Hewlett Packard Enterprise (HPE)
Market Price (9/8/2026): $51.46 | Market Cap: $68.8 BilSector: Information Technology | Industry: Technology Hardware, Storage & Peripherals
Hewlett Packard Enterprise (HPE)
Market Price (9/8/2026): $51.46Market Cap: $68.8 BilSector: Information TechnologyIndustry: Technology Hardware, Storage & Peripherals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.1%, FCF Yield is 6.0% Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 27% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, CFO LTM is 6.7 Bil, FCF LTM is 4.2 Bil Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and 5G & Advanced Connectivity. Themes include Data Centers & Infrastructure, Show more. | Stock price has recently run up significantly6M Rtn6 month market price return is 141%, 12M Rtn12 month market price return is 126% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 102% Key risksHPE key risks include [1] significant execution risk tied to its strategic transformation and the complex $14B Juniper acquisition, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.1%, FCF Yield is 6.0% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 27% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, CFO LTM is 6.7 Bil, FCF LTM is 4.2 Bil |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and 5G & Advanced Connectivity. Themes include Data Centers & Infrastructure, Show more. |
| Stock price has recently run up significantly6M Rtn6 month market price return is 141%, 12M Rtn12 month market price return is 126% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 102% |
| Key risksHPE key risks include [1] significant execution risk tied to its strategic transformation and the complex $14B Juniper acquisition, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Hewlett Packard Enterprise (HPE) stock has gained about 20% since 5/31/2026 because of the following key factors:
1. Exceptional Fiscal Q3 2026 Performance and Robust Outlook. Hewlett Packard Enterprise reported strong financial results for its fiscal Q3 2026, which ended July 31, 2026, significantly surpassing analyst expectations. The company announced adjusted earnings per share (EPS) of $1.11, beating the consensus estimate of $0.93, and revenue of $12.21 billion, exceeding the $11.97 billion consensus. This revenue marked a 33.7% increase year-over-year. Following these strong results, HPE raised its fiscal 2026 adjusted EPS guidance to a range of $3.75-$3.85 and its revenue growth outlook to 34%-37%, also providing optimistic forecasts for fiscal 2027.
2. Surging Demand for AI Infrastructure. A core driver of HPE's performance and positive stock trend was the escalating demand for its Artificial Intelligence (AI) infrastructure offerings. CEO Antonio Neri identified AI as a "multi-year growth driver" for the company. The Cloud & AI segment demonstrated this trend, with server revenue increasing by 35.3% year-over-year in fiscal Q3 2026. Further underscoring this demand, HPE secured a $3.5 billion deal with a major cloud-computing company to supply servers for AI model operations shortly after the quarter closed.
Show more
Hewlett Packard Enterprise (HPE) stock has gained about 20% since 5/31/2026 because of the following key factors:
1. Exceptional Fiscal Q3 2026 Performance and Robust Outlook. Hewlett Packard Enterprise reported strong financial results for its fiscal Q3 2026, which ended July 31, 2026, significantly surpassing analyst expectations. The company announced adjusted earnings per share (EPS) of $1.11, beating the consensus estimate of $0.93, and revenue of $12.21 billion, exceeding the $11.97 billion consensus. This revenue marked a 33.7% increase year-over-year. Following these strong results, HPE raised its fiscal 2026 adjusted EPS guidance to a range of $3.75-$3.85 and its revenue growth outlook to 34%-37%, also providing optimistic forecasts for fiscal 2027.
2. Surging Demand for AI Infrastructure. A core driver of HPE's performance and positive stock trend was the escalating demand for its Artificial Intelligence (AI) infrastructure offerings. CEO Antonio Neri identified AI as a "multi-year growth driver" for the company. The Cloud & AI segment demonstrated this trend, with server revenue increasing by 35.3% year-over-year in fiscal Q3 2026. Further underscoring this demand, HPE secured a $3.5 billion deal with a major cloud-computing company to supply servers for AI model operations shortly after the quarter closed.
3. Accelerated Networking Business Performance and Strategic Collaborations. HPE's networking segment delivered exceptional growth, with revenue surging 75% year-over-year in fiscal Q3 2026. This impressive growth was fueled by robust demand for AI data center networking solutions and customer refreshes of existing corporate networking products. The company also expanded its collaboration with Oracle, agreeing to provide Juniper networking services across Oracle's AI data centers, further solidifying its market position.
4. Positive Analyst Sentiment and Upgraded Price Targets. The period saw a wave of positive sentiment from financial analysts, leading to several rating upgrades and substantial revisions to price targets. For example, in June 2026, JPMorgan Chase & Co. increased its price target for HPE from $37.00 to $68.00, assigning an "overweight" rating. Similarly, Truist Financial raised its price target from $31.00 to $69.00. These revisions reflected growing confidence in HPE's strategic transformation into a prominent hybrid-cloud and AI-infrastructure provider.
5. Significant Insider Selling Amidst Price Appreciation. Despite the overall positive trend, Hewlett Packard Enterprise experienced significant insider selling totaling approximately $9.96 million over the past ninety days. This insider divestment, which involved key executives, occurred as the stock price increased, suggesting some leadership capitalized on the market's positive performance during this period, potentially contributing to short-term fluctuations or moderating the extent of the overall gain.
Show less
Stock Movement Drivers
Fundamental Drivers
The 21.2% change in HPE stock from 5/31/2026 to 9/7/2026 was primarily driven by a 17.1% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 5312026 | 9072026 | Change |
|---|---|---|---|
| Stock Price ($) | 42.91 | 52.00 | 21.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 35,743 | 41,871 | 17.1% |
| P/S Multiple | 1.6 | 1.7 | 3.6% |
| Shares Outstanding (Mil) | 1,334 | 1,336 | -0.1% |
| Cumulative Contribution | 21.2% |
Market Drivers
5/31/2026 to 9/7/2026| Return | Correlation | |
|---|---|---|
| HPE | 21.2% | |
| Market (SPY) | 1.8% | 48.5% |
| Sector (XLK) | -2.0% | 58.4% |
Fundamental Drivers
The 144.5% change in HPE stock from 2/28/2026 to 9/7/2026 was primarily driven by a 3910.7% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 9072026 | Change |
|---|---|---|---|
| Stock Price ($) | 21.27 | 52.00 | 144.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 34,296 | 41,871 | 22.1% |
| Net Income Margin (%) | 0.2% | 6.7% | 3910.7% |
| P/E Multiple | 497.4 | 24.9 | -95.0% |
| Shares Outstanding (Mil) | 1,333 | 1,336 | -0.2% |
| Cumulative Contribution | 144.5% |
Market Drivers
2/28/2026 to 9/7/2026| Return | Correlation | |
|---|---|---|
| HPE | 144.5% | |
| Market (SPY) | 12.6% | 44.1% |
| Sector (XLK) | 35.1% | 57.1% |
Fundamental Drivers
The 135.2% change in HPE stock from 8/31/2025 to 9/7/2026 was primarily driven by a 45.0% change in the company's Net Income Margin (%).| (LTM values as of) | 8312025 | 9072026 | Change |
|---|---|---|---|
| Stock Price ($) | 22.11 | 52.00 | 135.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 31,649 | 41,871 | 32.3% |
| Net Income Margin (%) | 4.6% | 6.7% | 45.0% |
| P/E Multiple | 20.1 | 24.9 | 23.9% |
| Shares Outstanding (Mil) | 1,322 | 1,336 | -1.0% |
| Cumulative Contribution | 135.2% |
Market Drivers
8/31/2025 to 9/7/2026| Return | Correlation | |
|---|---|---|
| HPE | 135.2% | |
| Market (SPY) | 20.4% | 48.3% |
| Sector (XLK) | 43.3% | 55.7% |
Fundamental Drivers
The 230.7% change in HPE stock from 8/31/2023 to 9/7/2026 was primarily driven by a 92.7% change in the company's Net Income Margin (%).| (LTM values as of) | 8312023 | 9072026 | Change |
|---|---|---|---|
| Stock Price ($) | 15.72 | 52.00 | 230.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 29,604 | 41,871 | 41.4% |
| Net Income Margin (%) | 3.5% | 6.7% | 92.7% |
| P/E Multiple | 20.0 | 24.9 | 24.3% |
| Shares Outstanding (Mil) | 1,304 | 1,336 | -2.4% |
| Cumulative Contribution | 230.7% |
Market Drivers
8/31/2023 to 9/7/2026| Return | Correlation | |
|---|---|---|
| HPE | 230.7% | |
| Market (SPY) | 77.1% | 54.2% |
| Sector (XLK) | 117.2% | 57.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HPE Return | 37% | 4% | 10% | 29% | 16% | 129% | 438% |
