Reported results
- Record revenue of $12.2 billion, up 34% year-over-year
- GAAP gross margin of 40.1%, up 1,090 basis points year-over-year; non-GAAP gross margin of 40.4%, up 1,050 basis points year-over-year
- GAAP operating profit margin of 11.4%, up 870 basis points year-over-year; non-GAAP operating profit margin of 16.2%, up 770 basis points year-over-year
- GAAP diluted EPS of $1.06, up $0.85 from prior-year period; non-GAAP diluted EPS of $1.11, up $0.67 from prior-year period
- Free cash flow of $1.0 billion, an increase of $0.2 billion from prior-year period
- Networking revenue of $2.9 billion, up 74.9% year-over-year; Cloud & AI revenue of $9.0 billion, up 25.4% year-over-year
Guidance
- Q4 FY2026 revenue guidance: $13.9 billion to $14.8 billion
- Q4 FY2026 GAAP diluted EPS guidance: $1.12 to $1.22
- Q4 FY2026 non-GAAP diluted EPS guidance: $1.20 to $1.30
- FY2026 full-year revenue growth guidance raised to 34% to 37% (from prior guidance)
- FY2026 GAAP operating profit growth guidance: 1,070% to 1,105%
- FY2026 non-GAAP operating profit growth guidance: 100% to 105%
- FY2026 GAAP diluted EPS guidance raised to: $2.93 to $3.03
- FY2026 non-GAAP diluted EPS guidance raised to: $3.75 to $3.85
- FY2026 free cash flow guidance raised to at least $3.75 billion
- FY2027 revenue growth outlook raised to 13% to 17%
- FY2027 non-GAAP diluted EPS growth guidance raised to 16% to 20%
- FY2027 non-GAAP operating margin rate guidance: 14% to 15%
- FY2027 free cash flow guidance raised to at least $5.0 billion
Notes
HPE implemented an organizational change effective Q1 FY2026, merging Server, Hybrid Cloud, and Financial Services into a new Cloud & AI segment and transferring Telco and Instant On businesses to Corporate Investments and Other. These changes were applied retrospectively. The company also notes it completed the sale of remaining H3C equity interest in May 2026, resulting in a $444 million gain. FY2026 non-GAAP diluted EPS estimates exclude net after-tax adjustments of approximately $0.82 per share. The company plans to return at least 75% of free cash flow to shareholders in Q4.
Price and volatility reaction
The stock moved +5.0% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -17.8 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 51.83 | 2026-09-02 |
| Close after release | 54.44 | 2026-09-03 |
| Realised move | +5.0% | close to close |
| 30d ATM IV change | -17.8 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-02 (8-K, Item 2.02). Read the original filing on sec.gov.