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HPE Posts Record Q2 and Accelerates Multi‑Year Targets as Stock Soars

Strong demand for AI servers and networking has pushed the company two years ahead of its prior financial plan.

Overview

  • Hewlett Packard Enterprise reported a blockbuster quarter on Monday, June 1, 2026, with $10.68 billion in revenue and $0.79 adjusted earnings per share that beat estimates and sent the stock up about 30% in after‑hours trading.
  • The company raised fiscal‑2026 guidance to 29%–33% revenue growth and adjusted EPS of $3.35–$3.45 and said it now expects to achieve earlier multi‑year targets it had planned for 2028.
  • At COMPUTEX HPE unveiled a new ProLiant server powered by NVIDIA Vera for agentic AI workloads, with the company saying the system will be available in fall 2026.
  • HPE entered the quarter with a $5.0 billion AI Systems backlog and reported massive server demand while the Juniper acquisition drove about 152% reported growth in networking, which now makes up roughly 30% of revenue and more than half of operating profit.
  • Management warned memory and NAND shortages remain an execution risk that could limit shipments and raise costs, and analysts note a valuation gap because the average broker price target sits well below the re‑priced share price.