What financial results did Hewlett Packard Enterprise (NYSE:HPE) report for Q2 fiscal 2026?

Hewlett Packard Enterprise reported consolidated revenue of $10.7 billion for the quarter ended April 30, 2026, a 40% year-over-year increase. GAAP diluted EPS rose to $0.44 from a prior-year net loss, while non-GAAP EPS reached $0.79, surpassing management guidance.

How did HPE (NYSE:HPE) perform relative to Wall Street expectations?

Revenue and earnings significantly exceeded analyst expectations, with both top-line growth and profitability metrics outperforming the company’s internal forecasts and Wall Street consensus.

What drove the revenue surge at HPE (NYSE:HPE)?

The 40% revenue increase was fueled by strong demand for AI-optimized infrastructure, corporate networking solutions, and operational synergies from the integration of Juniper Networks.

How did gross margins change for HPE (NYSE:HPE)?

GAAP gross margin expanded to 36.5%, up 810 basis points year-over-year, while non-GAAP gross margin rose to 36.9%, reflecting operational efficiency and cost synergies.

How much cash did HPE (NYSE:HPE) generate in Q2 fiscal 2026?

Cash flow from operations totaled $1.4 billion, up $1.9 billion from the prior year, while free cash flow reached $0.9 billion, swinging from a negative $0.9 billion position the prior year.

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Hewlett Packard Enterprise beats outlook with record $10.7B Q2 revenue

Written by Isaac FrancisPublished Jun 1, 2026, 8:26 PMLast Updated Jul 6, 2026, 10:10 AM

Hewlett Packard Enterprise (NYSE:HPE) announced Monday its financial results for the fiscal second quarter ended April 30, 2026, delivering record-breaking top-line growth that significantly exceeded both Wall Street expectations and the company's internal projections.

The enterprise technology leader posted consolidated revenue of $10.7 billion, representing a 40% surge compared to the prior-year period, powered by sustained demand for AI-optimized infrastructure and corporate networking solutions.

The company recorded significant expansions in its profitability metrics alongside the revenue jump.

GAAP gross margin for the quarter reached 36.5%, marking an increase of 810 basis points year-over-year and a sequential expansion of 60 basis points.

Non-GAAP gross margin climbed to 36.9%, up 750 basis points from the same period last year and up 30 basis points from the first quarter.

Management attributed the operational efficiency gains to disciplined execution and ahead-of-schedule cost synergies following its integration of Juniper Networks.

HPE’s net earnings landed well above its pre-specified outlook ranges for the three-month window.

GAAP diluted net earnings per share came in at $0.44, rising $1.26 from a net loss in the prior-year period to clear the company’s original guidance range of $0.09 to $0.13 per share.

Non-GAAP diluted net EPS finished at $0.79, up $0.41 from the prior-year period to surpass management's forecast of $0.51 to $0.55 per share.

Cash performance similarly reached historic highs for the company's second fiscal quarter.

Cash flow generated from operations totaled $1.4 billion, reflecting an increase of $1.9 billion from the prior-year period.

Free cash flow concluded at $0.9 billion, a substantial swing representing a $1.8 billion increase over last year's negative cash position.

During the quarter, HPE returned a total of $343 million to its common shareholders in the form of regular dividend distributions and open-market share repurchases.

Hewlett Packard Enterprise beats outlook with record $10.7B Q2 revenue

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