Hewlett Packard shares drop 7% after weak 2026 guidance

Hewlett Packard Enterprise shares fell 7% in after-hours trading on October 15, after the company released weaker-than-expected guidance for fiscal 2026.

HPE expects adjusted earnings per share of $2.2 to $2.4 for the year, below the $2.4 analysts forecasted, and projected revenue growth of 5% to 10%, lower than Wall Street estimates of 17%.

HPE said it will prioritize areas such as networking technology, following its acquisition of Juniper Networks, and expand its AI-related offerings.

The board approved an additional US$3 billion in share buybacks, raising the total to US$3.7 billion.

In March, HPE announced plans to cut 5% of its workforce, or about 2,500 jobs.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

HPE’s fiscal 2026 earnings per share (EPS) outlook of $2.20–$2.40 excludes non-GAAP items

HPE sets FY26 (fiscal year 2026) non-GAAP (a company-adjusted measure that excludes some expenses) EPS of $2.20–$2.40. This figure excludes about $1.63 after tax per share for amortization of intangible assets (a non-cash expense for acquired intellectual property or similar rights) plus stock-based compensation and acquisition, disposition or other charges 1.
FY26 non-GAAP operating profit forecast removes about $2.9 billion for amortization of intangible assets plus stock-based compensation, acquisition or disposition charges and other charges, plus the cost reduction program 1.
Juniper-related cost synergies of at least $600 million are planned by fiscal 2028 1.
Pro forma view (i.e., adjusted to reflect the Juniper acquisition plus related changes) calls for FY26 revenue growth of 5% to 10% and sets FY25–FY28 compounded growth of 5% to 7% 1.
Under generally accepted accounting principles (GAAP), FY26 operating profit growth lands at 435% to 445%. GAAP operating profit for FY25 is expected to be negative after a $1.4 billion goodwill impairment (a non-cash write-down of the value of acquired businesses) 2.

HPE trims 5% of jobs with Juniper integration

HPE announced 2,500 job cuts in March 2025 (about 5% of its workforce) over 12–18 months, targeting $350 million in savings by fiscal 2027 3.
The Juniper Networks deal (a networking equipment and software company) closed on July 2, 2025 and combined portfolios across campus or branch, data center switching plus wide-area routing 2.