Hewlett Packard Enterprise (NYSE:HPE) Releases Earnings Results

Hewlett Packard Enterprise (NYSE:HPE) posted its earnings results on Monday. The technology company reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.25, FiscalAI reports. The firm had revenue of $10.68 billion for the quarter, compared to analysts’ expectations of $9.78 billion. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.93%. The company’s revenue was up 40.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.82) earnings per share. Hewlett Packard Enterprise updated its FY 2026 guidance to 3.350-3.450 EPS and its Q3 2026 guidance to 0.880-0.930 EPS.

Here are the key takeaways from Hewlett Packard Enterprise’s conference call:

• HPE reported record Q2 revenue of $10.7 billion, non-GAAP EPS of $0.79, and $915 million in free cash flow, all well above outlook. Management said orders more than doubled and backlog hit a record, signaling strong demand visibility.
• The company raised fiscal 2026 guidance, now expecting non-GAAP EPS of $3.35 to $3.45 and free cash flow of at least $3.5 billion. HPE also lifted consolidated revenue growth and operating profit targets, saying Catalyst savings and Juniper synergies are running ahead of schedule.
• Networking was a standout, with revenue up on a normalized basis and strong growth in campus/branch, data center switching, routing, and security. Management increased its cumulative Networks for AI order target to at least $2 billion for fiscal 2026 and said Juniper integration is strengthening its market position.
• Cloud and AI demand accelerated sharply, driven by traditional servers, AI systems, Alletra MP storage, and private cloud offerings. HPE booked $1.8 billion in new AI systems orders in the quarter and said AI revenue should improve in the back half of the year, peaking in Q4.
• Management gave an early fiscal 2027 framework calling for consolidated revenue growth of 8% to 12%, EPS growth of 12% to 16%, and free cash flow of at least $4.5 billion. HPE said it expects to reach its 2x net leverage goal by the end of fiscal 2026, one year ahead of schedule.

Hewlett Packard Enterprise Stock Performance

Shares of HPE opened at $47.37 on Tuesday. The company has a current ratio of 1.03, a quick ratio of 0.75 and a debt-to-equity ratio of 0.71. The stock has a market capitalization of $62.85 billion, a P/E ratio of -249.32, a price-to-earnings-growth ratio of 1.10 and a beta of 1.28. The firm’s fifty day simple moving average is $29.23 and its two-hundred day simple moving average is $24.80. Hewlett Packard Enterprise has a 12 month low of $17.02 and a 12 month high of $47.97.

Hewlett Packard Enterprise Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 23rd. Shareholders of record on Tuesday, March 24th were given a dividend of $0.1425 per share. The ex-dividend date of this dividend was Tuesday, March 24th. This represents a $0.57 dividend on an annualized basis and a yield of 1.2%. Hewlett Packard Enterprise’s dividend payout ratio is -300.00%.

Key Hewlett Packard Enterprise News

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: HPE posted record second-quarter results, beating estimates on both earnings and revenue. Adjusted EPS came in at $0.79 versus $0.54 expected, while revenue reached $10.68 billion, above the $9.78 billion consensus, signaling strong execution and demand. HPE Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: The company pulled forward its long-term financial targets by two years after saying AI data center expansion is boosting demand for its servers and networking gear, reinforcing the growth story behind the stock move. Reuters article on accelerated financial targets
• Positive Sentiment: Management also raised fiscal 2026 and Q3 guidance well above Wall Street expectations, which suggests the AI server demand is not a one-quarter spike but a longer-lasting tailwind. Reuters article on HPE surges 29% as AI infrastructure boom boosts server demand
• Positive Sentiment: Networking revenue reportedly jumped 148%, underscoring broad strength across HPE’s infrastructure portfolio and helping fuel investor enthusiasm. MarketWatch article on networking revenue growth
• Neutral Sentiment: HPE also added Elliott partner Chris Hsu to its board, a governance move that may be seen as supportive of strategy and capital allocation but is not the main driver of the stock today. HPE Names Chris Hsu to Board of Directors

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on HPE shares. Raymond James Financial reiterated an “outperform” rating and set a $29.00 price target (down from $30.00) on shares of Hewlett Packard Enterprise in a report on Monday, April 13th. Bank of America lifted their price target on shares of Hewlett Packard Enterprise from $29.00 to $32.00 and gave the stock a “buy” rating in a report on Tuesday, March 10th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Hewlett Packard Enterprise in a report on Wednesday, March 25th. Wall Street Zen lowered shares of Hewlett Packard Enterprise from a “buy” rating to a “hold” rating in a report on Tuesday. Finally, Citigroup lifted their price target on shares of Hewlett Packard Enterprise from $27.00 to $39.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $27.88.

Insider Buying and Selling at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, CEO Antonio F. Neri sold 150,000 shares of the company’s stock in a transaction on Friday, April 17th. The shares were sold at an average price of $26.50, for a total transaction of $3,975,000.00. Following the sale, the chief executive officer owned 1,687,329 shares of the company’s stock, valued at approximately $44,714,218.50. This represents a 8.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Neil B. Macdonald sold 24,251 shares of the company’s stock in a transaction on Monday, April 20th. The shares were sold at an average price of $27.01, for a total transaction of $655,019.51. Following the sale, the executive vice president directly owned 32,243 shares in the company, valued at $870,883.43. This trade represents a 42.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 702,402 shares of company stock valued at $18,440,171. 0.44% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Hewlett Packard Enterprise

Several institutional investors have recently made changes to their positions in HPE. Empowered Funds LLC raised its holdings in shares of Hewlett Packard Enterprise by 317.3% during the first quarter. Empowered Funds LLC now owns 149,810 shares of the technology company’s stock valued at $2,312,000 after purchasing an additional 113,906 shares during the period. Geneos Wealth Management Inc. raised its holdings in shares of Hewlett Packard Enterprise by 44.7% during the first quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company’s stock valued at $69,000 after purchasing an additional 1,377 shares during the period. Brown Advisory Inc. raised its holdings in shares of Hewlett Packard Enterprise by 4.4% during the second quarter. Brown Advisory Inc. now owns 23,593 shares of the technology company’s stock valued at $482,000 after purchasing an additional 996 shares during the period. Jump Financial LLC raised its holdings in shares of Hewlett Packard Enterprise by 25.8% during the second quarter. Jump Financial LLC now owns 15,662 shares of the technology company’s stock valued at $320,000 after purchasing an additional 3,215 shares during the period. Finally, WINTON GROUP Ltd acquired a new position in shares of Hewlett Packard Enterprise during the second quarter valued at about $207,000. Institutional investors and hedge funds own 80.78% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is an enterprise technology company that designs, develops and sells IT infrastructure, software and services for business and government customers. Its core offerings span servers, storage, networking, and related software, together with consulting, integration and support services aimed at modernizing and managing enterprise IT environments. HPE’s product portfolio includes systems for traditional data centers as well as solutions for high-performance computing, edge computing and telecommunications infrastructure.

A major focus for HPE is hybrid cloud and consumption-based IT.