Hewlett Packard Enterprise shares surged 30% on Monday after the tech company reported record revenue, gross margin, and non-GAAP diluted net EPS, along with its highest-ever free cash flow generation for a second quarter.
The company’s earnings highlights included:
Revenue: $10.7 billion, up 40% from the prior-year period.
Earnings per share: 79 cents adj. vs. 53 cents expected (the company’s largest EPS beat since February 2018.)
Server revenue reached $5.45 billion, surpassing analysts’ $4.66 billion forecast.
Antonio Neri, president and CEO of HPE, told investors, “HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business. Customers continue to invest in modernizing their infrastructure and scaling AI, and our performance shows the strength of our combined networking portfolio and the value we are delivering to our shareholders.”
Marie Myers, EVP and CFO, stated, “We drove high profitability and cash generation this quarter through continued operational discipline as well as executing ahead of schedule against Juniper Networks and Catalyst cost synergies. Based on our performance, we are raising our fiscal 2026 guidance and introducing a fiscal 2027 financial growth framework. These updates reflect the durability of our performance and continued operational excellence – and point to faster progress toward our long-term financial plan.”
The New York Stock Exchange is one customer planning to use Nvidia’s new chips on HPE’s latest server to handle over a trillion messages daily.
By CEO NA Editorial Staff
