Key Takeaways
- Q1 revenue jumped 18% year-over-year to $9.30B, while EPS of $0.65 surpassed estimates by $0.07
- The company reported an AI order backlog surpassing $5 billion, with enterprise and sovereign clients representing 64% of total orders
- Second quarter revenue outlook of $9.60B–$10.0B exceeds Street expectations of $9.57B
- Full-year FY2026 adjusted EPS guidance increased to $2.30–$2.50 from previous range of $2.25–$2.45
- Strategic pivot toward high-margin networking business, with segment revenue growth guidance raised to 68%–73% annually
Hewlett Packard Enterprise delivered first-quarter results that exceeded analyst expectations for earnings per share while providing revenue guidance for the upcoming quarter that topped consensus forecasts. Shares climbed approximately 1.3% during after-hours trading Monday.
$HPE Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $9.3B (Est. $9.3B) 🟡
🔹 EPS: $0.65 (Est. $0.58) 🟢Q2’26 Guide:
🔹 Revenue: $9.6B-$10.0B (Est. $9.57B) 🟢
🔹 EPS: $0.51-$0.55 (Est. $0.53) 🟡FY’26 Guide:
🔹 EPS: $2.30-$2.50 (Est. $2.35) 🟡
🔹 Revenue growth: 17% to 22%
🔹…— Wall St Engine (@wallstengine) March 9, 2026
First-quarter revenue reached $9.30 billion, representing an 18% increase compared to the prior year period, falling slightly below the consensus forecast of $9.33 billion. The company’s adjusted earnings per share of $0.65 handily beat analyst projections of $0.58 by seven cents.
The tech infrastructure provider also lifted its full fiscal year 2026 adjusted EPS projection to a band of $2.30–$2.50, marking an increase from the previously announced range of $2.25–$2.45.
Hewlett Packard Enterprise Company, HPE
Chief Executive Antonio Neri highlighted that order volumes expanded by double digits year-over-year throughout every business division. This demonstrates robust customer demand, despite the organization facing tangible supply chain limitations.
The artificial intelligence order backlog surpassed $5 billion during the first quarter. Notably, enterprise and sovereign nation customers accounted for 64% of this cumulative order pipeline — signaling where management believes the most sustainable revenue opportunities exist.
However, company executives acknowledged current supply availability falls short of existing demand levels, and they anticipate elevated pricing conditions to persist through 2027.
Strategic Reorientation Emphasizes Profitability Over Volume
Chief Financial Officer Marie Myers delivered frank commentary during the earnings conference call. HPE plans to emphasize higher-profitability product orders throughout the remainder of the fiscal year, a decision that may constrain AI systems revenue expansion.
Management has also compressed quotation timelines and retained flexibility to modify pricing between order placement and fulfillment — serving as a practical safeguard against escalating memory chip expenses associated with AI infrastructure expansion.
This strategic reorientation appears deliberate. While competitors like Dell (DELL) and Super Micro Computer (SMCI) pursue market share through volume, HPE has opted to prioritize profitability.
Second-quarter revenue projections of $9.60B–$10.0B came in above Wall Street’s consensus estimate of $9.57B. The Q2 EPS outlook of $0.51–$0.55 brackets the analyst consensus of $0.53.
Networking Division Takes Center Stage
The company elevated its annual networking division revenue growth forecast to 68%–73%. This segment now incorporates Juniper Networks following HPE’s acquisition, encompassing products and services that link servers, data centers, and devices to networks and software platforms.
Anticipated AI infrastructure expenditures from major technology companies totaling $630 billion this year create favorable conditions for this business unit. HPE aims to secure a meaningful portion of this spending through its networking hardware and server offerings.
From a trading perspective, HPE shares finished at $21.81 ahead of the earnings announcement. The stock has declined roughly 9% year-to-date, contrasting with competitor Dell’s 16.4% gain during the identical timeframe.
According to InvestingPro data, HPE received 11 upward EPS revisions against only 1 downward revision over the trailing 90-day period, with the platform assigning the company a “fair performance” financial health rating.
Shares have fallen 11.12% during the past three-month period but have surged 44.63% over the trailing twelve months.
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