Hewlett Packard Enterprise (NYSE: HPE) reported its fiscal 2026 second quarter (ending April 30) earnings after the U.S. market close on June 2, beating market expectations across the board, sending its shares surging over 38% in after-hours trading. Revenue came in at $10.68 billion, up 40% year-over-year and above the analyst estimate of $9.79 billion. Adjusted earnings per share were 79 cents, far exceeding the expected 53 cents — the biggest earnings beat since February 2018. AI-driven overall cloud and artificial intelligence business revenue hit $7.71 billion, above the $6.87 billion forecast. Server segment revenue totaled $5.45 billion, beating estimates of $4.66 billion.
For guidance, HPE lifted its full-year fiscal 2026 revenue growth outlook from 17%-22% to 29%-33%, while adjusted EPS jumped from $2.30-$2.50 range to $3.35-$3.45. The company said it has already pulled its current progress two years ahead of its own long-term financial plan for fiscal 2028. On the product side, HPE launched its 12th generation ProLiant server powered by NVIDIA at Computex 2026, with the New York Stock Exchange as its first customer, using it to support real-time processing of over one trillion transaction messages daily. Jensen Huang also cited this case during his keynote. Morgan Stanley analysts noted that customers are accepting significantly higher server pricing, with almost no signs of weakening demand. HPE’s stock has nearly doubled year-to-date.