HPE US S&P 500Russell 1000 Earnings call

Hewlett Packard Enterprise (HPE) · Q2 2026 results and valuation

Share price: $50.25 · 2026-11-11

Hewlett Packard Enterprise provides technology solutions including servers, networking, and hybrid cloud services. The company serves a range of clients from small-and-medium-sized businesses to large global enterprises and government entities. It operates globally, offering products for data management, artificial intelligence, and high-performance computing. Source: 10-K annual report (2025-12-18)

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 2 Sep 2026 and 1 Jun 2026

Net income up 146.8% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.

1 · Numbers

+146.8%

Net income vs Q1 2026

Outlook given

Net income 1.54B vs 624.0M

Revenue +14.4%

Against the same quarter last year (Q2 2025) it is +404.9%, so it is not just seasonal.

2 · How management spoke

Cautious

Among the least upbeat of all company calls

Answers to analysts: very upbeat, and more positive than the script.

Last call it was different: script and answers matched.

3 · What stood out

HPE raised its cumulative fiscal 26 Networks for AI order target to at least $2 billion due to leading innovation and market momentum.

Valuation

Is Hewlett Packard Enterprise undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-10-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.

Current price

$50.25

close of 2026-11-11

Market implies growth of i

+34.8% for 10 yrs

Fair value / share

$-7.57

Buy below

$-5.68

Price vs fair value

n/a

Price vs buy-below price

n/a

Management expects

EPS +40% · from the Q2 2026 report: “HPE increased its fiscal 26 EPS outlook by over 40% because of the results reported this quarter.”

A guidance figure for eps, usually one year ahead, not a 10-year free-cash-flow rate.

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

HPE increased its fiscal 26 EPS outlook by over 40% because of the results reported this quarter.
Guidance

HPE expects networking revenue to grow 73 to 78% year over year on a reported basis or approach 10% on a normalized basis.
Guidance

HPE raised its cumulative fiscal 26 Networks for AI order target to at least $2 billion due to leading innovation and market momentum in networks for AI.
Figure

Revenue reached $10.7 billion, an increase of 40% over the previous period.

Source quote
“Revenue in the quarter reached $10.7 billion up 40%.”
Figure

Networking revenue grew double digits on a normalized basis to $2.7 billion because orders are growing significantly faster than revenue.

Source quote
“Networking delivered revenue of $2.7 billion up double digits on a normalized basis with orders growing significantly faster than revenue.”

2 more

Guidance

HPE raised its full year consolidated revenue growth guidance to 29% to 33% on a reported basis or high teens organic growth.
Guidance

HPE expects the net impact to reduce annual net interest expense by approximately 75 million.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Cautious (was restrained)

Answers to analysts Very upbeat (was very upbeat)

Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.

Sentences that drove the tone

“And I believe 2027 is going to be even stronger for enterprise because they become more confident in what they are doing and one win takes leads to another win,...”

“Revenue of $12.2 billion increased 34%, exceeding the high end of our guidance range with order growth up 42% on a normalized basis, led by demand in traditional servers, AI...”

“Server revenue growth of 35% accelerated sequentially as strong ASP growth in traditional servers offset supply-constrained unit volumes.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)

Metric	Q2 2026period end 2026-07-31	Q1 2026period end 2026-04-30	Change	Q2 2025	YoY
Revenue	12.21B	10.68B	+14.4%	9.14B	+33.7%
Operating income	1.39B	747.0M	+86.5%	247.0M	+464.0%
Net income	1.54B	624.0M	+146.8%	305.0M	+404.9%
EPS	1.06	0.44	+140.9%	0.21	+404.8%
P/E today 23.1	24.7	26.9	−2.2	24.3	+0.4

Topics

Most discussed now

Its supplier agreements now multiyear, in some cases, ensure us the capacity allocations Hewlett Packard Enterprise need to reduce lead...
New Hewlett Packard Enterprise was the first 1.6 time to market with the direct liquid cooling.
Hewlett Packard Enterprise delivered another strong quarter, reflecting accelerating demand for AI and solid networking momentum, together…
Hewlett Packard Enterprise remains focused on executing against strong customer demand navigating a dynamic supply environment, managing…
Hewlett Packard Enterprise is selling traditional servers for AI inferencing that they will use for their own internal usage.

Faded since Q1 2026

Fading Obviously scale across the PTX platform is I will say the reference when it comes down for data center interconnect.
Fading Hewlett Packard Enterprise's cash conversion cycle improved by 2 days from Q1 driven primarily by an increase in days payable due to...
Fading Hewlett Packard Enterprise expects revenue performance and synergy realization to help offset the impact of inflationary component costs…
Fading A large backlog favorable industry tailwinds, and improved demand visibility support a higher growth outlook.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-04 Regulation FD disclosure · SEC 8-K
2026-09-30 Regulation FD disclosure · SEC 8-K
On September 30, 2026, Hewlett Packard Enterprise issued a press release regarding its Networking business priorities and integration progress.
2026-09-02 Results of operations; Regulation FD disclosure · SEC 8-K
HPE reported revenue of $12.2 billion, up 34% year-over-year, and declared a quarterly dividend of $0.1425 per share.
2026-08-04 Regulation FD disclosure · SEC 8-K
The Board of Directors approved a cash dividend of $0.953125 per share of its 7.625% Series C Mandatory Convertible Preferred Stock, payable on September 1, 2026.
2026-07-24 Director or officer change; Regulation FD disclosure · SEC 8-K
Hewlett Packard Enterprise appointed David I. Goulden to its Board of Directors and the Finance and Investment Committee effective July 24, 2026.
2026-06-01 Material agreement; Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
Hewlett Packard Enterprise reported revenue of $10.7 billion for the second quarter of fiscal 2026, which is up 40% from the prior-year period.
2026-05-14 Regulation FD disclosure · SEC 8-K
The company closed the sale of 13.8% of H3C Technologies' share capital to several entities for approximately USD $986.8 million on May 13, 2026.
2026-05-04 Regulation FD disclosure · SEC 8-K
The Board of Directors approved a cash dividend of $0.953125 per share of its 7.625% Series C Mandatory Convertible Preferred Stock, payable on June 1, 2026.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

fiscal 26

delivery of at least $3.5 billion in free cash flow

Source quote
“Based on our strong first half 26 results, our record backlog and our visibility into the second half demand, we now expect to deliver $3.4 in non GAAP earnings per share at the midpoint and at least $3.5 billion in free cash flow in fiscal 26.”
fall

introduction of a scale up Ethernet switch and specifically for the AMD Helios AI rack scale architecture

Source quote
“HPE is developing a scale up Ethernet switch and specifically for the AMD Helios AI rack scale architecture which we expect will be introduced in the fall.”
In 2 weeks

hosting HP Discover Las Vegas

Source quote
“In 2 weeks, we are hosting HP Discover Las Vegas.”
later this fall

host a dedicated network and investor day

Source quote
“Then later this fall, we will host a dedicated network and investor day.”
fiscal 26

generate at least $3.5 billion in free cash flow

Source quote
“We now expect to significantly exceed our original fiscal 28 non GAAP earnings per share target and generate at least $3.5 billion in free cash flow in fiscal 26. 2 years ahead of plan.”