Hewlett Packard Enterprise Reports Strong Q3 Growth Driven by AI and Networking
Hewlett Packard Enterprise (NYSE:HPE) reported robust financial results for the third quarter of 2026, driven primarily by strong demand in its Cloud & AI and Networking segments. Revenue reached $12.2 billion, a significant increase from the previous year's figures. The company saw server revenue rise by 35.3% to $6.8 billion within the Cloud & AI segment, while Networking revenue surged by 74.9%. This growth translated into improved profitability with non-GAAP operating margins expanding significantly compared to last year. The firm also raised its full-year 2026 revenue-growth outlook and anticipates at least $3.75 billion in free cash flow (FCF). The strong order intake of 42% during the quarter has built a backlog, providing visibility for future quarters as AI inference applications continue to drive demand. Truist Securities raised its price target on HPE's stock and maintained a
Tickers: $HPE
Topics: AI Cloud & AI Revenue Growth FCF Outlook Networking Operating Margins