Hewlett Packard Enterprise Company · NYSE:HPE

Hewlett Packard Enterprise — Q3 FY26 Earnings Presentation

34 slides from Hewlett Packard Enterprise's earnings presentation, Sep 2, 2026

  1. Slide 1: HPE Q3 FY26 Earnings

    HPE Q3 FY26 Earnings September 2, 2026

  2. Slide 2: Forward-looking statements

    Forward -looking statements This presentation contains forward -looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . Such statements involve risks, uncertainties, and assumptions . If the risks or uncertainties ever materialize

  3. Slide 3: Record quarterly financial results driven by record demand

    Q3 FY26 AT - A - GLANCE Record quarterly financial results driven by record demand 2 RECORD 4 RECORD RECORD RECORD $12.2B Net revenue $1.11 Non -GAAP diluted net EPS 1 $958M Free cash flow 1,3 42% Orders growth Y/Y +34% Y/Y +152% Y/Y +$168M Y/Y Normalized 5 Record quarterly financial results Record

  4. Slide 4: Built to lead at the intersection of networking, cloud, and AI

    WHY HPE Built to lead at the intersection of networking, cloud, and AI NETWORKING CLOUD AI Secure, AI -native Enabling enterprises to run Powering the AI networking infrastructure inferencing, and new infrastructure buildout powering the edge, cloud, agentic AI applications and through networking, a

  5. Slide 5: Record revenue, non-GAAP gross margin, operating profit, and EPS

    Q3 FY26 FINANCIAL RESULTS Record revenue, non -GAAP gross margin, non -GAAP operating profit, and non -GAAP diluted net earnings per share FINANCIAL METRIC Y/Y HIGHLIGHTS Net revenue $12.2B +34% RECORD , above guidance Non -GAAP gross margin 1 40.4% +10.5 pts RECORD, through pricing discipline & fav

  6. Slide 6: Record $2B operating profit driven by record revenue

    Q3 FY26 SEGMENT RESULTS Record $2B operating profit 1 driven by record revenue Operating Operating SEGMENT Revenue Y/Y HIGHLIGHTS profit margin RECORD orders up 36%, revenue up 10% on a Networking $2.9B +75% $0.6B 22.0% normalized 2 basis with strong operating profit Cloud & AI $9.0B +25% $1.5B 17.0

  7. Slide 7: Networking: Record orders significantly outpacing revenues

    Q3 FY26 SEGMENT RESULTS Networking: Record orders significantly outpacing revenues NETWORKING DEMAND ACCELERATING $2.9B $0.6B 2 Revenue Operating profit • Record demand, with orders up 36% year -over -year +75% Y/Y 1 (+10% normalized 3) 22% margin on a normalized 3 basis PRODUCT CATEGORIES Revenue Y

  8. Slide 8: Cloud & AI: Record revenue, operating profit and margin

    Q3 FY26 SEGMENT RESULTS Cloud & AI: Record revenue, operating profit and margin CLOUD & AI DEMAND ACCELERATING $9.0B $1.5B 1 Revenue Operating profit • Record quarter, driven by significant increase in demand +25% Y/Y 17% margin for inferencing and agentic AI workloads • $2.4B in new AI Systems orde

  9. Slide 9: Record AI backlog driven by continued strong demand

    AI DEMAND Record AI backlog driven by continued strong demand AI Orders ($B) 1,2 AI Backlog ($B) 1,3 3.1 7.6 6.3 2.3 2.2 5.3 2.1 4.7 1.8 1.5 3.7 1.4 3.1 3.2 6.8 2.4 2.4 5.9 2.1 1.9 5.0 1.6 1.8 0.5 1.2 1.1 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25

  10. Slide 10: Juniper Networks integration and Catalyst transformation synergies ahead of plans

    COST SYNERGIES Juniper Networks integration and Catalyst transformation synergies ahead of committed plans Juniper Networks Integration: on track to Catalyst Transformation: a leaner, more achieve $600M annualized run -rate cost efficient AI -enabled HPE driving operating synergies by the end of fis

