HPE Q3 revenue beats estimates; raises annual forecasts as cloud & AI demand rises

Hewlett Packard Enterprise

02/09/2026 21:22

Overview
US enterprise technology firm's fiscal Q3 revenue rose 34% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q3 exceeded company's outlook range
Company raised full-year and FY27 revenue and EPS outlooks on strong demand

Outlook
HPE sees Q4 revenue between $13.9 bln and $14.8 bln
HPE raises FY26 revenue growth outlook to 34%-37% and non-GAAP EPS to $3.75-$3.85
HPE raises FY27 revenue growth outlook to 13%-17% and free cash flow to at least $5.0 bln

Result Drivers
AI DEMAND - Co said surging customer demand for AI solutions was a key growth driver across its portfolio
NETWORKING SEGMENT GROWTH - Networking revenue rose 74.9% yr/yr, with strong gains in Routing and Data Center Networking
MARGIN EXPANSION - Gross and operating profit margins increased sharply, reflecting higher revenue and what management called disciplined execution

Company press release: ID:nBw7GW8dPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$12.21 bln
$11.91 bln (16 Analysts)
Q3 Net Income Attributable to HPE 
 
$1.54 bln
 
Q3 Net cash Provided by Operating Activities 
 
$1.64 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for Hewlett Packard Enterprise Company is $68.00, about 33.7% above its September 1 closing price of $50.87
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Sept 2 - HPE raises annual forecasts as AI, networking demand lifts quarterly revenue
Sept 1 - Dell again lifts annual forecasts as AI demand powers record results
Sept 1 - Credo Technology Q1 revenue more than doubles on AI infrastructure demand; beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)