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Posted by Defense World Staff on Jul 24th, 2026

Bank of Nova Scotia decreased its position in Barrick Mining Corporation (NYSE:B – Free Report) (TSE:ABX) by 10.4% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 4,145,547 shares of the gold and copper producer’s stock after selling 480,790 shares during the quarter. Bank of Nova Scotia owned about 0.25% of Barrick Mining worth $169,360,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently added to or reduced their stakes in B. Bogart Wealth LLC increased its stake in shares of Barrick Mining by 3.5% during the 4th quarter. Bogart Wealth LLC now owns 6,442 shares of the gold and copper producer’s stock worth $281,000 after purchasing an additional 218 shares during the last quarter. Parvin Asset Management LLC raised its holdings in shares of Barrick Mining by 0.7% during the 4th quarter. Parvin Asset Management LLC now owns 33,385 shares of the gold and copper producer’s stock valued at $1,454,000 after purchasing an additional 225 shares in the last quarter. Silver Oak Securities Incorporated lifted its stake in shares of Barrick Mining by 2.9% in the 1st quarter. Silver Oak Securities Incorporated now owns 8,810 shares of the gold and copper producer’s stock valued at $359,000 after purchasing an additional 246 shares during the last quarter. Mmbg Investment Advisors CO. increased its position in Barrick Mining by 0.6% during the fourth quarter. Mmbg Investment Advisors CO. now owns 43,454 shares of the gold and copper producer’s stock worth $1,892,000 after buying an additional 254 shares during the last quarter. Finally, S.A. Mason LLC raised its holdings in Barrick Mining by 1.3% during the fourth quarter. S.A. Mason LLC now owns 23,114 shares of the gold and copper producer’s stock valued at $1,007,000 after buying an additional 300 shares in the last quarter. Institutional investors and hedge funds own 90.82% of the company’s stock.

Analysts Set New Price Targets A number of brokerages have weighed in on B. Royal Bank Of Canada reduced their price target on Barrick Mining from $51.00 to $49.00 and set an “outperform” rating for the company in a research report on Thursday, July 9th. Scotiabank lowered their price objective on Barrick Mining from $63.00 to $57.00 and set a “sector outperform” rating on the stock in a report on Tuesday, July 14th. Bank of America cut their price objective on Barrick Mining from $58.00 to $56.00 and set a “buy” rating on the stock in a research note on Thursday, July 9th. ATB Cormark Capital Markets lowered Barrick Mining from a “moderate buy” rating to a “hold” rating in a report on Tuesday, April 7th. Finally, Canadian Imperial Bank of Commerce decreased their target price on Barrick Mining to $63.00 and set an “outperformer” rating for the company in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $52.46.

Get Our Latest Stock Report on Barrick Mining

Trending Headlines about Barrick Mining Here are the key news stories impacting Barrick Mining this week:

Positive Sentiment: Gold’s move above $4,000 an ounce and renewed central-bank buying are supporting the broader gold-mining trade, which could lift sentiment toward Barrick Mining and other producers. Gold price above USD 4,000 and central bank rally: Barrick Mining, Lahontan Gold, Newmont—time to buy now? Positive Sentiment: Barrick is being highlighted by market commentators as a potential beneficiary of the strong gold backdrop, reinforcing the view that the company’s core business is well positioned if bullion stays high. Man Who Called 2008 Crash Says Now Is the Time to “Invest in Early-Stage Gold Stocks” Positive Sentiment: Barrick’s purchase of roughly a 9.9% stake in Kingfisher Metals gives it additional exposure to the HWY 37 project and adds exploration upside through technical collaboration, which investors may view as a growth-oriented move. Barrick Mining Buys 10% Stake in Kingfisher Metals for C$20.9 Million Positive Sentiment: Barrick also announced the start of an exploration program with Midland on the Lewis project, signaling continued investment in future resource growth. Midland, in Partnership with Barrick, Commences an Exploration Program for Gold on the Lewis Project Neutral Sentiment: News that Barrick supports local content rules is more likely to be viewed as a policy and operating update than a direct earnings catalyst. Barrick supports local content rules Neutral Sentiment: JPMorgan lowered its price target on Barrick to $50, which adds a note of caution but does not change the broader positive gold-sector backdrop. JPMorgan Chase & Co. Lowers Barrick Mining (NYSE:B) Price Target to $50.00 Barrick Mining Stock Performance Shares of B opened at $37.15 on Friday. The company has a market capitalization of $61.79 billion, a PE ratio of 10.26, a price-to-earnings-growth ratio of 0.79 and a beta of 0.48. The company has a debt-to-equity ratio of 0.13, a current ratio of 3.06 and a quick ratio of 2.44. Barrick Mining Corporation has a one year low of $20.94 and a one year high of $54.69. The company’s fifty day moving average price is $38.93 and its 200 day moving average price is $42.80.

Barrick Mining (NYSE:B – Get Free Report) (TSE:ABX) last released its quarterly earnings results on Monday, May 11th. The gold and copper producer reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.80 by $0.18. The company had revenue of $4.11 billion during the quarter, compared to analysts’ expectations of $4.75 billion. Barrick Mining had a net margin of 32.14% and a return on equity of 14.81%. The firm’s revenue for the quarter was up 66.7% compared to the same quarter last year. As a group, analysts expect that Barrick Mining Corporation will post 3.61 earnings per share for the current year.

Barrick Mining Cuts Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Friday, May 29th were given a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, May 29th. Barrick Mining’s payout ratio is currently 19.34%.

Barrick Mining Company Profile (Free Report)

Barrick Gold Corporation, commonly known as Barrick, is a Toronto‑headquartered mining company focused on the exploration, development, production and sale of gold and copper. Listed on major exchanges (including the New York Stock Exchange under the symbol B), Barrick operates as an integrated minerals producer, running large‑scale mining complexes, processing facilities and related support services for extraction and metallurgical treatment of ore.

The company’s activities span the full mining value chain: greenfield exploration, feasibility and permitting, mine construction, ongoing operations, and closure and reclamation.

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Key Takeaways Barrick Mining will invest about $14.83M in Kingfisher through a private placement for a 9.9% stake. B gains exposure to the HWY 37 Project, with most proceeds funding exploration and development. Barrick Mining and Kingfisher will form a technical committee and collaborate on future drilling plans. Barrick Mining Corporation (B - Free Report) announced that it has agreed to make an investment in Kingfisher Metals Corp. through a non-brokered private placement valued at approximately C$20.9 million (approximately $14.83 million). Under the agreement, Barrick will subscribe for 15.47 million units of Kingfisher at C$1.35 per unit (approximately 96 cents per unit), with each unit comprising one common share and one-half of a common share purchase warrant. 

Upon completion of the transaction, Barrick will own about 9.9% of Kingfisher's outstanding shares on a non-diluted basis and roughly 14.1% on a partially diluted basis, assuming full exercise of the warrants. The transaction is expected to close on or before July 27, 2026, subject to customary closing conditions, including regulatory approvals.  

The investment strengthens Barrick's exposure to the HWY 37 Project in British Columbia's prolific Golden Triangle, a district known for significant copper-gold discoveries. Kingfisher plans to allocate at least 80% of the proceeds toward exploration and development at the HWY 37 Project, while the remaining funds will be used for general corporate purposes and working capital. 

Per the agreement, Barrick and Kingfisher will establish a technical committee to collaborate on the HWY 37 Project. Barrick may also provide technical expertise for Kingfisher's 2027 and 2028 drilling campaigns upon request. In addition, Barrick will receive anti-dilution and information rights as long as it maintains at least a 5% ownership stake. Kingfisher will also face restrictions on transferring interests in the HWY 37 Project for two years without Barrick's consent, subject to certain exceptions.  

The agreement includes a two-year standstill provision, generally limiting Barrick's ownership to 15%, with the potential to increase to 19.9% under specified circumstances. Barrick will also be subject to an additional 18-month lock-up period, restricting the sale of its shares following the transaction. 

Shares of B are up 68.3% in the past year compared with the industry’s 30.2% growth. 

Image Source: Zacks Investment Research

B’s Zacks Rank & Key PicksB carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Carpenter Technology Corporation (CRS - Free Report)  and Ternium S.A. (TX - Free Report) . CSW, IDR and TX carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.

The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $10.58 per share, implying a 41.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9%.

The Zacks Consensus Estimate for TX’s current-year earnings is pegged at $5.71 per share, indicating a 163.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, with the average surprise being 3.5%. 

SGDM outperformed over the past year but carries deeper drawdowns. GLD offers lower volatility and greater liquidity with $129.2 billion in assets.

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SummaryBarrick Mining Corporation remains a Buy, driven by strong financials, a robust balance sheet, and significant re-rating potential from internal initiatives like the North American IPO and external tailwinds.B delivered a standout Q1 with a 195% YoY increase in free cash flow, a $3 billion buyback, and a new dividend policy targeting a 50% payout of attributable FCF.The upcoming North American IPO and potential African asset divestiture could unlock further value, positioning B for a higher-quality, lower-risk portfolio and improved market valuation.Despite near-term gold price and margin pressures, B's long-term catalysts, disciplined capital allocation, and operational improvements support a favorable risk/reward profile. Nadzeya Haroshka/iStock via Getty Images

Introduction The first time I covered Barrick Mining Corporation (B), I highlighted the company's attractive valuation and potential for significant moves following the CEO change that can support a long-term re-rating.

Following a stellar start to the year and even

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of B, AGI, AEM, NEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

GDX delivered $2,339 on a $1,000 investment versus SLV's $2,196, despite facing lower volatility than its silver counterpart.

Results Consistent with Preliminary Ranges 

$16.9 million of Net Income and $76.5 million of Adjusted EBITDA Reported for Fiscal 2026

BNC First Day Program Revenue Increases 28% to $760.1 million

Total Net Debt Decreases 33% Year-Over-Year to $62.6 million

Company Reiterates Fiscal 2027 Outlook of $85 million to $92 million of Adjusted EBITDA

FLORHAM PARK, N.J., July 09, 2026 (GLOBE NEWSWIRE) -- Barnes & Noble Education, Inc. (NYSE: BNED), (“Barnes & Noble Education,” “BNED,” “the Company,” “we,” “us,” “our”), a leading solutions provider for the education industry, today announced its financial results for the fiscal year ended May 2, 2026.

FY2026 Financial Results

Full-year revenue in fiscal 2026 was $1.715 billion, an increase of $104.6 million, or 6.5%, over the prior year. Fiscal 2026 comprised 52 weeks compared with 53 weeks in fiscal 2025, which modestly understates growth on a comparable-period basis. Comparable store sales increased by $71.3 million, or 4.4%, year-over-year. In addition, total gross margin dollars increased by $28.4 million, or 8.4%, year-over year, with the Company’s gross margin percentage increasing to 21.4% from 21.0% in the prior fiscal year.

Revenues from BNC First Day® programs increased by $166.3 million, or 28.0%, year-over-year, to $760.1 million, as First Day® Complete continues to see strong growth in institutional adoption. A total of 232 campus stores utilized First Day Complete in the spring 2026 academic term with a total enrollment of approximately 1,249,3011 undergraduate and graduate students, up 31% from 957,000 in the prior year.

Full-year fiscal 2026 net income was $16.9 million compared to a net loss of $(65.8) million in the prior year. The fiscal 2025 net loss includes a $55.2 million non-cash charge related to the extinguishment of debt.

Adjusted EBITDA for fiscal 2026 was $76.5 million, an increase of $17.1 million, from $59.4 million in the prior fiscal year, representing an increase of 28.8%.

