Hewlett Packard Enterprise Company NYSE:HPE Price, Chart, News & Insight

HPE Shares Fall 7% Despite Record Revenue and Raised Guidance

Hewlett Packard Enterprise (NYSE: HPE) shares dropped 7% Wednesday even after the company reported record fiscal third-quarter results and raised its outlook for both fiscal 2026 and fiscal 2027, a reaction that suggests investors found something to worry about beneath the headline numbers.

Record Quarter by the Numbers

HPE posted revenue of $12.2 billion for the quarter ended July 31, up 34% year-over-year. Profitability improved sharply alongside the growth: GAAP operating profit margin rose 870 basis points to 11.4%, while non-GAAP operating margin climbed 770 basis points to 16.2%. Diluted GAAP EPS of $1.06 and non-GAAP EPS of $1.11 both came in above the company's prior guidance ranges.

Free cash flow reached $1.0 billion for the quarter, up $200 million from a year earlier, and the company returned $324 million to shareholders through dividends and buybacks.

Networking and AI Server Demand Led Growth

The Networking segment was a standout, with revenue up 74.9% to $2.9 billion. Within that segment, Routing revenue surged 270% and Data Center Networking revenue more than doubled, up 112.2%. The Cloud & AI segment, HPE's largest, grew 25.4% to $9.0 billion, with Server revenue — likely reflecting AI infrastructure demand — up 35.3% to $6.8 billion. Notably, Cloud & AI operating margin more than doubled year-over-year, from 7.0% to 17.0%.

Guidance Raised Across the Board

CEO Antonio Neri pointed to AI as a multi-year growth driver for the company, while CFO Marie Myers highlighted a record order backlog as the basis for raising guidance and committing to return at least 75% of free cash flow to shareholders in the fourth quarter.

HPE lifted its full-year fiscal 2026 revenue growth outlook to a range of 34% to 37%, raised non-GAAP EPS guidance to $3.75–$3.85, and increased its free cash flow target to at least $3.75 billion. Looking further out, the company also raised its fiscal 2027 framework, now guiding for 13% to 17% revenue growth and 16% to 20% non-GAAP EPS growth.

Why the Stock Fell

Despite the across-the-board beat and raise, shares sold off sharply. The fourth-quarter revenue guidance range of $13.9 billion to $14.8 billion — while representing continued strong growth — is unusually wide, which can sometimes signal reduced visibility even amid strong demand. It's also possible the stock had already priced in much of this good news heading into the print, leaving little room for anything short of a flawless quarter, or that investors are scrutinizing margin durability in the Cloud & AI segment given how server-heavy the growth has been. The precise driver of today's move is difficult to pin down — but it stands in contrast to the fundamentals in the report itself.

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European Investor 09-03-26

HPE Stock Rises 5% After Morgan Stanley Upgrades Shares to Overweight

Hewlett Packard Enterprise (NYSE: HPE) shares rose about 5% Monday after Morgan Stanley upgraded the enterprise technology company, providing a fresh catalyst for the stock.

Morgan Stanley analyst Meta Marshall upgraded HPE to Overweight from Equal Weight. The firm slightly lowered its price target to $69 from $71, but the new target remains well above HPE's recent share price of $55.44.

At $69, Morgan Stanley's target implies approximately 24% upside from the stock's current level.

Morgan Stanley Turns More Bullish on HPE

The upgrade is notable because it comes despite the modest reduction in Morgan Stanley's price target. Moving HPE to Overweight indicates that the firm sees the stock's risk-reward profile as increasingly attractive at current levels.

HPE has also gained greater investor attention through its exposure to AI infrastructure, enterprise servers, networking and data-center spending. These areas remain important as companies continue investing in the computing and networking capacity required for artificial intelligence workloads.

The analyst action may also reinforce the broader investment case around HPE's participation in AI-related infrastructure spending.

Investors will now be watching whether improving demand for AI systems, networking and enterprise infrastructure can translate into stronger revenue and earnings growth and support Morgan Stanley's more bullish stance.

