NYSE$HPE

Hewlett Packard Enterprise Co · Q1 2026 earnings

Q1 2026 earnings · · After market close · Investor relations

Briefing

Hewlett Packard Enterprise reported strong first quarter results with significant networking growth and improved profitability.

Hewlett Packard Enterprise delivered strong fiscal Q1 2026 results with revenue growing 18% year-over-year to $9.30B. Networking revenue surged more than 150% driven by the Juniper integration, while operating profitability improved with higher margins in the Cloud & AI segment.

  • Revenue increased 18% year-over-year to $9.30B driven primarily by networking growth.
  • Networking revenue surged 151.5% year-over-year following Juniper integration.
  • Operating income improved to $470.00M with stronger operating margins.
  • Cloud & AI margins expanded to 10.2% despite slightly declining revenue.

Headline financials

Total Revenue

$9.3B

Previous: $7.85B+18.4%
EPS

$0.31

Previous: $0.49-36.7%
Gross Margin

35.9%

No prior period
Non-GAAP Gross Margin

36.6%

No prior period
Free Cash Flow

$708M

No prior period
Operating Margin

5.1%

No prior period
Capital Expenditures

-$569M

No prior period
Net Income

$452M

Previous: $627M-27.9%
Operating Income

$470M

Previous: $433M+8.5%
Gross Profit

$9.29B

Previous: $2.3B+304.9%
Cash & Equivalents

$4.84B

No prior period
Total Assets

$75.8B

No prior period

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$9.3B

Q1 2026+18.4%vs Q1 2025
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Hewlett Packard Enterprise · $126M total across 1 segment · Q4 2020

  • Corporate Investments
    $126M

Forward guidance

HPE raised its fiscal 2026 outlook driven by strong networking demand and improving profitability, while projecting continued revenue growth and higher free cash flow.

Tailwinds

  • Expected Q2 revenue between $9600000000 and $10000000000.
  • Networking revenue growth outlook raised to 68%–73%.
  • FY2026 revenue growth expected between 17% and 22%.
  • Full-year non-GAAP EPS expected between $2.30 and $2.50.
  • Free cash flow expected to reach at least $2000000000 in FY2026.

Headwinds

  • Cloud & AI segment revenue declined 2.7% year-over-year.
  • Networking operating margin decreased versus prior year.
  • GAAP EPS declined year-over-year despite adjusted growth.
  • Server revenue declined year-over-year within Cloud & AI.
  • Corporate Investments segment remained unprofitable with negative operating margin.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2026

Historical avgQ1 2026

-0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.0%

Avg return

30 days after

49%

23 / 47 earnings

Positive

+11.6%

Q1 2018

Best reaction

-12.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.2%-1.1%+13.8%
Q4 2025+10.2%+10.3%+5.5%
Q3 2025+1.4%+4.6%+7.1%
Q2 2025+0.7%+3.5%+20.6%
Q1 2025-12.0%-16.0%-28.8%
Q4 2024+10.1%+0.7%+0.3%
Q3 2024-7.5%-7.7%+8.2%
Q2 2024+8.5%+11.6%+15.2%
Q1 2024+4.7%+21.8%+19.3%
Q4 2023+5.9%+8.3%+10.1%
Q3 2023+3.4%+7.1%+5.0%
Q2 2023-6.0%-0.7%+8.5%
Q1 2023-1.7%-3.4%+2.5%
Q4 2022+7.9%+7.3%+2.4%
Q3 2022-0.9%-3.5%-11.7%
Q2 2022-4.1%-2.4%-16.9%
Q1 2022+6.7%+3.1%+5.0%
Q4 2021-2.7%+3.8%+8.8%
Q3 2021+0.9%-2.1%-4.7%
Q2 2021+0.7%+1.6%-7.9%
Q1 2021-0.3%-1.4%+7.5%
Q4 2020+4.3%+11.8%+7.3%
Q3 2020+0.5%+2.2%-5.1%
Q2 2020-10.8%-8.4%-4.5%
Q1 2020-4.9%-7.0%-27.2%
Q4 2019-6.7%-7.5%-7.0%
Q3 2019+3.3%+6.8%+13.1%
Q2 2019-2.2%-3.7%+1.6%
Q1 2019+1.7%+4.7%-4.7%
Q4 2018+3.4%-5.1%-15.0%
Q3 2018+1.6%+0.5%-1.0%
Q2 2018-11.0%-11.4%-11.9%
Q1 2018+11.6%+15.8%+8.5%
Q4 2017-7.0%-5.5%+4.5%
Q3 2017-3.8%-8.3%+3.6%
Q2 2017-7.0%-9.0%-12.0%
Q1 2017-7.4%-7.9%-8.1%
Q4 2016+1.9%+0.4%+2.8%
Q3 2015-5.3%-4.2%+1.1%
Q3 2016-2.2%-2.6%+2.2%
Q2 2016+7.9%+13.6%+22.3%
Q1 2015+5.4%
Q1 2016+11.0%
Q4 2015-3.6%
Q4 2014-3.6%
Q4 2013-3.6%
Q2 2015-3.6%
Q3 2014
Q2 2014
Q1 2014

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