Total debt at year-end was $71.0 million compared to $103.1 million at the end of fiscal 2025. After subtracting $8.4 million of cash on hand, total net debt was $62.6 million, representing a $31.4 million, or approximately 33%, year-over-year decrease. The Company’s net working capital position remained strong with $200.9 million of positive working capital at year-end, representing a 7.9% increase year-over-year.

The Company also recently introduced an inaugural quarterly dividend of $0.08 per share which will be payable on July 30, 2026 to shareholders of record on July 16, 2026.

___________________
1 Total undergraduate and graduate student enrollment as reported by National Center for Education Statistics (NCES) as of January 2, 2026.

The tables below reflect the reconciliation of Adjusted EBITDA to the most comparable GAAP financial metric, Net income for fiscal 2026 and the related prior period:

 52 weeks ended53 weeks ended($ in thousands)May 2, 2026May 3, 2025Net income$16,872 $(65,825)Add:  Depreciation and amortization expense 32,754  37,939 Impairment expense 12,584  1,713 Interest expense, net 15,866  22,260 Income tax expense 3,800  4,256 Loss on extinguishment of debt --  55,233 Other (income) expense (11,577) (1,572)Stock-based compensation expense (non-cash) 6,214  5,386 Adjusted EBITDA (Non-GAAP)$76,513 $59,390         Management Commentary

“Fiscal 2026 marked another year of meaningful progress for Barnes & Noble Education,” said Jonathan Shar, Chief Executive Officer. “We achieved solid revenue growth, significantly increased Adjusted EBITDA, returned to net income profitability, and realized meaningful debt reduction. These results were driven by continued growth in First Day®, improved comparable store performance, disciplined expense management, and strong sales contributions from new store partnerships secured through recent business wins.”

Mr. Shar continued, “As we enter fiscal 2027, we believe we are well positioned to build on this momentum. Demand for our BNC First Day® offerings continues to accelerate, with fall 2026 First Day Complete enrollment expected to reach approximately 1.4 million undergraduate and graduate students, up approximately 23% from fall 2025. We are excited about the expansion of new offerings, including Room Service, and are focused on creating long-term value for our institutional partners, students, employees, and shareholders. Our recent initiation of a quarterly dividend reflects our strong confidence in the business.”

Outlook

Barnes & Noble Education is reiterating the fiscal 2027 outlook provided on June 24, 2026. The Company expects continued growth in revenues and is focused on driving operating leverage with disciplined expense management. The Company is targeting Adjusted EBITDA in the range of $85 million to $92 million and anticipates further significant improvements in net income profitability. The Company also sees opportunities to drive better capital efficiency, which should contribute to additional reductions in debt and interest expense. The Company anticipates approximately $20 million in capital expenditures and should be a normal cash taxpayer in fiscal 2027.

Earnings Calls

Beginning with the second quarter of fiscal 2027, the Company will host earnings conference calls following its second quarter and full-year earnings releases. Given the highly seasonal nature of the Company's business, these periods provide the most meaningful opportunity to discuss operating performance, financial results and business trends. Further details, including the exact date and time, will be announced in advance of each call. In the meantime, the Company will continue to report quarterly financial results in accordance with applicable SEC reporting requirements and be available for investor questions following the release of quarterly results.

Use of Non-GAAP Financial Information—Adjusted EBITDA

To supplement the Company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses the financial measure of Adjusted EBITDA, which is a non-GAAP financial measure under Securities and Exchange Commission (the “SEC”) regulations. We define Adjusted EBITDA as net income (loss) plus (1) depreciation and amortization; (2) interest expense, net (3) income taxes, and (4) as adjusted for non-cash or non-recurring items, and other adjustments permitted under our credit agreement.

Adjusted EBITDA has been reconciled to the most comparable financial measure presented in accordance with GAAP, consolidated net income (loss). All of the items included in the reconciliation are either (i) non-cash items or (ii) items that management does not consider in assessing our on-going operating performance.

Adjusted EBITDA is not intended as a substitute for and should not be considered superior to measures of financial performance prepared in accordance with GAAP. In addition, the Company’s use of Adjusted EBITDA may be different from similarly named measures used by other companies, limiting its usefulness for comparison purposes.

We review Adjusted EBITDA as an internal measure to evaluate our performance at a consolidated level to manage our operations. We believe that this measure is a useful performance measure which is used by us to facilitate a comparison of our on-going operating performance on a consistent basis from period-to-period. We believe that Adjusted EBITDA provides for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone, as it excludes certain items that management believes do not reflect the ordinary performance of our operations in a particular period. Our Board of Directors and management also use Adjusted EBITDA at a consolidated level as one of the primary methods for planning and forecasting expected performance, for evaluating on a quarterly and annual basis actual results against such expectations, and as a measure for performance incentive plans. We believe that the inclusion of Adjusted EBITDA results provides investors useful and important information regarding our operating results, in a manner that is consistent with management’s evaluation of business performance.

The Company urges investors to carefully review the GAAP financial information included as part of the Company’s Form 10-K for the fiscal year-ended May 2, 2026. We do not provide a reconciliation of forward-looking non-GAAP financial metrics, because reconciling information is not available without an unreasonable effort, such as attempting to make assumptions that cannot reasonably be made on a forward-looking basis to determine the corresponding GAAP metric.

ABOUT BARNES & NOBLE EDUCATION, INC.

Barnes & Noble Education, Inc. (NYSE: BNED) is a leading solutions provider for the education industry, driving affordability, access and achievement at hundreds of academic institutions nationwide and ensuring millions of students are equipped for success in the classroom and beyond. Through its family of brands, BNED offers campus retail services and academic solutions, wholesale capabilities and more. BNED is a company serving all who work to elevate their lives through education, supporting students, faculty and institutions as they make tomorrow a better and smarter world. For more information, visit www.bned.com.

Media & Investor Contact:
Rob Fink and Greg McKinley
FNK IR
[email protected]
646-809-4048

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and information relating to us and our business that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this communication, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “may,” “should,” “will,” “forecasts,” “projections,” “continue to,” “committed to,” and similar expressions, as they relate to us or our management, identify forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements, and such statements include but are not limited to those related to continued acceleration in demand for our BNC First Day® offerings, expected enrollment in our First Day Complete program in Fall 2026, continued expansion of our new offerings, future opportunities to accelerate profitable growth, generate strong cash flow and creation of long-term value, our positioning, strategic and operational objectives, broader market trends, expected trends in financial results, including those related to seasonality, as well as forward-looking continued top line and net income growth, , continued expense discipline and improved capital efficiency, Adjusted EBITDA, debt levels, interest costs, capital expenditures and long-term projected growth in Adjusted EBITDA. We caution you not to place undue reliance on these forward-looking statements. Such statements reflect our current views with respect to future events, the outcome of which is subject to certain risks, including, but not limited to: the amount of our indebtedness and ability to comply with covenants contained in our credit agreement; our ability to maintain adequate liquidity levels to support ongoing inventory purchases and related vendor payments in a timely manner; slower than anticipated pace of adoption of our BNC First Day® equitable and inclusive access course material models; our dependency on strategic service provider relationships and the potential for adverse operational and financial changes to these strategic service provider relationships; non-renewal of our managed bookstore, physical and/or online store contracts; general competitive conditions; a decline in college enrollment or decreased funding available for students; technological changes, including the adoption of artificial intelligence technologies for educational content; disruptions to our information technology systems, infrastructure, data, supplier systems, and customer ordering and payment systems due to computer malware, viruses, hacking and phishing attacks; disruption of or interference with third party service providers and our own proprietary technology; and changes in applicable domestic and international laws, rules or regulations or changes in enforcement practices, including, without limitation, U.S. tax reform, changes in tax rates, tariffs, import and export control laws and regulations, changes to consumer data privacy rights legislation, as well as related guidance. Moreover, we operate in a very competitive and rapidly changing environment and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In addition, the declaration of any future dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw any quarterly dividend in future periods as it reviews our capital allocation strategy from time-to-time and ensures compliance with any applicable restrictions, including those set forth in our credit agreement with our lenders.

For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s Annual Report on Form 10-K for the year ended May 2, 2026. Any forward-looking statements made by us in this press release speak only as of the date of this press release, and we do not intend to update these forward-looking statements after the date of this press release, except as required by law.

BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)     52 weeks ended 53 weeks ended May 2, 2026 May 3, 2025Sales:   Product sales and other$1,564,365  $1,463,245 Rental income 150,405   146,925 Total sales 1,714,770   1,610,170 Cost of sales (exclusive of depreciation and amortization expense):   Product and other cost of sales 1,269,051   1,193,015 Rental cost of sales 79,551   79,351 Total cost of sales 1,348,602   1,272,366 Gross profit 366,168   337,804 Selling and administrative expenses 288,573   283,800 Depreciation and amortization expense 32,754   37,939 Impairment loss 12,584   1,713 Other (income) expense, net (4,281)  (1,572)Operating income (loss) 36,538   15,924 Loss on extinguishment of debt —   55,233 Interest expense, net 15,866   22,260 Income (loss) before income taxes 20,672   (61,569)Income tax expense 3,800   4,256 Net income (loss)$16,872  $(65,825)    Earning per share - Basic and Diluted   Net income (loss) attributable to BNED shareholders - basic$0.49  $(2.50)Net income (loss) attributable to BNED shareholders - diluted$0.49  $(2.50)    Weighted average shares of common stock outstanding - Basic 34,330,274   26,298,984 Weighted average shares of common stock outstanding - Diluted 34,614,155   26,298,984   52 weeks ended 53 weeks endedDollars in thousandsMay 2, 2026 May 3, 2025    Sales:   Product sales and other91.2% 90.9%Rental income8.8% 9.1%Total sales100.0% 100.0%Cost of sales (exclusive of depreciation and amortization expense):   Product and other cost of sales81.1% 81.5%Rental cost of sales52.9% 54.0%Total cost of sales78.6% 79.0%Gross profit21.4% 21.0%Selling and administrative expenses16.8% 17.6%Depreciation and amortization expense1.9% 2.4%Impairment loss0.7% 0.1%Other (income) expense, net(0.2)% (0.1)% Operating income (loss)2.1% 1.0%Loss on extinguishment of debt—% 3.4%Interest expense, net0.9% 1.4%Income (loss) before income taxes1.2% (3.8)%Income tax expense0.2% 0.3%Net income (loss)1.0% (4.1)%     (a) Represents the percentage these costs bear to the related sales, instead of total sales. BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In thousands, except share and per share data)  May 2, 2026 May 3, 2025ASSETS   Current assets:   Cash and cash equivalents$8,418  $9,058 Accounts receivable, net 116,526   98,077 Merchandise inventories, net 298,347   299,562 Textbook rental inventories 27,035   26,439 Prepaid expenses and other current assets 34,137   32,249 Total current assets 484,463   465,385 Property and equipment, net 34,123   40,229 Operating lease right-of-use assets 145,594   183,695 Intangible assets, net 58,092   78,241 Other noncurrent assets 17,625   22,735 Total assets$739,897  $790,285 LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities:   Accounts payable$135,564  $148,848 Accrued liabilities 80,990   65,853 Current operating lease liabilities 67,050   64,524 Total current liabilities 283,604   279,225 Long-term deferred taxes, net —   1,135 Long-term operating lease liabilities 85,455   115,495 Other long-term liabilities 5,399   19,142 Long-term borrowings 71,000   103,100 Total liabilities 445,458   518,097 Commitments and contingencies   Stockholders' equity:   Preferred stock, $0.01 par value; authorized, 5,000,000 shares; issued and outstanding, none —   — Common stock, $0.01 par value; authorized, 200,000,000 shares; issued, 34,456,977 and 34,081,114 shares, respectively; outstanding, 34,429,710 and 34,053,847 shares, respectively 345   341 Additional paid-in-capital 1,012,349   1,006,974 Accumulated deficit (695,699)  (712,571)Treasury stock, at cost (22,556)  (22,556)Total stockholders' equity 294,439   272,188 Total liabilities and stockholders' equity$739,897  $790,285  BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flow (Unaudited)
(In thousands, except per share data)     52 weeks ended 53 weeks ended May 2, 2026 May 3, 2025Cash flows from operating activities:   Net income (loss)$16,872  $(65,825)Adjustments to reconcile net income (loss) to net cash flows from operating activities   Depreciation and amortization expense 32,754   37,939 Impairment loss (non cash) 12,584   1,713 Loss on debt extinguishment —   55,233 Amortization of deferred financing costs 3,662   5,164 Deferred taxes (1,135)  (829)Stock-based compensation expense 6,214   5,386 Changes in operating lease right-of-use assets and liabilities 6,795   (4,218)Changes in other long-term assets and liabilities and other, net (10,906)  7,072 Changes in other operating assets and liabilities, net:   Receivables, net (18,449)  761 Merchandise inventories 1,215   44,475 Textbook rental inventories (596)  1,876 Prepaid expenses and other current assets (1,799)  7,096 Accounts payable and accrued liabilities 2,846   (181,256)Changes in other operating assets and liabilities, net (16,783)  (127,048)Net cash flows provided by (used in) operating activities$50,057  $(85,413)Cash flows from investing activities:   Purchases of property and equipment$(16,196) $(12,894)Proceeds from the sale of fixed assets —   793 Net cash flows provided by (used in) investing activities$(16,196) $(12,101)Cash flows from financing activities:   Proceeds from borrowings$812,900  $887,055 Repayments of borrowings (845,000)  (948,920)Payment of deferred financing costs (1,900)  (5,569)Proceeds from Private Equity Investment —   50,000 Proceeds from Rights Offering —   45,000 Payment of equity issuance costs —   (9,914)Principal stockholder expense reimbursement —   1,940 Payment on principal portion of finance lease (365)  (370)Shares sold under at-the-market offering, net of commissions —   78,450 Purchase of treasury shares —   (5)Net cash flows (used in) provided by financing activities$(34,365) $97,667 Net (decrease) increase in cash, cash equivalents, and restricted cash$(504) $153 Cash, cash equivalents, and restricted cash at beginning of year 28,723   28,570 Cash, cash equivalents, and restricted cash at end of year$28,219  $28,723     Supplemental cash flow information:   Cash paid during the period for:   Interest paid$12,531  $17,912 Income taxes paid (net of refunds)$7,917  $2,130  BARNES & NOBLE EDUCATION, INC. AND SUBSIDIARIES
Non-GAAP Information
(In thousands) (Unaudited)     52 weeks ended 53 weeks endedDollars in thousandsMay 2, 2026 May 3, 2025Net Income (loss)$16,872  $(65,825)Reconciling items 5,390   4,108 Adjusted Net income (loss)$22,262  $(61,717)    Reconciling items   Impairment loss$12,584  $1,713 Stock-based compensation expense 6,214   5,386 Other (income) expense, net   Participation interest purchase agreement settlement (12,625)  — Severance and cost reduction initiatives —   4,058 Legal settlement and related legal fees —   1,059 Settlement of obligations and actuarial gain related to frozen retirement plan —   (8,780)Other professional services fees 1,048   2,091 Estimated tax effect on reconciling items above(a) (1,831)  (1,419)Reconciling items$5,390  $4,108  Adjusted EBITDA52 weeks ended 53 weeks endedDollars in thousandsMay 2, 2026 May 3, 2025Net income (loss)$16,872  $(65,825)Add:   Depreciation and amortization expense 32,754   37,939 Impairment expense 12,584   1,713 Interest expense, net 15,866   22,260 Income tax expense 3,800   4,256 Loss on extinguishment of debt —   55,233 Other (income) expense, net(b) (11,577)  (1,572)Stock-based compensation expense 6,214   5,386 Adjusted EBITDA$76,513  $59,390  (a) The tax effect on reconciling items was calculated for Fiscal 2026 using the statutory rate of 25.36%. The tax effect on reconciling items was calculated for Fiscal 2025 using the statutory rate of 25.67%.(b)  Other (income) expense is exclusive of Investigation Costs of $7.3 million incurred during the 52 weeks ended May 2, 2026. Adjusted Free Cash Flow

 52 weeks ended 53 weeks endedDollars in thousandsMay 2, 2026 May 3, 2025Net cash flows provided by (used in) operating activities(a)$50,057 $(85,413)Less:   Capital expenditures(b) 16,196  12,894 Cash interest 12,531  17,912 Cash taxes (refund) paid, net 7,917  2,130 Adjusted Free Cash Flow$13,413 $(118,349) (a) Given the growth of our BNC First Day® programs, the timing of cash collection from our school partners may shift to periods subsequent to when the revenue is recognized. When a school adopts our BNC First Day® affordable access course material program offerings, cash collection from the school generally occurs after the institution's drop/add dates, which is later in the working capital cycle, particularly in our third quarter given the timing of the Spring Term and our quarterly reporting period, as compared to direct-to-student point-of-sale transactions where cash is generally collected during the point-of-sale transaction or within a few days from the credit card processor. As a higher percentage of our sales shift to BNC First Day® affordable access course material program offerings, we are focused on efforts to better align the timing of our cash outflows to course material vendors and cash inflows from collections from schools.(b) Purchases of property and equipment are also referred to as capital expenditures. Our investing activities consist principally of capital expenditures for contractual capital investments associated with renewing existing contracts, new store construction, and enhancements to internal systems and our website. The following table provides the components of total purchases of property and equipment. Capital Expenditures

 52 weeks ended 53 weeks endedDollars in thousandsMay 2, 2026 May 3, 2025Physical store capital expenditures$10,527 $8,866Product and system development 4,597  3,063Other 1,072  965Total Capital Expenditures$16,196 $12,894       Use of Non-GAAP Financial Information - Adjusted Net Income (Loss), Adjusted EBITDA and Adjusted Free Cash Flow

To supplement the Company’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses the financial measures of Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted Free Cash Flow, which are non-GAAP financial measures under Securities and Exchange Commission (the "SEC") regulations. We define Adjusted Net Income (Loss) as net income (loss) adjusted for certain reconciling items that are subtracted from or added to net income (loss). We define Adjusted EBITDA as net income (loss) plus (1) depreciation and amortization; (2) interest expense, net and (3) income taxes, (4) as adjusted for other non-cash or non-recurring items, and adjustments defined in the Company’s credit agreement. We define Adjusted Free Cash Flow as Cash Flows from Operating Activities less capital expenditures, cash interest and cash taxes.

These non-GAAP measures have been reconciled to the most comparable financial measures presented in accordance with GAAP as follows: the reconciliation of Adjusted Net Income (Loss) to net income (loss); the reconciliation of consolidated Adjusted EBITDA to consolidated net income (loss); and the reconciliation of Adjusted Free Cash Flow to Cash Flows from Operating Activities. All of the items included in the reconciliations are either (i) non-cash items or (ii) items that management does not consider in assessing our on-going operating performance.

These non-GAAP financial measures are not intended as substitutes for and should not be considered superior to measures of financial performance prepared in accordance with GAAP. In addition, the Company's use of these non-GAAP financial measures may be different from similarly named measures used by other companies, limiting their usefulness for comparison purposes.

We review these non-GAAP financial measures as internal measures to evaluate our performance at a consolidated level to manage our operations. We believe that these measures are useful performance measures which are used by us to facilitate a comparison of our on-going operating performance on a consistent basis from period-to-period. We believe that these non-GAAP financial measures provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone, as they exclude certain items that management believes do not reflect the ordinary performance of our operations in a particular period. Our Board of Directors and management also use Adjusted EBITDA at a consolidated level as one of the primary methods for planning and forecasting expected performance, for evaluating on a quarterly and annual basis actual results against such expectations, and as a measure for performance incentive plans. We believe that the inclusion of Adjusted Net Income (Loss) and Adjusted EBITDA results provides investors useful and important information regarding our operating results, in a manner that is consistent with management’s evaluation of business performance. We believe that Adjusted Free Cash Flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements and assists investors in their understanding of our operating profitability and liquidity as we manage the business to maximize margin and cash flow.

The Company urges investors to carefully review the GAAP financial information included as part of the Company’s Form 10-K dated May 3, 2025, filed with the SEC on December 23, 2025. We do not provide a reconciliation of forward-looking non-GAAP financial metrics, because reconciling information is not available without an unreasonable effort, such as attempting to make assumptions that cannot reasonably be made on a forward-looking basis to determine the corresponding GAAP metric.

Barrick Mining (NYSE:B) trades at $36.45, while Wall Street’s average price target is $56.08. That leaves an implied upside of well over 50%, a gap large enough that Barrick qualifies as one of the more disconnected large-cap names in its sector.

The company is one of the world’s largest gold and copper producers, recently rebranded from Barrick Gold, with its ticker changed from GOLD to B on May 9. Wall Street entered the year heavily bullish: two consecutive blowout quarters, a $3.0 billion share buyback authorized in May 2026, a 40% dividend hike, and a targeted spinout of North American gold assets.

Yet the stock is heading in the wrong direction while gold prints record after record. Why the divergence?

Gold Rips, the Miner Slips Barrick has fallen 17.6% year to date and is down 13.9% over the past month alone. From its January 2026 peak of $49.64, the stock has lost roughly a quarter of its value even as the SPDR Gold Shares ETF (NYSEArca:GLD) has held far better, off just 6.5% year to date and still up 20.5% over the past year.

The pressure is company-specific. A leadership transition is central to the story, with Mark Hill running the company on an interim basis before being named CEO. Layer on escalating security issues that slowed development at the Reko Diq project in Pakistan, a $200 million payment to the government of Mali in November 2025 tied to the Loulo-Gounkoto dispute, and reported early-stage discussions to divest the African business, potentially via a London listing or an all-share transaction with Endeavour Mining. Add strategic noise from the rebrand, the targeted North American spinout, and higher royalty costs tied to elevated bullion prices, and it becomes clearer why the market has ignored the gold rally. Technicals reinforce the mood, with TradingKey’s mid-June signal flagging a Sell reading with resistance at $46.12 and support at $39.17.

Why Wall Street Has Not Blinked Analysts are staying put because fundamentals keep improving. Q1 2026 revenue totaled $5.2 billion, beating consensus by 15% and rising 67% year over year, with adjusted EPS of $0.98 versus a $0.81 estimate. Free cash flow hit a record $1.2 billion, up 195%, and the realized gold price reached $4,823 per oz.

Analyst sentiment on the stock skews decisively bullish. Recent activity has consisted of reiterations rather than cuts, suggesting analysts view the pullback as noise around an intact thesis.

The catalyst list is specific. CEO Mark Hill has framed the year around executing the “North American Barrick IPO to unlock further shareholder value,” with completion targeted by late 2026 subject to market and regulatory conditions. Beyond the spinout, analysts point to the Fourmile discovery with 2.6 million ounces indicated and 13 million ounces inferred, the Lumwana copper expansion tracking ahead of schedule, and Goldrush ramp-up.

