‘We wanted to be very transparent that the growth rate would be in that high single digits, but when you look at it on a reported basis it would be between 17 [percent and] 23 percent,’ said HPE CEO Antonio Neri in an interview on CNBC.
HPE Thursday filed an amended 8K with the U.S. Securities and Exchange Commission to clarify its revenue growth outlook in the wake of a 9 percent drop in shares to $22.75 after issuing its Fiscal Year 2026 outlook.
HPE cited a “scrivener’s error” in its securities analyst meeting press release on the Fiscal Year 2026 forecast in the amended filing, which now points to pro forma revenue growth of 17 percent to 22 percent for Fiscal Year 2026 versus the 5 percent to 10 percent forecast issued Wednesday.
“There was a scrivener’s error in footnote 2 of such press release related to revenue growth outlook, which should have stated, ‘Growth rates include FY25 results normalized to include 8 months of Juniper results pre-acquisition close,’ HPE said in the amended 8K filing. “Revenue growth outlook without such treatment is expected to be 17 [percent] to 22 percent for FY26 and 8 [percent] to 11 percent long-term.”
In an interview on CNBC, HPE President and CEO Antonio Neri (pictured) pointed out that the Fiscal Year 2026 guide of non-GAAP diluted earnings per share of $2.20 to $2.40 on revenue growth of 5 percent to 10 percent is a “pro forma” forecast for Fiscal Year 2026.
“I think the Street still needs to spend a little time on our 2026 guide,” said Neri. “The 2026 guide was a pro forma guide. What that means is we reset the baseline based on the fact that we only put the four months of Juniper in our 2025 results. So we wanted to be very transparent that the growth rate would be in that high single digits, but when you look at it on a reported basis it would be between 17 [percent and] 23 percent.”
Neri pointed out that HPE has committed to generating $3.5 billion in free cash flow by Fiscal Year 2028. That includes operating profit expansion of 11 percent to 17 percent over the next three years.
HPE also announced at its securities analyst meeting a 10 percent increase in its annual dividend for Fiscal Year 2026 to be paid to shareholders.
“More than 75 percent of our cash by 2028 will be given back to shareholders,” said Neri. “I think the reaction so far this morning is more about the 2026 guide, which again we provided on a pro forma basis. So the reported revenue growth you will see will be between 17 [percent and] 23 percent, which is very high obviously and we are going to expand our operating profit between 10 [percent] to 18 percent. I think the investors need to go through the numbers. Today I will do my runs with investors.”
HPE’s board of directors also has authorized an additional $3 billion in share repurchases, bringing the total share repurchase authorization to $3.7 billion.
HPE plans to use that buyback authorization to pay down $4 billion in debt over the next three years related to the Juniper acquisition.
“From an investment perspective, we now have an amazing portfolio so we will continually invest organically in the business through the traditional cycles,” Neri said. “And then ultimately we believe the working capital for AI is obviously one that you have to stay very disciplined about. That is why our focus on sovereign and enterprise [AI] is essential where more than 50 percent of our orders are already there.”
Responding to comments on some companies throwing “caution to the wind” while HPE is being “very prudent,” Neri said: “I am very prudent. I am in business to generate cash not to burn cash.”
C.R. Howdyshell, CEO of Independence, Ohio-based Advizex, a Fulcrum IT Partners company, No. 129 on the 2025 CRN Solution Provider 500, said he expects continued strong double-digit sales growth for his company’s HPE business going forward.
“We just overachieved our quarterly sales growth goal with HPE with positive growth in all all sectors—networking, storage and compute,” he said. “We anticipate that to continue. With the Juniper Networks acquisition, we are confident about future growth.”
