Hewlett Packard Enterprise To Increase Annual Dividend For Fiscal 2026 By 10% And Repurchase Capacity By Additional $3B; Expects Over $3.5B Free Cash Flow By FY28; Expects FY26 GAAP EPS $0.57-$0.77, Non-GAAP EPS $2.20-$2.40; By Fiscal Year 2028, HPE Expects To Generate Non-GAAP Diluted Net EPS Of At Least $3.00

Author: Benzinga Newsdesk | October 15, 2025 04:11pm

•  Strengthened networking capabilities will be a major contributor to HPE's financial performance and strategic growth
• HPE intends to profitably capture explosive AI infrastructure growth with a focus on enterprise and sovereign customer segments, and anticipates expansion of its leadership in the hybrid cloud market
• HPE to increase its annual dividend for fiscal year 2026 by 10% and share repurchase capacity by an additional $3 billion, bringing the total repurchase authorization to approximately $3.7 billion
• By fiscal year 2028, HPE expects to generate more than $3.5 billion in free cash flow, with GAAP diluted net EPS of approximately $1.93 and non-GAAP diluted net EPS of at least $3.00

HPE (NYSE:HPE) today hosted its Securities Analyst Meeting at the New York Stock Exchange, where Antonio Neri, HPE president and CEO; Marie Myers, executive vice president and CFO; and Rami Rahim, executive vice president, president and general manager of HPE Networking, discussed the company's strategic priorities and financial outlook through fiscal year 2028. They illustrated how HPE's leadership position in the high-growth, high-margin networking market and differentiated offering across cloud and AI will strengthen the company's ability to generate stronger returns for investors.

HPE detailed strategic and execution priorities to drive enhanced shareholder value at the HPE Securities Analyst Meeting 2025 in New York City on October 15, 2025.

Neri highlighted the company's differentiated strategy and financial progress as HPE enters a new chapter driven by expanded networking capabilities and enhanced participation in the cloud and AI markets with a stronger value proposition.

"By aligning our investments and innovation to address the IT industry's most promising opportunities in networking, cloud, and AI, we're poised to gain share in the markets that matter most to our customers," said Antonio Neri, president and CEO. "In HPE's new chapter, our strengthened portfolio will create more profitable growth, increasing capital return opportunities that deliver even greater value to our shareholders."

HPE is shifting its portfolio to higher-growth, higher-margin businesses, giving the company greater potential to enhance long-term profit. The company discussed its intent to achieve greater profitability and improve free cash flow generation in the coming years, in order to provide higher capital return to shareholders.

To support its shareholder capital return goals, the company announced a 10% increase to its annual dividend for fiscal year 20261, reflecting confidence in its outlook. Its Board of Directors authorized an additional $3 billion in capacity for share repurchases, bringing HPE's total repurchase authorization to approximately $3.7 billion. Long-term, HPE plans to return significant free cash flow to shareholders via dividends and buybacks.

Posted In: HPE