HOUSTON, September 2, 2026, 17:44 (EDT)
- HPE was last at $49.89 in after-hours trading, down 3.7% from its $51.83 closing price.
- Revenue for the quarter increased by 34%, reaching an all-time high of $12.2 billion.
- Sales in networking increased by 74.9%, while revenue from Cloud & AI climbed 25.4%.
- HPE raised its fiscal 2027 revenue growth outlook to a range of 13% to 17%.
Hewlett Packard Enterprise Company NYSE:HPE shares dropped 3.7% in after-hours trading even as the company reported record sales and profit for the quarter. The stock traded at $49.89 at 17:44 EDT, down from its previous close of $51.83 Yahoo Finance.
The reversal raises expectations for HPE. Investors are now looking for margin improvements to match growth driven by Juniper.
HPE after-hours price path
U.S. dollars; regular close shown as a dashed line.
As of .
HPE posted revenue of $12.21 billion, an increase of 33.7% from the prior year. GAAP operating profit surged to $1.39 billion, compared to $247 million a year earlier. The data was reported in HPE’s SEC-filed earnings release.
The non-GAAP operating margin increased to 16.2% from 8.5%. Adjusted diluted earnings reached $1.11 per share, surpassing HPE’s projected range of $0.88 to $0.93.
Where HPE’s growth came from
Fiscal third-quarter revenue growth from a year earlier.
Source: HPE fiscal Q3 2026 results, reported September 2.
Cloud & AI continued to drive growth. Revenue increased 25.4% to $9.04 billion, and the segment margin improved to 17.0%. The margin was 7.0% in the prior year.
Networking posted quicker growth but saw only slight improvement in margins. Revenue increased by 74.9% to reach $2.89 billion. The margin held at 22.0%, showing minimal change from the previous year.
Sales from data-center networking jumped over twofold to $382 million. HPE has integrated Juniper switches into its AI data-center lineup.
Chief Executive Antonio Neri said, “AI is becoming a multi-year growth driver for HPE.” CFO Marie Myers pointed to a record order backlog, as well as disciplined execution.
Raised fiscal 2027 framework
Source: HPE fiscal Q3 2026 results.
Management increased revenue growth guidance for fiscal 2027 to a range of 13%–17%. The company is projecting free cash flow of no less than $5.0 billion. Adjusted EPS growth is anticipated to be between 16% and 20%.
HPE lifted its fiscal 2026 free cash flow outlook to a minimum of $3.75 billion. The company intends to return no less than 75% of its fourth-quarter free cash flow.
The dividend stays at $0.1425 per share, scheduled to be paid on or about October 16 to shareholders on record as of September 17.
HPE is set to participate in the Citi Global TMT Conference on September 8, according to its next planned investor engagement HPE investor relations.
Risks: The integration with Juniper could make it harder to assess organic growth. Margins may also fluctuate due to changes in component expenses and order schedules. Liquidity is lower for after-hours quotes.
