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HPE Q3 FY26 Earnings September 2, 2026
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HPE | Q3 FY26 Earnings Forward - looking statements This presentation contains forward - looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . Such statements involve risks, uncertainties, and assumptions . If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“HPE”) may differ materially from those expressed or implied by such forward - looking statements and assumptions . The words “believe”, “expect”, “anticipate”, “guide”, “optimistic”, “intend”, “aim”, “will”, “estimates”, “may", "likely”, “could”, “should” and similar expressions are intended to identify such forward - looking statements . All statements other than statements of historical fact are statements that could be deemed forward - looking statements, including but not limited to any statements regarding the ongoing integration of Juniper Networks, Inc . , and any projections, estimates, or expectations of savings or synergy realizations in connection therewith, any projections, estimations, or expectations of addressable markets and their sizes, revenue (including annualized revenue run - rate), margins, expenses (including stock - based compensation expenses), investments, effective tax rates, interest rates ; the impact of changes in trade policies and restrictions and any uncertainty created thereby ; commodity costs, any statements of the plans, strategies, and objectives of management for future operations, as well as the execution and consummation of corporate transactions or contemplated acquisitions or dispositions and the receipt of proceeds therefrom, and any resulting benefits, cost savings, charges, or revenue or profitability improvements ; any statements concerning the expected development, performance, market share, or competitive performance relating to products or services ; any statements concerning technological and market trends, the pace of technological innovation, and adoption of new technologies, including artificial intelligence - related and other products and services offered by HPE ; any statements regarding macroeconomic trends or events and the anticipated impacts of those trends and events on HPE and our operations, including but not limited to supply chain dynamics (including but not limited to worldwide component shortages), demand for our products and services, and our actions to mitigate such impacts to our business ; the scope and duration of geopolitical tensions, including but not limited to the ongoing conflict in the Middle East ; and other statements regarding similar or other speculative or prospective matters relating to or impacting the Company, its operations, its customers, its suppliers, or the macroeconomic environment . Risks, uncertainties, and assumptions include the need to address the many challenges facing HPE’s businesses ; the competitive pressures faced by HPE’s businesses ; risks associated with executing HPE’s strategy ; the impact of macroeconomic and geopolitical trends and events, including but not limited to those mentioned above ; the protection of HPE's intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent ; risks associated with HPE's international operations (including from geopolitical events and macroeconomic uncertainties) ; the development of and transition to new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends ; changes in our product, lease, intellectual property, or real estate portfolio ; the successful integration of Juniper Networks, Inc . , including our ability to integrate and implement our plans and forecasts and realize our anticipated financial and operational benefits with respect to the consolidated business ; the impact of changes to privacy, cybersecurity, environmental, global trade, and other governmental regulations ; the efficacy of certain financial metrics in business projections and planning ; the judgments required in connection with determining certain financial metrics ; utility of segment realignments ; and other risks that are described in HPE’s Annual Report on Form 10 - K for the fiscal year ended October 31 , 2025 , subsequent Quarterly Reports on Form 10 - Q, Current Reports on Form 8 - K, and in other filings made by HPE from time to time with the Securities and Exchange Commission . As in prior periods, the financial information set forth in this presentation, including tax - related items, reflects estimates based on information available at this time . While HPE believes these estimates to be reasonable, these amounts could differ materially from amounts to be reported in the HPE’s Annual Report on Form 10 - K for the fiscal year ended October 31 , 2025 . HPE assumes no obligation and does not intend to update these forward - looking statements, except as required by applicable law . Use of non - GAAP financial information HPE’s management believes that providing non - GAAP financial measures, in addition to the related GAAP measures, provides investors with greater transparency to the information used by HPE's management in its financial and operational decision - making and allows investors to see HPE's results “through the eyes” of management . We believe that providing this information provides investors with a supplemental view to