Hewlett Packard Enterprise beat quarterly profit and revenue estimates and raised its guidance for fiscal 2026 and 2027, as AI demand for its servers and networking gear grows. The company also expanded its partnership with Oracle, granting the hyperscaler an option to buy HPE shares as part of a multi-year Juniper networking deal.
Hewlett Packard Enterprise delivered a fiscal third-quarter profit and revenue beat and raised its guidance for both fiscal 2026 and fiscal 2027. The company also said it gave Oracle an option to purchase its common stock as part of an expanded collaboration.
AI demand lifts quarterly results
HPE earned an adjusted $1.11 per share on revenue of $12.21 billion for the quarter, above analyst expectations of 92 cents per share on $11.93 billion in revenue. Revenue climbed 34% from a year earlier, driven by AI server and networking demand. According to Investing.com: "AI is becoming a multi-year growth driver for HPE", Antonio Neri said in a statement. Unlike Dell, HPE's business leans on enterprise and sovereign customers, which one analyst said carry a better profit profile.
Oracle deepens networking tie-up
HPE is also expanding its collaboration with Oracle to supply Juniper networking gear across the hyperscaler's data centers, covering a potential multi-year deployment of Juniper routing and switching platforms plus support services. As part of the deal, HPE issued warrants for Oracle to purchase its shares. Shares of HPE swung sharply after hours, falling more than 7% before paring losses to trade 1.8% lower.
Guidance raised for 2026 and 2027
For fiscal Q4 2026, HPE guided for adjusted earnings of $1.20 to $1.30 per share on revenue of $13.90 billion to $14.8 billion, above consensus estimates of $1.07 per share on $13.04 billion. For the full fiscal 2026 year, the company now sees adjusted earnings per share of $3.75 to $3.85 on revenue growth of 34% to 37%, up from a prior outlook of $3.35 to $3.45 per share on 29% to 33% growth. For fiscal 2027, HPE raised its forecast to adjusted earnings-per-share growth of 16% to 20% on revenue growth of 13% to 17%, versus a previous forecast of 12% to 16% profit growth on 8% to 12% revenue growth.
Sources: Investing.com, MarketWatch (snippet-based)
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