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Hewlett Packard’s $12.2 Billion Quarter — AI Demand Drives 34% Growth!

Hewlett Packard Enterprise reported a third quarter fiscal 2026 performance characterized by record-breaking financial outcomes, driven primarily by strong demand across its Cloud & AI and Networking segments despite ongoing supply constraints. The company posted revenue of $12.2 billion, reflecting a 34% year-over-year increase, with non-GAAP gross margin reaching a record 40%. Non-GAAP operating profit doubled year-over-year to $2 billion, and non-GAAP earnings per share climbed to $1.11, also a record. Free cash flow was also a quarterly record at $958 million. Growth was fueled by accelerating enterprise adoption of AI workloads, increasing capital expenditure on AI infrastructure, and the continued integration of the Juniper Networks acquisition. Networking revenue grew 10% on a normalized basis to $2.9 billion, with order growth outpacing revenue at 36%, leading to a record backlog.