understand our operating performance and to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance over time . Disclosure of these non - GAAP financial measures also facilitates the comparison of HPE’s operating performance with performance of other companies in HPE’s industry that supplement their GAAP results with non - GAAP financial measures that may be calculated in a similar manner . Please refer to the non - GAAP to GAAP reconciliation at the end of this presentation for specific non - GAAP financial measures and reconciliation of those financial measures to GAAP financial measures . These non - GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HPE's results as reported under GAAP . Some of the limitations in relying on these non - GAAP financial measures are that they may be calculated differently by other companies, limiting the usefulness of those measures for comparative purposes, can differ materially from the comparable GAAP measures due to exclusion of items mentioned above and may not reflect the full economic effect of the loss in value of certain assets . We compensate for the limitations on our use of these non - GAAP financial measures by relying primarily on our GAAP financial statements and using non - GAAP financial measures only as a supplemental . We also provide robust and detailed reconciliations of each non - GAAP financial measure to the most directly comparable GAAP measure, and we encourage investors to review those reconciliations carefully . HPE provides certain forward - looking guidance on a non - GAAP basis only . HPE 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 in Appendix 1 for more information . 2
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. $12.2B Net revenue +34% Y/Y $1.11 Non - GAAP diluted net EPS 1 +152% Y/Y $958M Free cash flow 1,3 +$168M Y/Y 42% Orders growth Y/Y Record quarterly financial results Record revenue and non - GAAP operating profit driving new record in non - GAAP earnings per share Record demand Record orders, driven by significant increase in demand for inferencing and agentic AI workloads Raising fiscal 2026 & 2027 outlook Strong demand, backlog, and pipeline provide confidence to again raise guidance RECORD RECORD Normalized 5 RECORD 2 RECORD 4 Record quarterly financial results driven by record demand Q3 FY26 AT - A - GLANCE 3 Record profitability accelerates de - leveraging Achieved < 2.0x net - leverage target more than one year ahead of original plan
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HPE | Q3 FY26 Earnings Built to lead at the intersection of networking, cloud, and AI WHY HPE NETWORKING Secure, AI - native networking infrastructure powering the edge, cloud, and AI — across all customer segments. CLOUD Enabling enterprises to run inferencing, and new agentic AI applications and business workflows, with AI - driven cloud infrastructure and operations. AI Powering the AI infrastructure buildout through networking, compute, and storage — at scale — for model builders and neo - cloud customers. 4
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Record revenue, non - GAAP gross margin, non - GAAP operating profit, and non - GAAP diluted net earnings per share Q3 FY26 FINANCIAL RESULTS FINANCIAL METRIC Y/Y HIGHLIGHTS Net revenue $12.2B +34% RECORD , above guidance Non - GAAP gross margin 1 40.4% +10.5 pts RECORD, through pricing discipline & favorable mix Non - GAAP operating profit 1 $2.0B +155% RECORD, up nearly 40% sequentially GAAP diluted net EPS $1.06 +$0.85 Non - GAAP diluted net EPS 1 $1.11 +152% RECORD, above guidance Free cash flow 1,2 $1.0B +$0.2B RECORD Q3, driven by record non - GAAP operating profit 5 Raising fiscal 2026 non - GAAP diluted net EPS guidance by $0.40 to $3.75 - $3.85 3
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Record $2B operating profit 1 driven by record revenue Q3 FY26 SEGMENT RESULTS SEGMENT Revenue Y/Y Operating profit Operating margin HIGHLIGHTS Networking $2.9B +75% $0.6B 22.0% RECORD orders up 36%, revenue up 10% on a normalized 2 basis with strong operating profit Cloud & AI $9.0B +25% $1.5B 17.0% RECORD revenue, operating profit and margin Corporate Investment & Other $0.3B +3% $(0.1)B (24.1)% HPE TOTAL 3 $12.2B +34% $2.0B 1 16.2% 1 RECORD revenue and RECORD operating margin, with orders well ahead of shipments 6
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Networking: Record orders significantly outpacing revenues Q3 FY26 SEGMENT RESULTS $2.9B Revenue +75% Y/Y 1 (+10% normalized 3 ) $0.6B Operating profit 2 22% margin PRODUCT CATEGORIES Revenue Y/Y 3 Campus & Branch $1.4B +8% Routing $0.8B +23% Data Center $0.4B (6)% Security $0.3B +12% 7 CUSTOMER SEGMENTS Revenue Y/Y 3 Enterprise $2.0B +12% Service Provider 4 $0.9B +5% • Record demand, with orders up 36% year - over - year on a normalized 3 basis • Data Center Switching & Routing orders up high double - digits year - over - year 3 • Campus & Branch orders up low teens year - over - year 3 , with broad enterprise demand • Increasing cumulative Networks for AI orders 5 guidance range to $2.5B - $3.0B by end of fiscal 2026 • $ 0.7B in new orders booked in Q3 • Cumulative orders reached $2.2B 5 NETWORKING DEMAND ACCELERATING Signed a Gigawatt - scale deal with Oracle for one of the industry’s largest AI cloud infrastructure buildouts
