HPE Q2 2026 earnings beat on AI server demand surge

Hewlett Packard Enterprise reported grounds quarterly gross of $10.7 cardinal successful its fiscal 2nd quarter, up 40% from a twelvemonth ago, arsenic request for AI infrastructure drove results good past Wall Street expectations.

Non-GAAP net per stock came successful astatine $0.79, supra the company's ain guidance scope of $0.51 to $0.55. Analysts had expected $0.53 per share, according to CNBC. Revenue of $10.68 cardinal besides exceeded the $9.79 cardinal analysts anticipated, according to CNBC.

HPE's Cloud & AI conception generated $7.7 cardinal successful revenue, up 22.9% from a twelvemonth earlier, driven by its server business. Server gross reached $5.45 billion, up 32.7% twelvemonth implicit year. Analysts had expected $4.66 cardinal from the server portion and $6.87 cardinal from Cloud & AI overall, according to CNBC.

The institution raised its full-year non-GAAP EPS guidance to a scope of $3.35 to $3.45, up from a anterior scope of $2.30 to $2.50 — an summation of astir $1 per share. HPE besides raised its escaped currency travel guidance to astatine slightest $3.5 billion. Both figures transcend targets the institution had acceptable for fiscal 2028 erstwhile it issued semipermanent guidance successful October 2025, putting it astir 2 years up of schedule, the institution said.

"Customers proceed to put successful modernizing their infrastructure and scaling AI, and our show shows the spot of our combined networking portfolio," HPE president and CEO Antonio Neri said successful a statement.

On the request side, CFO Marie Myers pointed to a surge successful customers seeking server capableness for agentic AI applications, noting that those workloads spot acold heavier computational demands connected infrastructure than accepted tasks, The Wall Street Journal reported. In an interrogation with CNBC, Neri said bookings for accepted servers person grown by triple-digit percentages, with the company's bid backlog reaching a historical high.

Shares climbed 30% successful Monday trading, CNBC reported.

The Networking segment, which includes the Juniper Networks concern HPE acquired, posted gross of $2.7 billion, up 148.2% from a twelvemonth ago. On a GAAP basis, the 4th produced $624 cardinal successful profit, oregon $0.44 per diluted share; a twelvemonth earlier, HPE had recorded a $1.05 cardinal nett loss.

For the fiscal 3rd quarter, HPE projected gross of $11.5 cardinal to $12.1 billion, and non-GAAP EPS of $0.88 to $0.93. The institution besides introduced a fiscal 2027 model calling for gross maturation of 8% to 12% and escaped currency travel of astatine slightest $4.5 billion.