So, Hewlett Packard Enterprise (HPE) had a pretty good quarter. The kind of quarter where you beat profit expectations, raise your guidance for the year, and watch your stock climb in after-hours trading. That's exactly what happened Monday.

Here’s the breakdown: the company reported first-quarter earnings of 65 cents per share. That comfortably beat what Wall Street was looking for, which was 55 cents. Revenue came in at $9.301 billion. That was just a hair below the estimate of $9.337 billion, but it's a big jump from the $7.85 billion it reported in the same period last year.

The real story, though, is in the segments. It’s a tale of two very different businesses.

First, the star of the show: Networking. Revenue there was $2.7 billion. That’s not just up—it’s up 151.5% from the prior year. That’s the kind of growth that gets everyone’s attention. The operating profit margin for networking was 23.7%, though that’s down from 29.7% a year ago. When you're growing that fast, sometimes you trade a bit of margin for all that new business.

Then there’s the Cloud and AI segment. This is the big, strategic focus for a lot of tech companies. For HPE, revenue there was $6.3 billion, which was actually down 2.7% year-over-year. The silver lining? The operating profit margin improved to 10.2% from 8.4%. So, maybe a bit less revenue, but they're making more money on what they do sell.

The "Corporate Investments and Other" bucket is small, at $261 million in revenue (down 2.2%), and it operates at a loss, with a -4.6% operating profit margin.

Put it all together, and CEO Antonio Neri was feeling good. "HPE delivered a strong first quarter, outperforming in our networking business and posting one of our most profitable quarters on record," he said.

And when you have a quarter like that, you get to raise your guidance. The company did just that for its full fiscal year 2026. It now expects adjusted earnings per share to be between $2.30 and $2.50. The midpoint of that range is above the $2.35 that analysts were expecting. The company affirmed its revenue outlook, which is projected to be between $40.13 billion and $41.84 billion, roughly in line with the $40.83 billion estimate.

Investors liked what they heard. In Monday's extended trading session, HPE stock gained 2.61% to $22.38. Not a bad day at the office.