HPE $HPE jumps 30% as Q2 revenue reaches $10.7B and FY26 guide rises
Original: HPE skyrockets 30% on biggest earnings beat since 2018 View original →
Hewlett Packard Enterprise $HPE moved about 30% after fiscal Q2 numbers reset the market's earnings base: HPE reported $10.7B of revenue for the quarter ended April 30, 2026, up 40% from a year earlier, and non-GAAP diluted EPS of $0.79 versus its prior outlook range of $0.51 to $0.55.
The catalyst was not only the beat. HPE said Cloud & AI revenue was $7.7B, up 22.9%, with server revenue of $5.5B, up 32.7%. Networking revenue reached $2.7B, up 148.2%, helped by the Juniper Networks combination and cost synergies. CNBC's market report framed the reaction as the stock's biggest earnings-driven move since 2018.
Guidance was the second leg of the move. HPE raised FY2026 revenue-growth expectations to 29%-33%, lifted non-GAAP diluted EPS guidance to $3.35-$3.45, and put free cash flow at at least $3.5B. The company also introduced an FY2027 framework calling for 8%-12% revenue growth and at least $4.5B of free cash flow.
The market stake is AI infrastructure breadth. A server beat alone would have been material, but HPE paired it with networking margin data, H3C cash proceeds of about $1.357B, and a dividend of $0.1425 a share payable around July 15. Investors will next watch whether Q3 revenue guidance of $11.5B-$12.1B confirms that AI server demand and Juniper synergies can run together.
Not investment advice. Verify all figures with primary sources before acting.
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