Hewlett Packard Enterprise's first quarter 2026 EPS beat estimates while strong networking growth drove a raised full-year outlook.

Hewlett Packard Enterprise reported first quarter revenue of $9.3 billion, an 18% year-over-year increase, and non-GAAP EPS of $0.65. While revenue slightly missed analyst expectations, profitability significantly exceeded estimates, prompting the company to raise its full-year 2026 guidance.

Key Highlights

• The Networking segment revenue surged 151.5% year-over-year to $2.7 billion, reflecting the recent integration of Juniper Networks.
• The Cloud & AI segment's operating profit margin expanded to 10.2% from 8.4% a year ago, despite a 2.7% decline in revenue to $6.3 billion.
• HPE raised its full-year 2026 non-GAAP EPS outlook to a range of $2.30 to $2.50 and now expects free cash flow of at least $2.0 billion.