Summary
Hewlett Packard Enterprise (HPE) reported a solid first quarter for fiscal year 2026, with total net revenue reaching $9.3 billion, an increase of 18.4% year-over-year. This growth was primarily driven by the inclusion of Juniper Networks following its acquisition. The Networking segment, significantly boosted by Juniper, saw revenue jump by 151.5%. However, the Cloud & AI segment experienced a slight revenue decline of 2.7%, mainly due to lower server business performance, though storage and financial services showed modest growth. Despite the robust revenue increase, net earnings attributable to HPE common stockholders decreased by 29.3% to $423 million, or $0.31 per diluted share, compared to $598 million, or $0.44 per diluted share, in the prior year. This decrease is largely attributable to higher operating expenses, including amortization of intangible assets and acquisition-related costs stemming from the Juniper acquisition, which offset the increased gross profit. Management highlights ongoing efforts to manage costs, optimize supply chains, and navigate macroeconomic uncertainties, including inflationary pressures and foreign currency fluctuations.
Financial Highlights
47 data points| Revenue | $9.30B |
| R&D Expenses | $744.00M |
| SG&A Expenses | $1.70B |
| Operating Expenses | $8.83B |
| Operating Income | $470.00M |
| Net Income | $452.00M |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.36B |
Key Highlights
- 1Total net revenue increased by 18.4% to $9.3 billion, largely driven by the acquisition of Juniper Networks.
- 2The Networking segment experienced substantial growth, with net revenue up 151.5% due to the Juniper acquisition.
- 3Cloud & AI segment revenue decreased by 2.7%, primarily due to a decline in the Server business, partially offset by growth in Storage and Financial Services.
- 4Gross profit margin improved significantly to 35.9% from 29.2% year-over-year, mainly due to the higher revenue in the Networking segment.
- 5Operating expenses increased by 33.9% primarily due to costs associated with the Juniper Networks merger, including higher R&D and SG&A expenses.
- 6Net earnings attributable to common stockholders decreased by 29.3% to $423 million ($0.31/share) from $598 million ($0.44/share) in the prior year period, impacted by increased operating expenses.
- 7HPE completed the acquisition of Juniper Networks for approximately $13.4 billion, which closed on July 2, 2025, and is now contributing to segment results.