HPE Delivers A Blowout Quarter And Raises Guidance — Shares Still Fall

• HPE delivered $1.11 in Q3 earnings per share (EPS) and $12.2 billion in revenue, beating analyst estimates on both metrics.
• The company expects Q4 EPS of $1.20-$1.30 and revenue of $13.9 billion-$14.8 billion, both above consensus.
• Stocktwits traders remained bullish on HPE despite the stock falling after-hours following the strong results.

Hewlett Packard Enterprise (HPE) reported a strong third quarter for fiscal 2026, beating estimates on both earnings and revenue and raising its outlook for the rest of fiscal 2026 and 2027.

Despite the strong report and higher guidance, HPE shares were down around 5% in after-hours trading at the time of writing. The after-hours decline suggests investors had concerns about HPE’s outlook despite the strong results. During the earnings call, management said operating margins are expected to decline sequentially, mainly due to a higher mix of AI systems and pricing. Management also said supply constraints continue to limit HPE’s ability to meet higher customer demand, adding that the company is working closely with partners to secure additional multi-year supply agreements.

HPE Beats On Earnings And Revenue

HPE reported fiscal third-quarter adjusted earnings per share (EPS) of $1.11, which was above analyst estimates of $0.92, according to Fiscal.ai.

Revenue rose 34% year over year to $12.2 billion, beating consensus estimates of $11.99 billion.

Q4 Outlook, FY26 Guidance Get A Boost

For the fourth quarter, HPE expects EPS of $1.20 to $1.30, above the $1.07 consensus estimate. The company expects Q4 revenue of $13.9 billion to $14.8 billion, also ahead of the $13.04 billion consensus estimate.

HPE raised its fiscal 2026 EPS outlook to $3.75 to $3.85 from its previous range of $3.35 to $3.45. The new range is also above the $3.45 consensus estimate, according to Fiscal.ai.

The company raised its fiscal 2026 revenue growth outlook to 34% to 37%, compared with its previous forecast of 29% to 33%. HPE also raised its revenue growth expectations for its Networking segment to 73% to 74%.

HPE expects free cash flow of at least $3.75 billion for fiscal 2026.

HPE Raises FY27 Forecast

The company also raised its fiscal 2027 outlook. HPE now expects EPS growth of 16% to 20%, compared with its previous view of 12% to 16%. HPE raised its fiscal 2027 revenue growth framework to 13%-17% and now expects free cash flow of at least $5 billion.

HPE Expands Oracle AI Partnership

HPE announced an expanded collaboration with Oracle (ORCL) to help scale Oracle’s global AI infrastructure by deploying HPE Juniper Networking across Oracle’s AI data centers. The expanded collaboration builds on more than a decade of engineering work between Oracle and Juniper Networks and includes networking support services and financing capabilities.

HPE Juniper Networking routing and switching platforms currently support key parts of Oracle Cloud Infrastructure’s data center and edge networks. As Oracle expands its AI superclusters, those networks will face greater demands on bandwidth, latency, congestion management and fault recovery.

As part of the agreement, HPE has issued Oracle warrants to purchase shares of HPE common stock.

HPE Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for HPE jumped to ‘extremely bullish’ from ‘bullish’ over the past 24 hours, while message volume was ‘high’ at the time of writing.

Despite the strong results, a Stocktwits retail trader questioned the decline in HPE shares, asking, “What else is market looking for?”

Another trader took a more optimistic view, saying HPE’s earnings beat and raised guidance should eventually support the stock, even if shares were not reacting positively immediately.

A third trader was even more bullish, pointing to the company’s higher guidance for both 2026 and 2027. The trader said the outlook made HPE a “no brainer” and indicated they were adding to their position.

HPE stock has gained 114% year-to-date. 

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