-GAAP net earnings attributable to HPE - Diluted






$






930






 






$






893






 






$






684








 






 






 






 






 






 








Denominator:






 






 






 






 






 








GAAP Weighted-average shares used to compute basic net EPS






 






1,334






 






 






1,332






 






 






1,316








Dilutive effect of employee stock plans(6)






 






22






 






 






29






 






 






17








Dilutive effect of 7.625% Series C mandatory convertible preferred stock(6)






 






—






 






 






—






 






 






76








GAAP Weighted-average shares used to compute diluted net EPS






 






1,356






 






 






1,361






 






 






1,409








 






 






 






 






 






 








Non-GAAP Weighted-average shares used to compute basic net EPS






 






1,334






 






 






1,332






 






 






1,316








Dilutive effect of employee stock plans(6)






 






22






 






 






29






 






 






17








Dilutive effect of 7.625% Series C mandatory convertible preferred stock(6)






 






76






 






 






76






 






 






76








Non-GAAP Weighted-average shares used to compute diluted net EPS






 






1,432






 






 






1,437






 






 






1,409








 






 






 






 






 






 








GAAP Net EPS






 






 






 






 






 








Basic






$






0.32






 






$






0.11






 






$






0.45








Diluted






$






0.31






 






$






0.11






 






$






0.44








 






 






 






 






 






 








Non-GAAP Net EPS






 






 






 






 






 








Basic






$






0.68






 






$






0.65






 






$






0.50








Diluted(4)






$






0.65






 






$






0.62






 






$






0.49









________________________








(1)







Interest and other, net includes tax indemnification and other adjustments, non-service net periodic benefit credit, and interest and other, net. The three months ended October 31, 2025, includes approximately $135 million loss on investments.








(2)







For the three months ended January 31, 2026 and October 31, 2025, Acquisition, disposition and other charges include non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, which was recorded in cost of sales.








(3)







Other adjustments includes non-service net periodic benefit credit and tax indemnification and other adjustments.








(4)







For purposes of calculating diluted net EPS, the preferred stock dividends are added back to the net earnings attributable to common stockholders and the diluted weighted average share calculation assumes the preferred stock was converted at issuance or as of the beginning of the reporting period.








(5)







Effective at the beginning of the first quarter of fiscal 2026, HPE implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI and (ii) transferring the Telco and Instant On businesses to Corporate Investments and Other from Networking. The Company reflected these changes to its segment information retrospectively. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share or total assets.








(6)







The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the preferred stock is calculated under the if-converted method. For the three months ended January 31, 2026 and October 31, 2025, the effect of preferred stock is excluded as it would be anti-dilutive.








(7)







For the three months ended January 31, 2026 and October 31, 2025, the diluted net EPS adjustment includes the impact to Non-GAAP net earnings attributable to HPE for the dilutive effect of preferred stock.








 







N/M - Not Meaningful.







Use of non-GAAP financial measures


To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a GAAP basis, Hewlett Packard Enterprise provides non-GAAP financial measures, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP income tax rate, non-GAAP net earnings attributable to HPE, non-GAAP net earnings attributable to common stockholders, non-GAAP diluted net earnings per share attributable to common stockholders, and FCF. Hewlett Packard Enterprise also provides, non-GAAP diluted net earnings per share, non-GAAP operating profit growth, and FCF.


These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. The GAAP measure most directly comparable to non-GAAP gross profit is gross profit. The GAAP measure most directly comparable to non-GAAP gross profit margin is gross profit margin. The GAAP measure most directly comparable to non-GAAP operating profit (non-GAAP earnings from operations) is earnings from operations. The GAAP measure most directly comparable to non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) is operating profit margin (earnings from operations as a percentage of net revenue). The GAAP measure most directly comparable to non-GAAP income tax rate is income tax rate. The GAAP measure most directly comparable to non-GAAP net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share attributable to common stockholders is diluted net earnings per share attributable to common stockholders. The GAAP measure most directly comparable to FCF is cash flow from operations. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables above or elsewhere in the materials accompanying this news release.