| Peers Return | 39% | 3% | 85% | 31% | 15% | 89% | 650% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| HPE Win Rate | 58% | 50% | 67% | 50% | 58% | 78% | |
| Peers Win Rate | 68% | 40% | 60% | 62% | 53% | 62% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| HPE Max Drawdown | -20% | -31% | -19% | -26% | -48% | -26% | |
| Peers Max Drawdown | -14% | -33% | -19% | -36% | -34% | -29% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: DELL, IBM, CSCO, SMCI, NTAP. See HPE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/4/2026 (YTD)
How Low Can It Go
| Event | HPE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -42.3% | -18.8% |
| % Gain to Breakeven | 73.3% | 23.1% |
| Time to Breakeven | 127 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -21.7% | -7.8% |
| % Gain to Breakeven | 27.7% | 8.5% |
| Time to Breakeven | 91 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -13.4% | -9.5% |
| % Gain to Breakeven | 15.4% | 10.5% |
| Time to Breakeven | 74 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -16.6% | -6.7% |
| % Gain to Breakeven | 19.9% | 7.1% |
| Time to Breakeven | 33 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -23.9% | -24.5% |
| % Gain to Breakeven | 31.5% | 32.4% |
| Time to Breakeven | 49 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -45.3% | -33.7% |
| % Gain to Breakeven | 82.8% | 50.9% |
| Time to Breakeven | 324 days | 140 days |
In The Past
Hewlett Packard Enterprise's stock fell -42.3% during the 2025 US Tariff Shock. Such a loss loss requires a 73.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | HPE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -42.3% | -18.8% |
| % Gain to Breakeven | 73.3% | 23.1% |
| Time to Breakeven | 127 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -21.7% | -7.8% |
| % Gain to Breakeven | 27.7% | 8.5% |
| Time to Breakeven | 91 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -23.9% | -24.5% |
| % Gain to Breakeven | 31.5% | 32.4% |
| Time to Breakeven | 49 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -45.3% | -33.7% |
| % Gain to Breakeven | 82.8% | 50.9% |
| Time to Breakeven | 324 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -26.2% | -19.2% |
| % Gain to Breakeven | 35.5% | 23.8% |
| Time to Breakeven | 63 days | 105 days |
In The Past
Hewlett Packard Enterprise's stock fell -42.3% during the 2025 US Tariff Shock. Such a loss loss requires a 73.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Hewlett Packard Enterprise (HPE)
Hewlett Packard Enterprise (HPE) is a global technology company that provides comprehensive solutions to help customers capture, analyze, and act upon data efficiently. HPE focuses on delivering a seamless experience across various IT environments, from traditional data centers to the intelligent edge. The company offers a broad portfolio designed to support modern enterprises in managing their digital infrastructure and leveraging data for business insights.
HPE's core offerings include a wide range of server products, from general-purpose rack and tower servers (HPE ProLiant) to specialized high-performance computing solutions (HPE Apollo, Cray) and mission-critical systems. It also provides robust storage solutions, including disk, tape, and storage networking products like HPE Modular Storage Arrays. A significant part of its portfolio is the HPE Aruba product line, which delivers wired and wireless networking hardware (Wi-Fi access points, switches, routers) alongside associated software for cloud-based management, network access control, and analytics. Additionally, HPE offers professional and support services, as well as flexible IT consumption and financing options to facilitate technology adoption.
HPE primarily serves commercial and large enterprise groups, encompassing both business and public sector organizations globally. Its solutions are distributed across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, including Japan. The company leverages a diverse partner ecosystem, including resellers, distributors, original equipment manufacturers, and system integrators, to reach its extensive customer base and ensure broad market penetration for its integrated hardware, software, and service offerings.
AI Analysis | Feedback
Here are 1-3 brief analogies to describe Hewlett Packard Enterprise (HPE):
- Like Dell Technologies for large enterprise IT infrastructure.
- Imagine Cisco, but also providing the servers and storage that power corporate data centers.
AI Analysis | Feedback
- Servers: Offers general purpose, workload-optimized, and high-performance servers including HPE ProLiant, BladeSystem, Synergy, Apollo, Cray, Superdome Flex, Nonstop, Integrity, and Edgeline products.
- Storage Products: Provides storage networking, disk products like HPE Modular Storage Arrays and HPE XP, and traditional tape solutions.
- Networking Hardware: Delivers wired and wireless local area network hardware, such as Wi-Fi access points, switches, routers, and sensors, under the HPE Aruba portfolio.
- Networking Software & Services: Includes HPE Aruba cloud-based management, network management, access control, analytics and assurance, and location services.
- IT Services: Offers professional and support services, as well as as-a-service and consumption models for intelligent edge solutions.
- Financial & Asset Management Services: Provides leasing, financing, IT consumption, utility programs, and asset management services to facilitate technology acquisition.
- Real-time Analytics Solutions: Develops high-performance and mission-critical solutions with real-time analytics, often through partnerships.
AI Analysis | Feedback
Hewlett Packard Enterprise (HPE) Major Customers
Hewlett Packard Enterprise (HPE) primarily sells its products and solutions to other companies and organizations, rather than individual consumers. The company serves a broad range of enterprise customers across various sectors.
Based on the provided description, HPE's major customer categories include:
- Commercial and Large Enterprise Groups: This encompasses a wide array of businesses, from mid-sized commercial entities to large corporations that require robust IT infrastructure, data solutions, and services.
- Business Enterprises: Specific mention is made of general business enterprises, indicating a focus on organizations across different industries that need to capture, analyze, and act upon data.
- Public Sector Enterprises: HPE also caters to governmental bodies and public institutions, providing them with necessary technology solutions for their operations.
The company also works through various partners, including resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms, to reach these end customers.
AI Analysis | Feedback
Major Suppliers of Hewlett Packard Enterprise (HPE):
- Intel Corporation (INTC)
- Advanced Micro Devices, Inc. (AMD)
- NVIDIA Corporation (NVDA)
- Micron Technology, Inc. (MU)
- Western Digital Corporation (WDC)
- Seagate Technology Holdings plc (STX)
- Broadcom Inc. (AVGO)
- SK Hynix Inc. (000660.KS)
- Samsung Electronics Co., Ltd. (005930.KS)
AI Analysis | Feedback
Antonio Neri, President & Chief Executive Officer
Antonio Neri serves as the President and Chief Executive Officer of Hewlett Packard Enterprise, a position he has held since February 2018, having been President since June 2017. Neri began his career at Hewlett-Packard in 1995 as a customer service engineer and has held numerous leadership positions within the company and its spin-off, HPE, over nearly 30 years. He is credited with spearheading the development and introduction of key innovations such as HPE Apollo, HPE Superdome X, HPE Synergy, HPE Cloudline, and HPE Moonshot. Neri was also responsible for the acquisitions and integrations of several companies, including Aruba Networks, SGI, SimpliVity, Niara, Rasa Networks, Nimble Storage, Cloud Cruiser, and Cloud Technology Partners. He currently serves as a director of Anthem Inc. No information suggests he founded other companies or has a pattern of managing companies backed by private equity firms.
Marie Myers, Executive Vice President & Chief Financial Officer
Marie Myers joined Hewlett Packard Enterprise as Executive Vice President and Chief Financial Officer on January 15, 2024. Prior to this role, she served as the CFO of HP Inc. since 2021, and spent over 20 years in various financial leadership positions at HP and HP Inc. Her previous roles at HP included Chief Transformation Officer and Global Controller. In 2018, Myers took a one-year "detour" to serve as CFO of UiPath, a robotic process automation software company, where she gained experience with AI and RPA. No information suggests she founded or sold other companies to an acquirer, or has a pattern of managing companies backed by private equity firms.
