HPE announces dividend increase and $3 billion share buyback program, provides guidance

Hewlett Packard Enterprise (NYSE: HPE) announced a 10% increase to its annual dividend for fiscal year 2026 and authorized an additional $3 billion in share repurchase capacity, bringing total repurchase authorization to approximately $3.7 billion. The announcements were made during the company's Securities Analyst Meeting at the New York Stock Exchange.

The company provided financial projections through fiscal year 2028, expecting to generate more than $3.5 billion in free cash flow with GAAP diluted net earnings per share of approximately $1.93 and non-GAAP diluted net EPS of at least $3.00. HPE projects a compounded revenue growth rate of 5% to 7% and non-GAAP operating profit growth of 11% to 17% through fiscal 2028.

For fiscal year 2026, HPE forecasts year-over-year revenue growth between 5% to 10% and non-GAAP operating profit growth between 10% to 18%. The company expects fiscal 2026 GAAP diluted net EPS between $0.57 to $0.77 and non-GAAP diluted net EPS of $2.20 to $2.40. Free cash flow for fiscal 2026 is projected at $1.5 billion to $2.0 billion.

HPE outlined strategic priorities including leveraging its Juniper Networks acquisition to strengthen networking capabilities, capturing growth in AI infrastructure markets focused on enterprise and sovereign customers, and expanding GreenLake software and services offerings. The company expects its Catalyst cost-reduction initiative to deliver at least $350 million in gross savings by fiscal 2028, while Juniper-related synergies are anticipated to generate at least $600 million in cost savings during the same period.

CEO Antonio Neri stated the company is "poised to gain share in the markets that matter most to our customers" through investments in networking, cloud, and AI. The financial outlook and capital return measures reflect HPE's confidence in its strategic direction following the completion of its Juniper Networks acquisition.

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