HPE Surges on Stellar Q3 Results, Elevated AI Demand
Hewlett Packard Enterprise (HPE) reported stellar Q3 results that exceeded analyst expectations, driving its stock up by around 5% during post-earnings trading. The company's revenue jumped 34% year-over-year to $12.2 billion, surpassing the Street's consensus estimate of approximately $11.99 billion.
Adjusted earnings per share of $1.11 topped projections of $0.93 by roughly 18%, marking the first quarter where non-GAAP EPS crossed the $1.00 threshold. The company generated a new Q3 record of $958 million in free cash flow, with its non-GAAP operating margin expanding to 16.2%.
The AI Systems segment delivered $1.6 billion in revenue alongside $2.4 billion in fresh orders, pushing backlog to unprecedented levels. Management lifted fiscal 2026 revenue growth projections to 34-37% from the previous 29-33% range.