CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
HPE reported Q2 FY 26 (Apr-Q) results that blew away consensus expectations, with non-GAAP EPS of $0.79 (+108% Y/Y) beating expectations for $0.53 and revenue of $10.68B (+40% Y/Y) coming in ahead of the Street's $9.76B view. Non-GAAP gross margin expanded 750 bps Y/Y while operating margin of 13.3% was up 530 bps. Results reflect growing AI demand and the strength of HPE's networking portfolio, with Networking sales surging 148% Y/Y (driven by the Juniper acquisition) and Cloud & AI segment revenue growing 23% Y/Y to $7.7B. FY 26 guidance was raised materially, with HPE's revenue midpoint now at $44.9B (consensus $40.84B), non-GAAP EPS lifted to a midpoint of $3.40 from a prior $2.40 view (consensus $2.42), and FCF guidance upped to at least $3.5B from at least $2.0B. Management also provided initial FY 27 sales growth expectations at about 10%, placing FY 27 sales around $49.4B (14% above consensus) in a confident move that reflects improving visibility and strengthening AI tailwinds.