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Keep in mind that analyst targets matter less as promises than as directional signals.

Cheap on Multiples, Heavy on Overhangs Barrick trades at a trailing P/E of 10 and a forward P/E of 9, with TTM revenue of $19.04 billion and diluted EPS of $3.65. The market cap is roughly $61.2 billion, and the balance sheet holds $6.706 billion in cash.

The stock is up 74.8% over the past year, so this is a pullback within a much bigger uptrend. The 52-week range spans $20.52 to $54.69. Against the current $36.45 share price, the $55.83 consensus target implies a return well north of 50%, dwarfing the mid-teens returns the broad U.S. market has produced.

The Takeaway: An Opportunity for Patient Hands The bull case for Barrick strengthens if the North American IPO closes on schedule, the Reko Diq security situation stabilizes, and gold holds above $4,000 per oz into 2027. That combination would let free cash flow compound, the $3.0 billion buyback shrink the float meaningfully, and and close some of the gap to $55.83.

The bear case holds if the market is right to price in execution risk. A delayed or discounted spinout, further security incidents in Pakistan, another operational stumble in Mali, or the new CEO making moves that unsettle strategy could keep the multiple compressed even with strong bullion prices. Rising all-in sustaining costs are a real drag, with 2026 guidance of $1,760 to $1,950 per oz.

Overall, the indicators look encouraging. The valuation, cash generation, and analyst conviction are hard to argue with. This suits investors comfortable holding through headline risk and willing to wait for the gap to consensus to close.

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Contact [email protected] for any questions or corrections.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Barrick Mining (B - Free Report) Barrick Mining Corporation, based in Toronto, Canada, is among the largest gold mining companies in the world. The company has many advanced exploration and development projects located across five continents. It has one of the largest portfolios of world-class gold and copper assets in the industry, spanning 18 countries.

B is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.72; value investors should take notice.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.22 to $3.78 per share. B also boasts an average earnings surprise of +14.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, B should be on investors' short list.

Apogee Enterprises, Inc. (Nasdaq: APOG), a leading provider of architectural building products and services, as well as high-performance coated materials used

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Barrick Mining (B - Free Report) Barrick Mining Corporation, based in Toronto, Canada, is among the largest gold mining companies in the world. The company has many advanced exploration and development projects located across five continents. It has one of the largest portfolios of world-class gold and copper assets in the industry, spanning 18 countries.

B is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. B has a Growth Style Score of A, forecasting year-over-year earnings growth of 56.2% for the current fiscal year.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.23 to $3.78 per share. B boasts an average earnings surprise of +14.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, B should be on investors' short list.

Barrick Mining is initiated at a buy rating following a significant pullback, despite a ~100% rally over the past year. The company crushed Q1 gold production guidance and posted 67% YoY revenue growth, with margin and EPS sharply improved by strong realized gold prices. Despite recent operational disruptions and regional uncertainty, Barrick's fundamentals remain robust, with IPOs planned for its North American and African businesses.

In the news release, InMed Pharmaceuticals & Mentari Therapeutics Announce Merger to Advance Migraine Prevention Therapies, issued 19-May-2026 by InMed Pharmaceuticals over PR Newswire, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:

InMed Pharmaceuticals & Mentari Therapeutics Announce Merger to Advance Migraine Prevention Therapies Mentari's parallel lead programs target validated, complementary pathways with potential to address the two-thirds of patients who have a suboptimal response to anti-CGRP therapies

Concurrent oversubscribed US$290 million private placement of Mentari expected to fund company operations through 2028

First-in-human regulatory filings for MT-001 (anti-PACAP) and MT-002 (anti-CGRP x PACAP bispecific) expected mid-2026 and 1Q 2027, respectively

Conference call scheduled for May 19, 2026, at 8:30 AM EDT

, /PRNewswire/ -- InMed Pharmaceuticals, Inc. (NASDAQ: INM) ("InMed" or the "Company") is pleased to announce that it has entered into a definitive merger agreement (the "Agreement") for an all-stock transaction with Mentari Therapeutics, Inc. ("Mentari"), a privately-held biotechnology company developing therapies for migraine prevention, Indigo Merger Sub Corp. a wholly-owned subsidiary of InMed, and Indigo Merger Sub II, LLC, a wholly-owned subsidiary of InMed. The merger brings together Mentari's differentiated migraine pipeline with InMed's public market infrastructure, positioning the combined company to expedite the development of new therapies for people living with migraine, a debilitating neurological disorder affecting more than 1 billion people globally. Upon consummation of the transaction contemplated by the Agreement, the combined entity will operate as Mentari Therapeutics and trade on the Nasdaq Capital Market under a new ticker symbol.

The concurrent private placement (the "Private Placement") was led by Fairmount with participation from Commodore Capital, Deep Track Capital, Janus Henderson Investors, a16z Bio + Health, Venrock Healthcare Capital Partners, Wellington Management, TCGX, Blackstone Multi-Asset Investing, BB Biotech, Farallon Capital, RTW Investments, LP, Vivo Capital, Perceptive Advisors and other leading investment management firms. The Private Placement will result in gross proceeds to the combined company of approximately US$290 million and is expected to fully fund its operations through 2028, beyond the generation of anticipated key clinical datasets from Mentari's parallel lead programs. These programs include MT-001, an anti-PACAP (pituitary adenylate cyclase-activating polypeptide) monoclonal antibody with Phase 2a proof-of-concept data expected in 2028, and MT-002, a potentially first-in-class anti-CGRP (calcitonin gene-related peptide) and anti-PACAP bispecific antibody with Phase 1 healthy volunteer data expected in 2027. Together, MT-001 and MT-002 target validated, complementary, and orthogonal pathways in migraine pathophysiology and have potential to address the significant unmet need in individuals suffering from chronic and episodic migraine. Approximately 40-50% of patients treated with current approved therapies do not achieve a 50% reduction in monthly migraine days (MMDs), and fewer than one-third of patients have a 75% reduction in MMDs.

"This merger with Mentari represents an excellent opportunity for InMed shareholders to participate in the development of an exciting new drug pipeline with significant therapeutic and commercial potential," said Eric A. Adams, President and CEO of InMed. "InMed's Board of Directors and management team are in full support of this transaction and believe that Mentari's strong balance sheet positions the company to successfully execute on the development plans for its parallel lead programs in the treatment of migraines. We believe Mentari's lead programs have tremendous potential to expand and reshape the migraine treatment and prevention market."

"This transaction provides us with the capital and public market infrastructure to aggressively compete in what we believe will be the next era of migraine prevention," said Julie Bruno, Chair of Mentari's board. "Recent anti-PACAP clinical studies have validated this novel mechanism and generated tremendous excitement among headache specialists. MT-001 and MT-002 were designed to be potentially best-in-class, with superior convenience through subcutaneous delivery and the potential for enhanced efficacy through rational dual pathway inhibition. We have a clear regulatory path, rapid development timelines benchmarked to approved migraine therapies, and are focused on bringing these potentially transformative therapies to the millions of people who continue to suffer despite current treatment options."

Mentari's pipeline programs were discovered by Paragon Therapeutics, Inc. and the co-lead programs, MT-001 and MT-002, have demonstrated equal or superior in vitro potency compared to benchmark antibodies, with pharmacokinetic profiles in non-human primates projected to enable convenient subcutaneous dosing in humans.

Conference Call Details

InMed will host a conference call on Tuesday, May 19th, at 8:30 am ET to discuss the merger details. To join the call, please dial (888) 880-3330 (U.S Toll Free) or (800) 715-9871 (Canada Toll Free). A replay of the call will be temporarily archived on the Investors section of InMed's website following the presentation.

About the Proposed Transaction

Under the terms of the merger agreement, as of the closing of the proposed merger, the pre-merger InMed shareholders are expected to own approximately 1.51% of the combined company, which is expected to have a pro forma equity value of approximately US$421.4 million (inclusive of the Private Placement). The percentage of the combined company that InMed's shareholders will own as of the closing of the proposed merger is subject to adjustment based on the estimated amount of InMed's net cash immediately prior to the closing date.

In addition, InMed shareholders as of immediately prior to Closing (the "Holders") will be entitled to receive additional financial consideration through (i) a potential distribution or dividend (if any) (1) payable upon a pre-closing sale, license, divestiture or other monetization transaction (i.e., a royalty transaction) of InMed research and development programs (a "Parent Legacy Transaction"), and (2) to the extent closing net cash exceeds certain thresholds described in the Agreement; and (ii) a contingent value right entitling the Holders to proceeds (if any) from a Parent Legacy Transaction received post-closing, in each case the terms of which will be described in the Agreement and/or Form 8-K to be filed in connection with the proposed transaction.

The transaction has received approval by the Board of Directors of both companies and is expected to close in the second half of 2026, subject to certain closing conditions, including, among others, approval by the stockholders of each company, the effectiveness of a registration statement to be filed with the U.S. Securities and Exchange Commission (the "SEC") to register the securities to be issued in connection with the proposed merger and the satisfaction of other customary closing conditions.

The combined company plans to operate under the name Mentari Therapeutics, Inc. Mentari's existing Board of Directors will become directors of the combined company, chaired by Julie Bruno, Growth Partner at Fairmount, and including Michelle Pernice, Operating Partner at Fairmount, and Laura Sandler, Chief Operating Officer at Oruka Therapeutics.

Lucid Capital Markets, LLC is serving as financial advisor and Norton Rose Fulbright LLP and Norton Rose Fulbright Canada LLP are serving as legal counsel to InMed. Wedbush Securities Inc. is serving as exclusive strategic financial advisor and Gibson, Dunn & Crutcher LLP is serving as legal counsel to Mentari. Jefferies, TD Cowen, Stifel, Guggenheim Securities, and Wedbush & Co., LLC are serving as the placement agents to Mentari. Cooley LLP is serving as legal counsel to the placement agents.

About InMed Pharmaceuticals

InMed is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological indications. For more information, visit www.inmedpharma.com.

About Mentari Therapeutics

Mentari Therapeutics is a biotechnology company developing therapies for the prevention of migraine to deliver freedom from this debilitating and undertreated neurological condition that affects more than 1 billion people globally. Mentari's lead programs target PACAP, a newly validated target that is mechanistically independent from CGRP, one of the first migraine targets to yield clinical and commercial success. Mentari's pipeline includes MT-001, an anti-PACAP monoclonal antibody designed for convenient subcutaneous dosing, and MT-002, an anti-CGRP and anti-PACAP bispecific antibody designed to inhibit these complementary pathways with potential to deliver superior outcomes for people with incomplete response to CGRP-targeted therapies. The company's programs were discovered by Paragon Therapeutics. Mentari is based in Waltham, MA. For more information, visit mentaritx.com.

