Hewlett Packard Enterprise (HPE) Q1 FY2026 earnings: revenue $9.3 billion, up 18.4% on the year

Hewlett Packard Enterprise Co. (HPE) reported revenue of $9.3 billion for Q1 FY2026, the quarter ended 31 January 2026, up 18.4% on the same quarter a year earlier. Net income was $452 million, down 27.9% on the year, and diluted earnings per share $0.31. The figures are the company's own, from the 10-Q it filed with the SEC on 10 March 2026.

Revenue

$9.3 billion

+18.4% on the year · -3.9% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

5.1%

5.5% a year earlier

Q2 FY2024Q1 FY2026

Net income

$452 million

-27.9% on the year · +158.3% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$0.31

-29.5% on the year · +181.8% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 4 raised, 2 lowered, 1 narrowed, 5 new, 2 kept.

Revenue rose 18% year over year: Revenue was $9.3 billion, up 18% from the prior-year period and down 3.9% from the prior quarter.
Networking revenue more than doubled: Networking revenue was $2.7 billion, up 151.5%, because the segment now includes Juniper Networks.
Gross margin rose year over year: GAAP gross margin was 35.9% and non-GAAP gross margin was 36.6%, up 720 basis points on a non-GAAP basis from the prior-year period.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	9,301	9,679	7,854	-3.9%	+18.4%
Cost of revenue	5,839	6,315	5,431	-7.5%	+7.5%
Gross profit	3,462	3,364	2,423	+2.9%	+42.9%
Gross margin	37.2%	34.8%	30.9%
Research and development	744	881	475	-15.6%	+56.6%
Selling, general and administrative	1,698	1,642	1,268	+3.4%	+33.9%
Operating income	470	-8.0	433		+8.5%
Operating margin	5.1%	-0.1%	5.5%
Pre-tax income	433	-261	733		-40.9%
Income tax	-19.0	-436	106
Effective tax rate	-4.4%	n/a	14.5%
Net income	452	175	627	+158.3%	-27.9%
Net margin	4.9%	1.8%	8.0%
Diluted EPS	$0.31	$0.11	$0.44	+181.8%	-29.5%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	1,178	2,465	-390	-52.2%
Capital expenditure	569	641	528	-11.2%	+7.8%
Free cash flow	609	1,824	-918	-66.6%
Free cash flow margin	6.5%	18.8%	-11.7%
Cash from investing	-793	424	-23.0
Cash from financing	-1,352	-1,697	-797
Depreciation and amortisation	872	877	599	-0.6%	+45.6%
Share-based compensation	216	196	154	+10.2%	+40.3%
Buybacks	158	100	52.0	+58.0%	+203.8%
Dividends paid	190	171	171	+11.1%	+11.1%
Dividend per share	$0.14	n/a	$0.13		+7.7%
Diluted shares, weighted	1,356m	1,324m	1,409m	+2.4%	-3.8%
Shares outstanding at period end	1,329m	1,318m	1,313m	+0.8%	+1.2%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	24,774	24,688	25,224	+0.3%	-1.8%
Non-controlling interest	60.0	66.0	58.0	-9.1%	+3.4%
Debt	21,611	22,365	17,877	-3.4%	+20.9%
Operating lease liabilities	n/a	1,396	n/a
Finance lease liabilities	n/a	25.0	n/a
Other liabilities	29,323	27,366	27,168	+7.2%	+7.9%
Total liabilities and equity	75,768	75,906	70,327	-0.2%	+7.7%
Fixed assets	5,911	6,002	n/a	-1.5%
Goodwill	23,828	23,770	18,086	+0.2%	+31.7%
Intangible assets	6,101	6,368	508	-4.2%	+1,101.0%
Securities held for sale or to maturity	232	222	n/a	+4.5%
Cash and equivalents	4,841	5,773	13,431	-16.1%	-64.0%
Receivables	4,931	5,290	3,450	-6.8%	+42.9%
Inventory	6,913	6,352	8,577	+8.8%	-19.4%
Other assets	23,011	22,129	26,275	+4.0%	-12.4%
Total assets	75,768	75,906	70,327	-0.2%	+7.7%

Questions

What was Hewlett Packard Enterprise's revenue in Q1 FY2026?

