Overview

• Enterprise technology leader's fiscal Q1 revenue slightly missed analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company reported increased profitability driven by networking and Cloud & AI segments

Outlook

• HPE estimates Q2 revenue between $9.6 bln and $10.0 bln

• HPE raises FY26 Networking revenue growth expectations to 68%-73%

• HPE expects FY26 non-GAAP EPS between $2.30 and $2.50

• HPE is reaffirms FY26 revenue growth outlook range of 17% to 22%

Result Drivers

• NETWORKING GROWTH - Networking revenue surged 151.5% year-over-year, driven by integration of Juniper Networks and strong demand across all sub-segments

• CLOUD & AI PROFITABILITY - Cloud & AI segment improved operating profit margin to 10.2%, despite a 2.7% revenue decline

• COST MANAGEMENT - Effective cost management and faster-than-planned synergies with Juniper and Catalyst contributed to profitability

Company press release: ID:nBw4WXc37a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Hewlett Packard Enterprise Co is $26.00, about 23% above its March 6 closing price of $21.13

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)