HPE announced its results for the third quarter of fiscal 2026, reporting revenue of $12.2 billion, up 34% year on year and a record high. Following the results, it raised its outlook for fiscal 2026 and fiscal 2027.
Hewlett Packard Enterprise (HPE) reported results for the third quarter of fiscal 2026. Revenue was $12.2 billion, up 34% year on year and a record high, while GAAP operating margin was 11.4% and non-GAAP operating margin was 16.2%. GAAP gross margin was 40.1% and non-GAAP gross margin was 40.4%, with both exceeding the year-earlier levels. Quarterly profitability improved significantly, driven by engineering and expanding customer demand.
HPE CEO Antonio Neri (アントニオ・ネリ) said, “Against a backdrop of growing customer demand across our portfolio, we achieved record highs in revenue, orders and profitability. AI will be a long-term growth driver, and we will pursue these opportunities with our differentiated portfolio.” CFO Marie Myers (マリー・マイヤーズ) then raised the company’s outlook based on its third-quarter results and record backlog, and outlined plans to return at least 75% of free cash flow to shareholders in the fourth quarter.
Key financial figures were revenue of $12.2 billion, up 34% year on year; GAAP gross margin of 40.1% and non-GAAP gross margin of 40.4%; and GAAP operating margin of 11.4% and non-GAAP operating margin of 16.2%. GAAP earnings per share (EPS) were $1.06 and non-GAAP EPS was $1.11, with both exceeding market expectations. Cash flow from operating activities was $1.6 billion, free cash flow was $1 billion, and shareholder returns totaled $324 million.