Hewlett Packard Enterprise (HPE) reported revenue of $9.3 billion for Q1 FY2026, the quarter ended 31 January 2026, up 18.4% on the same quarter a year earlier.

How much did Hewlett Packard Enterprise earn in Q1 FY2026?

Net income for Q1 FY2026 was $452 million, down 27.9% on the year, and diluted earnings per share $0.31.

When did Hewlett Packard Enterprise report Q1 FY2026 results?

Hewlett Packard Enterprise filed its 10-Q for the quarter ended 31 January 2026 with the SEC on 10 March 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	7,354	6,961	6,713	6,951	7,871	7,809	6,973	7,002	7,351	6,755	7,204	7,710	8,458	7,854	7,627	9,136	9,679	9,301	10,678	12,213
Cost of revenue	4,887	4,571	4,392	4,501	5,216	5,073	4,371	4,390	4,679	4,179	4,705	5,146	5,724	5,431	5,334	6,339	6,315	5,839	6,660	7,198
Gross profit	2,467	2,390	2,321	2,450	2,655	2,736	2,602	2,612	2,672	2,576	2,499	2,564	2,734	2,423	2,293	2,797	3,364	3,462	4,018	5,015
Gross margin	34%	34%	35%	35%	34%	35%	37%	37%	36%	38%	35%	33%	32%	31%	30%	31%	35%	37%	38%	41%
R&D	502	504	517	509	515	623	570	578	578	582	590	547	527	475	540	622	881	744	922	1,158
SG&A	1,280	1,201	1,249	1,229	1,262	1,257	1,269	1,302	1,332	1,216	1,215	1,229	1,211	1,268	1,298	1,496	1,642	1,698	1,830	1,962
Operating income	350	448	207	466	-339	591	520	471	507	525	425	547	693	433	-1,109	247	-8.0	470	747	1,393
Operating margin	5%	6%	3%	7%	-4%	8%	7%	7%	7%	8%	6%	7%	8%	6%	-15%	3%	-0%	5%	7%	11%
Pre-tax income	2,688	493	276	464	-357	623	522	536	549	483	445	608	1,417	733	-1,045	288	-261	433	699	1,762
Tax rate	5%	-4%	9%	12%	n/a	20%	20%	13%	-17%	20%	29%	16%	4%	14%	n/a	-6%	n/a	-4%	11%	13%
Net income	2,553	513	250	409	-304	501	418	464	642	387	314	512	1,366	627	-1,050	305	175	452	624	1,540
Net margin	35%	7%	4%	6%	-4%	6%	6%	7%	9%	6%	4%	7%	16%	8%	-14%	3%	2%	5%	6%	13%
Diluted EPS	$1.93	$0.39	$0.19	$0.31	-$0.23	$0.38	$0.32	$0.35	$0.49	$0.29	$0.24	$0.38	$0.99	$0.44	-$0.82	$0.21	$0.11	$0.31	$0.44	$1.06
Operating cash flow	2,956	-76.0	379	1,254	3,036	-829	889	1,525	2,843	64.0	1,093	1,154	2,030	-390	-461	1,305	2,465	1,178	1,410	1,641
Capital expenditure	770	624	725	773	1,000	794	688	671	675	656	560	543	608	528	547	576	641	569	583	745
Free cash flow	2,186	-700	-346	481	2,036	-1,623	201	854	2,168	-592	533	611	1,422	-918	-1,008	729	1,824	609	827	896
Buybacks	213	129	58.0	197	128	73.0	106	187	55.0	3.0	45.0	52.0	50.0	52.0	50.0	0.0	100	158	154	135
Dividends paid	157	155	156	156	154	156	155	154	154	169	169	169	169	171	171	171	171	190	189	189
Shares outstanding	1,295m	1,300m	1,299m	1,288m	1,281m	1,297m	1,292m	1,283m	1,283m	1,300m	1,298m	1,298m	1,297m	1,313m	1,311m	1,319m	1,318m	1,329m	1,323m	1,328m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 January 2026, filed 10 March 2026: the filing.