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European Investor 08-10-26

HPE Surges 25% in Premarket as Record Results, AI Demand and Strong Guidance Ignite Rally

Shares of Hewlett Packard Enterprise (NYSE: HPE) jumped approximately 25% in premarket trading after the company delivered a blockbuster fiscal second-quarter report that significantly exceeded Wall Street expectations and reinforced investor confidence in the ongoing AI infrastructure spending boom.

The technology company reported record quarterly revenue of $10.7 billion, representing a remarkable 40% year-over-year increase. Profitability also surged, with non-GAAP earnings per share reaching $0.79, far above the company's guidance range of $0.51 to $0.55 and more than doubling from the prior year. Free cash flow reached $900 million, marking the strongest second-quarter cash generation in HPE's history. Source: HPE Q2 FY2026 Earnings Release.

Investors were particularly encouraged by the strength of HPE's AI-related businesses. The company's Cloud & AI segment generated $7.7 billion in revenue, up nearly 23% year over year, while server revenue surged 33% as enterprises continued investing heavily in AI infrastructure and data center expansion. Management highlighted strong customer demand for both infrastructure modernization and AI deployments across industries. Source: HPE Q2 FY2026 Earnings Release.

Networking was another standout performer. Segment revenue skyrocketed 148% year over year to $2.7 billion, reflecting the benefits of the Juniper Networks acquisition and accelerating demand for networking solutions supporting AI workloads. Data Center Networking revenue more than tripled, while Security revenue jumped 155%. Routing revenue reached $775 million, compared with virtually no contribution in the year-ago quarter. Source: HPE Q2 FY2026 Earnings Release.

The strong results prompted management to raise its full-year outlook. HPE now expects fiscal 2026 revenue growth of 29% to 33%, substantially above previous expectations. The company also increased its earnings guidance, forecasting non-GAAP EPS between $3.35 and $3.45 while raising free cash flow expectations to at least $3.5 billion. Notably, management stated that these updated targets already exceed the financial objectives it had originally projected for fiscal 2028, effectively putting the company roughly two years ahead of its long-term plan. Source: HPE Q2 FY2026 Earnings Release.

Looking ahead, HPE introduced an optimistic fiscal 2027 framework that calls for revenue growth of 8% to 12%, EPS growth of 12% to 16%, and free cash flow of at least $4.5 billion. The company also completed the sale of its remaining stake in H3C Technologies, receiving approximately $1.36 billion in cash proceeds and further strengthening its balance sheet. Source: HPE Q2 FY2026 Earnings Release.

The report reinforces a broader theme that has been driving technology stocks higher throughout 2026: enterprises remain willing to spend aggressively on AI infrastructure, networking equipment, and data center upgrades. With record revenue, expanding margins, accelerating cash generation, and a significantly improved outlook, investors appear to be revaluing HPE as one of the major beneficiaries of the global AI infrastructure buildout.

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Global Finance News 06-02-26

Hewlett Packard Enterprise reported strong fiscal first-quarter 2026 results, driven by robust networking performance and improved profitability in its Cloud & AI segment.

Revenue rose 18% year-over-year to $9.3 billion, while non-GAAP earnings per share increased to $0.65, exceeding company guidance. Operating cash flow reached $1.2 billion, with free cash flow of $0.7 billion.

The networking business was a key growth driver, with revenue surging over 150%, supported by strong demand across data center networking, security, and routing. HPE also raised its full-year outlook, expecting revenue growth of 17%–22% and improved profitability, reflecting confidence in continued demand and operational execution.
Business wire

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European Investor 04-11-26

HP launches AI-powered printers with quantum-resistant security for hybrid work

March 24, 2026 — HP unveiled a new generation of LaserJet printers featuring artificial intelligence tools and quantum-resistant security, targeting businesses adapting to hybrid work and increasing cybersecurity risks.

