Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Hewlett Packard Enterprise's fiscal 2026 third quarter was defined by the first comparable period that fully includes the Juniper Networks acquisition, and the company delivered sharply higher revenue and profitability. Management attributed the revenue increase primarily to higher average selling prices in Cloud & AI and the inclusion of Juniper Networks in Networking, while gross margin expanded by 10.9 percentage points. Net income also benefited from a $444 million gain on the sale of the remaining H3C equity interest. Despite the strong results, management continues to flag supply chain constraints, tariff uncertainty, and uneven customer spending as near-term pressures.
Revenue
$12.21B
+33.68% YoY
EPS (Diluted)
$1.06
+404.76% YoY
Operating Income
$1.39B
+463.97% YoY
Source: SEC XBRL
Hewlett Packard Enterprise (HPE) reported Q3 FY2026 revenue of $12.21B, up 33.7% year over year. Operating margin was 11.4%, up 8.7 points from 2.7% a year earlier. HPE's fiscal Q3 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 1.11 | 0.94 | Beat +18.2% |
| Jun 2026 | 0.79 | 0.54 | Beat +46.4% |
| Mar 2026 | 0.65 | 0.59 | Beat +9.3% |
| Dec 2025 | 0.62 | 0.59 | Beat +5.4% |
Adjusted (non-GAAP) EPS of $1.11 versus the $0.94 analyst consensus — a +18.2% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.06.
3 reported segments · SEC XBRL
Segment revenue totals $12.21B, which is the $12.21B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure HPE itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Management said Networking segment revenue rose 74.9% primarily due to Juniper Networks, while R&D and SG&A expenses increased as integration costs and variable employee costs rose.
Source: 10-Q Item 2 MD&A
Cloud & AI revenue growth was driven by an increase in average selling price, and management highlighted favorable mix of higher-margin revenue as a key gross margin driver.
Source: 10-Q Item 2 MD&A
The company completed the sale of its remaining H3C equity interest in May 2026 and recognized a $444 million gain on sale of equity interest.
Source: 10-Q Item 2 MD&A
HPE expects at least $600 million of cost savings from Juniper integration synergies by fiscal 2028, requiring about $800 million of investment, and its cost reduction program targets about $350 million in gross savings by fiscal 2027.
Source: 10-Q Item 2 MD&A
Following the U.S. Supreme Court's IEEPA ruling, HPE received some tariff refunds and expects more, but management does not expect them to be material and warns that tariff levels and retaliatory actions remain highly uncertain.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
The U.S. Supreme Court struck down certain IEEPA tariffs, but the administration announced new tariffs on imports from all countries. Management warns that duration, levels, and retaliatory actions are uncertain and could raise component and end-product costs.
Source: 10-Q Item 2 MD&A
HPE has experienced supply constraints for GPUs, accelerated processing units, SSDs, and memory, driven by AI data center demand. These shortages have raised costs and contributed to higher-than-normal inventory levels.
Source: 10-Q Item 2 MD&A
Customers are taking longer to work through prior orders and are being more strategic with discretionary IT spending, leading to uneven demand across portfolio and geographies.
Source: 10-Q Item 2 MD&A
Significant staffing and resource reductions at certain public sector entities, including U.S. federal agencies, create an uncertain environment and have already affected financial results.
Source: 10-Q Item 2 MD&A
OECD Pillar Two global minimum tax and digital services taxes could increase tax complexity and liability. The IRS is auditing fiscal 2020-2022 transfer pricing, with possible unrecognized tax benefit reductions up to $366 million.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.21 $B | 9.14 $B | +33.68% |
Operating Income $B | 1.39 $B | 0.25 $B | +463.97% |
Net Income $B | 1.54 $B | 0.31 $B | +404.92% |
EPS (Basic) $ | 1.13 $ | 0.21 $ | +438.10% |
EPS (Diluted) $ | 1.06 $ | 0.21 $ | +404.76% |
R&D Expense $B | 1.16 $B | 0.62 $B | +86.17% |
SG&A Expense $B | 1.96 $B | 1.50 $B | +31.15% |
Answers draw on this SEC filing and the data on this page
HPE delivered a dramatic Q2 FY2026 turnaround, with revenue surging 40.0% YoY to $10.7B and swinging from a net loss of $1.05B to net income of $624M, driven largely by the Juniper Networks acquisition.
HPE delivered strong Q1 FY2026 revenue growth of 18.4% YoY to $9.3B, driven by significant investment in R&D and acquisitions, but net income fell 27.9% to $452M as surging operating costs and higher long-term debt weighed on profitability.
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