Hewlett Packard Reports $12.2B Revenue and $958M Free Cash Flow Amid Inventory Build
Hewlett Packard Enterprise (NYSE:HPE) reported fiscal third-quarter revenue of $12.2 billion, a year-over-year increase of 34%. The company also generated non-GAAP free cash flow of $958 million and operating cash flow of $1.641 billion. Despite the strong performance, inventory levels rose significantly to $11.823 billion from $6.352 billion a year ago. Networking revenue reached $2.9 billion in Q3 FY 2026, up 74.9% YoY with an operating margin of 22%. This growth is partly attributed to the full quarter inclusion of Juniper Networks compared to just one month last year. HPE raised its fiscal-year Networking orders target for AI-related products and expects at least $3.75 billion in free cash flow by FY 2026. However, concerns remain about whether higher-margin Networking earnings can offset the inventory build-up ahead of expected shipments. Accounts payable also increased significantly to $13.734 billion from $7.731 billion at fiscal year-end, raising questions around working capital management and integration risks.
Topics: free_cash_flow inventory_build networking_segment revenue