Usefulness of non-GAAP financial measures to investors


Hewlett Packard Enterprise believes that providing the non-GAAP financial measures stated above, in addition to the related GAAP measures provides investors with greater transparency to the information used by Hewlett Packard Enterprise’s management in its financial and operational decision making and allows investors to see Hewlett Packard Enterprise’s results “through the eyes” of management. Hewlett Packard Enterprise further believes that providing this information provides Hewlett Packard Enterprise’s investors with a supplemental view to understand the Company’s historical and prospective operating performance and to evaluate the efficacy of the methodology and information used by Hewlett Packard Enterprise’s management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates the comparisons of Hewlett Packard Enterprise’s operating performance with the performance of other companies in the same industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.


Economic substance of and material limitations associated with non-GAAP financial measures used by Hewlett Packard Enterprise


Non-GAAP gross profit and non-GAAP gross profit margin are defined to exclude charges related to the stock-based compensation expense, acquisition, disposition and other charges, severance costs associated with the cost reduction program, and H3C divestiture related severance costs. Non-GAAP operating profit (non-GAAP earnings from operations) and non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) consist of earnings from operations or earnings from operations as a percentage of net revenue excluding the items mentioned above and charges relating to the amortization of intangible assets, impairment charges, and transformation costs. Non-GAAP net earnings, net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders and non-GAAP diluted net earnings per share attributable to common stockholders consist of net earnings or diluted net earnings per share excluding the charges previously stated, as well as gain on sale of a business, adjustments for equity interests, litigation judgments, gain or loss on equity investments, other adjustments, and adjustments for taxes. Non-GAAP net earnings attributable to HPE and non-GAAP diluted net earnings per share attributable to common stockholders includes preferred stock dividends added back to non-GAAP net earnings attributable to HPE. The Adjustments for taxes line item includes certain income tax valuation allowances and separation taxes, the impact of tax reform, structural rate adjustment, excess tax benefit from stock-based compensation, and adjustments for additional taxes or tax benefits associated with each non-GAAP item.


Hewlett Packard Enterprise believes that excluding the items mentioned above from the non-GAAP financial measures provides a supplemental view to management and investors of its consolidated financial performance and presents the financial results of the business without costs that Hewlett Packard Enterprise’s management does not believe to be reflective of ongoing operating results. Exclusion of these items can have a material impact on the equivalent GAAP measure and cash flows thus limiting their use as analytical tools. These limitations are discussed below or elsewhere in the materials accompanying this news release. More specifically, Hewlett Packard Enterprise’s management excludes each of those items mentioned above for the following reasons:



Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to employees, HPE excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses, and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding stock-based compensation expense.




HPE incurred costs related to its acquisition, disposition and other charges. Charges include expenses associated with acquisitions, non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, Inc., exit costs associated with disposal activities, and disaster (recovery) charges. HPE excludes these costs because the Company’s management considers these charges to be discrete events and does not believe they are reflective of normal continuing business operations. For the three months ended January 31, 2026 and October 31, 2025, acquisition charges were driven by costs associated with the acquisition of Juniper Networks and miscellaneous disposition related charges. For the three months ended January 31, 2025, acquisition charges were driven by costs associated with the proposed acquisition of Juniper Networks and miscellaneous disposition related charges.




We incurred severance and other charges pursuant to cost management initiatives. We exclude these charges because we do not believe they are reflective of normal continuing business operations. We believe eliminating these adjustments for the purposes of calculating non-GAAP measures facilitates the evaluation of our current operating performance.




HPE incurred H3C divestiture related severance costs in connection with the disposition of issued share capital of H3C held by HPE. On September 4, 2024, HPE divested 30% of the total issued share capital of H3C and received proceeds of $2.1 billion of pre-tax consideration ($2.0 billion post-tax). The divestiture resulted in decreased future investment earnings and cash dividend inflows resulting in a decision to implement offsetting cost savings measures. These measures include severance for certain of the Company’s employees. The non-GAAP adjustment represents our costs to execute these related exit actions to offset the loss in equity earnings and related cash flows. HPE expects future annualized cost savings of approximately $120 million following the completion of these actions.




HPE incurs charges relating to the amortization of intangible assets and excludes these charges for purposes of calculating these non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of the Company’s acquisitions. HPE excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect HPE’s cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.




