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Hewlett-Packard Enterprise's (HPE) third-quarter results exceeded expectations, but its share price

2026-09-03 20:13:17

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Core Points

Component shortage will continue into 2028
Increase performance guidance for fiscal year 2026 and beyond
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Third quarter earnings highlights and outlook

Adjusted earnings per share reached a record of $1.11, exceeding analyst expectations of $0.93; Revenue climbed to $12.2 billion, a year-on-year increase of 34%. Revenue focused on artificial intelligence and cloud businesses totaled $9 billion, up 25%, while the networking division surged 75% to $2.9 billion.

The company raised its revenue growth forecast for fiscal 2026 to 34%-37%, and raised its forecast for fiscal 2027 to 13%-17%. Despite the results exceeding expectations, shares fell more than 5% in after-hours trading, fueled by investor concerns about shrinking profit margins and component supply.

CEO Antonio Neri warned that supply chain availability will face a "very limited" situation that will remain until 2028, with memory chips being the main challenge.

HPE earnings details

Hewlett Packard Enterprise (HPE) shares plunged more than 5% in after-hours trading on Wednesday after the company announced record quarterly results. Before the earnings report, the stock had risen 116% year-to-date.

The company's adjusted earnings per share were $1.11, a significant increase from $0.44 in the same period last year and significantly exceeded the Wall Street consensus forecast of $0.93. Quarterly revenue reached $12.2 billion, a year-on-year increase of 34%, exceeding analysts 'forecasts of $12 billion.

Quarterly revenue in the artificial intelligence and cloud computing segment reached US$9 billion, a year-on-year increase of 25%. Server sales rose 35% to $6.8 billion, while network revenue surged 75% to $2.9 billion.

HP Enterprise (HPE) Fiscal 2026 third quarter earnings highlights:
Revenue: US$12.2 billion (Estimated US$11.91 billion); year-on-year growth of 34%
Adjusted earnings per share:$1.11 (Estimated US$0.93)
Non-GAAP gross margin: 40.4%; Year-on-year increase of 1,050 basis points
Non-GAAP operating profit margin: 16.2%; A year-on-year increase of 770 basis points
Increase guidance for fiscal year 2026:
Non-GAAP earnings per share:

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