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Cloud & AI: Record revenue, operating profit and margin Q3 FY26 SEGMENT RESULTS 8 $9.0B Revenue +25% Y/Y $1.5B Operating profit 1 17% margin PRODUCT CATEGORIES Revenue Y/Y Server $6.8B +35% Storage 2 $1.3B +10% Financial Services $0.9B flat Other 3 - NM • Record quarter, driven by significant increase in demand for inferencing and agentic AI workloads • $2.4B in new AI Systems orders, with backlog increasing to $6.8B • Traditional server orders up 75% year - over - year, driven by AI - ready configs and higher ASPs • HPE Alletra MP Storage orders up strong double digits year - over - year, with Private Cloud AI orders up triple digits year - over - year • Continued strong GreenLake cloud growth, customer count up 18% year - over - year with strong net retention rates CLOUD & AI DEMAND ACCELERATING Post Q3, HPE was awarded a $3.5B inferencing deal with hyperscaler customer
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Record AI backlog driven by continued strong demand AI DEMAND AI Backlog ($B) 1,3 AI Orders ($B) 1,2 $3.1B AI orders booked 1,4 in Q3 FY26 9 2.4 3.1 3.2 3.7 4.7 5.0 5.9 6.8 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 5.3 6.3 7.6 AI Systems 4 Networks for AI 4 0.5 1.6 1.1 2.1 1.9 1.2 1.8 2.4 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 1.8 1.4 2.3 2.2 1.5 2.1 3.1 AI Systems 4 Networks for AI 4 $7.6B AI backlog 1,4 Exiting Q3 FY26 RECORD RECORD 59% Sovereign + enterprise cumulative AI order mix 5 $6.7B AI YTD orders 1,4 Exiting Q3 FY26 RECORD
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HPE | Q3 FY26 Earnings Juniper Networks integration and Catalyst transformation synergies ahead of committed plans COST SYNERGIES Catalyst Transformation: a leaner, more efficient AI - enabled HPE driving operating margin expansion 10 Juniper Networks Integration: o n track to achieve $600M annualized run - rate cost synergies by the end of fiscal 2028 • Ahead of plan and commitments • Accelerating Agentic AI deployment on HPE’s flagship Private Cloud AI platform • Lower token costs and improved utilization • Faster AI adoption across HPE, without sacrificing flexibility or performance • Ahead of plan and commitments • On November 1, 2026, Juniper’s partners will join HPE’s Partner Ready Vantage program, accelerating partner cross - selling opportunities
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Record free cash flow 1,2 expected for fiscal 2026 158 154 135 447 190 189 189 568 Q1 FY26 Q2 FY26 Q3 FY26 YTD FY26 348 343 324 1,015 Dividend payment Share repurchase Common shareholder returns ($M) Cash flow ($B) 1.6 4.2 1.0 2.6 Q3 FY26 YTD FY26 FY’26 Guide Cash Flow from Operations Free Cash Flow 11 Returned over $1 billion to common shareholders YTD in fiscal 2026 FY26 Guide At least 3.75 2 FREE CASH FLOW
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Record profitability accelerates de - leveraging CAPITAL ALLOCATION Net debt / adjusted EBITDA 1 12 • Cash and cash equivalents of $6.2B • Operating company 3 net debt down to $3.2B 4 • Total net debt of $14.0B 1,5 3.1x 2.3x 1.8x Q3 FY25 TTM 2 Pro forma Q2 FY26 TTM 2 Pro forma Q3 FY26 TTM 2 2.0x target Achieved < 2.0x target exiting Q3 fiscal 2026, more than one year ahead of original plan
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HPE | Q3 FY26 Earnings One portfolio across networking, cloud, and AI INDUSTRY - LEADING PORTFOLIO Cloud & AI Networking e.g., HPE Alletra MP e.g., HPE ProLiant SASE & Security e.g., HPE SRX Next - Gen Firewalls Routing Infrastructure Solutions e.g., HPE PTX Routers Campus & Branch e.g., HPE Aruba CX Switches Data Center e.g., HPE QFX Switches e.g., HPE ProLiant e.g., Nvidia NVL systems by HPE 13 Storage Traditional Servers AI Servers Supercomputers Rack - scale AI systems e.g., HPE ProLiant
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. HPE Private Cloud AI provides turnkey, enterprise - grade AI inferencing, at up to 60% lower token cost 1 FEATURED AI PRODUCT Second - generation Enterprise - AI inferencing pl atf orm, co - engineered with NVIDIA TURNKEY AI HARDWARE & SOFTWARE SOLUTION FULL DATA SOVEREIGNTY 14 UP TO 60% LOWER TOKEN COST VS. PUBLIC CLOUD DELIVERED AS A CLOUD EXPERIENCE VIA HPE GREENLAKE
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Raising fiscal 2026 revenue, EPS, and FCF outlook FY26 OUTLOOK 15 METRIC Q4 FY26 FY26 Revenue $13.9B – $14.8B +34% – 37% growth (21% - 23% normalized 7 ) GAAP diluted net EPS $1.12 - $1.22 $2.93 - $3.03 Non - GAAP diluted net EPS 1 $1.20 – $1.30 2 $3.75 – $3.85 3 Non - GAAP operating profit growth 1 80% - 93% 8 +100% – 105% 4 Free cash flow 1,5,6 — ≥ $3.75B Networking segment Q4 FY26 • Revenue +11% – 13% • Operating Margin low - 20% FY26 • Revenue +73% – 74% (approaching 10% normalized 7 ) • Operating Margin low - 20% Cloud & AI segment Q4 FY26 • Revenue +60% – 72% • Operating Margin mid - teens FY26 • Revenue mid - to - high 20% range • Operating Margin low - to - mid teens FY26 assumptions • Non - GAAP interest and other, net 1,6 : $410M – $425M • Weighted average share count 1,6 : ~1,440 million
