Hewlett Packard Enterprise Company (HPE) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 revenue of $10.7 billion, up 40% year-over-year and 15% sequentially, surpassing guidance, with non-GAAP EPS of $0.79, up 108% year-over-year, and GAAP EPS of $0.44.

• Free cash flow reached $915 million in Q2, up $1.8 billion year-over-year, with cash flow from operations at $1.4 billion.

• Orders more than doubled, resulting in a record backlog, with strong demand across AI, networking, and cloud segments.

• Integration of Juniper Networks and execution of Catalyst cost initiatives are ahead of schedule, contributing to improved profitability and synergies.

• Raised full-year and FY2027 guidance, citing durable demand, robust backlog, and strong industry tailwinds.

Financial highlights

• Q2 revenue: $10.7 billion, up 40% year-over-year and 15% sequentially.

• Non-GAAP EPS: $0.79 (up 108%); GAAP EPS: $0.44, up $1.26 year-over-year.

• Gross margin improved to 36.9% non-GAAP (up 7.5 pts YoY), GAAP gross margin 36.5% (up 8.1 pts YoY).

• Free cash flow: $915 million in Q2; $1.6 billion for first half, 75% above prior comparable period.

• Returned $343 million to shareholders in Q2 via dividends and share repurchases.

Outlook and guidance

• FY2026 non-GAAP EPS outlook raised to $3.35–$3.45; GAAP EPS to $2.42–$2.52.

• FY2026 free cash flow outlook increased to at least $3.5 billion.

• FY2026 revenue growth expected at 29%–33% reported, high teens normalized.

• FY2027 framework: revenue growth of 8%–12%, EPS growth of 12%–16%, free cash flow of at least $4.5 billion.

• Q3 FY26 revenue guidance: $11.5–$12.1 billion; non-GAAP EPS: $0.88–$0.93.