Fidelma Russo, Executive Vice President & General Manager, Hybrid Cloud, and Chief Technology Officer
Fidelma Russo serves as the Executive Vice President & General Manager, Hybrid Cloud, and Chief Technology Officer at Hewlett Packard Enterprise. In this capacity, she is responsible for driving the company's technology strategy and overseeing the development of innovative hybrid cloud solutions. Russo's extensive background includes leadership roles at VMware, Iron Mountain, and Dell EMC, bringing significant expertise in cloud services and enterprise storage to HPE.
Maeve Culloty, Executive Vice President, President & CEO, HPE Financial Services
Maeve Culloty holds the position of Executive Vice President, President & CEO of HPE Financial Services. Before this role, she was Vice President and Chief of Staff to HPE President & CEO Antonio Neri. Her career at HPE Financial Services has encompassed various positions in audit, customer operations, business development, and sales. Prior to joining HPE, Culloty spent more than eight years in leadership roles focusing on audit, controls, and compliance.
John F. Schultz, Executive Vice President, Chief Operating & Legal Officer
John F. Schultz serves as Executive Vice President, Chief Operating & Legal Officer for Hewlett Packard Enterprise. In this role, he is responsible for overseeing the company's legal and operational functions, ensuring organizational efficiency.
AI Analysis | Feedback
Key Risks to Hewlett Packard Enterprise (HPE):
-
Intense Competition and Market Transition: Hewlett Packard Enterprise operates in a highly competitive information technology infrastructure market, facing challenges from both traditional hardware competitors and hyperscale cloud providers. The industry's ongoing shift towards cloud-based and as-a-service consumption models, exemplified by its own HPE GreenLake portfolio, requires continuous adaptation and significant investment. Failure to effectively compete, differentiate its offerings, and rapidly transition customers to these new consumption models could adversely affect its market share, revenue, and profitability.
-
Technological Obsolescence and Rapid Innovation: As a provider of servers, storage, networking, and edge computing solutions, HPE is highly susceptible to rapid technological advancements and evolving customer requirements. The company must continuously innovate and invest in research and development to keep its product portfolio competitive and relevant. A failure to anticipate and respond to emerging technologies, such as advancements in artificial intelligence, real-time analytics, or new computing paradigms, could lead to its offerings becoming outdated and less attractive to enterprise customers, impacting future growth and profitability.
-
Supply Chain Vulnerabilities: Given its significant focus on providing hardware solutions, HPE relies on a complex global supply chain for sourcing components and manufacturing its products. Disruptions to this supply chain, which could stem from geopolitical events, trade restrictions, natural disasters, or shortages of critical components, could lead to increased production costs, delays in product delivery, and an inability to meet customer demand. Such vulnerabilities could negatively impact HPE's operational efficiency, revenue, and customer relationships.
AI Analysis | Feedback
The clear emerging threat for Hewlett Packard Enterprise is the accelerating shift of enterprise IT workloads and infrastructure to public cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. This trend offers customers alternative models for consuming IT as a utility rather than purchasing, owning, and managing the on-premises servers, storage, and networking hardware that form a significant portion of HPE's traditional product portfolio. While HPE offers its GreenLake as-a-service portfolio to address this market shift, the fundamental move away from traditional hardware procurement and towards cloud-based consumption models continues to disrupt the market for enterprise IT infrastructure.
AI Analysis | Feedback
- AI and Supercomputing: The total addressable market in the supercomputing and AI sector is anticipated to nearly double, reaching approximately $150 billion by 2026 globally. This market encompasses large-scale model development, training, and inferencing workloads.
- Hybrid Cloud: HPE expects the hybrid cloud total addressable market, which includes all Storage and Compute as-a-Service (aaS) offerings such as HPE GreenLake Private Cloud and software, to grow to $164 billion by 2026 globally.
- Enterprise Storage Systems: The global enterprise storage systems market was valued at $255.65 billion in 2024 and is projected to reach $384.97 billion by 2032. North America is expected to hold a significant share, capturing 34.9% of the global enterprise data storage market revenue by 2025.
- Intelligent Edge and Networking: While a specific standalone total addressable market figure for Intelligent Edge is not provided, this segment is a critical part of HPE's portfolio and is included within the overall TAM projections. HPE's Intelligent Edge unit, which includes HPE Aruba Networking, is expanding its market presence in campus and branch networking, data center networking, and new security and 5G markets. The networking component of the broader AI systems market alone could grow to $200 billion by 2030, significantly increasing the addressable market for networking solutions.
AI Analysis | Feedback
Expected Drivers of Future Revenue Growth for Hewlett Packard Enterprise (HPE)
Over the next 2-3 years, Hewlett Packard Enterprise (HPE) is anticipated to drive future revenue growth through several strategic initiatives and market trends:-
Artificial Intelligence (AI) Infrastructure: HPE is heavily focused on capturing growth in AI infrastructure, with high-performance computing (HPC) and AI expected to represent over 50% of the company's revenue by fiscal year 2026. The company reported a substantial $5 billion AI backlog in Q1 FY26, predominantly from enterprise and sovereign customers. HPE is leveraging partnerships with key technology providers like NVIDIA, AMD, and Intel to develop and deliver specialized AI solutions and turnkey AI factories, integrating its Cray supercomputing, storage, and GPU technologies to meet the escalating demand for AI-driven workloads.
-
Intelligent Edge and Enhanced Networking Capabilities: The Intelligent Edge segment is a significant growth engine for HPE, aiming to expand its market share in areas such as campus and branch networking, data centers, security, and 5G. The proposed acquisition of Juniper Networks is a critical component of this strategy, expected to significantly boost HPE's networking business and enhance its edge-to-cloud capabilities. The networking segment's revenue is projected to grow between 68% and 73% in fiscal year 2026 and now accounts for approximately 30% of total revenue and over half of total operating profits. This expansion includes a focus on Network-as-a-Service, leveraging AI-driven analytics.
-
HPE GreenLake and As-a-Service Offerings: The HPE GreenLake platform is central to the company's strategy for expanding its as-a-service and hybrid cloud revenue streams, aiming for consistent recurring revenue growth. GreenLake has demonstrated strong momentum with its Annualized Revenue Run-Rate (ARR) surpassing $1.9 billion by FY25, representing a 28% year-over-year increase, and is expected to continue growing by 35% to 45%. The platform offers a public cloud-like experience with the security and control of a private cloud, facilitating the orchestration of AI workloads across multi-cloud environments, thereby attracting enterprise customers seeking scalable, pay-per-use solutions.
-
Growth in Sovereign and Enterprise Customer Segments: HPE is strategically targeting sovereign and large enterprise customers, particularly for its AI and HPC offerings. These customer segments currently represent a significant portion of HPE's AI orders, with enterprise AI orders showing consistent year-over-year growth since early fiscal 2024. The company is actively expanding its presence in various regions, including North America, EMEA, and APAC, to secure sovereign AI and HPC programs, capitalizing on the demand for secure, high-performance, and locally governed AI environments.
AI Analysis | Feedback
Share Repurchases
- Hewlett Packard Enterprise made annual share repurchases of $421 million in 2023, $150 million in 2024, and $202 million in 2025.
- As of October 2025, the Board of Directors authorized an additional $3 billion for share repurchases, bringing the total repurchase authorization to approximately $3.7 billion.
- HPE's long-term strategy includes returning significant free cash flow to shareholders through dividends and buybacks.
Share Issuance
- No significant common share issuances were identified in the available information for the last 3-5 years.
Inbound Investments
- Elliott Investment Management acquired a substantial stake in HPE, valued at over $1.5 billion, in April 2025, representing approximately 7.5% of the company.
- This investment led to Elliott gaining a board seat and direct access to HPE's strategic decisions.