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HPE | Q3 FY26 Earnings Reference endnotes slides in Appendix 2 for footnotes on this slide. Raising company growth framework on a higher fiscal 2026 outlook FY27 FRAMEWORK 13% – 17% Revenue growth Networking: 14% – 17% Cloud & AI: 14% – 18% 16% – 20% Non - GAAP diluted net EPS growth 1 From the updated FY26 base ≥ $5.0B Free cash flow 1,2 Up from at least $3.75B in FY26 Operating margin Networking: mid - to - high 20% Cloud & AI: ~13% HPE 1,3 : 14% – 15% 16 Framework grounded in record backlog and durable demand
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Appendix 1 17
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HPE | Q3 FY26 Earnings APPENDIX 1 Revenue Disaggregation – As Reported 1. Storage includes revenue from GreenLake Flex and Software. 2. Other category includes intersegment revenue eliminations and third - party storage solutions. 3. N/M - Not meaningful 18 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 in millions Amount Amount Amount Amount Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Networking: Campus & Branch $956 $832 $858 $851 $864 (10%) $880 6% $1,101 28% $1,284 51% $1,227 42% $1,322 50% $1,442 31% Data Center Networking 72 79 88 88 92 28% 96 22% 180 105% 354 302% 444 383% 320 233% 382 112% Security 101 102 105 111 119 18% 107 5% 160 52% 273 146% 255 114% 273 155% 281 76% Routing 1 1 1 — 1 — % 1 — % 213 N/M 3 811 N/M 3 780 N/M 3 775 N/M 3 788 270% Total Networking net revenue $1,130 $1,014 $1,052 $1,050 $1,076 $1,084 $1,654 $2,722 $2,706 $2,690 $2,893 Cloud & AI net revenue: Server $3,380 $3,890 $4,311 $4,775 $4,348 29% $4,109 6% $5,000 16% $4,514 (5%) $4,232 (3%) $5,454 33% $6,766 35% Storage 1 960 994 1,010 1,247 1,055 10% 1,148 16% 1,171 16% 1,106 (11%) 1,061 1% 1,175 2% 1,291 10% Financial Services 873 867 879 893 873 — % 856 (1%) 886 1% 889 — % 876 — % 904 6% 883 — % Other 2 103 115 127 157 235 126% 158 38% 155 22% 167 6% 165 (30%) 174 10% 102 (34)% Total Cloud & AI net revenue $5,316 $5,866 $6,327 $7,072 $6,511 $6,271 $7,212 $6,676 $6,334 $7,707 $9,042 Corporate Investments and Other $309 $324 $331 $336 $267 $272 $270 $281 $261 $281 $278 Total HPE net revenue $6,755 $7,204 $7,710 $8,458 $7,854 $7,627 $9,136 $9,679 $9,301 $10,678 $12,213
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HPE | Q3 FY26 Earnings APPENDIX 1 1. Includes telco and cloud providers. 19 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 in millions Amount Amount Amount Amount Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Networking (Customer): Enterprise $1,097 $977 $1,006 $993 $1,027 (6%) $1,049 7% $1,375 37% $1,853 87% $1,758 71% $1,819 73% $2,027 47% Service Provider 1 33 37 46 57 49 48% 35 (5%) 279 507% 869 1,425% 948 1,835% 871 2,389% 866 210% Total Networking net revenue $1,130 $1,014 $1,052 $1,050 $1,076 $1,084 $1,654 $2,722 $2,706 $2,690 $2,893 Customer Segmentation – Networking As Reported
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HPE | Q3 FY26 Earnings APPENDIX 1 1. This normalized combined Networking financial information represents the summation of the standalone financial information of th e Networking segment reported by the Company and to include the adjusted financial information for Juniper Networks. This financial information has not been prepared in accordance with Article 11 of Regulation S - X and does not give eff ect to the pro forma adjustments that might be required in connection with the preparation of pro forma financial information in accordance with Article 11 of Regulation S - X, and is not indicative of what the combined segment’s performance wo uld have been had HPE and Juniper Networks been a combined company for the periods presented. This financial information has been presented solely to facilitate comparisons of the newly combined Networking business since HPE and Junip er Networks observe different fiscal years, with HPE’s fiscal year ending on October 31, and Juniper Networks’ fiscal year having ended on December 31. This combined Networking financial information was prepared to reconcile the differences in th e quarterly reporting periods. The internally prepared monthly financial data and the resulting figures above are based on what we believe to be reasonable estimates, calculations, and processes. However, Juniper Networks’ internally prepa red monthly financial data has not been reviewed or audited by either Juniper Networks, Juniper Networks’ auditors, or HPE’s auditors. Furthermore, the above amounts will differ from as - reported amounts in HPE’s or Juniper’s SEC filings. As such, readers should not rely on this information as indicative of past performance of the Networking business nor treat this as indicative of historical or future performance of the Networking business. The table below summarizes the reconciling amounts ne cessary to arrive at the reported Networking revenue (in millions): 2. Includes telco and cloud providers. 20 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 in millions Amount Amount Amount Amount Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Amount Y/Y % Networking (Product): Campus & Branch $1,279 $1,077 $1,153 $1,166 $1,204 (6%) $1,203 12% $1,339 16% $1,284 10% $1,227 2% $1,322 10% $1,442 8% Data Center Networking 245 253 280 356 338 38% 301 19% 408 46% 354 (1%) 444 31% 320 6% 382 (6)% Security 248 225 232 254 269 8% 231 3% 251 8% 273 7% 255 (5%) 273 18% 281 12% Routing 719 579 589 611 711 (1%) 709 22% 640 9% 811 33% 780 10% 775 9% 788 23% Total Networking net revenue $2,491 $2,134 $2,254 $2,387 $2,522 $2,444 $2,638 $2,722 $2,706 $2,690 $2,893 Networking (Customer): Enterprise $1,778 $1,522 $1,616 $1,627 $1,729 (3%) $1,676 10% $1,811 12% $1,853 14% $1,758 2% $1,819 9% $2,027 12% Service Provider 2 713 612 638 760 793 11% 768 25% 827 30% 869 14% 948 20% 871 13% 866 5% Total Networking net revenue $2,491 $2,134 $2,254 $2,387 $2,522 $2,444 $2,638 $2,722 $2,706 $2,690 $2,893 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 $1,361 $1,120 $1,202 $1,337 $1,446 $1,360 $984 Revenue Disaggregation & Customer Segmentation – Networking Normalized 1
