Hewlett Packard Enterprise Company Common is under Algo Engine buy conditions.
Upcoming Earnings Announcement: Q2 Fiscal 2026
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- Earnings Date: Monday, June 1, 2026 (after market close)
- Consensus Estimates:
* Expected Non-GAAP EPS: ~$0.51 to $0.55 (Consensus is around $0.54, representing a substantial year-over-year increase)
* Expected Revenue: ~$9.75B – $9.78B
HP shares have been buoyed by strong financial results from Lenovo Group, HP soared over 15.0%, and Dell surged to a fresh historic record high as investors preemptively positioned ahead of earnings next week.
Latest Reported Earnings: Q1 Fiscal 2026 (Reported March 9, 2026)
HPE delivered a highly profitable first quarter, notably beating profitability and cash flow expectations, driven by strong networking demand and early synergy capture from the Juniper Networks integration:
- Revenue: $9.3 billion, up 18% year-over-year (matching consensus expectations of ~$9.31 billion).
- Non-GAAP Diluted EPS: $0.65, beating analyst expectations of $0.59 and exceeding the company’s guidance of $0.57 – $0.61.
- GAAP Diluted EPS: $0.31.
- Free Cash Flow (FCF): $708 million, up $1.6 billion year-over-year (a strong result as Q1 is seasonally a cash outflow quarter).
Key Segment & Business Highlights
- Networking Surge: Revenue in the Networking segment soared 151.5% YoY to $2.7 billion (representing nearly 30% of total revenue). This was driven by WiFi-7 uptake, strong data center switching orders, and the rapid integration of Juniper.
- AI Backlog: HPE built up a record $5 billion AI systems backlog, primarily from enterprise and sovereign customers, which is expected to translate into revenue in the second half of fiscal 2026.
- Supply Chain Management: The company has been managing industry-wide DRAM and NAND shortages via multi-year supply agreements and agile surcharge pricing.
Raised Fiscal Year 2026 Outlook
On the back of the Q1 results, HPE management raised its outlook for the full fiscal year:
- FY26 Non-GAAP EPS Guidance: Raised to $2.30 to $2.50 (up from previous guidance).
- FY26 Free Cash Flow Guidance: Increased to at least $2.0 billion (up from the previous target of $1.7B – $2.0B).
