[REVISION HISTORY]

HP and HPE fiscal 2026 financial performance

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2026-09-14 14:16 UTC → 2026-10-16 14:21 UTC · added ~~removed~~

HP Inc. and Hewlett Packard Enterprise (HPE) have both reported strong fiscal third-quarter 2026 financial results, driven significantly by demand for artificial intelligence technologies. HP Inc. reported a 12.5 percent increase in net revenue to $15.7 billion, exceeding analyst expectations. While the company saw growth in premium products like workstations and AI-optimized PCs, it experienced a 16 percent decline in overall PC shipments. Despite the revenue increase, HP’s stock fell 10 percent in after-hours trading. HPE also beat analyst estimates, reporting $12.2 billion in revenue—a 34 percent year-over-year increase—and $1.11 in adjusted earnings per share. The company’s Cloud & AI unit reached $9 billion in revenue, while the networking segment saw revenue rise 75 percent to $2.9 billion. CEO Antonio Neri noted that AI is becoming a “multi-year growth driver,” specifically highlighting demand for AI-native and “self-driving” networking capabilities. ~~Additionally,~~ HPE announced an extended collaboration with Oracle to deploy HPE Juniper Networking in Oracle’s AI data centers. Following these results, HPE raised its full-year fiscal 2026 revenue growth forecast to a range of 34% to 37%. ~~However,~~ In September, HPE shares ~~experienced volatility in after-hours trading. Investors and analysts expressed concerns regarding potential declines in operating margins due to~~ rose 22.3%, bolstered by a ~~higher mix of~~ 30% jump in AI systems and pricing, as well as ongoing supply chain constraints. Specifically, the availability of memory, NAND, processors, and disks may limit the company’s ability to meet record orders and accelerating demand. By September 2026, HPE shares fell 9.57% to $56.14 during orders, a ~~period of broader market selloffs~~ record $700 million in ~~AI-linked stocks~~ AI networking orders, and a $1.2 billion order from cloud provider Vultr for AMD Helios AI racks. The company also entered a multibillion-dollar contract with an unnamed hyperscaler for AI inferencing servers. However, HPE has faced recent volatility and analyst ~~downgrade from Evercore ISI, which moved~~ scrutiny. Barclays downgraded the stock from ~~‘Outperform’~~ Overweight to ~~‘In Line’ due~~ Equal Weight, lowering the price target from $83 to $77. Analyst Tim Long cited concerns regarding valuation ~~concerns. Despite this, HPE leadership remains optimistic, reporting~~ and questions about enterprise AI growth, noting that ~~networking revenue increased 10% in the latest quarter while orders rose 36%.~~ upside potential may be limited as memory prices normalize.

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