Hewlett Packard Enterprise shares surge on earnings beat, raised guidance

Hewlett Packard Enterprise Co (NYSE:HPE, XETRA:2HP) shares jumped astir 25% connected Tuesday aft the institution reported fiscal second-quarter results that topped expectations and importantly raised its full-year outlook, fueled by beardown request for AI infrastructure, servers and networking products.

For the 4th ended April 30, 2026, HPE reported gross of $10.68 billion, up 40% from a twelvemonth earlier and up of expert estimates of astir $9.78 billion.

Adjusted net per stock came successful astatine $0.79, good supra statement expectations of astir $0.53.

The institution said the results were driven by broad-based request crossed its business, including a 32.7% summation successful server gross arsenic enterprises continued investing successful artificial quality and infrastructure modernization.

HPE CEO Antonio Neri said customers continued to put successful modernizing infrastructure and scaling AI deployments.

“HPE delivered an exceptional 4th with record-breaking revenue, higher-than-anticipated profitability, and accrued escaped currency flow, reflecting beardown execution and steadfast request crossed the business,” Neri said.

Following the quarter, HPE raised its fiscal 2026 outlook. The institution present expects full-year gross maturation of 29% to 33%, up from anterior guidance of 17% to 22%. HPE besides accrued its gross maturation forecast for the Networking conception to 72% to 75%.

The institution present expects fiscal 2026 non-GAAP diluted EPS of $3.35 to $3.45, up from erstwhile guidance of $2.30 to $2.50, portion GAAP diluted EPS is projected astatine $2.42 to $2.52.

HPE said the improved outlook reflects continued momentum successful AI-native infrastructure, networking demand, operational execution and stronger-than-expected profitability and currency generation. HPE besides pulled guardant its semipermanent fiscal targets by 2 years.

Wedbush analysts described the 4th arsenic a large beat, noting it was HPE's largest net outperformance since 2018.

The steadfast highlighted spot successful servers, wherever gross roseate 33%, supported by triple-digit maturation successful accepted server orders and $1.8 cardinal of AI systems orders. HPE ended the 4th with a $5.9 cardinal AI systems backlog.

The analysts noted that pricing, alternatively than portion measurement growth, accounted for overmuch of the server gross increase, arsenic manufacturers person been capable to rapidly walk higher constituent costs done to customers portion maintaining margins.

Wedbush besides pointed to networking strength, estimating gross maturation of astir 10% excluding the interaction of the Juniper acquisition, portion absorption reported adjacent stronger bid maturation and a increasing backlog.