Hewlett Packard Enterprise delivered a significant beat for the third quarter of 2026, reporting record revenue of $12.21 billion and a record order backlog. The results were driven by substantial momentum in AI-optimized infrastructure and a surge in the Networking segment, leading the company to raise its full-year 2026 and framework for fiscal 2027.
Key Highlights
- Server revenue reached $6.8 billion, up 35.3% year-over-year, as AI becomes a multi-year growth driver for the company.
- Networking segment revenue surged 74.9% year-over-year to $2.9 billion, with routing revenue specifically jumping 270%.
- Management raised fiscal 2026 non-GAAP diluted net EPS guidance to a range of $3.75 to $3.85 and expects at least $3.75 billion in free cash flow.
- Looking ahead to fiscal 2027, the company raised its framework to target at least $5.0 billion in free cash flow and revenue growth of 13% to 17%.