Outbound Investments
- Hewlett Packard Enterprise completed the acquisition of Juniper Networks for $13.4 billion in December 2025, a deal initially announced in January 2024 for $14 billion. This acquisition is aimed at creating a new networking industry leader and boosting AI networking capabilities.
- The company acquired Zerto for $374 million in July 2021.
- Other acquisitions include Morpheus Data (August 2024) and OpsRamp (March 2023), with undisclosed amounts.
Capital Expenditures
- HPE's capital expenditures were $2.502 billion in 2021, $3.122 billion in 2022, $2.828 billion in 2023, $2.367 billion in 2024, and $2.292 billion in 2025. The average capital expenditures for fiscal years 2021 to 2025 was $2.622 billion.
- For fiscal year 2026, expected capital expenditures are around $2.351 billion.
- Capital expenditures prioritize software-driven hybrid cloud, edge compute, and sustainability-driven hardware optimizations, and are primarily for investments in property, plant & equipment and software assets.
Peer Outperformance in Technology Hardware, Storage & Peripherals
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| HPE | Hewlett Packard Enterprise | 12.8% | 24.9x | 125.7% | 224.0% | 311.9% | — |
| DELL | Dell Technologies | 12.9% | 40.5x | 325.2% | 680.1% | 1107.1% | +795pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 56.1% | 191.0% | 287.9% | TTMI 816% · FLEX 712% · SANM 409% |
| Semiconductor Materials & Equipment | 27 | 130.8% | 74.9% | 101.8% | AEHR 867% · AXTI 567% · KLAC 479% |
| Technology Distributors | 9 | 30.2% | 70.9% | 87.8% | CLMB 352% · AVT 169% · SNX 127% |
| Communications Equipment | 36 | 19.3% | 75.0% | 71.3% | AAOI 1256% · LITE 899% · ANET 762% |
| Electronic Components | 26 | 49.9% | 60.1% | 64.4% | CLS 3348% · BELFA 1289% · COHR 364% |
| Semiconductors | 55 | 21.1% | 26.4% | 19.8% | POET 1845% · MU 1343% · NVDA 935% |
| Technology Hardware, Storage & Peripherals ← | 21 | 37.2% | 82.0% | 19.2% | DELL 1107% · STX 1069% · SMCI 990% |
| Internet Services & Infrastructure | 6 | 19.8% | 39.9% | 16.4% | DOCN 66% · GDDY 35% · VRSN 34% |
| Electronic Equipment & Instruments | 27 | -7.3% | 11.5% | -7.0% | PI 210% · OSIS 112% · NSSC 102% |
| IT Consulting & Other Services | 28 | -23.8% | -12.1% | -28.5% | CHRN 533058% · APLD 1245% · TSSI 665% |
| Application Software | 123 | -23.9% | -13.6% | -44.9% | VIDA 181718% · INLX 4861% · PLTR 582% |
| Systems Software | 67 | -5.4% | 4.0% | -56.1% | PAYS 470% · QNC 470% · ZETA 350% |
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 147.40 |
| Mkt Cap | 145.3 |
| Rev LTM | 52,598 |
| Op Inc LTM | 7,066 |
| FCF LTM | 6,799 |
| FCF 3Y Avg | 4,247 |
| CFO LTM | 9,582 |
| CFO 3Y Avg | 6,836 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 19.4% |
| Rev Chg 3Y Avg | 9.5% |
| Rev Chg Q | 31.8% |
| QoQ Delta Rev Chg LTM | 7.3% |
| Op Inc Chg LTM | 47.7% |
| Op Inc Chg 3Y Avg | 17.4% |
| Op Mgn LTM | 13.2% |
| Op Mgn 3Y Avg | 12.1% |
| QoQ Delta Op Mgn LTM | 1.6% |
| CFO/Rev LTM | 18.8% |
| CFO/Rev 3Y Avg | 17.6% |
| FCF/Rev LTM | 14.5% |
| FCF/Rev 3Y Avg | 12.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 145.3 |
| P/S | 2.9 |
| P/Op Inc | 20.0 |
| P/EBIT | 20.0 |
| P/E | 25.3 |
| P/CFO | 17.0 |
| Total Yield | 5.1% |
| Dividend Yield | 1.1% |
| FCF Yield 3Y Avg | 5.0% |
| D/E | 0.2 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -1.2% |
| 3M Rtn | -2.7% |
| 6M Rtn | 65.3% |
| 12M Rtn | 62.8% |
| 3Y Rtn | 128.7% |
| 1M Excs Rtn | 0.2% |
| 3M Excs Rtn | -4.0% |
| 6M Excs Rtn | 48.1% |
| 12M Excs Rtn | 42.7% |
| 3Y Excs Rtn | 61.8% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Server | 17,745 | 16,104 | 14,266 | 15,137 | 12,158 |
| Networking | 6,850 | 4,532 | 5,379 | 3,849 | 3,292 |
| Hybrid Cloud | 5,754 | 5,487 | 5,588 | 5,173 | 3,037 |
| Financial Services | 3,504 | 3,512 | 3,480 | 3,326 | 3,388 |
| Corporate Investments and Other | 776 | 1,014 | 985 | 1,011 | 1,356 |
| Intersegment net revenue | -333 | -522 | -563 | ||
| Storage | 4,553 | ||||
| Total | 34,296 | 30,127 | 29,135 | 28,496 | 27,784 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Networking | 1,596 | 1,115 | 1,343 | 542 | 509 |
| Server | 1,343 | 1,804 | 1,815 | 1,958 | 1,382 |
| Financial Services | 361 | 316 | 281 | 387 | 390 |
| Hybrid Cloud | 335 | 259 | 247 | 468 | 231 |
| Transformation costs | -2 | -93 | -283 | -473 | -930 |
| Corporate Investments and Other | -32 | -25 | -77 | -26 | -95 |
| H3C Technologies Co, Limited (H3C) divestiture related severance costs | -97 | ||||
| Unallocated corporate costs and eliminations | -250 | -301 | -464 | -303 | -285 |
| Cost reduction program | -275 | ||||
| Amortization of intangible assets | -511 | -267 | -288 | -293 | -354 |
| Acquisition, disposition and other charges | -641 | -188 | -57 | -19 | -36 |
| Stock-based compensation expense | -643 | -430 | -428 | -391 | -372 |
| Impairment charges | -1,621 | -905 | 0 | ||
| Amortization of initial direct costs | -4 | -8 | |||
| Disaster recoveries (charges) | -159 | -16 | |||
| Divestiture related exit costs | 0 | ||||
| Storage | 716 | ||||
| Total | -437 | 2,190 | 2,089 | 782 | 1,132 |
| $ Mil | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Server | 16,120 | 16,872 | 16,208 | 14,962 | |
| Financial Services | 14,539 | 14,837 | 14,951 | 14,765 | 14,717 |
| Storage | 7,195 | 7,506 | 7,097 | 6,438 | |
| Corporate and unallocated assets | 6,759 | 6,217 | 7,073 | 6,129 | 4,717 |
| Hybrid Cloud | 5,787 | 5,986 | 6,726 | 6,245 | |
| Networking | 5,352 | 4,597 | 4,435 | 4,352 | 3,052 |
| Corporate Investments and Other | 1,401 | 1,108 | 1,209 | 1,124 | 451 |
| Hybrid IT | 28,866 | ||||
| Total | 57,153 | 57,123 | 57,699 | 54,015 | 51,803 |
Price Behavior
