HPE Raises 2026 Outlook for Earnings, Cash Flow, and Networking Revenue

Hewlett Packard Enterprise (HPE) has updated its financial projections for fiscal 2026, raising guidance for earnings, free cash flow, and networking revenue. The company stated that these changes reflect ongoing demand in areas such as data-center switching and routing.

The revised outlook includes a higher range for non-GAAP earnings per share, now set between $2.25 and $2.45 for fiscal 2026. HPE also raised its free cash flow guidance to a range of $1.7 billion to $2.0 billion for the same period.

Networking revenue growth is now expected to reach approximately 65% to 70% year-over-year in fiscal 2026, according to HPE. The company attributed this increase to strong market demand, particularly in networking solutions that support data centers.

What the numbers show

• Fiscal 2026 non-GAAP EPS guidance: $2.25–$2.45
• Free cash flow projection for 2026: $1.7–$2.0 billion
• Networking revenue growth forecast: 65–70% year-over-year
• Expected AI network orders by end of 2026: $1.7–$1.9 billion
• Sales outlook for April quarter: $9.6–$10.0 billion

HPE reported that cumulative network orders related to artificial intelligence are anticipated to reach between $1.7 billion and $1.9 billion by the close of fiscal 2026. This figure reflects the company's expectations for continued growth in AI-related networking demand.

For the quarter ending in April, HPE’s sales outlook stands at $9.6 billion to $10.0 billion, which the company noted is above analyst estimates. This sales projection is part of the broader upward revision in the company’s financial guidance.

HPE stated that rising memory prices have been partially offset by a favorable shift toward networking products, which contributed to a gross margin of 36.6% in the most recent quarter. The company also highlighted that commodity supply and cost challenges, especially in memory, remain industry-wide issues.

According to HPE, the memory chip shortage is expected to persist well into the following year. The company reiterated that these supply constraints continue to impact the technology sector, but noted that its results have benefited from strong networking performance.

* This article is based on publicly available information at the time of writing.