The new portfolio includes the LaserJet Pro 4000/4100 Series for small and medium-sized businesses and the Enterprise 5000/6000 Series for larger organizations. The devices offer faster printing and scanning speeds, with document processing times reduced by up to 50% through AI-powered automation.

HP said the printers integrate advanced security features, including quantum-resistant cryptography and HP Wolf Enterprise Security, aimed at protecting against future cyber threats. The systems also support automated workflows such as document formatting, naming, and sensitive data redaction.

The company highlighted growing demand for digitization and simplified print management, positioning the new lineup as a bridge between paper-based and digital workflows.
Globe Newswire

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WS Investor 03-25-26

HP Inc. posts higher revenue in fiscal Q1 2026, returns $0.6 billion to shareholders

HP reported fiscal 2026 first-quarter net revenue of $14.4 billion, up 6.9% year over year. GAAP diluted earnings per share were $0.58, down 1.7% from the prior-year period, while non-GAAP diluted EPS rose 9.5% to $0.81.

The company generated $383 million in operating cash flow and $175 million in free cash flow during the quarter. HP returned approximately $0.6 billion to shareholders through share repurchases and dividends, reflecting continued capital return initiatives.

Source: Globe Newswire

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The Investor 02-25-26

HP Inc. will present a live audio webcast of a conference call to review financial results for the first fiscal quarter ended January 31, 2026 on Tuesday, Feb 24, 2026 at 5:00 p.m. ET / 2:00 p.m. PT.

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WS Investor 02-03-26

AMD announced an expanded collaboration with Hewlett Packard Enterprise to advance open, rack-scale AI infrastructure using AMD’s new “Helios” architecture. HPE will be one of the first OEMs to adopt Helios, an open, full-stack AI platform that integrates AMD EPYC CPUs, AMD Instinct GPUs, Pensando networking, and the ROCm software ecosystem. The system is designed to simplify deployment of large AI clusters with high-bandwidth, low-latency Ethernet connectivity.

HPE will incorporate purpose-built HPE Juniper Networking switches, developed with Broadcom, to support Ultra Accelerator Link over Ethernet, providing optimized networking for large-scale AI workloads. HPE plans to offer the Helios rack-scale platform globally beginning in 2026.

The companies also announced that HLRS in Germany will deploy “Herder,” a new HPE Cray GX5000 supercomputer powered by AMD Instinct MI430X GPUs and next-generation AMD EPYC “Venice” processors. Scheduled for delivery in late 2027, Herder will support HPC, AI, and hybrid workflows for European scientific and industrial research.

AMD and HPE emphasized that their long-standing partnership continues to drive advances in high-performance computing, open standards, and scalable AI infrastructure.

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European Investor 12-02-25

Hewlett Packard Enterprise (NYSE: HPE) reported that its wholly owned subsidiary H3C Holdings has entered into agreements to sell a combined 9 percent stake in H3C Technologies to three China-based counterparties for approximately 643 million dollars in cash. The sale agreements, dated November 28, 2025, require regulatory and shareholder approvals in China, compliance with covenants, and the absence of legal barriers before closing. The deadline for meeting conditions is 180 days, with a possible 30-day extension. If conditions are not met, either party may terminate its agreement. HPE noted that the transactions follow earlier arrangements from 2024 and will shift H3C Holdings’ stake in H3C while retaining other commercial relationships. The company cautioned that timing, approvals, and potential delays could affect completion and proceeds.

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Global Finance News 12-01-25

HPE to Sell 10 Percent Stake in H3C for 714 Million Dollars

Hewlett Packard Enterprise announced agreements to sell a combined 10 percent stake in H3C Technologies to five China-based entities for approximately 714 million dollars. The transactions require regulatory and internal approvals in China and include conditions typical for cross-border share transfers. A side letter with Unisplendour waives its right of first offer, enabling the sales to proceed. HPE intends to fully divest its remaining 9 percent stake in H3C through future option exercises or direct sales.

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The Investor 11-17-25

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