Forward Looking Statements

Certain statements in this press release, other than purely historical information, may constitute "forward-looking statements" within the meaning of the federal securities laws, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, express or implied statements relating to InMed's and Mentari's expectations, hopes, beliefs, intentions or strategies regarding the proposed merger, the Private Placement, and the combined company's future, pipeline and business including, without limitation, statements regarding the expected timing and completion of the proposed merger and the Private Placement, the anticipated ownership structure of the combined company, the expected benefits, opportunities and market potential of the proposed transaction, the combined company's ability to achieve the expected benefits or opportunities with respect to its product candidates, including whether MT-001 and MT-002 will achieve clinical proof of concept, demonstrate superior efficacy or potency, achieve convenient dosing, address unmet need in CGRP inadequate responders, or achieve regulatory approval and statements made herein with respect to (i) a potential distribution or dividend (if any) (A) payable upon a Parent Legacy Transaction, and (B) to the extent closing net cash exceeds certain thresholds described in the Agreement, and (ii) the contingent value rights entitling the Holders to proceeds (if any) from a Parent Legacy Transaction received post-closing. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting the combined company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond InMed's, Mentari's or the combined company's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to: the risk that the proposed merger and the Private Placement may not be completed on the anticipated timeline or at all; the failure to satisfy the conditions to closing, including obtaining the requisite approvals of the stockholders of each company and the effectiveness of the registration statement to be filed with the SEC in connection with the proposed merger; the risk that the Private Placement may not close or may not result in the anticipated gross proceeds; the outcome of preclinical studies and clinical trials; regulatory approval processes; the combined company's ability to successfully develop and commercialize its product candidates; competition in the migraine treatment market; the combined company's reliance on third parties; protection of intellectual property; and the combined company's need for substantial additional funding. Should one or more of these risks or uncertainties materialize, or should any of InMed's, Mentari's or the combined company's assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth therein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein and in InMed's filings with the SEC. InMed, Mentari and the combined company do not undertake or accept any duty to make any updates or revisions to any forward-looking statements, except as required by law.

Important Information About Investigational Product Candidates

This press release concerns drug candidates that are under preclinical and clinical investigation, and which have not yet been approved by the U.S. Food and Drug Administration. These are currently limited by federal law to investigational use, and no representation is made as to their safety or effectiveness for the purposes for which they are being investigated.

No Offer or Solicitation

This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any proxy, vote, consent or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities to be sold in the Private Placement are being offered in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OR DETERMINED IF THIS COMMUNICATION IS TRUTHFUL OR COMPLETE.

Important Additional Information About the Proposed Transaction Will Be Filed with the SEC

In connection with the proposed merger, InMed intends to file relevant materials with the SEC, including a registration statement on Form S-4 that will contain a proxy statement/prospectus relating to the proposed transaction. This press release is not a substitute for the registration statement, proxy statement/prospectus or any other document that InMed may file with the SEC in connection with the proposed transaction.

INVESTORS AND SECURITY HOLDERS OF INMED AND MENTARI ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS THERETO, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT INMED, MENTARI, THE PROPOSED TRANSACTION AND RELATED MATTERS.

Investors and security holders will be able to obtain free copies of the registration statement, proxy statement/prospectus and other documents filed by InMed with the SEC through the website maintained by the SEC at www.sec.gov and on the Investors section of InMed's website.

Participants in the Solicitation

InMed, Mentari and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from InMed's stockholders in connection with the proposed transaction. Information about InMed's directors and executive officers, including a description of their interests in InMed, is contained in InMed's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of proxies in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be included in the registration statement and proxy statement/prospectus when filed with the SEC.

Media Contact

Lia Dangelico
Deerfield Group
[email protected]

Investor Contact
Colin Clancy
Vice President, Investor Relations
and Corporate Communications, InMed Pharmaceuticals Inc.
T: +1.604.416.0999
E: [email protected]

Correction: An update has been made to the last sentence of paragraph 11.

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SOURCE InMed Pharmaceuticals

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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[url="]Strategy[/url]Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) (“Strategy”) today announced the completion of a series of capital-markets and bit

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HPE (NYSE: HPE) today announced financial results for the second quarter ended April 30, 2026.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260601866494/en/

“HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business,” said Antonio Neri, president and CEO of HPE. “Customers continue to invest in modernizing their infrastructure and scaling AI, and our performance shows the strength of our combined networking portfolio and the value we are delivering to our shareholders.”

“We drove high profitability and cash generation this quarter through continued operational discipline as well as executing ahead of schedule against Juniper Networks and Catalyst cost synergies,” said Marie Myers, executive vice president and CFO of HPE. “Based on our performance, we are raising our fiscal 2026 guidance and introducing a fiscal 2027 financial growth framework. These updates reflect the durability of our performance and continued operational excellence – and point to faster progress toward our long-term financial plan.”

In the quarter, HPE achieved record revenue, gross margin, and non-GAAP diluted net EPS, as well as its highest-ever free cash flow generation for a second quarter.

Second Quarter Fiscal 2026 Financial Results

Revenue: $10.7 billion, up 40% from the prior-year period Gross margins: GAAP of 36.5%, up 810 basis points from the prior-year period and up 60 basis points sequentially Non-GAAP(1) of 36.9%, up 750 basis points from the prior-year period and up 30 basis points sequentially Diluted net earnings per share (“EPS”): GAAP of $0.44, up $1.26 from the prior-year period and above our outlook range of $0.09 - $0.13 Non-GAAP(1) of $0.79, up $0.41 from the prior-year period and above our outlook range of $0.51 - $0.55 Cash flow from operations: $1.4 billion, an increase of $1.9 billion from the prior-year period Free cash flow(1)(2): $0.9 billion, an increase of $1.8 billion from the prior-year period Capital returns to common shareholders: $343 million in the form of dividends and share repurchases Second Quarter Fiscal 2026 Segment Results

Networking revenue was $2.7 billion, up 148.2% from the prior-year period, with 21.6% operating profit margin, compared to 25.0% from the prior-year period. Within Networking, revenue from: Campus & Branch was $1.3 billion, up 50.2% from the prior-year period. Data Center Networking was $320 million, up 233.3% from the prior-year period. Security was $273 million, up 155.1% from the prior-year period. Routing was $775 million, compared to $1 million in the prior-year period. Cloud & AI revenue was $7.7 billion, up 22.9% from the prior-year period, with 12.4% operating profit margin, compared to 6.6% from the prior-year period. Within Cloud & AI, revenue from: Server was $5.5 billion, up 32.7% from the prior-year period. Storage was $1.2 billion, up 2.4% from the prior-year period. Financial Services was $0.9 billion, up 5.6% from the prior-year period. Corporate Investments and Other revenue was $281 million, up 3.3% from the prior-year period, with -3.2% of operating profit margin, compared to -2.6% from the prior-year period. Dividend

The HPE Board of Directors declared a regular cash dividend of $0.1425 per share on the company’s common stock, payable on or about July 15, 2026, to stockholders of record as of the close of business on June 16, 2026.

Fiscal 2026 Third Quarter Outlook
HPE estimates revenue to be in the range of $11.5 billion to $12.1 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.84 to $0.89 and non-GAAP diluted net EPS(1) to be in the range of $0.88 to $0.93. Fiscal 2026 third quarternon-GAAP diluted net EPS estimate excludes net after-tax adjustments of approximately $0.04 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments related to the sale of H3C.

Fiscal 2026 Full Year Outlook
HPE is raising its FY26 revenue growth outlook range to 29% to 33%. HPE is raising revenue growth expectations for the Networking segment to 72% to 75%. HPE estimates GAAP operating profit growth to be 885% to 930% and non-GAAP operating profit growth between 80% to 85%(1)(3).

HPE is raising both GAAP diluted net EPS to be in the range of $2.42 to $2.52 and non-GAAP diluted net EPS(1)(4) to be in the range of $3.35 to $3.45. Fiscal 2026 non-GAAP diluted net EPS estimate excludes net after-tax adjustments of approximately $0.93 per diluted share, primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, cost reduction program, and adjustments related to the sale of H3C. HPE is also raising its free cash flow(1)(2)(4) guidance and now expects free cash flow to be at least $3.5 billion.

The updated FY26 outlook ranges for non-GAAP diluted net EPS and free cash flow are higher than what HPE projected the company would achieve by FY28 when it released long-term financial guidance at the HPE Securities Analyst Meeting in October 2025. The company had expected to generate at least $3.00 in non-GAAP diluted net EPS and more than $3.5 billion in free cash flow by FY28.

Fiscal 2027 Outlook Framework
The company is introducing its growth framework for FY27. HPE estimates revenue growth to be in the range of 8% to 12%. HPE estimates non-GAAP diluted net EPS(1)(4) growth to be in the range of 12% to 16% and non-GAAP operating margin rate to be in the range of 12% to 16%(1)(4). HPE estimates it will generate free cash flow(1)(2)(4) of at least $4.5 billion.

H3C Technologies Co., Limited Update
HPE also notes that the divestiture of its stake in H3C Technologies Co., Limited was completed on May 28. Cash proceeds totaling approximately $1.357 billion were received in exchange for the sale of HPE’s remaining 19% of total H3C shares outstanding. HPE received a total pretax consideration of approximately $3.5 billion for its stake in the company since it announced its intention to exit the joint venture.

1 A description of HPE’s use of non-GAAP financial information is provided below under “Use of non-GAAP financial information and key performance metrics.”
2 Free cash flow represents cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash.​
3 FY26 non-GAAP operating profit excludes costs of approximately $2.6 billion primarily related to amortization of intangible assets, stock-based compensation expense, acquisition, disposition and other charges, and cost reduction program.
4 HPE provides certain guidance on a non-GAAP basis. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, Hewlett Packard Enterprise is unable to provide a reconciliation to the most directly comparable GAAP financial measure without unreasonable efforts, as the Company cannot predict some elements that are included in such directly comparable GAAP financial measure. These elements could have a material impact on the Company’s reported GAAP results for the guidance period. Refer to the discussion of non-GAAP financial measures below for more information.

About HPE

HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.

Use of non-GAAP financial information and key performance metrics

To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (“GAAP”) basis, Hewlett Packard Enterprise provides financial measures, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP income tax rate, non-GAAP net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders, non-GAAP diluted net earnings per share attributable to common stockholders, and free cash flow (“FCF”). Hewlett Packard Enterprise also provides forecasts of non-GAAP operating profit growth, non-GAAP diluted net earnings per share, and FCF. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables below or elsewhere in the materials accompanying this news release. In addition an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide supplemental useful information to investors is included further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin (earnings from operations as a percentage of net revenue), net earnings, diluted net earnings (loss) per share (“EPS”), and cash flow from operations prepared in accordance with GAAP.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, “guide”, “optimistic”, “intend”, “aim”, “will”, “estimates”, “may”, “likely”, “could”, “should” and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any statements regarding the ongoing integration of Juniper Networks, Inc., and any projections, estimates, or expectations of savings or synergy realizations in connection therewith; any projections, estimations, or expectations of addressable markets and their sizes, revenue (including annualized revenue run-rate), margins, expenses (including stock-based compensation expenses), investments, effective tax rates, interest rates, the impact of tax law changes and related guidance and regulations, the impact of changes in trade policies and restrictions and the uncertainty created thereby, component costs, commodity shortage, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; recent amendments to accounting guidance and any potential impacts on our financial reporting therefrom; any projections or estimations of orders; any projections of the amount, timing, or impact of cost saving actions and anticipated benefits to be realized if any; any statements of the plans, strategies, and objectives of management for future operations, as well as the execution and consummation of corporate transactions or contemplated acquisitions and dispositions (including but not limited to the disposition of shares of H3C Technologies Co., Limited (“H3C”) and the use of proceeds received therefrom), research and development expenditures, and any resulting benefits, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share, or competitive performance relating to products or services; any statements concerning technological and market trends, the pace of technological innovation, and adoption of new technologies, including quantum and artificial intelligence-related developments and any impacts of such developments on products and services offered by Hewlett Packard Enterprise; any statements regarding current or future macroeconomic trends or events and the impacts of those trends and events on Hewlett Packard Enterprise and our financial performance, including but not limited to supply chain dynamics (including but not limited to worldwide component availability), uncertain global trade policies and/or restrictions, and demand for our products and services, and our actions to mitigate such impacts to our business; the scope and duration of geopolitical tensions, including but not limited to the ongoing conflict between Russia and Ukraine, instability and conflicts in the Middle East, and the relationship between China and the U.S., and our actions in response thereto, and their impacts on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results, and the world economy; any statements regarding future regulatory trends and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues, among others; any statements regarding pending litigation, investigations, claims, or disputes, including but not limited to the legal proceedings relating to the acquisition of Juniper Networks; any statements of expectation or belief, including those relating to future guidance and the financial performance of Hewlett Packard Enterprise; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties, and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events, including but not limited to those mentioned above; the need to effectively manage third-party suppliers and distribute Hewlett Packard Enterprise's products and services; the protection of Hewlett Packard Enterprise's intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise's international operations (including from geopolitical events and macroeconomic uncertainties); the development of and transition to new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution of Hewlett Packard Enterprise’s ongoing transformation and mix shift of its portfolio of offerings; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients, and partners, including any impact thereon resulting from macroeconomic or geopolitical events, including inflation and rising commodity costs; the prospect of a shutdown of the U.S. federal government; the hiring and retention of key employees; the execution, integration, consummation, and other risks associated with business combination, disposition, and investment transactions, including but not limited to successful integration of Juniper Networks, Inc., including our ability to integrate and implement our plans and forecasts and realize our anticipated financial and operational benefits with respect to the consolidated business; the execution, timing, and results of any cost reduction actions, including estimates and assumptions related to the costs and anticipated benefits of implementing such actions; the impact of changes to privacy, cybersecurity, environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property, or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining certain financial metrics; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending litigation, investigations, claims, and disputes; the impacts of tax law changes and related guidance or regulations; and other risks that are described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

