HPE Q3 revenue reached $12.2 billion, up 34% year-over-year, and the company raised its FY26 revenue guidance to 34%-37%, driven by AI business growth.
Hewlett Packard Enterprise (HPE) announced its Q3 FY2026 results, with revenue reaching $12.2 billion, a 34% year-over-year increase, and GAAP operating profit surging by 464%. Non-GAAP operating margin expanded to 16.2% from 8.5% in the same period last year. Specifically, Cloud & AI revenue grew by 25.4% to $9 billion, server revenue increased by 35.3% to $6.8 billion, and networking revenue rose by 74.9% to $2.9 billion. The company raised its FY2026 revenue growth outlook to 34%-37% and expects free cash flow to be at least $3.75 billion. Orders in Q3 increased by 42%. Truist Securities raised its price target for HPE from $69 to $70, maintaining a "Buy" rating.
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