| Market Price | $52.00 | |
| Market Cap ($ Bil) | 69.4 | |
| First Trading Date | 11/02/2015 | |
| Distance from 52W High | -13.1% | |
| 50 Days | 200 Days | |
| DMA Price | $50.01 | $33.13 |
| DMA Trend | up | up |
| Distance from DMA | 4.0% | 57.0% |
| 3M | 1YR | |
| Volatility | 56.1% | 53.5% |
| Downside Capture | 273.18 | 198.26 |
| Upside Capture | 244.33 | 252.53 |
| Correlation (SPY) | 52.5% | 48.4% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.63 | 2.71 | 2.39 | 1.95 | 1.97 | 1.60 |
| Up Beta | 1.66 | 3.50 | 1.08 | 0.39 | 1.09 | 1.37 |
| Down Beta | 2.86 | 0.75 | 1.90 | 1.74 | 2.25 | 1.73 |
| Up Capture | 338% | 371% | 439% | 616% | 535% | 776% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 10 | 22 | 32 | 68 | 139 | 395 |
| Down Capture | 294% | 222% | 224% | 159% | 145% | 110% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 11 | 20 | 32 | 58 | 111 | 346 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HPE | |
|---|---|---|---|---|
| HPE | 129.9% | 53.3% | 1.74 | - |
| Sector ETF (XLK) | 43.4% | 26.2% | 1.34 | 55.7% |
| Equity (SPY) | 19.7% | 12.8% | 1.13 | 48.3% |
| Gold (GLD) | 24.6% | 29.2% | 0.75 | 14.0% |
| Commodities (DBC) | 43.8% | 20.3% | 1.67 | -1.2% |
| Real Estate (VNQ) | 9.1% | 13.6% | 0.39 | 1.0% |
| Bitcoin (BTCUSD) | -28.1% | 43.8% | -0.63 | 18.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HPE | |
|---|---|---|---|---|
| HPE | 31.2% | 40.5% | 0.78 | - |
| Sector ETF (XLK) | 19.7% | 25.9% | 0.68 | 56.1% |
| Equity (SPY) | 12.8% | 17.2% | 0.57 | 55.1% |
| Gold (GLD) | 19.1% | 18.8% | 0.82 | 8.9% |
| Commodities (DBC) | 10.7% | 19.5% | 0.43 | 14.5% |
| Real Estate (VNQ) | 1.7% | 18.9% | -0.01 | 28.7% |
| Bitcoin (BTCUSD) | 10.2% | 52.6% | 0.38 | 23.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HPE | |
|---|---|---|---|---|
| HPE | 15.4% | 38.4% | 0.49 | - |
| Sector ETF (XLK) | 24.4% | 25.0% | 0.88 | 55.1% |
| Equity (SPY) | 15.3% | 17.9% | 0.72 | 57.9% |
| Gold (GLD) | 12.4% | 16.3% | 0.62 | 4.1% |
| Commodities (DBC) | 7.9% | 18.1% | 0.35 | 21.3% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.19 | 38.7% |
| Bitcoin (BTCUSD) | 63.7% | 66.2% | 1.03 | 16.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 9/8/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 9/2/2026 | 5.0% | ||
| 6/1/2026 | 19.5% | 6.1% | -6.2% |
| 3/9/2026 | -3.3% | 0.2% | 15.3% |
| 12/4/2025 | 1.9% | 7.2% | -1.5% |
| 10/15/2025 | -10.1% | -7.8% | -8.4% |
| 6/3/2025 | 0.8% | 3.7% | 19.1% |
| 3/6/2025 | -12.0% | -17.8% | -28.2% |
| 12/5/2024 | 10.6% | 0.8% | 3.6% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 14 | 14 | 15 |
| # Negative | 10 | 9 | 8 |
| Median Positive | 4.0% | 4.8% | 9.4% |
| Median Negative | -4.2% | -5.1% | -8.6% |
| Max Positive | 19.5% | 19.4% | 19.1% |
| Max Negative | -12.0% | -17.8% | -28.2% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 9/2/2026 | 5.0% | ||
| 6/1/2026 | 19.5% | 6.1% | -6.2% |
| 3/9/2026 | -3.3% | 0.2% | 15.3% |
| 12/4/2025 | 1.9% | 7.2% | -1.5% |
| 10/15/2025 | -10.1% | -7.8% | -8.4% |
| 6/3/2025 | 0.8% | 3.7% | 19.1% |
| 3/6/2025 | -12.0% | -17.8% | -28.2% |
| 12/5/2024 | 10.6% | 0.8% | 3.6% |
| 9/4/2024 | -6.0% | -12.6% | 9.2% |
| 6/4/2024 | 10.7% | 16.8% | 17.5% |
| 2/29/2024 | 2.2% | 19.4% | 18.7% |
| 11/28/2023 | 6.4% | 3.6% | 11.5% |
| 8/7/2023 | 3.0% | 0.3% | 1.1% |
| 5/30/2023 | -7.1% | -1.2% | 8.1% |
| 3/2/2023 | -1.4% | -5.1% | 3.7% |
| 11/29/2022 | 8.5% | 5.2% | 3.7% |
| 8/30/2022 | -0.4% | -2.6% | -10.4% |
| 6/1/2022 | -5.2% | -5.1% | -17.2% |
| 3/1/2022 | 10.3% | 4.4% | 13.0% |
| 11/30/2021 | -1.0% | 7.8% | 11.6% |
| 9/2/2021 | 0.6% | -6.3% | -2.7% |
| 6/1/2021 | -0.1% | -0.6% | -8.7% |
| 3/2/2021 | 0.4% | 3.3% | 9.4% |
| 12/1/2020 | 2.9% | 9.1% | 6.9% |
| SUMMARY STATS | |||
| # Positive | 14 | 14 | 15 |
| # Negative | 10 | 9 | 8 |
| Median Positive | 4.0% | 4.8% | 9.4% |
| Median Negative | -4.2% | -5.1% | -8.6% |
| Max Positive | 19.5% | 19.4% | 19.1% |
| Max Negative | -12.0% | -17.8% | -28.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 09/03/2026 | 10-Q |
| 04/30/2026 | 06/02/2026 | 10-Q |
| 01/31/2026 | 03/10/2026 | 10-Q |
| 10/31/2025 | 12/18/2025 | 10-K |
| 07/31/2025 | 09/04/2025 | 10-Q |
| 04/30/2025 | 06/04/2025 | 10-Q |
| 01/31/2025 | 03/07/2025 | 10-Q |
| 10/31/2024 | 12/19/2024 | 10-K |
| 07/31/2024 | 09/05/2024 | 10-Q |
| 04/30/2024 | 06/05/2024 | 10-Q |
| 01/31/2024 | 03/05/2024 | 10-Q |
| 10/31/2023 | 12/22/2023 | 10-K |
| 07/31/2023 | 09/01/2023 | 10-Q |
| 04/30/2023 | 06/02/2023 | 10-Q |
| 01/31/2023 | 03/07/2023 | 10-Q |
| 10/31/2022 | 12/08/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 09/03/2026 | 10-Q |
| 04/30/2026 | 06/02/2026 | 10-Q |
| 01/31/2026 | 03/10/2026 | 10-Q |
| 10/31/2025 | 12/18/2025 | 10-K |
| 07/31/2025 | 09/04/2025 | 10-Q |
| 04/30/2025 | 06/04/2025 | 10-Q |
| 01/31/2025 | 03/07/2025 | 10-Q |
| 10/31/2024 | 12/19/2024 | 10-K |
| 07/31/2024 | 09/05/2024 | 10-Q |
| 04/30/2024 | 06/05/2024 | 10-Q |
| 01/31/2024 | 03/05/2024 | 10-Q |
| 10/31/2023 | 12/22/2023 | 10-K |
| 07/31/2023 | 09/01/2023 | 10-Q |
| 04/30/2023 | 06/02/2023 | 10-Q |
| 01/31/2023 | 03/07/2023 | 10-Q |
| 10/31/2022 | 12/08/2022 | 10-K |
| 07/31/2022 | 09/01/2022 | 10-Q |
| 04/30/2022 | 06/03/2022 | 10-Q |
| 01/31/2022 | 03/03/2022 | 10-Q |
| 10/31/2021 | 12/10/2021 | 10-K |
| 07/31/2021 | 09/03/2021 | 10-Q |
| 04/30/2021 | 06/03/2021 | 10-Q |
| 01/31/2021 | 03/04/2021 | 10-Q |
| 10/31/2020 | 12/10/2020 | 10-K |
| 07/31/2020 | 09/03/2020 | 10-Q |
| 04/30/2020 | 06/02/2020 | 10-Q |
| 01/31/2020 | 03/09/2020 | 10-Q |
| 10/31/2019 | 12/13/2019 | 10-K |
Recent Forward Guidance
Updated 9/3/2026Latest: Q3 2026 Earnings Reported 9/2/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | Reported | 13.90 Bil | 14.35 Bil | 14.80 Bil | ||||
