By Chris Mellor
Publication Date: 2026-06-02 14:34:00
In HPE’s second quarter for fiscal 2026, networking revenue soared as AI meant more data had to be moved to servers, and HPE significantly beat its outlook and raised its future guidance.
Revenue in the quarter ended April 30 was $10.7 billion, up 40 percent year over year and well above its high-end guidance of $10 billion. GAAP net income came in at $624 million, a big swing from the $1 billion loss the year before. The Cloud and AI business segment generated $7.7 billion, an increase of 22.9 percent, while Networking reported revenue that increased 148.2 percent to $2.7 billion, a substantial increase over the year. Juniper Acquisition. (This was an increase of 10 percent when normalized to take into account Juniper’s revenue from the previous year.) Gross margin was 36.5 percent, up 810 basis points (8.1 percent) for the year and 60 basis points (0.6 percent) from the last quarter. There have now been ten consecutive quarters of growth and HPE said these record second quarter results put it two years ahead…
