By Chris Mellor
Publication Date: 2026-03-11 16:36:00
HPE Revenue for the first quarter of fiscal 2026 was mixed, with strong growth in networks but a decline in servers, although good enough to improve its full-year outlook for EPS and cash flow.
Revenue of $9.3 billion was within its guidance of $9.0 billion to $9.4 billion, held back by a 2.7 percent year-over-year drop in cloud and AI sales to $6.3 billion, even as network revenue rose 151.5 percent year-over-year to $2.7 billion. HPE is not seeing an increase in AI in its server sales, unlike Dellwhere its revenue from AI-optimized servers increased a whopping 342 percent to $9 billion in its most recent quarter. GAAP profit was $425 million, down 28 percent year over year.
Chairman and CEO Antonio Neri said: “HPE had a strong first quarter, outperforming in our networking business and posting one of our most profitable quarters on record. Our first quarter results reflect our newly combined networking innovation and effective operating discipline in a dynamic commodity supply environment. Demand for…
