HPE Increases Dividend and Share Buyback; FY26 Profit Outlook Negative

Hewlett Packard Enterprise (HPE) announced a 10% increase in its annual dividend for fiscal year 2026, along with $3 billion in share repurchase capacity. The company plans to return significant free cash flow to shareholders through dividends and buybacks. HPE closed Wednesday’s trading at $25.04, up 0.16%, but dropped 8.75% in after-hours trading.

HPE introduced updates to Catalyst, aiming to achieve at least $350 million in gross savings by fiscal year 2028. The company also projects revenue growth of 5-7% and non-GAAP operating profit growth of 11-17% by fiscal year 2028, with a target of $3.00 non-GAAP diluted net earnings per share.

For fiscal year 2026, HPE expects revenue growth of 5-10% and non-GAAP operating profit growth of 10-18%. The company forecasts GAAP net earnings per share of $0.57-$0.77 and non-GAAP net earnings per share of $2.20-$2.40, with analysts’ estimates at $2.42 per share.