HPE Q2 Revenue Guidance Tops Estimates
HPE Q2 revenue guidance exceeds estimates, citing stronger demand for AI-powered servers using Nvidia chips and supporting systems and networking flows.
KEY TAKEAWAYS
- HPE set Q2 revenue guidance at $9.6 billion-$10.0 billion, above a $9.57 billion consensus.
- Company cited rising demand for AI-optimized servers using Nvidia chips as the guidance driver.
- Networking sales rose to $2.7 billion, nearly triple the prior year.
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Hewlett Packard Enterprise said in a March 9, 2026 press release that its Q2 revenue guidance would exceed analysts’ estimates, driven by rising demand for AI-powered servers using Nvidia chips. The announcement followed a quarterly earnings beat and a surge in networking sales.
Quarter Results and Guidance
HPE reported fiscal first-quarter 2026 results for the period ending January 31, 2026. Adjusted earnings per share (EPS) came to $0.65, surpassing the Street consensus of $0.58–$0.59 and up from $0.49 a year earlier, representing a 10.2% EPS surprise. Revenue totaled $9.3 billion, in line with the consensus range of $9.3 billion to $9.35 billion.
The company set Q2 revenue guidance between $9.6 billion and $10.0 billion, above the $9.57 billion consensus. It projected adjusted EPS for Q2 at $0.51 to $0.55 and full-year adjusted EPS between $2.30 and $2.50, roughly matching consensus estimates near $2.34 to $2.35.
AI Server Demand and Networking Growth
HPE attributed its outlook to increased demand for AI-optimized servers equipped with Nvidia chips and continued growth in networking. Networking sales reached $2.7 billion, nearly triple the prior year, with data-center networking up about fivefold.
Antonio Neri, president and CEO, said, "HPE delivered a strong first quarter, outperforming in our networking business and posting one of our most profitable quarters on record." The results indicate sustained strength in systems spending on AI hardware amid a dynamic commodity supply environment.