| Q4 2026 GAAP EPS | Reported | 1.12 | 1.17 | 1.22 | ||||
| Q4 2026 Non-GAAP EPS | Reported | 1.2 | 1.25 | 1.3 | ||||
| 2026 GAAP Operating Profit Growth | Reported | 1070.0% | 1087.5% | 1105.0% | 19.8% | 180.0% | Raised | Guidance: 907.5% for 2026 |
| 2026 Non-GAAP Operating Profit Growth | Reported | 100.0% | 102.5% | 105.0% | 20.0% | Raised | Guidance: 82.5% for 2026 | |
| 2026 Revenue Growth | Reported | 34.0% | 35.5% | 37.0% | 4.5% | Raised | Guidance: 31.0% for 2026 | |
| 2026 Networking Revenue Growth | Reported | 73.0% | 73.5% | 74.0% | 0.0% | Affirmed | Guidance: 73.5% for 2026 | |
| 2026 GAAP EPS | Reported | 2.93 | 2.98 | 3.03 | 20.6% | Raised | Guidance: 2.47 for 2026 | |
| 2026 Non-GAAP EPS | Reported | 3.75 | 3.8 | 3.85 | 11.8% | Raised | Guidance: 3.4 for 2026 | |
| 2026 Free Cash Flow | Reported | 3.75 Bil | 7.1% | Raised | Guidance: 3.50 Bil for 2026 | |||
| 2027 Revenue Growth | Reported | 13.0% | 15.0% | 17.0% | 5.0% | Raised | Guidance: 10.0% for 2027 | |
| 2027 Non-GAAP Operating Margin | Reported | 14.0% | 14.5% | 15.0% | 0.5% | Raised | Guidance: 14.0% for 2027 | |
| 2027 Non-GAAP EPS Growth | Reported | 16.0% | 18.0% | 20.0% | 4.0% | Raised | Guidance: 14.0% for 2027 | |
| 2027 Free Cash Flow | Reported | 5.00 Bil | 11.1% | Raised | Guidance: 4.50 Bil for 2027 | |||
Prior: Q1 2026 Earnings Reported 3/9/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | Reported | 9.60 Bil | 9.80 Bil | 10.00 Bil | ||||
| Q2 2026 GAAP Diluted Net EPS | Reported | 0.09 | 0.11 | 0.13 | ||||
| Q2 2026 Non-GAAP Diluted Net EPS | Reported | 0.51 | 0.53 | 0.55 | ||||
| 2026 GAAP Operating Profit Growth | Reported | 490.0% | 520.0% | 550.0% | 32.5% | Higher New | Guidance: 487.5% for 2026 | |
| 2026 Non-GAAP Operating Profit Growth | Reported | 32.0% | 36.0% | 40.0% | 0.0% | Affirmed | Guidance: 36.0% for 2026 | |
| 2026 Revenue Growth | Reported | 17.0% | 19.5% | 22.0% | 0.0% | Affirmed | Guidance: 19.5% for 2026 | |
| 2026 Networking Revenue Growth | Reported | 68.0% | 70.5% | 73.0% | Raised | |||
| 2026 GAAP Diluted Net EPS | Reported | 1.02 | 1.12 | 1.22 | 55.6% | Raised | Guidance: 0.72 for 2026 | |
| 2026 Non-GAAP Diluted Net EPS | Reported | 2.3 | 2.4 | 2.5 | 2.1% | Higher New | Guidance: 2.35 for 2026 | |
| 2026 Free Cash Flow | Reported | 2.00 Bil | 8.1% | Raised | Guidance: 1.85 Bil for 2026 | |||
Q1 2026 Earnings Reported 3/9/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | Reported | 9.60 Bil | 9.80 Bil | 10.00 Bil | ||||
| Q2 2026 GAAP Diluted Net EPS | Reported | 0.09 | 0.11 | 0.13 | ||||
| Q2 2026 Non-GAAP Diluted Net EPS | Reported | 0.51 | 0.53 | 0.55 | ||||
| 2026 GAAP Operating Profit Growth | Reported | 490.0% | 520.0% | 550.0% | 32.5% | Higher New | Guidance: 487.5% for 2026 | |
| 2026 Non-GAAP Operating Profit Growth | Reported | 32.0% | 36.0% | 40.0% | 0.0% | Affirmed | Guidance: 36.0% for 2026 | |
| 2026 Revenue Growth | Reported | 17.0% | 19.5% | 22.0% | 0.0% | Affirmed | Guidance: 19.5% for 2026 | |
| 2026 Networking Revenue Growth | Reported | 68.0% | 70.5% | 73.0% | Raised | |||
| 2026 GAAP Diluted Net EPS | Reported | 1.02 | 1.12 | 1.22 | 55.6% | Raised | Guidance: 0.72 for 2026 | |
| 2026 Non-GAAP Diluted Net EPS | Reported | 2.3 | 2.4 | 2.5 | 2.1% | Higher New | Guidance: 2.35 for 2026 | |
| 2026 Free Cash Flow | Reported | 2.00 Bil | 8.1% | Raised | Guidance: 1.85 Bil for 2026 | |||
Insider Activity
Updated 7/28/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Karros, Kirt P | SVP, Treasurer, Corp Dev | Direct | Sell | 7222026 | 47.02 | 23,675 | Form | ||
| 2 | Karros, Kirt P | SVP, Treasurer, Corp Dev | Direct | Sell | 6232026 | 48.50 | 18,785 | Form | ||
| 3 | Reiner, Gary M | JPM Chase | Sell | 6042026 | 54.77 | 20,000 | 1,095,384 | 4,542,612 | Form | |
| 4 | Myers, Marie | EVP & CFO | Direct | Sell | 5062026 | 30.01 | 93,583 | 2,808,136 | 6,144,033 | Form |
| 5 | Mayer, Bethany | Direct | Sell | 5052026 | 29.10 | 6,482 | 188,626 | 233,324 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Karros, Kirt P | SVP, Treasurer, Corp Dev | Direct | Sell | 7222026 | 47.02 | 23,675 | Form | ||
| 2 | Karros, Kirt P | SVP, Treasurer, Corp Dev | Direct | Sell | 6232026 | 48.50 | 18,785 | Form | ||
| 3 | Reiner, Gary M | JPM Chase | Sell | 6042026 | 54.77 | 20,000 | 1,095,384 | 4,542,612 | Form | |
| 4 | Myers, Marie | EVP & CFO | Direct | Sell | 5062026 | 30.01 | 93,583 | 2,808,136 | 6,144,033 | Form |
| 5 | Mayer, Bethany | Direct | Sell | 5052026 | 29.10 | 6,482 | 188,626 | 233,324 | Form | |
| 6 | Russo, Fidelma | EVP, GM, Hybrid Cloud & CTO | Direct | Sell | 4212026 | 27.97 | 17,001 | Form | ||
| 7 | MacDonald, Neil B | EVP, GM, Server | Direct | Sell | 4212026 | 27.01 | 24,251 | 654,976 | 870,813 | Form |
| 8 | Neri, Antonio F | President and CEO | Direct | Sell | 4212026 | 26.50 | 150,000 | 3,974,475 | 44,708,313 | Form |
| 9 | Russo, Fidelma | EVP, GM, Hybrid Cloud & CTO | Direct | Sell | 3272026 | 25.08 | 34,001 | 852,746 | 426,386 | Form |
| 10 | Neri, Antonio F | President and CEO | Direct | Sell | 3272026 | 25.18 | 264,432 | 6,658,629 | 46,265,553 | Form |
| 11 | MacDonald, Neil B | EVP, GM, Server | Direct | Sell | 3272026 | 25.09 | 112,652 | 2,826,604 | 1,417,506 | Form |
| 12 | Neri, Antonio F | President and CEO | Direct | Sell | 12302025 | 24.49 | 26,457 | 647,853 | 51,465,822 | Form |
| 13 | Karros, Kirt P | SVP, Treasurer, Corp Dev | Direct | Sell | 12302025 | 24.61 | 36,460 | 897,168 | 462,241 | Form |
| 14 | Cox, Jeremy | SVP, Controller & CTO | Direct | Sell | 12152025 | 24.68 | 13,463 | Form | ||
| 15 | Culloty, Maeve C | EVP, Pres & CEO Financial Serv | Direct | Sell | 12152025 | 24.66 | 35,958 | Form | ||