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HPE | Q3 FY26 Earnings APPENDIX 1 1. Effective at the beginning of the first quarter of fiscal 2026, HPE implemented an organizational change by (i) merging the S erv er, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI and (ii) transferring the Telco and Instant On businesses to Corporate Investments and Other from Networking. The Company reflected these changes to it s s egment information retrospectively. 2. Beginning in Q2'26, Transformation (costs) credits are included in Acquisition, disposition and other charges. 21 In millions Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Networking $320 $271 $365 $638 $640 $581 $637 Cloud & AI 547 414 504 620 645 954 1,539 Corporate Investments and Other (8) (7) (19) 5 (12) (9) (67) Total Segment Operating Profit 1 859 678 850 1,263 1,273 1,526 2,109 Unallocated corporate costs and eliminations 1 (79) (65) (73) (80) (91) (103) (130) Non - GAAP Operating Profit 780 613 777 1,183 1,182 1,423 1,979 Amortization of intangible assets (38) (37) (126) (310) (311) (323) (315) Impairment charges — (1,361) — (260) — — — Stock - based compensation expense (154) (116) (177) (196) (216) (218) (165) H3C divestiture related severance costs (77) (20) — — — — — Cost reduction program — (146) (2) (127) (23) (30) (31) Acquisition, disposition and other charges 2 (78) (42) (225) (298) (162) (105) (75) GAAP Operating Profit (Loss) $433 ($1,109) $247 ($8) $470 $747 $1,393 Reconciliation of Segment Operating Profit to GAAP & Non - GAAP Operating Profit
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HPE | Q3 FY26 Earnings APPENDIX 1 1. Free cash flow represents cash flow from operations, less net capital expenditures (investments in property, plant & equipmen t ( “PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations o n cash, cash equivalents, and restricted cash. 22 in millions Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Net cash (used in) provided by operating activities ($461) $1,305 $2,465 $1,178 $1,410 $1,641 Investment in property, plant and equipment and software assets (547) (576) (641) (569) (583) (745) Proceeds from sale of property, plant and equipment 80 90 126 66 130 92 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 81 (29) (30) 33 (42) (30) Free cash flow 1 ($847) $790 $1,920 $708 $915 $958 Reconciliation of Operating Cash Flow to Free Cash Flow 1
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HPE | Q3 FY26 Earnings APPENDIX 1 23 HPE Q3'25 TTM Juniper Networks Q3'25 TTM Pro Forma Q3'25 TTM HPE Q2'26 TTM Juniper Networks Q2'26 TTM Pro Forma Q2'26 TTM Q3'26 TTM GAAP Operating Profit $264 $399 $663 $1,456 ($2) $1,454 $2,602 Acquisition, disposition and other charges 2 432 108 540 790 43 833 640 Stock - based compensation expense 536 244 780 807 34 841 795 Amortization of intangible assets 270 39 309 1,070 7 1,077 1,259 Cost reduction program 148 — 148 182 — 182 211 Impairment charges 1,361 — 1,361 260 — 260 260 H3C divestiture related severance costs 97 — 97 — — — — Other — 6 6 — 6 6 — Non - GAAP Operating Profit 3,108 796 3,904 4,565 88 4,653 5,767 Depreciation and amortization 2,500 100 2,600 3,313 18 3,331 3,490 Amortization of intangible assets (270) (39) (309) (1,070) (7) (1,077) (1,259) Adjusted EBITDA $5,338 $857 $6,195 $6,808 $99 $6,907 $7,998 Calculation of Total Debt and Net Debt July 31, 2025 April 30, 2026 July 31, 2026 Notes payable and short - term borrowings $6,799 $3,009 $2,901 Long - term debt 16,854 18,237 17,343 Total GAAP debt 23,653 21,246 20,244 Less: cash (4,571) (5,292) (6,216) Total net debt $19,082 $15,954 $14,028 Adjusted EBITDA 6,195 6,907 7,998 Leverage ratio - Total net debt 3 3.1 2.3 1.8 1. Trailing twelve months ("TTM") refers to the period encompassing the respective periods presented, and the eleven months prec edi ng July 2025, April 2026, and July 2026, respectively. 2. Beginning in Q2'26, Transformation (costs) credits are included in Acquisition, disposition and other charges. 3. Calculated as Total net debt divided by Adjusted EBITDA. Reconciliation of TTM 1 Operating Profit to Non - GAAP Operating Profit and Adjusted EBITDA