  11. Slide 11: Record free cash flow expected for fiscal 2026

    FREE CASH FLOW Record free cash flow 1,2 expected for fiscal 2026 Cash flow ($B) Common shareholder returns ($M) 4.2 1,015 At least 3.75 2 568 2.6 1.6 348 343 324 1.0 190 189 189 447 158 154 135 Q3 FY26 YTD FY26 FY26 FY’26Guide Guide Q1 FY26 Q2 FY26 Q3 FY26 YTD FY26 Cash Flow from Operations Free Ca

  12. Slide 12: Record profitability accelerates de-leveraging

    CAPITAL ALLOCATION Record profitability accelerates de -leveraging Net debt / adjusted EBITDA 1 3.1x 2.3x 2.0x 1.8x target • Cash and cash equivalents of $6.2B • Operating company 3 net debt down to $3.2B 4 • Total net debt of $14.0B 1,5 Q3 FY25 TTM 2 Q2 FY26 TTM 2 Q3 FY26 TTM 2 Pro forma Pro forma

  13. Slide 13: One portfolio across networking, cloud, and AI

    INDUSTRY - LEADING PORTFOLIO One portfolio across networking, cloud, and AI Networking Routing Infrastructure Campus & Branch Data Center SASE & Security Solutions e.g., HPE Aruba CX Switches e.g., HPE QFX Switches e.g., HPE PTX Routers e.g., HPE SRX Next -Gen Firewalls Cloud & AI Rack -scale Tradit

  14. Slide 14: HPE Private Cloud AI provides turnkey, enterprise-grade AI inferencing

    FEATURED AI PRODUCT HPE Private Cloud AI provides turnkey, enterprise -grade AI inferencing, at up to 60% lower token cost 1 Second -generation Enterprise -AI inferencing pl atf orm, co -engineered with NVIDIA TURNKEY AI HARDWARE & SOFTWARE SOLUTION UP TO 60% LOWER TOKEN COST VS. PUBLIC CLOUD FULL D

  15. Slide 15: Raising fiscal 2026 revenue, EPS, and FCF outlook

    FY26 OUTLOOK Raising fiscal 2026 revenue, EPS, and FCF outlook Networking segment METRIC Q4 FY26 FY26 Q4 FY26 • Revenue +11% – 13% +34% – 37% • Operating Margin low -20% Revenue $13.9B – $14.8B growth FY26 (21% -23% normalized 7) • Revenue +73% – 74% (approaching 10% normalized 7) • Operating Margin

  16. Slide 16: Raising company growth framework on a higher fiscal 2026 outlook

    FY27 FRAMEWORK Raising company growth framework on a higher fiscal 2026 outlook Non -GAAP diluted net EPS growth 1 1,2 Revenue growth Free cash flow 13% – 17% 16% – 20% ≥ $5.0B Networking: 14% – 17% From the updated FY26 base Up from at least $3.75B in FY26 Cloud & AI: 14% – 18% Operating margin Net

  17. Slide 17: Appendix

    Appendix 1 17

  18. Slide 18: Revenue Disaggregation – As Reported

    APPENDIX 1 Revenue Disaggregation – As Reported Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 in millions Amount Amount Amount Amount Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Networking: Campus & Branch $956 $832 $858 $851 $864 (1

  19. Slide 19: Customer Segmentation – Networking As Reported

    APPENDIX 1 Customer Segmentation – Networking As Reported Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 in millions Amount Amount Amount Amount Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Networking (Customer): Enterprise $1,097 $977

  20. Slide 20: Revenue Disaggregation & Customer Segmentation – Networking Normalized

    APPENDIX 1 Revenue Disaggregation & Customer Segmentation – Networking Normalized 1 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 in millions Amount Amount Amount Amount Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Networking (Product

  21. Slide 21: Reconciliation of Segment Operating Profit to GAAP & Non-GAAP Operating Profit

    APPENDIX 1 Reconciliation of Segment Operating Profit to GAAP & Non -GAAP Operating Profit In millions Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 $320 $271 $365 $638 $640 $581 $637 Networking 547 414 504 620 645 954 1,539 Cloud & AI (8) (7) (19) 5 (12) (9) (67) Corporate Investments and Other 1 859 6

  22. Slide 22: Reconciliation of Operating Cash Flow to Free Cash Flow

    APPENDIX 1 Reconciliation of Operating Cash Flow to Free Cash Flow 1 in millions Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Net cash (used in) provided by operating activities ($461) $1,305 $2,465 $1,178 $1,410 $1,641 Investment in property, plant and equipment and software assets (547) (576) (641) (569) (

