• Revenue: $9.3 billion, up 18% from the prior-year period
• Gross margins:
  • GAAP of 35.9%, up 670 basis points from the prior-year period and up 240 basis points sequentially 
  • Non-GAAP⁽¹⁾ of 36.6%, up 720 basis points from the prior-year period and up 20 basis points sequentially
• Diluted net earnings per share (“EPS”):
  • GAAP of $0.31, down $0.13 from the prior-year period and above our outlook range of $0.09 and $0.13
  • Non-GAAP⁽¹⁾ of $0.65, up $0.16 from the prior-year period and above our outlook range of $0.57 - $0.61
• Cash flow from operations: $1.2 billion, an increase of $1.6 billion from the prior-year period
• Free cash flow (“FCF”)⁽¹⁾⁽²⁾: $0.7 billion, an increase of $1.6 billion from the prior-year period
• Capital returns to common shareholders: $348 million in the form of dividends and share repurchases

First Quarter Fiscal 2026 Segment Results

• Networking revenue was $2.7 billion, up 151.5% from the prior-year period, with 23.7% operating profit margin, compared to 29.7% from the prior-year period. This segment incorporates our former Intelligent Edge segment and Juniper Networks.
• Within Networking, revenue from:
  • Campus & Branch was $1.2 billion, up 42.0% from the prior-year period.
  • Data Center Networking was $444 million, up 382.6% from the prior-year period.
  • Security was $255 million, up 114.3% from the prior-year period.
  • Routing was $780 million, compared to $1 million in the prior-year period.
• Cloud & AI revenue was $6.3 billion, down 2.7% from the prior-year period, with 10.2% operating profit margin, compared to 8.4% from the prior-year period. This segment consolidates HPE’s server, storage, and financial services businesses, representing a new financial segment for FY26.
• Within Cloud & AI, revenue from:
  • Server was $4.2 billion, down 2.7% from the prior-year period.
  • Storage was $1.1 billion, up 0.6% from the prior-year period.
  • Financial Services was $0.9 billion, up 0.3% from the prior-year period.
• Corporate Investments and Other revenue was $261 million, down 2.2% from the prior-year period, with -4.6% of operating profit margin, compared to -3.0% from the prior-year period. This segment includes the Advisory and Professional Services business and Hewlett Packard Labs; the Telco and Instant On businesses have been incorporated into this segment, a change for FY26.

² Free cash flow represents cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash.​

³ FY26 non-GAAP operating profit excludes costs of approximately $2.7 billion primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, and cost reduction program.

⁴ Hewlett Packard Enterprise provides certain guidance on a non-GAAP basis. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, Hewlett Packard Enterprise is unable to provide a reconciliation to the most directly comparable GAAP financial measure without unreasonable efforts, as the Company cannot predict some elements that are included in such directly comparable GAAP financial measure. These elements could have a material impact on the Company’s reported GAAP results for the guidance period. Refer to the discussion of non-GAAP financial measures below for more information.