Hewlett Packard Enterprise Company (HPE)

HPE reported record revenue of $12.2 billion for its third quarter of fiscal 2026, up 34 percent from a year earlier, in results released on September 2, 2026 1.

Operating profit margin, the share of each sales dollar left after running costs, was 11.4 percent, up 8.7 percentage points, which the 10-Q ties mainly to a better gross margin 2.

Earnings per share, profit divided by shares outstanding, were $1.06 on the standard accounting basis, above the company's own outlook range of $0.84 to $0.89 1.

Server revenue rose 35.3 percent to $6.8 billion, which the 10-Q says came mainly from a higher average selling price driven by commodity price increases, especially memory and SSDs 12.

Networking revenue rose 74.9 percent to $2.9 billion, mainly from Juniper Networks, which HPE completed acquiring on July 2, 2025 12.

The company raised its outlook and now expects revenue growth of 34 percent to 37 percent for the full year and free cash flow, cash left after spending on equipment, of at least $3.75 billion 1.

The open question is the Juniper deal's last legal step: on August 12, 2026 the court found the Justice Department settlement to be in the public interest 2.

HPE began on November 1, 2015, when HP Inc. spun it off as a separate company, and its legacy dates to a partnership founded in 1939 by William Hewlett and David Packard 4.

In 2017 it shed two large businesses: Enterprise Services merged with DXC Technology on April 1, 2017, and its Software business merged with Micro Focus on September 1, 2017 4.

Revenue was $30.3 billion in fiscal 2016, $28.9 billion in fiscal 2017, the year both businesses left, and $30.9 billion in fiscal 2018 4.

Revenue then slid to $29.1 billion in fiscal 2019 and $27.0 billion in fiscal 2020 4.

The company blamed the fiscal 2020 fall of 7.4 percent on the COVID-19 pandemic, which disrupted supply chains, installations and demand, and it reported a net loss of $322 million 4.

Growth returned slowly 5. Fiscal 2024 revenue was $30.1 billion, up 3.4 percent, mostly because servers sold at higher average prices, while weaker volume in the Intelligent Edge networking unit held it back 5.

Profit that year was $2,579 million, and on September 4, 2024 the company sold 30 percent of H3C, its China server and networking affiliate, to UNIS, booking a $733 million gain 35.

On December 1, 2024 it also sold its communications technology group, receiving net proceeds of $210 million 23.

The defining move came next 3. The Justice Department sued on January 30, 2025 to block the Juniper Networks purchase, and HPE completed it on July 2, 2025 for cash consideration of about $13.4 billion 3.

The settlement required HPE to divest its Instant On campus and branch business and to license the Mist AIOps source code to up to two licensees chosen by auction 2.

Revenue for fiscal 2025 reached $34.3 billion, up 13.8 percent, on Networking revenue from the merger and higher server prices 3.

Profit did not follow: the company reported a loss from operations of $437 million, which it ties to a goodwill impairment and merger costs, and net earnings of $57 million 3.

On November 1, 2025 HPE merged its Server, Hybrid Cloud and Financial Services segments into Cloud & AI and moved the Telco and Instant On businesses out of Networking 2.

In May 2026 it sold its remaining stake in H3C, recognizing a $444 million gain 2.

Cloud & AI: servers, storage and financing

Cloud & AI is the larger segment 1. It brought in $9.0 billion of third-quarter revenue, up 25.4 percent, at an operating profit margin of 17.0 percent against 7.0 percent a year earlier 1.

Servers are the core: general-purpose ProLiant machines, AI servers, and Cray EX supercomputers, with systems co-engineered with Nvidia for generative AI 3. Server revenue was $6.8 billion in the quarter 1.

Storage, the Alletra line, made $1.3 billion, up 10.2 percent, and Financial Services, which finances customers' purchases, made $0.9 billion, down 0.3 percent 13.

HPE GreenLake is the pay-per-use cloud wrapper around this, including HPE Private Cloud AI delivered as a service 3.

The 10-K names Dell Technologies, Super Micro Computer, Cisco Systems and Lenovo as primary rivals in data center infrastructure 3.

Networking

Networking sells Wi-Fi access points, switches, routers and gateways, with the Aruba line and now Juniper's QFX, EX, MX and PTX hardware, run by cloud software such as Mist and Aruba Central 32.

