The massive guidance raise and FY27 framework signal sustained operational momentum well ahead of the FY28 plan. For the preferred, the credit profile has materially improved — monitor for any potential redemption or tender announcement given the strong cash position and H3C proceeds.
Price Chart
Executive Summary
HPE reported a record fiscal Q2 2026 with revenue of $10.7B (+40% YoY), GAAP EPS of $0.44 (well above the $0.09-$0.13 outlook range), and non-GAAP EPS of $0.79 (above the $0.51-$0.55 outlook). The company raised its full-year FY26 non-GAAP EPS guidance to $3.35-$3.45 and introduced a FY27 growth framework. Additionally, Elliott Investment Management partner Chris Hsu was appointed to the board under an amended cooperation agreement, and the H3C divestiture closed with $1.357B in proceeds. For the preferred stock (HPE-PC), the massive operational outperformance and credit-positive guidance raise are strongly bullish, as they significantly improve the coverage and safety of the preferred dividend.
Key Financial Metrics
Key Facts
- Revenue of $10.7B, up 40% YoY, a record for HPE
- GAAP diluted EPS of $0.44 vs outlook of $0.09-$0.13
- Non-GAAP diluted EPS of $0.79 vs outlook of $0.51-$0.55
- FY26 non-GAAP EPS guidance raised to $3.35-$3.45 (previously $2.30-$2.50)
- FY26 free cash flow guidance raised to at least $3.5B (from at least $2.0B)
- FY27 framework introduced: revenue growth 8%-12%, non-GAAP EPS growth 12%-16%, FCF at least $4.5B
- H3C divestiture completed on May 28, 2026, with $1.357B in cash proceeds
- Elliott partner Chris Hsu appointed to HPE's Board of Directors
- Quarterly dividend of $0.1425 per common share declared
- Cloud AI segment revenue grew 22.9% YoY with operating margin expanding to 12.4% from 6.6%
Financial Impact
Record revenue of $10.7B (+40% YoY), GAAP EPS $0.44 vs $0.09-$0.13 outlook, FY26 non-GAAP EPS guidance raised to $3.35-$3.45, FCF guidance raised to at least $3.5B
Risk Factors
- Networking segment operating margin declined YoY (21.6% vs 25.0%) despite revenue growth
- Inventory increased to $9.0B from $6.4B at year-end, potentially signaling demand normalization
- Integration risks from Juniper acquisition remain, though synergies are tracking ahead of plan
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001645590-26-000052 |
| Exhibit: ex-992x612026x8k.htm | 0001645590-26-000052 |
| Document: hpe-20260601.htm | 0001645590-26-000052 |
| Document: 0001645590-26-000052-index-headers.html | 0001645590-26-000052 |
| Document: 0001645590-26-000052-index.html | 0001645590-26-000052 |
| Document: 0001645590-26-000052.txt | 0001645590-26-000052 |
| 8-K Data (Synthetic) | 0001645590-26-000052 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 17d ago | 144 | $55.88 $61.03 | ▲ +9.22% | ▲ +7.09% | $67.53 (+20.84%) |
Sep 2, 2026 29d ago | 8-K | $54.44 $62.09 | ▲ +14.05% | ▲ +15.20% | $67.53 (+24.04%) |
Aug 7, 2026 8w ago | Court Ruling | $53.22 $58.71 | ▲ +10.32% | ▲ +9.92% | $67.53 (+26.88%) |
Jul 24, 2026 10w ago | 8-K | $47.69 $47.14 | ▼ −1.15% | ▼ −1.53% | $67.53 (+41.59%) |
Jun 30, 2026 13w ago | Court Ruling | $45.11 $43.15 | ▼ −4.34% | ▼ −4.95% | $67.53 (+49.69%) |
Jun 22, 2026 14w ago | 144 | $48.92 $44.41 | ▼ −9.22% | ▼ −10.23% | $67.53 (+38.03%) |
Jun 3, 2026 17w ago | 144 | $138.52 $120.32 | ▼ −13.14% | ▼ −10.59% | $67.53 (−51.25%) |
Jun 1, 2026 17w ago | 8-K | $143.80 $123.16 | ▼ −14.35% | ▼ −11.39% | $67.53 (−53.04%) |
May 14, 2026 20w ago | 8-K | $88.70 $88.63 | ▼ −0.08% | ▲ +0.64% | $67.53 (−23.87%) |
May 5, 2026 21w ago | 144 | $81.09 $80.69 | ▼ −0.49% | ▼ −1.62% | $67.53 (−16.73%) |
US Market Status
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