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HPE | Q3 Fiscal 2026 Earnings $ in millions, except percentages and per share amounts Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Y/Y Q/Q Revenue $7,627 $9,136 $9,679 $9,301 $10,678 $12,213 33.7 % 14.4 % Cost of sales 5,458 6,464 6,438 5,961 6,778 7,314 13.1 % 7.9 % Gross profit 2,169 2,672 3,241 3,340 3,900 4,899 83.3 % 25.6 % Gross profit as a % of revenue 28.4 % 29.2 % 33.5 % 35.9 % 36.5 % 40.1 % Research and development 540 622 881 744 922 1,158 86.2 % 25.6 % Selling, general and administrative 1,298 1,496 1,642 1,698 1,830 1,962 31.1 % 7.2 % Impairment charges 1,361 — 260 — — — — % — % Amortization of intangibles 37 126 310 311 323 315 150.0 % (2.5) % Acquisition, disposition and other charges 42 181 156 117 78 71 (60.8) % (9.0) % Total operating expenses 3,278 2,425 3,249 2,870 3,153 3,506 44.6 % 11.2 % Operating expenses as a % of revenue 43.0 % 26.5 % 33.6 % 30.9 % 29.5 % 28.7 % Operating (loss) profit (1,109) 247 (8) 470 747 1,393 464.0 % 86.5 % Operating (loss) profit as a % of revenue (14.5) % 2.7 % (0.1) % 5.1 % 7.0 % 11.4 % Interest and other, net 39 8 (261) (54) (73) (75) N/M 1 2.7 % Gain on sale of a business — 1 3 — — — N/M 1 N/M 1 Gain on sale of equity interest — — — — — 444 N/M 1 N/M 1 Earnings from equity interests 25 32 5 17 25 — (100.0) % (100.0) % Pre - tax (loss) earnings (1,045) 288 (261) 433 699 1,762 511.8 % 152.1 % Income tax (5) 17 436 19 (75) (222) N/M 1 196.0 % Tax rate % (0.5) % (6.5) % 167.0 % (4.4) % 10.7 % 12.6 % Net (loss) earnings attributable to HPE (1,050) 305 175 452 624 1,540 404.9 % 146.8 % Preferred stock dividends (29) (29) (29) (29) (29) (29) — % — % Net (loss) earnings attributable to common stockholders ($1,079) $276 $146 $423 $595 $1,511 447.5 % 153.9 % Diluted net EPS ($0.82) $0.21 $0.11 $0.31 $0.44 $1.06 404.8 % 140.9 % APPENDIX 1 Consolidated GAAP Results 1. N/M - Not meaningful 24
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HPE | Q3 FY26 Earnings APPENDIX 1 Consolidated Non - GAAP Results 25 $ in millions, except percentages and per share amounts Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Y/Y Q/Q Revenue $7,627 $9,136 $9,679 $9,301 $10,678 $12,213 33.7% 14.4% Cost of sales 5,383 6,404 6,160 5,898 6,741 7,285 13.8% 8.1% Gross profit 2,244 2,732 3,519 3,403 3,937 4,928 80.4% 25.2% Gross profit as a % of revenue 29.4% 29.9% 36.4% 36.6% 36.9% 40.4% Research and development 472 587 808 659 827 1,087 85.2% 31.4% Selling, general and administrative 1,159 1,368 1,528 1,562 1,687 1,862 36.1% 10.4% Total operating expenses 1,631 1,955 2,336 2,221 2,514 2,949 50.8% 17.3% Operating expenses as a % of revenue 21.4% 21.4% 24.1% 23.9% 23.5% 24.1% Operating profit 613 777 1,183 1,182 1,423 1,979 154.7% 39.1% Operating profit as a % of revenue 8.0% 8.5% 12.2% 12.7% 13.3% 16.2% Interest and other, net 9 (67) (148) (101) (102) (107) 59.7% 4.9% Earnings from equity interests 19 32 16 — — — (100)% — % Pre - tax earnings 641 742 1,051 1,081 1,321 1,872 152.3% 41.7% Income tax (96) (111) (158) (151) (185) (262) 136.0% 41.6% Tax rate % 15.0% 15.0% 15.0% 14.0% 14.0% 14.0% Net earnings attributable to HPE 545 631 893 930 1,136 1,610 155.2% 41.7% Preferred stock dividends (29) (29) (29) (29) (29) (29) — % — % Net earnings attributable to common stockholders $516 $602 $864 $901 $1,107 $1,581 162.6% 42.8% Diluted net EPS $0.38 $0.44 $0.62 $0.65 $0.79 $1.11 152.3% 40.5%
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HPE | Q3 FY26 Earnings APPENDIX 1 1. Beginning in Q2'26, Transformation (costs) credits are included in Acquisition, disposition and other charges. 26 $ in millions Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 GAAP gross profit $2,295 $2,169 $2,672 $3,241 $3,340 $3,900 $4,899 Non - GAAP adjustments: Stock - based compensation expense 17 13 10 9 24 23 18 Acquisition, disposition and other charges (3) — 50 189 34 6 (3) Cost reduction program — 46 — 80 5 8 14 H3C divestiture related severance costs 1 16 — — — — — Total adjustments to gross profit 15 75 60 278 63 37 29 Non - GAAP gross profit $2,310 $2,244 $2,732 $3,519 $3,403 $3,937 $4,928 GAAP earnings (loss) from operations $433 ($1,109) $247 ($8) $470 $747 $1,393 Non - GAAP adjustments: Amortization of Intangibles 38 37 126 310 311 323 315 Stock - based compensation expense 154 116 177 196 216 218 165 Acquisition, disposition and other charges 1 78 42 225 298 162 105 75 Cost reduction program — 146 2 127 23 30 31 H3C divestiture related severance costs 77 20 — — — — — Impairment charges — 1,361 — 260 — — — Total adjustments to earnings from operations 347 1,722 530 1,191 712 676 586 Non - GAAP earnings from operations $780 $613 $777 $1,183 $1,182 $1,423 $1,979 Supplemental Reconciliations: GAAP to Non - GAAP Gross Profit and Operating Profit
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HPE | Q3 FY26 Earnings APPENDIX 1 1. Beginning in Q2'26, Transformation (costs) credits are included in Acquisition, disposition and other charges. 27 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 $ in millions, except per share amounts Amount per share Amount per share Amount per share Amount per share Amount per share Amount per share Amount per share GAAP net earnings (loss) attributable to common stockholders $598 ($1,079) ($0.82) $276 $146 $0.11 $423 $0.31 $595 $1,511 Preferred stock dividends 29 29 29 29 29 29 29 GAAP net earnings (loss) attributable to HPE 627 $0.44 (1,050) 305 $0.21 175 452 624 $0.44 1,540 $1.06 Non - GAAP adjustments: Amortization of intangible assets 38 0.03 37 0.03 126 0.09 310 0.23 311 0.23 323 0.23 315 0.22 Stock - based compensation expense 154 0.11 116 0.09 177 0.12 196 0.14 216 0.16 218 0.15 165 0.11 Acquisition, disposition and other charges 1 78 0.05 42 0.03 225 0.17 298 0.22 162 0.12 105 0.08 75 0.05 Cost reduction program — — 146 0.11 2 — 127 0.09 23 0.02 30 0.02 31 0.02 H3C divestiture related severance costs 77 0.05 20 0.02 — — — — — — — — — — Impairment charges — — 1,361 1.03 — — 260 0.19 — — — — — — Adjustments for equity