Hewlett Packard Enterprise Co (NYSE:HPE, XETRA:2HP) reported mixed financial results for its first quarter of fiscal 2026, with strong performance in networking offsetting softer results in its Cloud & AI segment.
For the quarter ended January 31, HPE posted GAAP earnings per share of $0.31, below some market estimates of roughly $0.59, while non-GAAP EPS came in at $0.65, beating consensus forecasts of $0.59.
Revenue rose 18% year-over-year to $9.3 billion, below the company’s guidance range of $9.6 billion to $10 billion.
Segment results showed networking revenue of $2.7 billion, up 152% from the prior year, driven by Campus & Branch, Data Center Networking, Security, and Routing. Cloud & AI revenue declined 2.7% to $6.3 billion, though operating profit margin improved to 10.2% from 8.4% a year ago.
HPE also reaffirmed its full-year fiscal 2026 revenue growth range of 17% to 22% and raised expectations for the Networking segment to 68%% to 73% growth.
GAAP EPS guidance was increased to $1.02 to $1.22, while non-GAAP EPS is now expected to range from $2.30 to $2.50. Free cash flow is projected at a minimum of $2.0 billion.
“HPE delivered a strong first quarter, outperforming in our networking business and posting one of our most profitable quarters on record,” HPE CEO Antonio Neri said in a statement.
He highlighted robust demand and operational discipline, noting that orders increased double digits across all segments.
Shares of HPE were up modestly late morning on Tuesday following the announcement, trading at about $22.