| 16 | Russo, Fidelma | EVP, GM, Hybrid Cloud & CTO | Direct | Sell | 12152025 | 24.61 | 126,512 | 3,113,258 | 1,255,078 | Form |
| 17 | Schultz, John F | EVP, COLO | Direct | Sell | 12112025 | 24.99 | 148,501 | 3,710,372 | 6,198,690 | Form |
| 18 | Cox, Jeremy | SVP, Controller & CTO | Direct | Sell | 12112025 | 24.75 | 13,442 | 332,690 | 333,209 | Form |
| 19 | Schultz, John F | EVP, COLO | Direct | Sell | 12112025 | 23.70 | 21,007 | 497,927 | 9,400,392 | Form |
| 20 | Cox, Jeremy | SVP, Controller & CTO | Direct | Sell | 12112025 | 23.70 | 50,061 | 1,186,436 | 637,643 | Form |
| 21 | Hobby, Jean M | Direct | Sell | 12102025 | 23.79 | 29,000 | 689,968 | 767,982 | Form | |
| 22 | Schultz, John F | EVP, COLO | Direct | Sell | 12092025 | 23.15 | 84,676 | 1,960,012 | 7,839,620 | Form |
| 23 | Culloty, Maeve C | EVP, Pres & CEO Financial Serv | Direct | Sell | 9252025 | 25.12 | 3,738 | Form | ||
| 24 | Reiner, Gary M | JPM Chase | Sell | 9162025 | 24.58 | 40,000 | 983,048 | 2,061,181 | Form | |
| 25 | Neri, Antonio F | President and CEO | Direct | Sell | 9162025 | 25.03 | 166,666 | 4,172,317 | 39,697,065 | Form |
| 26 | Neri, Antonio F | President and CEO | Direct | Sell | 9052025 | 24.04 | 83,334 | 2,003,333 | 42,127,153 | Form |
| 27 | Neri, Antonio F | President and CEO | Direct | Sell | 8292025 | 23.01 | 83,334 | 1,917,682 | 42,243,727 | Form |
| 28 | Neri, Antonio F | President and CEO | Direct | Sell | 8262025 | 22.52 | 166,666 | 3,753,318 | 43,217,231 | Form |
| 29 | Mottram, Phil | EVP, GM, Intelligent Edge | Direct | Sell | 6302025 | 20.54 | 30,000 | 616,173 | 871,412 | Form |
| 30 | Cox, Jeremy | SVP, Controller & CTO | Direct | Sell | 6302025 | 18.44 | 68,590 | Form |
Investor Activity (13F)
Updated Sep 8, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Slate Path Capital LP | $553.7 Mil | 8.2% | 44 | Hold | 13F |
| Wolf Hill Capital Management, LP | $38.4 Mil | 5.5% | 20 | New | 13F |
| Analog Century Management LP | $86.6 Mil | 4.1% | 25 | ADD +33.8% | 13F |
| Elliott Investment Management L.P. | $652.9 Mil | 4.1% | 19 | ADD +47.2% | 13F |
| Hawk Ridge Capital Management LP | $101.2 Mil | 3.7% | 48 | ADD +53.2% | 13F |
| Portman Square Capital LLP | $18.8 Mil | 2.9% | 44 | TRIM -5.3% | 13F |
| Minneapolis Portfolio Management Group, LLC | $18.3 Mil | 1.9% | 33 | Hold | 13F |
| Irenic Capital Management LP | $18.7 Mil | 1.7% | 42 | New | 13F |
| Benchstone Capital Management LP | $9.1 Mil | 1.1% | 38 | TRIM -30.2% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Wolf Hill Capital Management, LP | $38.4 Mil | 5.5% | 20 | New | 13F |
| Irenic Capital Management LP | $18.7 Mil | 1.7% | 42 | New | 13F |
| Hawk Ridge Capital Management LP | $101.2 Mil | 3.7% | 48 | ADD +53.2% | 13F |
| Elliott Investment Management L.P. | $652.9 Mil | 4.1% | 19 | ADD +47.2% | 13F |
| Analog Century Management LP | $86.6 Mil | 4.1% | 25 | ADD +33.8% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Whale Rock Capital Management LLC | $45.8 Mil | 0.6% | 32 | Exited | Dec 31, 2025 | 13F |
| Angelo Gordon & Co., L.P. | $38.0 Mil | 3.6% | 46 | Exited | Dec 31, 2025 | 13F |
| Benchstone Capital Management LP | $9.1 Mil | 1.1% | 38 | TRIM -30.2% | Mar 31, 2026 | 13F |
| Portman Square Capital LLP | $18.8 Mil | 2.9% | 44 | TRIM -5.3% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Elliott Investment Management L.P. | $652.9 Mil | 4.1% | 19 | ADD +47.2% | 13F |
| Slate Path Capital LP | $553.7 Mil | 8.2% | 44 | Hold | 13F |
| Hawk Ridge Capital Management LP | $101.2 Mil | 3.7% | 48 | ADD +53.2% | 13F |
| Analog Century Management LP | $86.6 Mil | 4.1% | 25 | ADD +33.8% | 13F |
| Wolf Hill Capital Management, LP | $38.4 Mil | 5.5% | 20 | New | 13F |
| Portman Square Capital LLP | $18.8 Mil | 2.9% | 44 | TRIM -5.3% | 13F |
| Irenic Capital Management LP | $18.7 Mil | 1.7% | 42 | New | 13F |
| Minneapolis Portfolio Management Group, LLC | $18.3 Mil | 1.9% | 33 | Hold | 13F |
| Benchstone Capital Management LP | $9.1 Mil | 1.1% | 38 | TRIM -30.2% | 13F |
HPE Trade Sentinel
High Conviction
CONVICTION RATIONALE
HPE's transformation into a networking-centric AI infrastructure provider is gaining significant traction. A record-breaking order backlog and raised financial outlook through fiscal 2027 provide strong visibility into future growth. While supply constraints currently limit revenue conversion, the underlying demand signals a structural improvement in the business's growth and profitability profile.
STOCK ARCHETYPE
Integrated Technology Solutions Provider(Volume of hardware sold x ASP) + (Number of subscribers x Subscription fee) + Service fees Mix shift towards high-margin Networking products and proprietary software/storage solutions, combined with operating leverage from increased scale.
INVESTMENT THESIS
Evidence suggests yes. The acquisition of Juniper Networks has made the high-margin Networking segment the primary profit engine, while AI is driving record demand across the portfolio.
- Total orders grew 42% year-over-year in Q3 FY2026.
- AI Systems backlog increased 14% sequentially to a new high.
- Networking is now over half of total operating profit.
- FY27 revenue growth guidance was raised to 13% to 17%.
- Raised FY26 free cash flow target to at least $3.75 billion.
PRIMARY RISK
HPE's growth, while strong, lags key competitors. Dell's TTM revenue growth was 38.6% versus HPE's 26.6%, and Dell reported a massive $95 billion AI backlog. This suggests HPE is not the primary beneficiary of the AI infrastructure buildout and may be losing share to larger, more focused rivals.
- Peer Dell's TTM revenue growth was 38.6% vs. HPE's 26.6%.
- Peer Super Micro's TTM revenue growth was 77.8%.
- Dell reported a record $95 billion AI backlog.