For the three months ended

April 30, 2026

January 31, 2026

April 30, 2025

In millions, except per share amounts

Net revenue

$

10,678

$

9,301

$

7,627

Costs and Expenses:

Cost of sales (exclusive of amortization shown separately below)

6,778

5,961

5,458

Research and development

922

744

540

Selling, general and administrative

1,830

1,698

1,298

Amortization of intangible assets

323

311

37

Impairment charges

—

—

1,361

Acquisition, disposition and other charges

78

117

42

Total costs and expenses

9,931

8,831

8,736

Earnings (loss) from operations

747

470

(1,109

)

Interest and other, net(1)

(73

)

(54

)

39

Earnings from equity interests

25

17

25

Earnings (loss) before provision for taxes

699

433

(1,045

)

(Provision) benefit for taxes

(75

)

19

(5

)

Net earnings (loss) attributable to HPE

624

452

(1,050

)

Preferred stock dividends

(29

)

(29

)

(29

)

Net earnings (loss) attributable to common stockholders

$

595

$

423

$

(1,079

)

Net Earnings (Loss) Per Share Attributable to Common Stockholders:

Basic

$

0.45

$

0.32

$

(0.82

)

Diluted

0.44

0.31

(0.82

)

Cash dividends declared per share

0.14

0.14

0.13

Cash dividends accrued per preferred share

$

0.95

$

0.95

$

0.95

Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share:

Basic

1,335

1,334

1,322

Diluted

1,432

1,356

1,322

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

For the six months ended

April 30, 2026

April 30, 2025

In millions, except per share amounts

Net revenue

$

19,979

$

15,481

Costs and Expenses:

Cost of sales (exclusive of amortization shown separately below)

12,739

11,017

Research and development

1,666

1,015

Selling, general and administrative

3,528

2,566

Amortization of intangible assets

634

75

Impairment charges

—

1,361

Acquisition, disposition and other charges

195

123

Total costs and expenses

18,762

16,157

Earnings (loss) from operations

1,217

(676

)

Interest and other, net(1)

(127

)

78

Gain on sale of a business

—

244

Earnings from equity interests

42

42

Earnings (loss) before provision for taxes

1,132

(312

)

Provision for taxes

(56

)

(111

)

Net earnings (loss) attributable to HPE

1,076

(423

)

Preferred stock dividends

(58

)

(58

)

Net earnings (loss) attributable to common stockholders

$

1,018

$

(481

)

Net Earnings (Loss) Per Share Attributable to Common Stockholders:

Basic

$

0.76

$

(0.36

)

Diluted

0.75

(0.36

)

Cash dividends declared per share

0.29

0.26

Cash dividends accrued per preferred share

$

1.91

$

1.91

Weighted-average Shares Used to Compute Net Earnings (Loss) Per Share:

Basic

1,335

1,319

Diluted

1,356

1,319

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

For the three months ended

April 30, 2026

January 31, 2026

April 30, 2025

Dollars in millions

GAAP net revenue

$

10,678

$

9,301

$

7,627

GAAP cost of sales

6,778

5,961

5,458

GAAP gross profit

3,900

3,340

2,169

Non-GAAP Adjustments

Stock-based compensation expense

23

24

13

Acquisition, disposition and other charges(2)

6

34

—

Cost reduction program

8

5

46

H3C divestiture related severance costs

—

—

16

Non-GAAP gross profit

$

3,937

$

3,403

$

2,244

GAAP gross profit margin

36.5

%

35.9

%

28.4

%

Non-GAAP adjustments

0.4

%

0.7

%

1.0

%

Non-GAAP gross profit margin

36.9

%

36.6

%

29.4

%

For the six months ended

April 30, 2026

April 30, 2025

Dollars in millions

GAAP net revenue

$

19,979

$

15,481

GAAP cost of sales

12,739

11,017

GAAP gross profit

7,240

4,464

Non-GAAP Adjustments

Stock-based compensation expense

47

30

Acquisition, disposition and other charges(2)

40

(3

)

Cost reduction program

13

46

H3C divestiture related severance costs

—

17

Non-GAAP gross profit

$

7,340

$

4,554

GAAP gross profit margin

36.2

%

28.8

%

Non-GAAP adjustments

0.5

%

0.6

%

Non-GAAP gross profit margin

36.7

%

29.4

%

For the three months ended

April 30, 2026

January 31, 2026

April 30, 2025

Dollars in millions

GAAP earnings (loss) from operations

$

747

$

470

$

(1,109

)

Non-GAAP Adjustments

Amortization of intangible assets

323

311

37

Impairment charges

—

—

1,361

Stock-based compensation expense

218

216

116

H3C divestiture related severance costs

—

—

20

Cost reduction program

30

23

146

Acquisition, disposition and other charges(2)

105

162

42

Non-GAAP earnings from operations

$

1,423

$

1,182

$

613

GAAP operating profit margin

7.0

%

5.1

%

(14.5

)%

Non-GAAP adjustments

6.3

%

7.6

%

22.5

%

Non-GAAP operating profit margin

13.3

%

12.7

%

8.0

%

For the six months ended

April 30, 2026

April 30, 2025

Dollars in millions

GAAP earnings (loss) from operations

$

1,217

$

(676

)

Non-GAAP Adjustments

Amortization of intangible assets

634

75

Impairment charges

—

1,361

Stock-based compensation expense

434

270

H3C divestiture related severance costs

—

97

Cost reduction program

53

146

Acquisition, disposition and other charges(2)

267

120

Non-GAAP earnings from operations

$

2,605

$

1,393

GAAP operating profit margin

6.1

%

(4.4

)%

Non-GAAP adjustments

6.9

%

13.4

%

Non-GAAP operating profit margin

13.0

%

9.0

%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

For the three months ended

April 30, 2026

Diluted Net EPS(7)

January 31, 2026

Diluted Net EPS(7)

April 30, 2025

Diluted Net EPS(7)

Dollars in millions, except per share amounts

GAAP net earnings (loss) attributable to common stockholders

$

595

$

423

$

0.31

$

(1,079

)

$

(0.82

)

Preferred stock dividends

29

29

29

GAAP net earnings (loss) attributable to HPE

$

624

$

0.44

$

452

$

(1,050

)

Non-GAAP Adjustments:

Amortization of intangible assets

323

0.23

311

0.23

37

0.03

Impairment charges

—

—

—

—

1,361

1.03

Stock-based compensation expense

218

0.15

216

0.16

116

0.09

H3C divestiture related severance costs

—

—

—

—

20

0.02

Cost reduction program

30

0.02

23

0.02

146

0.11

Acquisition, disposition and other charges(2)

105

0.08

162

0.12

42

0.03

Adjustments for equity interests

(25

)

(0.02

)

(17

)

(0.01

)

—

—

Loss (gain) on equity investments, net

3

—

(14

)

(0.01

)

(7

)

(0.01

)

Adjustments for taxes

(110

)

(0.07

)

(170

)

(0.14

)

(91

)

(0.08

)

Other adjustments(3)

(32

)

(0.04

)

(33

)

(0.03

)

(29

)

(0.02

)

Non-GAAP net earnings attributable to HPE(4)

1,136

$

0.79

930

$

0.65

545

$

0.38

Preferred stock dividends

(29

)

(29

)

(29

)

Non-GAAP net earnings attributable to common stockholders

$

1,107

$

901

$

516

For the six months ended

April 30, 2026

Diluted Net EPS(7)

April 30, 2025

Diluted Net EPS(7)

Dollars in millions, except per share amounts

GAAP net earnings (loss) attributable to common stockholders

$

1,018

$

0.75

$

(481

)

$

(0.36

)

Preferred stock dividends

58

58

GAAP net earnings (loss) attributable to HPE

$

1,076

$

(423

)

Non-GAAP Adjustments:

Amortization of intangible assets

634

0.47

75

0.06

Impairment charges

—

—

1,361

1.03

Stock-based compensation expense

434

0.32

270

0.20

Gain on sale of a business

—

—

(244

)

(0.18

)

H3C divestiture related severance costs

—

—

97

0.07

Cost reduction program

53

0.04

146

0.11

Acquisition, disposition and other charges(2)

267

0.19

120

0.08

Adjustments for equity interests

(42

)

(0.03

)

—

—

Gain on equity investments, net

(11

)

(0.01

)

(9

)

(0.01

)

Adjustments for taxes

(280

)

(0.21

)

(106

)

(0.09

)

Other adjustments(3)

(65

)

(0.08

)

(58

)

(0.04

)

Non-GAAP net earnings attributable to HPE(4)

2,066

1.44

1,229

0.87

Preferred stock dividends

(58

)

(58

)

Non-GAAP net earnings attributable to common stockholders

$

2,008

$

1,171

For the three months ended

April 30, 2026

January 31, 2026

April 30, 2025

In millions

Net cash provided by (used in) operating activities

$

1,410

$

1,178

$

(461

)

Investment in property, plant and equipment and software assets

(583

)

(569

)

(547

)

Proceeds from sale of property, plant and equipment

130

66

80

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(42

)

33

81

Free cash flow

$

915

$

708

$

(847

)

For the six months ended

April 30, 2026

April 30, 2025

In millions

Net cash provided by (used in) operating activities

$

2,588

$

(851

)

Investment in property, plant and equipment and software assets

(1,152

)

(1,075

)

Proceeds from sale of property, plant and equipment

196

164

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(9

)

38

Free cash flow

$

1,623

$

(1,724

)

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

As of

April 30, 2026

October 31, 2025

(Unaudited)

(Audited)

In millions, except par value

ASSETS

Current Assets:

