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iPronics Raises $125 Million to Scale Programmable Optical Networking for AI Data Centers

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Hewlett Packard Enterprise (HPE) reported record Q3 fiscal 2026 revenue of $12.2 billion, up 34% year-over-year, driven by surging AI infrastructure and networking demand, as the company raised its full-year outlook and plans to return at least 75% of free cash flow to shareholders. The technology infrastructure giant posted GAAP operating profit up 464% and non-GAAP operating profit up 155% YoY, with GAAP diluted EPS of $1.06 and non-GAAP EPS of $1.11, both above guidance. CEO Antonio Neri highlighted AI as a multi-year growth driver, while CFO Marie Myers cited robust demand and record order backlog. Segment performance showed Networking revenue of $2.9 billion, up 74.9% YoY, with Data Center Networking surging 112.2% and Routing up 270%. Cloud & AI revenue reached $9.0 billion, up 25.4%, driven by Server revenue of $6.8 billion (+35.3%) and Storage of $1.3 billion (+10.2%). Gross margins improved significantly: GAAP gross margin of 40.1% (up 1,090 bps YoY). Operating cash flow was $1.6 billion, with free cash flow of $1.0 billion. For Q4 FY26, HPE expects revenue of $13.9-$14.8 billion and non-GAAP EPS of $1.20-$1.30. The company raised its full-year FY26 revenue growth outlook to 34%-37%, GAAP operating profit growth to 1,070%-1,105%, and non-GAAP EPS to $3.75-$3.85. Free cash flow guidance was raised to at least $3.75 billion. For FY27, HPE projects revenue growth of 13%-17%, non-GAAP EPS growth of 16%-20%, and free cash flow of at least $5.0 billion. The board declared a $0.1425 per share dividend payable October 16, 2026.