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Hewlett Packard Enterprise (HPE)’s $7.7 Billion Cloud & AI Surge: Can Margins Keep Up?

Hewlett Packard Enterprise reported its fiscal 2026 second quarter results marked by strong revenue growth, profitability expansion, and progress in its strategic initiatives, especially following the integration of Juniper Networks. The company posted revenue of $10.7 billion, a 40% year-over-year increase, alongside non-GAAP earnings per share of $0.79, which more than doubled compared to the prior year. Free cash flow reached $915 million, reflecting a sizeable improvement driven by strong operational performance and supply chain management. The Networking segment demonstrated solid momentum with $2.7 billion in revenue, growing double digits on a normalized basis. Juniper’s integration progressed ahead of schedule, contributing to an expanding backlog and enhanced market position. Demand was broad-based with strength in Campus & Branch, AI-focused networking, and security solutions. Enterprise and service provider customers showed significant appetite for the unified portfolio, driven by digital transformation and AI-enabled operations.