HPE Delivers A Blowout Quarter And Raises Guidance - Shares Still Fall
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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 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. 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...
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