Hewlett Reports Q1 Earnings: EPS Beats, Revenue Misses, Raises FY EPS Outlook

Core Insights - Hewlett Packard Enterprise (HPE) reported adjusted earnings per share (EPS) of 65 cents, exceeding the consensus estimate of 55 cents, while revenue was $9.30 billion, slightly below the consensus estimate of $9.33 billion [2] Financial Performance - Networking revenue reached $2.7 billion, marking a significant increase of 151.5% year-over-year [2] - Cloud & AI revenue was $6.3 billion, reflecting a decline of 2.7% compared to the previous year [2] - Corporate Investments and Other revenue totaled $261 million, down 2.2% from the prior-year period [2] - Cash flow from operations was $1.2 billion, and free cash flow amounted to $700 million [3] - The company returned $348 million to shareholders through dividends and share repurchases during the quarter [3] - A regular cash dividend of 14.25 cents per share was declared, payable on or about April 23, 2026 [3] Future Guidance - For the second quarter, the company expects adjusted EPS between 51 cents and 55 cents, compared to the consensus estimate of 53 cents [4] - Revenue guidance for the second quarter is projected to be between $9.60 billion and $10.00 billion, against a consensus estimate of $9.58 billion [4] - The fiscal-year adjusted EPS guidance was raised to a range of $2.30 to $2.50, compared to the previous range of $2.25 to $2.45 and the consensus estimate of $2.35 [5] - Fiscal-year revenue guidance remains between $40.12 billion and $41.84 billion, compared to the consensus estimate of $40.82 billion [5] Stock Performance - At the time of publication, Hewlett shares were trading 2.11% lower at $21.35 [6]