interests — — — — — — — — (17) (0.01) (25) (0.02) — — (Gain) loss on equity investments, net (2) — (7) (0.01) 1 — 148 0.10 (14) (0.01) 3 — — — Gain on sale of a business (244) (0.17) — — (1) — (3) — — — — — — — Gain on sale of equity interest — — — — — — — — — — — — (444) (0.31) Litigation judgment — — — — (52) (0.04) — — — — — — — — Other adjustments (29) (0.02) (29) (0.02) (24) (0.02) (24) (0.02) (33) (0.03) (32) (0.04) (32) (0.02) Adjustments for taxes (15) — (91) (0.08) (128) (0.09) (594) (0.44) (170) (0.14) (110) (0.07) (40) (0.02) Total adjustments to GAAP net earnings (loss) attributable to HPE 57 1,595 326 718 478 512 70 Non - GAAP net earnings attributable to HPE 684 $0.49 545 $0.38 631 $0.44 893 $0.62 930 $0.65 1,136 $0.79 1,610 $1.11 Preferred stock dividends (29) (29) (29) (29) (29) (29) (29) Non - GAAP net earnings attributable to common stockholders $655 $516 $602 $864 $901 $1,107 $1,581 Supplemental Reconciliations: GAAP to Non - GAAP Net Income
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HPE | Q3 FY26 Earnings APPENDIX 1 1. Beginning in Q2'26, Transformation (costs) credits are included in Acquisition, disposition and other charges. 28 $ in millions Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 GAAP operating expenses $1,862 $3,278 $2,425 $3,249 $2,870 $3,153 $3,506 Amortization of intangible assets (38) (37) (126) (310) (311) (323) (315) Stock - based compensation expense (137) (103) (167) (187) (192) (195) (147) Acquisition, disposition and other charges 1 (81) (42) (175) (109) (128) (99) (78) Cost reduction program — (100) (2) (47) (18) (22) (17) H3C divestiture related severance costs (76) (4) — — — — — Impairment charges — (1,361) — (260) — — — Total adjustments to operating expenses (332) (1,647) (470) (913) (649) (639) (557) Non - GAAP operating expenses $1,530 $1,631 $1,955 $2,336 $2,221 $2,514 $2,949 Supplemental Reconciliations: GAAP to Non - GAAP Operating Expenses
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Appendix 2 29
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Endnotes HPE | Q3 FY26 Earnings APPENDIX 2 Throughout this presentation, references are made to company - wide and segment - level financial metrics records. Records for comp any - wide financial metrics are measured from the period when we completed the spin - mergers of our prior software and enterprise service businesses. Records fo r segment - specific financial metrics are measured from Q1 of FY24, which is the earliest period for which we disclosed financial information according to our current seg mentation. Slide 3 : Record quarterly financial results driven by record demand 1. A description of HPE's use of non - GAAP financial information is provided on slide 2 of this presentation. A reconciliation of sp ecific adjustments to GAAP results for the current and prior periods are included in the “Appendix 1" section. 2. Record for Q3. 3. For the definition of free cash flow, see slide 22. 4. Record orders in dollars. 5. Normalized to include 8 months of pre - acquisition Juniper Networks results. Slide 5: Record revenue, non - GAAP gross margin, non - GAAP operating profit, and non - GAAP diluted net earnings per share 1. A description of HPE's use of non - GAAP financial information is provided on slide 2 of this presentation. A reconciliation of sp ecific adjustments to GAAP results for the current and prior periods are included in the “Appendix 1" section. 2. For the definition of free cash flow, see slide 22. 3. FY26 non - GAAP diluted net EPS estimate excludes net after - tax adjustments of approximately $0.82 per diluted share, primarily re lated to amortization of intangible assets, stock - based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments re lated to the sale of H3C. Slide 6: Record $2B operating profit driven by record revenue 1. HPE Operating Profit (“OP”) is a non - GAAP measure, which is reconciled to our GAAP Operating Profit in the “Appendix 1” section. HPE OP margin (OP as a percentage of net revenue) was calculated using non - GAAP OP. A reconciliation of specific adjustments to GAAP results for the current and prio r periods are included in the “Appendix 1” section. 2. Normalized growth rates are calculated based on FY25 results that have been normalized to include 8 months of Juniper Network s r esults, pre - acquisition close, refer to slide 20 for more information. 3. Includes adjustments for unallocated corporate operating costs (which are managed only at the HPE corporate level) and elimin ati ons. Segment results on this slide do not include or reflect these adjustments. 30
