01—Abstract
Summary
Summary of the 10-Q filed June 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Hewlett Packard Enterprise (HPE) reported a significant increase in net revenue for the three and six months ended April 30, 2026, driven primarily by the acquisition of Juniper Networks and growth in the Cloud & AI segment.
The company's revenue surged by 40.0% and 29.1% year-over-year for the respective periods, reaching $10.7 billiona and $20.0 billion. This revenue growth, coupled with improved gross profit margins and the absence of significant impairment charges seen in the prior year, led to a substantial turnaround in earnings from operations and net earnings attributable to common stockholders.
While the company benefited from the integration of Juniper Networks and an increase in average selling prices within its Cloud & AI segment, it also highlighted ongoing macroeconomic uncertainties, supply chain constraints for key components like GPUs and memory, and foreign currency exposure. Despite these challenges, HPE continues to focus on its "as-a-service" offerings through HPE GreenLake and remains committed to returning capital to shareholders through dividends and share repurchases, with $3.3 billionb remaining authorization for future repurchases.
02—Key points
Key Highlights
- Net revenue increased by 40.0% to $10.7 billion for the three months ended April 30, 2026, and by 29.1% to $20.0 billion for the six months ended April 30, 2026, largely driven by the Juniper Networks acquisition and increased average selling prices in Cloud & AI.
- Gross profit margin improved significantly, reaching 36.5% for the three-month period and 36.2% for the six-month period, up from 28.4% and 28.8% respectively in the prior year, attributed to favorable revenue mix and the Juniper acquisition.
- Earnings from operations turned positive, showing a substantial increase from a loss in the prior year to $747 million for the three-month period and $1.2 billion for the six-month period.
- Net earnings attributable to common stockholders also saw a dramatic improvement, moving from a net loss to $595 million for the three-month period and $1.0 billion for the six-month period.
- The company is actively managing supply chain constraints and rising input costs by focusing on disciplined pricing and supply chain diversification.
- HPE completed the divestiture of its remaining stake in H3C Technologies Co., Limited, raising approximately $1.36 billion in cash.
- The company has a remaining authorization of approximately $3.3 billion for future share repurchases, indicating a continued commitment to shareholder returns.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed June 2, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $10.68B$7.63B | +40.0% |
| R&D Expenses | $922.00M$540.00M | +70.7% |
| SG&A Expenses | $1.83B$1.30B | +41.0% |
| Operating Expenses | $9.93B$8.74B | +13.7% |
| Operating Income | $747.00M-$1.11B | +167.4% |
| Net Income | $624.00M-$1.05B | +159.4% |
| EPS (Basic) | $0.45$-0.82 | +154.9% |
| EPS (Diluted) | $0.44$-0.82 | +153.7% |
| Shares Outstanding (Basic) | 1.33B1.32B | +1.0% |
| Shares Outstanding (Diluted) | 1.43B1.32B | +8.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of the significant revenue increase in the reported periods?
The primary drivers for the substantial increase in net revenue were the acquisition of Juniper Networks, which significantly boosted the Networking segment, and an increase in average selling prices within the Cloud & AI segment, particularly for server offerings. These factors contributed to a 40.0% and 29.1% year-over-year revenue growth for the three and six months ended April 30, 2026, respectively.
How has the acquisition of Juniper Networks impacted HPE's financial performance?
The acquisition of Juniper Networks, completed in July 2025, had a material positive impact. It significantly drove revenue growth in the Networking segment, contributing to increased gross profit and earnings from operations. Amortization of acquired intangible assets also increased, impacting operating expenses.
What are the key challenges or risks highlighted by HPE in this filing?
HPE highlighted several challenges, including ongoing macroeconomic uncertainties, supply chain constraints for critical components like GPUs and memory, foreign currency exposure, and competitive pricing pressures. The company also noted the evolving tax landscape and potential impacts from geopolitical instability. Increased inventory levels were also mentioned as a factor they are managing.
What is HPE's strategy for returning capital to shareholders?
HPE continues to prioritize returning capital to shareholders through dividends and share repurchases. For the six months ended April 30, 2026, the company repurchased shares totaling $313 million and had approximately $3.3 billion remaining authorization for future share repurchases as of April 30, 2026. The company also declared regular cash dividends on both common and preferred stock.
06—Continue