Hewlett Packard Enterprise Co Earnings Summary — Q2 2026

• Revenue growth accelerated dramatically to 40% YoY, reaching $10.68 billion in Q2 2026.
• Net income returned to growth, posting $624 million compared to a $1.05 billion loss in the same period last year.
• Operating income stabilized at $747 million, a significant recovery from the negative $1.11 billion operating performance in Q2 2025.
• The Juniper acquisition is substantially scaling HPE's networking footprint, though integration costs remain a factor.
• R&D investment increased nearly 71% YoY to $922 million, reflecting a heavy pivot towards AI-driven networking.
• The company continues to transition away from legacy hardware toward the GreenLake as-a-service model.
• Earnings quality is under watch as diluted shares increased 8.3% YoY to 1,432 million.
• Cost of revenue increased to $6.78 billion, putting pressure on gross margins despite the revenue jump.

Management is focusing on edge-to-cloud transformation and high-performance computing (HPC) following the Juniper acquisition, though they warn of high integration costs and significant leverage.

Improving

Financial results show a sharp recovery from the losses sustained in early 2025, with revenue growth accelerating to multi-year highs.

The outlook is defined by the successful integration of Juniper and the scaling of the GreenLake platform, though rising debt levels and interest expenses remain significant headwind risks.