Close up of Hewlett Packard Enterprise logo and sign on the building in San Jose, Ca, USA

Hewlett Packard Enterprise Stock Heads Lower After Q3 Earnings

Hewlett Packard Enterprise Company (NYSE:HPE) stock is experiencing some selling pressure in extended trading Thursday after the company reported mixed financial results for the fourth quarter.

  • Q4 Revenue: $9.68 billion, versus estimates of $9.94 billion
  • Q4 Adjusted EPS: 62 cents, versus estimates of 58 cents

Fiscal fourth-quarter revenue was up 14% on a year-over-year basis, driven by 150% growth in networking revenue. Server revenue was down 5%, hybrid cloud revenue fell 12% and financial services revenue was flat. The company’s annualized revenue run-rate increased 63% year-over-year to $3.2 billion.

Hewlett Packard Enterprise reported $2.5 billion in cash flow from operations and said it generated $1.9 billion of free cash flow during the period. The company ended the quarter with approximately $5.77 billion in total cash and cash equivalents.

“HPE continued to drive operational discipline in Q4, resulting in record gross profit and robust non-GAAP operating profit as well as free cash flow generation that exceeded our outlook,” said Marie Myers, executive vice president and CFO of HPE. 

Hewlett Packard Enterprise’s board declared a cash dividend of $0.1425 per share, payable on or about Jan. 16, 2026 to shareholders of record as of Dec. 19.

What’s Next: Hewlett Packard Enterprise expects fiscal first-quarter revenue of $9 billion to $9.4 billion versus estimates of approximately $9.90 billion. The company anticipates first-quarter adjusted earnings of 57 cents to 61 cents per share versus estimates of 54 cents per share.

Hewlett Packard Enterprise sees fiscal 2026 revenue of $40.13 billion to $41.84 billion versus estimates of $34.55 billion. The company also raised its full-year adjusted earnings guidance from a range of $2.20 to $2.40 per share to a new range of $2.25 to $2.45 per share versus estimates of $1.90 per share.

HPE Price Action: Hewlett Packard Enterprise shares were down 6.59% in after-hours Thursday, trading at $21.39 at the time of publication, per Benzinga Pro.

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