Hewlett Packard Enterprise Stock Surged 40%, Here’s Why

-55.51%
Downside
24.54
Market
10.92
Trefis
HPE: Hewlett Packard Enterprise logo
HPE
Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE)’s stock soared 45%, fueled by a sharp revenue lift and a stellar valuation jump—even as profits dipped. Behind the scenes: earnings surprises, a game-changing acquisition, and AI setbacks all stirred the market. Let’s unpack what truly moved the needle next.

Below is an analytical breakdown of stock movement into key contributing metrics.

  6132025 12102025 Change
Stock Price ($) 17.4 25.3 44.9%
Change Contribution By LTM LTM
Total Revenues ($ Mil) 31,649.0 33,075.0 4.5%
Net Income Margin (%) 4.6% 3.8% -17.9%
P/E Multiple 15.8 26.8 69.3%
Shares Outstanding (Mil) 1,322.0 1,325.0 -0.2%
Cumulative Contribution 44.9%

So what is happening here? The stock surged 45%, driven by a 4.5% revenue bump and a 69% jump in valuation, despite an 18% dip in net margin. Let’s dive into the events behind these shifts next.

Here Is Why Hewlett Packard Enterprise Stock Moved

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  • Q3 2025 Earnings Beat: HPE reported record revenue and improved profitability with strong demand in Server and Networking.
  • Juniper Networks Acq.: Acquisition finalized on July 2, 2025, enhancing networking and AI capabilities.
  • Q4 EPS Beat, Rev Miss: Q4 EPS of $0.62 topped estimates, but revenue of $9.68B missed expectations.
  • AI Server Delays: Q4 revenue was impacted by delays in AI server shipments and government shutdown.
  • Analyst Rating Shifts: Multiple analyst rating changes and price target adjustments influenced stock sentiment.

Our Current Assesment Of HPE Stock

Opinion: We currently find HPE stock attractive. Why so? Have a look at the full story. Read Buy or Sell HPE Stock to see what drives our current opinion.

Risk: A good way to gauge HPE’s risk is by checking how far it falls during major sell-offs. It plunged about 35% in the 2018 correction, 51% during the Covid pandemic, and around 30% in the inflation shock. Even with some positive tailwinds, HPE has shown it’s not immune to steep drops when the market turns sour. Solid fundamentals can help, but sharp sell-offs can still hit hard.

HPE stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.