HOUSTON – September 2, 2026 – HPE (NYSE: HPE) announced a more than fivefold increase in third-quarter profit, driven by surging demand across both its segments. CEO Antonio Neri said, "AI is becoming a multi-year growth driver for HPE, and our differentiated portfolio positions us to capture that opportunity at scale." CFO Marie Myers noted record order backlog and raised the financial outlook, planning to return at least 75% of free cash flow to shareholders in Q4.

Revenue reached $12.2 billion, up 34% year-over-year. GAAP diluted EPS was $1.06, above the outlook range, while non-GAAP EPS was $1.11. Gross margins expanded significantly, with GAAP at 40.1% and non-GAAP at 40.4%. Operating cash flow was $1.6 billion, and free cash flow was $1.0 billion.

Networking revenue grew 74.9% to $2.9 billion, with strong gains in Routing (up 270.0%), Data Center Networking (up 112.2%), and Security (up 75.6%). Cloud & AI revenue rose 25.4% to $9.0 billion, with Server up 35.3% and Storage up 10.2%. The company declared a dividend of $0.1425 per share.

For Q4 fiscal 2026, HPE expects revenue between $13.9 billion and $14.8 billion, with GAAP EPS of $1.12-$1.22 and non-GAAP EPS of $1.20-$1.30. The company raised its long-term growth targets, citing durable profitable growth momentum.