Cash and cash equivalents

$

5,292

$

5,773

Accounts receivable, net of allowances

6,286

5,290

Financing receivables, net of allowances

3,694

3,826

Inventory

9,034

6,352

Other current assets

5,053

3,753

Total current assets

29,359

24,994

Property, plant and equipment, net

5,597

6,002

Long-term financing receivables and other assets

13,992

13,817

Investments in equity interests

916

955

Goodwill and intangible assets

29,648

30,138

Total assets

$

79,512

$

75,906

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Notes payable and short-term borrowings

$

3,009

$

4,609

Accounts payable

11,311

7,731

Employee compensation and benefits

1,957

1,871

Taxes on earnings

387

319

Deferred revenue

5,621

5,358

Other accrued liabilities

4,690

4,755

Total current liabilities

26,975

24,643

Long-term debt

18,237

17,756

Other non-current liabilities

8,947

8,753

Commitments and Contingencies

Stockholders’ Equity

HPE stockholders' Equity:

7.625% Series C mandatory convertible preferred stock, $0.01 par value (30 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively)

—

—

Common stock, $0.01 par value (9,600 shares authorized; 1,323 and 1,318 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively)

13

13

Additional paid-in capital

30,207

30,234

Accumulated deficit

(2,211

)

(2,811

)

Accumulated other comprehensive loss

(2,717

)

(2,748

)

Total HPE stockholders’ equity

25,292

24,688

Non-controlling interests

61

66

Total stockholders’ equity

25,353

24,754

Total liabilities and stockholders’ equity

$

79,512

$

75,906

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

For the six months ended

April 30, 2026

April 30, 2025

In millions

Cash Flows from Operating Activities:

Net earnings (loss) attributable to HPE

$

1,076

$

(423

)

Adjustments to Reconcile Net Earnings (Loss) Attributable to HPE to Net Cash Provided by (Used in) Operating Activities:

Depreciation and amortization

1,749

1,173

Impairment charges

—

1,361

Stock-based compensation expense

434

270

Provision for inventory and credit losses

305

190

Cost reduction program

53

146

Deferred taxes on earnings

(266

)

(43

)

Earnings from equity interests

(42

)

(42

)

Gain on sale of a business

—

(244

)

Dividends received from equity investees

76

—

H3C divestiture related severance costs

—

97

Amortization of inventory fair value adjustment

31

—

Other, net

100

28

Changes in Operating Assets and Liabilities, Net of Acquisitions:

Accounts receivable

(1,098

)

(372

)

Financing receivables

282

25

Inventory

(2,956

)

(435

)

Accounts payable

3,562

(1,698

)

Taxes on earnings

137

(36

)

Other assets and liabilities

(855

)

(848

)

Net cash provided by (used in) operating activities

2,588

(851

)

Cash Flows from Investing Activities:

Investment in property, plant and equipment and software assets

(1,152

)

(1,075

)

Proceeds from sale of property, plant and equipment

196

164

Purchases of equity investments

(4

)

(1

)

Proceeds from sale of available-for-sale securities and other investments

5

41

Financial collateral posted

(491

)

(638

)

Financial collateral received

453

287

Proceeds from sale of a business

—

210

Net cash used in investing activities

(993

)

(1,012

)

Cash Flows from Financing Activities:

Short-term borrowings with original maturities less than 90 days, net

(10

)

(11

)

Proceeds from debt, net of issuance costs

2,230

257

Payments of debt

(3,371

)

(1,061

)

Net payments related to stock-based award activities

(183

)

(171

)

Repurchases of common stock

(312

)

(102

)

Cash dividends paid to preferred stockholders

(58

)

(54

)

Cash dividends paid to common stockholders

(379

)

(342

)

Other

(8

)

(8

)

Net cash used in financing activities

(2,091

)

(1,492

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(9

)

38

Change in cash, cash equivalents and restricted cash

(505

)

(3,317

)

Cash, cash equivalents and restricted cash at beginning of period

5,859

15,105

Cash, cash equivalents and restricted cash at end of period

$

5,354

$

11,788

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Information

(Unaudited)

For the three months ended

April 30, 2026

January 31, 2026

April 30, 2025

In millions

Net Revenue(5):

Networking

$

2,690

$

2,706

$

1,084

Cloud & AI

7,707

6,334

6,271

Corporate Investments and Other

281

261

272

Total segment net revenue

10,678

9,301

7,627

Earnings Before Taxes(5):

Networking

581

640

271

Cloud & AI

954

645

414

Corporate Investments and Other

(9

)

(12

)

(7

)

Total segment earnings from operations

1,526

1,273

678

Unallocated corporate costs and eliminations

(103

)

(91

)

(65

)

Stock-based compensation expense

(218

)

(216

)

(116

)

Amortization of intangible assets

(323

)

(311

)

(37

)

Impairment charges

—

—

(1,361

)

H3C divestiture related severance costs

—

—

(20

)

Cost reduction program

(30

)

(23

)

(146

)

Acquisition, disposition and other charges(2)

(105

)

(162

)

(42

)

Interest and other, net(1)

(73

)

(54

)

39

Earnings from equity interests

25

17

25

Total pretax earnings (loss)

$

699

$

433

$

(1,045

)

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Information

(Unaudited)

For the six months ended

April 30, 2026

April 30, 2025

In millions

Net Revenue(5):

Networking

$

5,396

$

2,160

Cloud & AI

14,041

12,782

Corporate Investments and Other

542

539

Total segment net revenue

19,979

15,481

Earnings Before Taxes(5):

Networking

1,221

591

Cloud & AI

1,599

961

Corporate Investments and Other

(21

)

(15

)

Total segment earnings from operations

2,799

1,537

Unallocated corporate costs and eliminations

(194

)

(144

)

Stock-based compensation expense

(434

)

(270

)

Amortization of intangible assets

(634

)

(75

)

Impairment charges

—

(1,361

)

Gain on sale of a business

—

244

H3C divestiture related severance costs

—

(97

)

Cost reduction program

(53

)

(146

)

Acquisition, disposition and other charges(2)

(267

)

(120

)

Interest and other, net(1)

(127

)

78

Earnings from equity interests

42

42

Total pretax earnings (loss)

$

1,132

$

(312

)

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Information

(Unaudited)

For the three months ended

Change (%)

April 30, 2026

January 31, 2026

April 30, 2025

Q/Q

Y/Y

Dollars in millions

Net Revenue:

Networking(5)

Campus & Branch

$

1,322

$

1,227

$

880

7.7%

50.2%

Data Center Networking

320

444

96

(27.9)

233.3

Security

273

255

107

7.1

155.1

Routing

775

780

1

(0.6)

N/M

Total

2,690

2,706

1,084

(0.6)

148.2

Cloud & AI(5)

Server

5,454

4,232

4,109

28.9

32.7

Storage

1,175

1,061

1,148

10.7

2.4

Financial Services

904

876

856

3.2

5.6

Other

174

165

158

5.5

10.1

Total

7,707

6,334

6,271

21.7

22.9

Corporate Investments and Other

281

261

272

7.7

3.3

Total consolidated net revenue

$

10,678

$

9,301

$

7,627

14.8%

40.0%

For the six months ended

Change (%)

April 30, 2026

April 30, 2025

Y/Y

Dollars in millions

Net Revenue:

Networking(5)

Campus & Branch

$

2,549

$

1,744

46.2%

Data Center Networking

764

188

306.4

Security

528

226

133.6

Routing

1,555

2

N/M

Total

5,396

2,160

149.8

Cloud & AI(5)

Server

9,686

8,457

14.5

Storage

2,236

2,203

1.5

Financial Services

1,780

1,729

2.9

Other

339

393

(13.7)

Total

14,041

12,782

9.8

Corporate Investments and Other

542

539

0.6

Total consolidated net revenue

$

19,979

$

15,481

29.1%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Operating Margin Summary Data

(Unaudited)

For the three months ended

Change in operating profit margin (pts)

April 30, 2026

January 31, 2026

April 30, 2025

Q/Q

Y/Y

Segment Operating Profit Margin:

Networking

21.6

%

23.7

%

25.0

%

(2.1

)

(3.4

)

Cloud & AI

12.4

%

10.2

%

6.6

%

2.2

5.8

Corporate Investments and Other

(3.2

%)

(4.6

%)

(2.6

%)

1.4

(0.6

)

Total segment operating profit margin

14.3

%

13.7

%

8.9

%

0.6

5.4

For the six months ended

Change in operating profit margin (pts)

April 30, 2026

April 30, 2025

Y/Y

Segment Operating Profit Margin:

Networking

22.6

%

27.4

%

(4.8

)

Cloud & AI

11.4

%

7.5

%

3.9

Corporate Investments and Other

(3.9

)%

(2.8

)%

(1.1

)

Total segment operating profit margin

14.0

%

9.9

%

4.1

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Calculation of Diluted Net Earnings Per Share

(Unaudited)

For the three months ended

April 30, 2026

January 31, 2026

April 30, 2025

In millions, except per share amounts

Numerator:

GAAP net earnings (losses) attributable to common stockholders - Basic

$

595

$

423

$

(1,079

)

Plus: 7.625% Series C mandatory convertible preferred stock dividends

29

—

—

GAAP net earnings (losses) attributable to HPE - Diluted

$

624

$

423

$

(1,079

)

Non-GAAP net earnings attributable to common stockholders - Basic

$

1,107

$

901

$

516

Plus: 7.625% Series C mandatory convertible preferred stock dividends

29

29

29

Non-GAAP net earnings attributable to HPE - Diluted

$

1,136

$

930

$

545

Denominator:

GAAP Weighted-average shares used to compute basic net EPS

1,335

1,334

1,322

Dilutive effect of employee stock plans(6)

21

22

—

Dilutive effect of 7.625% Series C mandatory convertible preferred stock(6)

76

—

—

GAAP Weighted-average shares used to compute diluted net EPS

1,432

1,356

1,322

Non-GAAP Weighted-average shares used to compute basic net EPS

1,335

1,334

1,322

Dilutive effect of employee stock plans(6)

21

22

10

Dilutive effect of 7.625% Series C mandatory convertible preferred stock(6)

76

76

87

Non-GAAP Weighted-average shares used to compute diluted net EPS

1,432

1,432

1,419

GAAP Net EPS

Basic

$

0.45

$

0.32

$

(0.82

)

Diluted

$

0.44

$

0.31

$

(0.82

)

Non-GAAP Net EPS

Basic

$

0.83

$

0.68

$

0.39

Diluted(4)

$

0.79

$

0.65

$

0.38

For the six months ended

April 30, 2026

April 30, 2025

In millions, except per share amounts

Numerator:

GAAP net earnings (losses) attributable to common stockholders - Basic

$

1,018

$

(481

)

Plus: 7.625% Series C mandatory convertible preferred stock dividends

—

—

GAAP net earnings (losses) attributable to HPE - Diluted

$

1,018

$

(481

)

Non-GAAP net earnings attributable to common stockholders - Basic

$

2,008

$

1,171

Plus: 7.625% Series C mandatory convertible preferred stock dividends

58

58

Non-GAAP net earnings attributable to HPE - Diluted

$

2,066

$

1,229

Denominator:

Weighted-average shares used to compute basic net EPS

1,335

1,319

Dilutive effect of employee stock plans(7)

21

—

Dilutive effect of 7.625% Series C mandatory convertible preferred stock(7)

—

—

Weighted-average shares used to compute diluted net EPS

1,356

1,319

Denominator(Non-GAAP):

Weighted-average shares used to compute basic net EPS

1,335

1,319

Dilutive effect of employee stock plans(7)

21

14

Dilutive effect of 7.625% Series C mandatory convertible preferred stock(7)

76

76

Weighted-average shares used to compute diluted net EPS

1,432

1,409

GAAP Net EPS

Basic

$

0.76

$

(0.36

)

Diluted

$

0.75

$

(0.36

)

Non-GAAP Net EPS

Basic

$

1.50

$

0.89

Diluted(4)

$

1.44

$

0.87

_________________________ (1)

Interest and other, net includes tax indemnification and other adjustments, non-service net periodic benefit credit, and interest and other, net.

