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HPE stock falls after FY26 earnings guidance misses estimates

Published 15/10/2025, 21:52
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HPE
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Investing.com -- Hewlett Packard Enterprise (NYSE:HPE) stock fell 5.7% in after-hours trading on Wednesday after the company provided fiscal year 2026 earnings guidance that fell short of analyst expectations.

The technology company announced it expects fiscal year 2026 adjusted earnings per share (EPS) of $2.20 to $2.40, below the analyst consensus estimate of $2.41. This outlook came as part of HPE’s Securities Analyst Meeting where the company detailed its strategic priorities and financial outlook through fiscal year 2028.

During the meeting, HPE outlined plans to strengthen its networking capabilities following the Juniper Networks acquisition and to capture growth in AI infrastructure, particularly in enterprise and sovereign customer segments. The company also announced a 10% increase to its annual dividend for fiscal year 2026 and an additional $3 billion in share repurchase authorization, bringing the total to approximately $3.7 billion.

"By aligning our investments and innovation to address the IT industry’s most promising opportunities in networking, cloud, and AI, we’re poised to gain share in the markets that matter most to our customers," said Antonio Neri, president and CEO.

HPE’s long-term financial model projects 5% to 7% compounded revenue growth from fiscal year 2025 through 2028 on a pro forma basis, with non-GAAP operating profit growth of 11% to 17%. The company expects to generate more than $3.5 billion in free cash flow by fiscal year 2028 and achieve non-GAAP diluted net EPS of at least $3.00 per share.

For fiscal year 2026, HPE forecasts year-over-year revenue growth between 5% to 10% and non-GAAP operating profit growth between 10% to 18% on a pro forma basis. The company also announced cost-saving initiatives, including its Catalyst program, which is expected to deliver at least $350 million in gross savings by fiscal year 2028.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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