In fiscal 2025, HPE recorded non-cash impairment charges for the goodwill associated with its Hybrid Cloud reporting unit and the impairment of certain fixed assets. HPE believes that these non-cash charges do not reflect the Company’s operating results and is not indicative of the underlying performance of the business. HPE excludes these charges for purposes of calculating these non-GAAP measures to facilitate a supplemental evaluation of the Company’s current operating performance and comparisons to past operating results. Although this does not directly affect the Company’s cash position, the loss in value of goodwill over time can have a material impact on the equivalent GAAP earnings measure.




Transformation costs represent net costs related to the (i) HPE Next Plan and (ii) Cost Optimization and Prioritization Plan. HPE excludes these costs as they are discrete costs related to two specific transformation programs that were announced in 2017 and 2020, respectively, as multi-year programs necessary to transform the business and IT infrastructure. The primary elements of the HPE Next and the Cost Optimization and Prioritization Plan have been substantially completed by October 31, 2024. The exclusion of the transformation program cost from the non-GAAP financial measures as stated above, is to provide a supplemental measure of the Company’s operating results that do not include material HPE Next Plan and Cost Optimization and Prioritization Plan costs as the Company’s management does not believe such costs to be reflective of its ongoing operating cost structure.




Gain on sale of a business represents the gain associated with certain disposal activities. On December 1, 2024, HPE completed the disposition of the Company’s Communication Technology Group which resulted in a gain of $248 million. The Company’s management considers this divestiture to be a discrete event and believes eliminating this adjustment for the purposes of calculating non-GAAP measures facilitates the evaluation of its current operating performance.




As of January 31, 2026, HPE possessed a 19% equity interest in H3C, however, the Company entered into share purchase agreements to divest all of the remaining issued share capital of H3C held by HPE through its subsidiaries. Beginning in fiscal 2026, the Company stopped reporting H3C earnings in its non-GAAP results due to the planned divestiture of the H3C investment. The Company believes that eliminating these amounts for purposes of calculating non-GAAP financial measures facilitates the evaluation of its current operating performance.




HPE excludes gains and losses (including impairments) on its non-marketable equity investments because the Company does not believe they are reflective of normal continuing business operations. These adjustments are reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings. The Company believes eliminating these adjustments for the purposes of calculating non-GAAP measures facilitates the evaluation of its current operating performance.




Hewlett Packard Enterprise utilizes a structural long-term projected non-GAAP income tax rate in order to provide consistency across the interim reporting periods and to eliminate the effects of items not directly related to the Company’s operating structure that can vary in size, frequency and timing. When projecting this long-term rate, HPE evaluated a three-year financial projection. The projected rate assumes no incremental acquisitions in the three-year projection period and considers other factors including the Company’s expected tax structure, its tax positions in various jurisdictions and current impacts from key legislation implemented in major jurisdictions where HPE operates. For fiscal 2026, HPE will use a projected non-GAAP income tax rate of 14%, which reflects currently available information as well as other factors and assumptions. For fiscal 2025, HPE used a projected non-GAAP income tax rate of 15%. The non-GAAP income tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the Company’s geographic earnings mix including due to acquisition activity, or other changes to the Company’s strategy or business operations. HPE will re-evaluate its long-term rate as appropriate. HPE believes that making these adjustments for purposes of calculating non-GAAP measures, facilitates a supplemental evaluation of the Company’s current operating performance and comparisons to past operating results.




FCF is defined as cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash. FCF does not represent the total increase or decrease in cash for the period. Hewlett Packard Enterprise’s management and investors can use FCF for the purpose of determining the amount of cash available for investment in the Company’s businesses, repurchasing stock and other purposes as well as evaluating its historical and prospective liquidity.



Compensation for material limitations with use of non-GAAP financial measures


These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hewlett Packard Enterprise’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are that they can have a material impact on the equivalent GAAP earnings measures and cash flows, they may be calculated differently by other companies (limiting the usefulness of those measures for comparative purposes) and may not reflect the full economic effect of the loss in value of certain assets. Hewlett Packard Enterprise compensates for these limitations on the use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Hewlett Packard Enterprise also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure for this quarter and prior periods within this news release and in other written materials that include these non-GAAP financial measures, and Hewlett Packard Enterprise encourages investors to review those reconciliations carefully.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260309730713/en/
Media Contact:

Laura Keller

Laura.Keller@hpe.com


Investor Contact:

Paul Glaser

investor.relations@hpe.com


Original: HPE Reports Fiscal 2026 First Quarter Results