Overview

• HPE guided fiscal 2026 adjusted EPS to $2.20–$2.40 and revenue growth to 5%–10%, both below analyst estimates tracked by LSEG of about $2.40 EPS and roughly 17% growth.
• Shares fell roughly 7% to 8.5% in extended trading after the forecast was released at the company’s analyst meeting.
• Beginning in fiscal Q1 2026, HPE will fold its server, hybrid cloud, and financial services units into a new Cloud & AI segment and organize operations into three segments, aligning with a strategy that leans on AI infrastructure and an expanded networking business expected to grow with Juniper and narrow the gap with Cisco.
• HPE projected fiscal 2026 free cash flow of $1.5 billion to $2.0 billion, compared with a consensus estimate of about $1.88 billion.
• The board approved an additional $3 billion in share repurchases for a total of $3.7 billion, and the company expects integration-related job reductions to cost about $240 million.