Hewlett Packard Enterprise Stock Soars 35% After Record Q2 Earnings; HPE Jumps to $60.18 After Hours

Hewlett Packard Enterprise (HPE) surprised Wall Street with one of its strongest quarterly performances in years. The company reported Q2 FY26 revenue of $10.7 billion, up 40% year over year, while adjusted earnings came in at $0.79 per share, comfortably beating analyst estimates of $0.53 per share. The strong results pushed HPE stock to $60.18 in after-hours trading, representing a gain of roughly 35% from its regular session close. 

The earnings beat was driven by strong enterprise spending on AI infrastructure, networking equipment, and server solutions. Investors also welcomed management’s decision to sharply raise its FY26 guidance. 

Why did Hewlett Packard Enterprise stock surge so much?

The answer lies in AI.

HPE’s Cloud and AI segment generated $7.71 billion in revenue, rising 23% year over year. Server revenue increased 32.7%, while demand for AI systems continued to accelerate across enterprise and government customers. The company also reported an impressive $6.3 billion AI backlog, providing strong visibility for future growth. 

Management stated that customers are increasingly deploying agentic AI workloads, creating additional demand for compute infrastructure, storage, and networking products. 

Hewlett Packard Enterprise Networking Business Becomes the Biggest Growth Driver

One of the biggest surprises came from the networking segment. Networking revenue surged 148.2% to $2.7 billion, significantly ahead of market expectations. Data center networking revenue jumped 233.3%, while campus networking revenue increased 50.2%. 

The integration of Juniper Networks also helped strengthen HPE’s competitive position in enterprise networking. According to CNBC reports, investors viewed this networking growth as a major signal that AI-related infrastructure spending remains strong across the technology sector.

Investors Also Ask: Did Hewlett Packard Enterprise Raise Guidance?

Yes. Hewlett Packard Enterprise raised its FY26 revenue growth forecast to 29% to 33%, up from its previous outlook of 17% to 22%. The company also lifted adjusted EPS guidance to $3.35 to $3.45 per share. Networking revenue is now expected to grow 72% to 75% during FY26. For the current quarter, management expects revenue between $11.5 billion and $12.1 billion and EPS between $0.88 and $0.93, both above Wall Street expectations.

Analyst Review: Can Hewlett Packard Enterprise Stock Continue Higher?

The latest results strengthen the bullish case for Hewlett Packard Enterprise. Revenue growth of 40%, EPS growth of more than 100%, networking expansion of 148%, and a $6.3 billion AI backlog indicate that demand remains strong across multiple business segments.

Management also stated that the company is on track to achieve several long-term financial targets earlier than expected. HPE now expects to reach key growth objectives originally planned for 2028 well ahead of schedule. 

For investors, the biggest factors to watch remain AI system orders, networking growth, AI backlog conversion, and execution of the Juniper Networks integration. If these trends continue, Hewlett Packard Enterprise could remain one of the strongest AI infrastructure plays in the market during FY26. 

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.