  23. Slide 23: Reconciliation of TTM Operating Profit to Non-GAAP Operating Profit and Adjusted EBITDA

    APPENDIX 1 Reconciliation of TTM 1 Operating Profit to Non -GAAP Operating Profit and Adjusted EBITDA Juniper Networks Pro Forma Q3'25 Juniper Networks Pro Forma Q2'26 HPE Q3'25 TTM HPE Q2'26 TTM Q3'26 TTM Q3'25 TTM TTM Q2'26 TTM TTM GAAP Operating Profit $264 $399 $663 $1,456 ($2) $1,454 $2,602 Acq

  24. Slide 24: Consolidated GAAP Results

    APPENDIX 1 Consolidated GAAP Results Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Y/Y Q/Q $ in millions, except percentages and per share amounts Revenue $7,627 $9,136 $9,679 $9,301 $10,678 $12,213 33.7 % 14.4 % Cost of sales 5,458 6,464 6,438 5,961 6,778 7,314 13.1% 7.9 % Gross profit 2,169 2,672 3,241 3,34

  25. Slide 25: Consolidated Non-GAAP Results

    APPENDIX 1 Consolidated Non -GAAP Results $ in millions, except percentages and per share amounts Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Y/Y Q/Q Revenue $7,627 $9,136 $9,679 $9,301 $10,678 $12,213 33.7% 14.4% Cost of sales 5,383 6,404 6,160 5,898 6,741 7,285 13.8% 8.1% Gross profit 2,244 2,732 3,519 3,

  26. Slide 26: Supplemental Reconciliations: GAAP to Non-GAAP Gross Profit and Operating Profit

    APPENDIX 1 Supplemental Reconciliations: GAAP to Non -GAAP Gross Profit and Operating Profit $ in millions Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 GAAP gross profit $2,295 $2,169 $2,672 $3,241 $3,340 $3,900 $4,899 Non -GAAP adjustments: Stock -based compensation expense 17 13 10 9 24 23 18 Acquisi

  27. Slide 27: Supplemental Reconciliations: GAAP to Non-GAAP Net Income

    APPENDIX 1 Supplemental Reconciliations: GAAP to Non -GAAP Net Income Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 $ in millions, except per share amounts Amount per share Amount per share Amount per share Amount per share Amount per share Amount per share Amount per share GAAP net earnings (loss) attr

  28. Slide 28: Supplemental Reconciliations: GAAP to Non-GAAP Operating Expenses

    APPENDIX 1 Supplemental Reconciliations: GAAP to Non -GAAP Operating Expenses $ in millions Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 GAAP operating expenses $1,862 $3,278 $2,425 $3,249 $2,870 $3,153 $3,506 Amortization of intangible assets (38) (37) (126) (310) (311) (323) (315) Stock -based compen

  29. Slide 29: Appendix 2

    Appendix 2 29

  30. Slide 30: Endnotes

    APPENDIX 2 Endnotes Throughout this presentation, references are made to company -wide and segment -level financial metrics records. Records for comp any -wide financial metrics are measured from the period when we completed the spin -mergers of our prior software and enterprise service businesses.

  31. Slide 31: Endnotes

    APPENDIX 2 Endnotes Slide 7: Networking: Record orders significantly outpacing revenues 1. On as reported basis . 2. Segment operating profit is calculated based on total segment operating profit, which excludes unallocated corporate operating costs and other adjustments that are managed only at the

  32. Slide 32: Endnotes

    APPENDIX 2 Endnotes Slide 11: Record free cash flow expected for fiscal 2026 1. For the definition of free cash flow, and a reconciliation to operating cash flow, see slide 22. 2. HPE provides certain guidance on a non -GAAP basis. The Company is unable to provide a reconciliation to the most direct

  33. Slide 33: Endnotes

    APPENDIX 2 Endnotes Slide 15: Raising fiscal 2026 revenue, EPS, and FCF outlook 1. A description of HPE's use of non -GAAP financial information is provided on slide 2 of this presentation. 2. Q4’26 non -GAAP diluted net EPS estimate excludes net after -tax adjustments of approximately $0.08 per dil

  34. Slide 34: Thank You

    Thank You © 2026 Hewlett Packard Enterprise Development LP

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