(2)

For the six months ended April 30, 2026 and for the three months ended January 31, 2026, Acquisition, disposition and other charges include non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, which was recorded in cost of sales.

(3)

Other adjustments includes non-service net periodic benefit credit and tax indemnification and other adjustments.

(4)

For purposes of calculating diluted net EPS, the preferred stock dividends are added back to the net earnings attributable to common stockholders and the diluted weighted average share calculation assumes the preferred stock was converted at issuance or as of the beginning of the reporting period.

(5)

Effective at the beginning of the first quarter of fiscal 2026, HPE implemented an organizational change by (i) merging the Server, Hybrid Cloud, and Financial Services business segments into a new segment named Cloud & AI and (ii) transferring the Telco and Instant On businesses to Corporate Investments and Other from Networking. The Company reflected these changes to its segment information retrospectively. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share or total assets.

(6)

The impact of dilutive effect of employee stock plans is calculated under the treasury stock method, and the impact of dilutive effect of the preferred stock is calculated under the if-converted method. For the six months ended April 30, 2026 and 2025; and for the three months ended January 31, 2026 and April 30, 2025, the effect of preferred stock is excluded as it would be anti-dilutive.

(7)

For the six months ended April 30, 2026 and 2025; and for the three months ended January 31, 2026 and April 30, 2025, the diluted net EPS adjustment includes the impact to Non-GAAP net earnings attributable to HPE for the dilutive effect of preferred stock.

N/M - Not Meaningful.

Use of non-GAAP financial measures

To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a GAAP basis, Hewlett Packard Enterprise provides non-GAAP financial measures, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP income tax rate, non-GAAP net earnings attributable to HPE, non-GAAP net earnings attributable to common stockholders, non-GAAP diluted net earnings per share attributable to common stockholders, and FCF. Hewlett Packard Enterprise also provides, non-GAAP diluted net earnings per share, non-GAAP operating profit growth, and FCF.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. The GAAP measure most directly comparable to non-GAAP gross profit is gross profit. The GAAP measure most directly comparable to non-GAAP gross profit margin is gross profit margin. The GAAP measure most directly comparable to non-GAAP operating profit (non-GAAP earnings from operations) is earnings from operations. The GAAP measure most directly comparable to non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) is operating profit margin (earnings from operations as a percentage of net revenue). The GAAP measure most directly comparable to non-GAAP income tax rate is income tax rate. The GAAP measure most directly comparable to non-GAAP net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share attributable to common stockholders is diluted net earnings per share attributable to common stockholders. The GAAP measure most directly comparable to FCF is cash flow from operations. Reconciliations of each of these non-GAAP financial measures to their most directly comparable GAAP measures for this quarter and prior periods are included in the tables above or elsewhere in the materials accompanying this news release.

Usefulness of non-GAAP financial measures to investors

Hewlett Packard Enterprise believes that providing the non-GAAP financial measures stated above, in addition to the related GAAP measures provides investors with greater transparency to the information used by Hewlett Packard Enterprise’s management in its financial and operational decision making and allows investors to see Hewlett Packard Enterprise’s results “through the eyes” of management. Hewlett Packard Enterprise further believes that providing this information provides Hewlett Packard Enterprise’s investors with a supplemental view to understand the Company’s historical and prospective operating performance and to evaluate the efficacy of the methodology and information used by Hewlett Packard Enterprise’s management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates the comparisons of Hewlett Packard Enterprise’s operating performance with the performance of other companies in the same industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Economic substance of and material limitations associated with non-GAAP financial measures used by Hewlett Packard Enterprise

Non-GAAP gross profit and non-GAAP gross profit margin are defined to exclude charges related to the stock-based compensation expense, acquisition, disposition and other charges, severance costs associated with the cost reduction program, and H3C divestiture related severance costs. Non-GAAP operating profit (non-GAAP earnings from operations) and non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) consist of earnings from operations or earnings from operations as a percentage of net revenue excluding the items mentioned above and charges relating to the amortization of intangible assets, and impairment charges. Non-GAAP net earnings, net earnings attributable to HPE and non-GAAP net earnings attributable to common stockholders and non-GAAP diluted net earnings per share attributable to common stockholders consist of net earnings or diluted net earnings per share excluding the charges previously stated, as well as gain on sale of a business, adjustments for equity interests, litigation judgments, gain or loss on equity investments, other adjustments, and adjustments for taxes. Non-GAAP net earnings attributable to HPE and non-GAAP diluted net earnings per share attributable to common stockholders includes preferred stock dividends added back to non-GAAP net earnings attributable to HPE. The Adjustments for taxes line item includes certain income tax valuation allowances and separation taxes, the impact of tax reform, structural rate adjustment, excess tax benefit from stock-based compensation, and adjustments for additional taxes or tax benefits associated with each non-GAAP item.

Hewlett Packard Enterprise believes that excluding the items mentioned above from the non-GAAP financial measures provides a supplemental view to management and investors of its consolidated financial performance and presents the financial results of the business without costs that Hewlett Packard Enterprise’s management does not believe to be reflective of ongoing operating results. Exclusion of these items can have a material impact on the equivalent GAAP measure and cash flows thus limiting their use as analytical tools. These limitations are discussed below or elsewhere in the materials accompanying this news release. More specifically, Hewlett Packard Enterprise’s management excludes each of those items mentioned above for the following reasons:

Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to employees, HPE excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses, and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding stock-based compensation expense. HPE incurred costs related to its acquisition, disposition and other charges. Charges include expenses associated with acquisitions, non-cash amortization of fair value adjustment for inventory in connection with the acquisition of Juniper Networks, Inc., exit costs associated with disposal activities, transformation costs (credits), and disaster (recovery) charges. HPE excludes these costs because the Company’s management considers these charges to be discrete events and does not believe they are reflective of normal continuing business operations. For the three and six months ended April 30, 2026 and January 31, 2026, acquisition charges were driven by costs associated with the acquisition of Juniper Networks and miscellaneous disposition related charges. For the three and six months ended April 30, 2025, acquisition charges were driven by costs associated with the pending acquisition of Juniper Networks and miscellaneous disposition related charges. We incurred severance and other charges pursuant to cost management initiatives. We exclude these charges because we do not believe they are reflective of normal continuing business operations. We believe eliminating these adjustments for the purposes of calculating non-GAAP measures facilitates the evaluation of our current operating performance. HPE incurred H3C divestiture related severance costs in connection with the disposition of issued share capital of H3C held by HPE. On September 4, 2024, HPE divested 30% of the total issued share capital of H3C and received proceeds of $2.1 billion of pre-tax consideration ($2.0 billion post-tax). The divestiture resulted in decreased future investment earnings and cash dividend inflows resulting in a decision to implement offsetting cost savings measures. These measures include severance for certain of the Company’s employees. The non-GAAP adjustment represents our costs to execute these related exit actions to offset the loss in equity earnings and related cash flows. HPE expects future annualized cost savings of approximately $120 million following the completion of these actions. HPE incurs charges relating to the amortization of intangible assets and excludes these charges for purposes of calculating these non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of the Company’s acquisitions. HPE excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses and the Company’s internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect HPE’s cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure. In fiscal 2025, HPE recorded non-cash impairment charges for the goodwill associated with its Cloud & AI reporting unit and the impairment of certain fixed assets. HPE believes that these non-cash charges do not reflect the Company’s operating results and is not indicative of the underlying performance of the business. HPE excludes these charges for purposes of calculating these non-GAAP measures to facilitate a supplemental evaluation of the Company’s current operating performance and comparisons to past operating results. Although this does not directly affect the Company’s cash position, the loss in value of goodwill over time can have a material impact on the equivalent GAAP earnings measure. Gain on sale of a business represents the gain associated with certain disposal activities. On December 1, 2024, HPE completed the disposition of the Company’s Communication Technology Group which resulted in a gain of $248 million. The Company’s management considers this divestiture to be a discrete event and believes eliminating this adjustment for the purposes of calculating non-GAAP measures facilitates the evaluation of its current operating performance. As of April 30, 2026, HPE possessed a 19% equity interest in H3C, however, the Company entered into share purchase agreements to divest all of the remaining issued share capital of H3C held by HPE through its subsidiaries. Beginning in fiscal 2026, the Company stopped reporting H3C earnings in its non-GAAP results due to the planned divestiture of the H3C investment. In May 2026, the Company sold the remaining equity interest in H3C. The Company believes that eliminating these amounts for purposes of calculating non-GAAP financial measures facilitates the evaluation of its current operating performance. HPE excludes gains and losses (including impairments) on its non-marketable equity investments because the Company does not believe they are reflective of normal continuing business operations. These adjustments are reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings. The Company believes eliminating these adjustments for the purposes of calculating non-GAAP measures facilitates the evaluation of its current operating performance. Hewlett Packard Enterprise utilizes a structural long-term projected non-GAAP income tax rate in order to provide consistency across the interim reporting periods and to eliminate the effects of items not directly related to the Company’s operating structure that can vary in size, frequency and timing. When projecting this long-term rate, HPE evaluated a three-year financial projection. The projected rate assumes no incremental acquisitions in the three-year projection period and considers other factors including the Company’s expected tax structure, its tax positions in various jurisdictions and current impacts from key legislation implemented in major jurisdictions where HPE operates. For fiscal 2026, HPE will use a projected non-GAAP income tax rate of 14%, which reflects currently available information as well as other factors and assumptions. For fiscal 2025, HPE used a projected non-GAAP income tax rate of 15%. The non-GAAP income tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the Company’s geographic earnings mix including due to acquisition activity, or other changes to the Company’s strategy or business operations. HPE will re-evaluate its long-term rate as appropriate. HPE believes that making these adjustments for purposes of calculating non-GAAP measures, facilitates a supplemental evaluation of the Company’s current operating performance and comparisons to past operating results. FCF is defined as cash flow from operations, less net capital expenditures (investments in property, plant & equipment (“PP&E”) and software assets less proceeds from the sale of PP&E), and adjusted for the effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash. FCF does not represent the total increase or decrease in cash for the period. Hewlett Packard Enterprise’s management and investors can use FCF for the purpose of determining the amount of cash available for investment in the Company’s businesses, repurchasing stock and other purposes as well as evaluating its historical and prospective liquidity. Compensation for material limitations with use of non-GAAP financial measures

These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hewlett Packard Enterprise’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are that they can have a material impact on the equivalent GAAP earnings measures and cash flows, they may be calculated differently by other companies (limiting the usefulness of those measures for comparative purposes) and may not reflect the full economic effect of the loss in value of certain assets. Hewlett Packard Enterprise compensates for these limitations on the use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Hewlett Packard Enterprise also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure for this quarter and prior periods within this news release and in other written materials that include these non-GAAP financial measures, and Hewlett Packard Enterprise encourages investors to review those reconciliations carefully.

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