Overview
- Hewlett Packard Enterprise reported a record fiscal second quarter with about $10.7 billion in revenue and $0.79 in non‑GAAP EPS, both topping guidance.
- The company raised full‑year FY26 non‑GAAP EPS guidance to $3.35–$3.45 and increased free cash flow guidance to at least $3.5 billion while unveiling a FY27 framework targeting roughly 8–12% revenue growth and about $4.5 billion in free cash flow.
- Management said orders more than doubled and produced a record backlog driven by strong AI systems, traditional server demand and double‑digit networking growth, with executives crediting faster‑than‑expected Juniper integration and the Catalyst cost program for much of the improvement.
- HPE warned supply constraints for networking and AI systems remain a gating factor, said it has intentionally increased inventory to about $9 billion to secure components for planned AI deployments, and completed a $1.4 billion H3C stake sale to pay down debt and cut interest expense.
- The results sent HPE shares sharply higher, with analysts raising price targets, and the company now faces the task of converting a record backlog into revenue while managing supply limits and drawn‑out inventory use.