Hewlett Packard Enterprise Reports Record Q3 Earnings Amid AI Demand Surge
Hewlett Packard Enterprise (NYSE:HPE) reported record fiscal third-quarter results for 2026, driven by strong demand in its AI infrastructure and networking segments. The company achieved $12.2 billion in revenue, a 34% year-over-year increase, with non-GAAP earnings per share of $1.11 and free cash flow reaching an all-time high of $958 million. Orders grew by 42%, outpacing revenue growth due to ongoing supply chain constraints related to memory chips and NAND flash components. These shortages are expected to persist into fiscal 2027, limiting HPE's ability to convert demand into immediate revenue. Despite this, the company raised its full-year guidance for EPS and free cash flow. Hewlett Packard Enterprise also highlighted a new hyperscaler server deal and collaboration with Oracle as key growth drivers moving forward.
Topics: AI infrastructure backlog component shortages free cash flow revenue growth