- Cisco's gross margin is 64.5% vs. HPE's 36.7%.
| KPI | Status | Rationale |
|---|---|---|
| Order Growth | 42% year-over-year growth on a normalized basis in Q3 FY2026 - Accelerating | The trend reflects a massive, sustained surge in demand driven by the AI infrastructure cycle. While the growth rate moderated from Q2's peak, 42% is still an exceptionally high figure, and management reports a record-breaking backlog, indicating that demand continues to outstrip the company's ability to supply. |
| Networking Segment Revenue Growth | 10% year-over-year growth on a normalized basis in Q3 FY2026 - Stable | The 10% revenue growth is supply-constrained, as management noted that order growth for the segment was 36%, or about 3.5 times faster than revenue. This indicates that underlying demand is much stronger than the reported revenue figure suggests, with a growing backlog pointing to future revenue recognition as supply becomes available. |
| AI Systems Orders | $2.4 billion (Q3 FY2026) | Indicates the forward demand for HPE's specialized high-performance computing hardware for AI workloads, a key growth driver. |
| AI Systems Backlog | Increased 14% sequentially to a new high (Q3 FY2026) | Represents the value of booked but unfulfilled AI system orders, providing visibility into future revenue for this high-growth area. A growing backlog signifies demand is outpacing supply. |
| Networks for AI Cumulative Orders Target | Raised to $2.5 billion to $3 billion (FY2026) | Measures the success of the company's strategy to sell high-performance networking gear (data center switching and routing) specifically for AI infrastructure build-outs. |
Strategic Pivot vs. Competitive Scale
BULL VIEW
The Juniper acquisition and AI focus are successfully creating a higher-margin, faster-growing business, evidenced by record orders and a raised multi-year outlook that the market is rewarding.
CORE TENSION
Can HPE's networking-centric strategy drive a re-rating despite Dell's massive $95 billion AI backlog and faster peer growth?
PREVAILING SENTIMENT
The latest evidence, including a record backlog and raised multi-year guidance through FY27, suggests the company's strategic transformation is currently succeeding despite the competitive landscape.
BEAR VIEW
Larger competitors like Dell are capturing a much greater share of the AI boom, evidenced by its $95 billion AI backlog, potentially limiting HPE's long-term growth and market position.
| Timeline | Event & Metric To Watch |
|---|---|
in 2026 | Lynch Estate Appeal Ruling Watch: A ruling is expected from the Court of Appeal regarding the Lynch Estate's request to appeal liability and damages judgments. |
September 30, 2026 | Networking Investor Day Watch: The company will host its Networking Investor Day in Sunnyvale, California, with presentations from the Networking business leadership. |
10/21/2026 | IBM Earnings Report Watch: Peer International Business Machines (IBM) is scheduled to report its quarterly earnings. |
at the end of Q4 | Full FY27 Guidance Watch: The company will provide a full guidance update for fiscal year 2027. |
11/2/2026 | SMCI Earnings Report Watch: Peer Super Micro Computer (SMCI) is scheduled to report its quarterly earnings. |
11/10/2026 | Cisco Earnings Report Watch: Peer Cisco Systems (CSCO) is scheduled to report its quarterly earnings. |
11/23/2026 | Intensifying Peer Competition Watch: Dell's and SMCI's upcoming reports for AI order and server revenue growth rates versus HPE's. |
11/23/2026 | Dell Earnings Report Watch: Peer Dell Technologies (DELL) is scheduled to report its quarterly earnings. |
12/1/2026 | NetApp Earnings Report Watch: Peer NetApp (NTAP) is scheduled to report its quarterly earnings. |
12/2/2026 | Margin Dilution from AI Mix Watch: Q4 operating margin result and FY27 margin guidance, specifically for the Cloud & AI segment. |
| Date | Event | Stock Impact |
|---|---|---|
2026-09-02 | Expanded Oracle Networking Deal Details: HPE announced an expanded collaboration to deploy HPE Juniper Networking solutions across Oracle's global AI data centers to help scale its AI infrastructure. | +7.0% $50.87 -> $54.44 |
2026-09-02 | Record Q3 Earnings, Raised Outlook Details: On September 2, 2026, HPE reported record Q3 revenue of $12.2 billion, up 34% year-over-year, and raised its financial outlook for both fiscal 2026 and 2027. | +7.0% $50.87 -> $54.44 |
2026-08-21 | Named Leader in Storage Details: In August, the company announced it was named a Leader in the 2026 Gartner Magic Quadrant for Enterprise Storage Platforms, recognized for execution and vision. | -0.9% $52.89 -> $52.43 |
2026-06-01 | Major Q2 Post-Earnings Rally Details: Following the earnings call on June 1, 2026, the stock had a two-day reaction of 30.0%, significantly outperforming the S&P 500's 0.0% return. | +30.5% $42.91 -> $55.99 |
2026-05-13 | Completed H3C Stake Divestiture Details: In May 2026, the company closed on the sale of its remaining stake in H3C, receiving total proceeds of approximately $370 million. | +13.0% $30.12 -> $34.03 |
2026-03-24 | Favorable Autonomy Legal Ruling Details: On March 24, 2026, the U.K. High Court entered a ruling providing a total judgment of approximately $1.24 billion against the estate of Autonomy's former manager. | +16.2% $22.11 -> $25.71 |
2026-03-09 | Q1 Earnings Reaction Muted Details: The two-day stock reaction around the earnings call on March 9, 2026 was 0.0%, indicating a neutral market response to the company's Q1 results and outlook. | -0.1% $20.93 -> $20.90 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: HPE trades at roughly 55% annualized options-implied volatility versus about 12% for the S&P 500 (4.5x the market), around the 72nd percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
DELL - Dell Technologies Inc.
Scale Leader in AI ServersDell's revenue is 3.2 times HPE's, and it reported a massive $95 billion AI backlog, offering greater scale and exposure to the AI server market.
CSCO - Cisco Systems, Inc.
High-Margin Networking Pure-PlayCisco offers a more focused investment in networking with structurally higher profitability, posting a gross margin of 64.5% versus HPE's 36.7%.
HPE is now a networking-centric company successfully capitalizing on the AI infrastructure build-out, with its legacy server business receiving a new life from AI inference workloads.
Following its transformative acquisition of Juniper Networks, HPE has repositioned itself as a leader in high-margin networking. This move is proving timely, as the AI boom is creating massive demand not only for specialized AI servers but also for the high-performance networks required to connect them. The company is successfully leveraging this demand to drive record orders, revenue, and profitability, while its GreenLake platform provides a growing base of recurring revenue.
Announcements of further large-scale networking wins with hyperscalers or neo-clouds, continued backlog growth, and sustained margin expansion.
A slowdown in AI-related capital expenditures, an inability to manage persistent supply chain constraints leading to market share loss, or evidence of significant pricing pressure from competitors.
Minor quarterly fluctuations in the traditional server business not related to AI, or performance of the small 'Corporate Investments' segment.
Repricing Catalyst
The market's recognition of HPE's improved growth and profitability profile following the Juniper acquisition, confirmed by multiple quarters of record results and raised guidance for both FY26 and FY27.
Networking
$6.9B TTM (20% of Total) · 23% MarginWhat It Is
Sells high-performance networking and security products and services to customers of all sizes. The portfolio includes Wi-Fi and cellular access points, switches (QFX, EX, CX), routers (MX, PTX), gateways, and software for cloud-based management (Mist, Aruba Central), network access control, and security.
Who Pays & How
Enterprises and service providers pay for scalable, secure, and AI-driven networks to connect users, data, and infrastructure from the edge to the data center and cloud. They choose HPE for its comprehensive portfolio, AIOps capabilities for self-driving networks, and high-performance infrastructure required for AI workloads.
Competition
Corporate Investments and Other
$776M TTM (2% of Total) · -4% MarginWhat It Is
This segment includes the Advisory and Professional Services (A&PS) business, which offers consultative services and technology expertise. It also includes Hewlett Packard Labs for R&D, and the Telco and Instant On businesses.
Who Pays & How
Customers pay for expert advice, implementation services, and complex solution engagement capabilities to support their technology transformations.
Competition
Hewlett Packard Enterprise — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Technology Hardware, Storage & Peripherals Resources |
| The Verge |
| TechRadar |
| Tom’s Hardware |
| PCMag |
| CNET |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.