Its quarter was $2.9 billion, with a 22.0 percent operating profit margin 1. Inside it, Campus & Branch made $1.4 billion, Data Center Networking $382 million, Security $281 million and Routing $788 million 1.

The 10-K lists Cisco, Arista Networks, Nokia, Huawei, Extreme Networks, Palo Alto Networks and Fortinet among its primary rivals 3.

Where the revenue comes from, and the supply chain

For the nine months, United States revenue was $12,057 million against $9,535 million a year earlier, and Europe, Middle East and Africa was $11,468 million against $8,159 million 2.

Asia Pacific and Japan added $7,001 million against $5,023 million, out of total revenue of $32,192 million for the nine months 2.

The 10-K names Intel and AMD for certain x86 processors, Broadcom for certain chips and NVIDIA for graphics processors as single-source suppliers that also supply the whole market 3.

The 10-Q lists supply chain constraints with related component cost increases among the uncertainties known to management 2.

Corporate Investments and Other

This small segment had revenue of $278 million in the quarter, up 3.0 percent, and an operating loss equal to 24.1 percent of its revenue 1.

People, offices and problems

Antonio Neri is president and chief executive and Marie Myers is executive vice president and chief financial officer 1. The 10-K counts about 67,000 employees at October 31, 2025 3.

Its headquarters are at 1701 East Mossy Oaks Road in Spring, Texas, and it owned or leased about 13 million square feet worldwide, 3 million of it vacated 3.

The main open legal matter is the Tunney Act review of the Juniper settlement, in which twelve states and the District of Columbia intervened in October 2025 2.

The umbrella, in words

The main brands are HPE GreenLake for cloud, HPE Aruba Networking and Juniper for networking, HPE Cray for supercomputing, ProLiant for servers and Alletra for storage 3.

It acquired the observability company OpsRamp and the orchestration company Morpheus, and now owns them as part of its cloud software 3.

Exhibit 21 lists subsidiaries in dozens of countries, including H3C Holdings Limited, Juniper Networks (Cayman) LP and Hewlett-Packard International Bank 6.

The stake in H3C is gone: sales closed on May 13, 2026 for 13.8 percent of the company and on May 28, 2026 for the remaining 5.2 percent 2.

The filings name no founder or special share class that controls the votes 3. BlackRock reported owning 118,699,078 shares, 8.9 percent of the class, in a Schedule 13G/A dated 01/21/2026 7.

HPE signed a cooperation agreement with Elliott Investment Management dated July 16, 2025 3.

For the fourth quarter, HPE estimates revenue of $13.9 billion to $14.8 billion and non-GAAP earnings per share of $1.20 to $1.30 1.

For the full year, the company raised its expected revenue growth to 34 percent to 37 percent, Networking growth to 73 percent to 74 percent, and non-GAAP earnings per share to $3.75 to $3.85 1.

Fourth-quarter earnings per share on the standard accounting basis are estimated at $1.12 to $1.22, and full-year earnings per share at $2.93 to $3.03 1.

The company says its full-year non-GAAP operating profit leaves out costs of about $2.5 billion, mainly amortization, stock-based pay, acquisition charges and the cost reduction program 1.

It also expects free cash flow of at least $3.75 billion for the full year 1.

The fiscal 2027 framework calls for revenue growth of 13 percent to 17 percent, non-GAAP earnings growth per share of 16 to 20 percent and an operating margin of 14 to 15 percent 1.

For that year it expects free cash flow of at least $5.0 billion 1.

On capital returns, finance chief Marie Myers said HPE plans to return at least 75 percent of free cash flow to shareholders in the fourth quarter 1.

The board declared a regular cash dividend of $0.1425 per share, payable on or about October 16, 2026 to holders of record on September 17, 2026 1.

From the Juniper deal, the company expects at least $600 million in cost savings from synergies by fiscal 2028, needing about $800 million of investment, mostly for headcount, supply chain and portfolio changes 2.

With the court's ruling of August 12, 2026 granting entry of final judgment, the settlement's terms, the Instant On divestiture and the two Mist AIOps source code licences, are the steps the 10-Q describes 2.

Chief executive Antonio Neri said AI is becoming a multi-year growth driver for HPE 1.