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.
Related Articles
Ciena $CIEN dropped ~8.9% premarket June 4 despite beating Q2 FY2026 estimates — revenue of $1.57B (+40% YoY) and adjusted EPS of $1.64 vs. $1.46 estimate. FY2026 guidance was raised to $6.3B ±$100M (+32% YoY), but investors expected more after an AI-driven sector rally. Lumentum, Coherent, Marvell, and Corning fell in sympathy.
Broadcom $AVGO fell 15% on June 4 — its worst day since January 2025 — after Q3 AI chip guidance of $16B missed the $17.2B analyst estimate by $1.2B. Q2 FY2026 revenue of $22.19B and non-GAAP EPS of $2.44 both beat consensus, and full-year AI semiconductor guidance was left unchanged at 'in excess of $100B,' disappointing a market that had priced in a raise.
Dell $DELL rose 39% after fiscal Q1 revenue reached $43.8B, up 88% year over year, with AI server revenue at $16.1B. The company lifted FY2027 guidance to $165B-$169B in revenue and $17.90 adjusted EPS.