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Endnotes HPE | Q3 FY26 Earnings APPENDIX 2 Slide 7: Networking: Record orders significantly outpacing revenues 1. On as reported basis . 2. Segment operating profit is calculated based on total segment operating profit, which excludes unallocated corporate operating costs and other adjustments that are managed only at the HPE corporate level . 3. Normalized growth rates are calculated based on FY 25 results that have been normalized to include 8 months of Juniper Networks results, pre - acquisition close, refer to slide 20 for more information . 4. Includes telco and cloud providers . 5. Cumulative orders include 8 months of pre - acquisition Juniper Networks results . Slide 8 : Cloud & AI : Record revenue, operating profit and margin 1. Segment operating profit is calculated based on total segment operating profit, which excludes unallocated corporate operatin g c osts and other adjustments that are managed only at the HPE corporate level. 2. Storage includes revenue from GreenLake Flex and Software. 3. Other category includes intersegment revenue eliminations and third - party storage solutions. Year - over - year percentage change wa s not material. Slide 9: Record AI backlog driven by continued strong demand 1. Orders and backlog figures presented on this slide are as of the ends of the quarterly periods presented and remain subject t o o ngoing adjustment for a variety of reasons (including but not limited to re - bookings, cancellations, and fulfillment issues). 2. Normalized to include 8 months of Juniper Networks. 3. Networks for AI backlog tracking commenced in Q1’26. 4. AI Systems include products and services. Networks for AI does not include services. 5. Cumulative sovereign and enterprise customer mix of cumulative AI orders since Q1’23. 31
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Endnotes HPE | Q3 FY26 Earnings APPENDIX 2 Slide 11: Record free cash flow expected for fiscal 2026 1. For the definition of free cash flow, and a reconciliation to operating cash flow, see slide 22. 2. HPE provides certain guidance on a non - GAAP basis. The Company is unable to provide a reconciliation to the most directly compar able GAAP financial measure without unreasonable efforts, as it cannot predict some elements that are included in such directly comparable GAAP financial measure . Slide 12 : Record profitability accelerates de - leveraging 1. A reconciliation of specific adjustments to GAAP results for the current and prior periods are included in the “Appendix 1" s ect ion. 2. Trailing twelve months (“TTM”) refers to ( i ) for Q3’25 TTM, the period encompassing the month ended July 31, 2025 and the eleven months preceding July 2025 for both HPE and Juniper Networks, and (ii) for Q2’26 TTM, the period encompassing the month ended April 30, 2026 and the eleven months pr ece ding April 2026 for HPE and two months of Juniper Networks relating to pre - acquisition period (iii) for Q3’26 TTM, the period encompassing the month ended July 31, 2026 and the eleven months preceding July 2026. See the recon ciliations on slide 2 3 . 3. Operating Company = Total HPE excluding Financial Services (FS). 4. Operating Company net debt is defined as total company net debt excluding the net debt of FS of $10.8B. 5. See the calculation of Total net debt on slide 23. Slide 14: HPE Private Cloud AI provides turnkey, enterprise - grade AI inferencing, at up to 60% lower token cost 1. Based on HPE analysis with the following assumptions: 5 - year term deal, 80% PCAI utilization, 70/30 mix between public cloud res erve and on - demand spend, 8B parameter Llama 3.1 model. 32
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Endnotes HPE | Q3 FY26 Earnings APPENDIX 2 Slide 15 : Raising fiscal 2026 revenue, EPS, and FCF outlook 1. A description of HPE's use of non - GAAP financial information is provided on slide 2 of this presentation. 2. Q4’26 non - GAAP diluted net EPS estimate excludes net after - tax adjustments of approximately $0.08 per diluted share, primarily related to amortization of intangible assets, stock - based compensation expense, acquisition, disposition and other charges and cost reduction program. 3. FY26 non - GAAP diluted net EPS estimate excludes net after - tax adjustments of approximately $0.82 per diluted share , primarily related to amortization of intangible assets, stock - based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments related to the sale of H3C. 4. FY26 non - GAAP operating profit growth excludes costs of approximately $2.5 billion primarily related to amortization of intangible assets, stock - based compensation expense, acquisition, disposition and other charges, and cost reduction program. 5. For the definition of free cash flow, see slide 22 . 6. HPE provides certain guidance on a non - GAAP basis. The Company is unable to provide a reconciliation to the most directly comparable GAAP financial measure without unreasonable efforts, as it cannot predict some elements that are included in such directly comparable GAAP financial measure . 7. Normalized growth rates are calculated based on FY25 results that have been normalized to include 8 months of Juniper Network s r esults, pre - acquisition close, refer to slide 20 for more information. 8. Q4'26 non - GAAP operating profit growth excludes costs of approximately $0.5 billion primarily related to amortization of intangi ble assets, stock - based compensation expense, acquisition, disposition and other charges, and cost reduction program. Slide 16 : Raising company growth framework on a higher fiscal 2026 outlook 1. HPE provides certain guidance on a non - GAAP basis. The Company is unable to provide a reconciliation to the most directly compar able GAAP financial measure without unreasonable efforts, as it cannot predict some elements that are included in such directly comparable GAAP financial measure . 2. For the definition of free cash flow, see slide 22 . 3. Represents HPE Non - GAAP operating margin. 33
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