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Jan 31
Hewlett Packard Enterprise Q1 2026 Earnings Report
Hewlett Packard Enterprise reported strong first quarter results with significant networking growth and improved profitability.
Key Takeaways
Hewlett Packard Enterprise delivered strong fiscal Q1 2026 results with revenue growing 18% year-over-year to $9.30B. Networking revenue surged more than 150% driven by the Juniper integration, while operating profitability improved with higher margins in the Cloud & AI segment.
Revenue increased 18% year-over-year to $9.30B driven primarily by networking growth.
Networking revenue surged 151.5% year-over-year following Juniper integration.
Operating income improved to $470.00M with stronger operating margins.
Cloud & AI margins expanded to 10.2% despite slightly declining revenue.
Revenue by Segment
Forward Guidance
HPE raised its fiscal 2026 outlook driven by strong networking demand and improving profitability, while projecting continued revenue growth and higher free cash flow.
Positive Outlook
- Expected Q2 revenue between $9600000000 and $10000000000.
- Networking revenue growth outlook raised to 68%–73%.
- FY2026 revenue growth expected between 17% and 22%.
- Full-year non-GAAP EPS expected between $2.30 and $2.50.
- Free cash flow expected to reach at least $2000000000 in FY2026.
Challenges Ahead
- Cloud & AI segment revenue declined 2.7% year-over-year.
- Networking operating margin decreased versus prior year.
- GAAP EPS declined year-over-year despite adjusted growth.
- Server revenue declined year-over-year within Cloud & AI.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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