Hewlett Packard Enterprise Company (HPE) Q3 2026 Financial Results Summary
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Hewlett Packard Enterprise (HPE) Q3 2026: Record Revenue and Profitability — Strongly Positive
Hewlett Packard Enterprise (HPE) reported exceptional results for its fiscal Q3 2026, with record revenue of $12.2 billion, reflecting a significant increase of $3.1 billion or 34% year-over-year. This robust performance underscores the company's strong demand across its portfolio, particularly in the AI and cloud sectors.
Key Financial Metrics
- Revenue: $12.2 billion, up $3.1 billion or 34% YoY
- GAAP Operating Profit: $1.4 billion, up 464% YoY
- Non-GAAP Operating Profit: $1.9 billion, up 155% YoY
- GAAP Diluted EPS: $1.06, up $0.85 from the prior-year period
- Non-GAAP Diluted EPS: $1.11, up $0.67 from the prior-year period
- Free Cash Flow: $1.0 billion, an increase of $0.2 billion YoY
- Cash Returns to Shareholders: $324 million in dividends and share repurchases
Analyst Opinion
This quarter is undoubtedly a strong positive for shareholders. The substantial growth in revenue and profitability, alongside a significant increase in EPS, indicates that HPE is effectively capitalizing on the growing demand for AI and cloud solutions. The company's ability to raise its financial outlook for both fiscal 2026 and 2027 further reinforces its strong market position and operational execution.
Dividend and Share Buyback
HPE's Board of Directors declared a regular cash dividend of $0.1425 per share, payable on or about October 16, 2026, to stockholders of record as of the close of business on September 17, 2026. This commitment to returning capital to shareholders, alongside the $324 million allocated for share buybacks, reflects HPE's confidence in its ongoing cash generation capabilities.
Guidance Update
Looking ahead, HPE has raised its fiscal 2026 revenue growth outlook to a range of 34% to 37% and expects GAAP diluted net EPS to be in the range of $2.93 to $3.03. The company also anticipates free cash flow to be at least $3.75 billion for the fiscal year, indicating strong operational cash generation.
Forward Catalysts
Investors should closely monitor HPE's performance in the upcoming quarter, particularly in the AI and cloud segments, which are expected to drive continued growth. The company’s order backlog is at a record level, suggesting sustained demand. Additionally, any updates on strategic initiatives or partnerships in the AI space could serve as significant catalysts for further stock appreciation.
In summary, HPE's Q3 2026 results not only highlight its operational strength but also position it favorably for future growth, making it an attractive prospect for investors looking for exposure in the technology sector.
Note: All amounts are in millions.
| July 31, 2026 | April 30, 2026 | July 31, 2025 | |
|---|---|---|---|
| Net revenue | $ 12,213 | $ 10,678 | $ 9,136 |
| Costs and Expenses: | |||
| Cost of sales | 7,314 | 6,778 | 6,464 |
| Research and development | 1,158 | 922 | 622 |
| Selling, general and administrative | 1,962 | 1,830 | 1,496 |
| Amortization of intangible assets | 315 | 323 | 126 |
| Acquisition, disposition and other charges | 71 | 78 | 181 |
| Total costs and expenses | 10,820 | 9,931 | 8,889 |
| Earnings from operations | 1,393 | 747 | 247 |
| Interest and other, net(1) | -75 | -73 | 8 |
| Gain on sale of equity interest | 444 | — | — |
| Gain on sale of a business | — | — | 1 |
| Earnings from equity interests | — | 25 | 32 |
| Earnings before provision for taxes | 1,762 | 699 | 288 |
| Provision for taxes | -222 | -75 | 17 |
| Net earnings attributable to HPE | 1,540 | 624 | 305 |
| Preferred stock dividends | -29 | -29 | -29 |
| Net earnings attributable to common stockholders | $ 1,511 | $ 595 | $ 276 |
| Net Earnings Per Share Attributable to Common Stockholders: | |||
| Basic | $ 1.13 | $ 0.45 | $ 0.21 |
| Diluted | 1.06 | 0.44 | 0.21 |
| Cash dividends declared per share | 0.1425 | 0.1425 | 0.1300 |
| Cash dividends accrued per preferred share | $ 0.9531 | $ 0.9531 | $ 0.9531 |
| Weighted-average shares Used to Compute Net Earnings Per Share: | |||
| Basic | 1,336 | 1,335 | 1,325 |
| Diluted | 1,449 | 1,432 | 1,421 |
Note: All amounts are in millions.
| July 31, 2026 | October 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 6,216 | $ 5,773 |
| Accounts receivable, net of allowances | 6,185 | 5,290 |
| Financing receivables, net of allowances | 3,841 | 3,826 |
| Inventory | 11,823 | 6,352 |
| Other current assets | 5,800 | 3,753 |
| Total current assets | 33,865 | 24,994 |
| Property, plant and equipment, net | 5,645 | 6,002 |
| Long-term financing receivables and other assets | 14,632 | 13,817 |
| Investments in equity interests | — | 955 |
| Goodwill and intangible assets | 29,454 | 30,138 |
| Total assets | $ 83,596 | $ 75,906 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Notes payable and short-term borrowings | $ 2,901 | $ 4,609 |
| Accounts payable | 13,734 | 7,731 |
| Employee compensation and benefits | 2,880 | 1,871 |
| Deferred revenue | 5,561 | 5,358 |
| Other accrued liabilities | 5,360 | 5,074 |
| Total current liabilities | 30,436 | 24,643 |
| Long-term debt | 17,343 | 17,756 |
| Other non-current liabilities | 9,241 | 8,753 |
| Stockholders' Equity | ||
| HPE stockholders' equity: | ||
| 7.625% Series C mandatory convertible preferred stock, $0.01 par value | 30 | — |
| Common stock, $0.01 par value | 13 | 13 |
| Additional paid-in capital | 30,151 | 30,234 |
| Accumulated deficit | -948 | -2,811 |
| Accumulated other comprehensive loss | -2,702 | -2,748 |
| Total HPE stockholders' equity | 26,514 | 24,688 |
| Total liabilities and stockholders' equity | $ 83,596 | $ 75,906 |
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