Hewlett Packard Enterprise (NYSE:HPE) Issues Earnings Results

Hewlett Packard Enterprise (NYSE:HPE) announced its earnings results on Wednesday. The technology company reported $1.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.18, FiscalAI reports. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.75%. The business had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the business earned $0.44 EPS. The company’s quarterly revenue was up 33.7% compared to the same quarter last year. Hewlett Packard Enterprise updated its Q4 2026 guidance to 1.200-1.300 EPS and its FY 2026 guidance to 3.750-3.850 EPS.

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

• HPE reported record fiscal Q3 results, including $12.2 billion in revenue (+34% year over year), 40% non-GAAP gross margin, $2 billion in operating profit, $1.11 EPS, and $958 million in free cash flow.
• Strong AI and networking demand drove record orders and backlog, with orders growing 42% on a normalized basis and networking orders up 36%; HPE raised its FY2026 EPS outlook to $3.75-$3.85 and expects at least $3.75 billion in free cash flow.
• Management raised its FY2027 framework to 13%-17% consolidated revenue growth, 14%-18% cloud and AI growth, $4.40-$4.60 EPS, and at least $5 billion in free cash flow, supported by enterprise AI inferencing, agentic AI, networking, and storage demand.
• The Juniper Networks integration and synergies remain ahead of schedule, while an expanded Oracle collaboration will deploy HPE Juniper networking across a gigawatt-scale AI infrastructure build-out; HPE also said its cumulative networks-for-AI orders exceeded its prior target.
• Supply constraints involving memory, wafers, and other components continue to limit conversion of orders into revenue, while management expects gross margins to moderate as AI systems represent a larger mix and traditional server pricing normalizes.

Hewlett Packard Enterprise Stock Performance

NYSE HPE opened at $54.25 on Friday. The firm has a market cap of $71.84 billion, a price-to-earnings ratio of 28.26, a price-to-earnings-growth ratio of 0.60 and a beta of 1.43. The company has a quick ratio of 0.75, a current ratio of 1.09 and a debt-to-equity ratio of 0.72. The business has a 50-day moving average price of $49.79 and a 200-day moving average price of $37.68. Hewlett Packard Enterprise has a twelve month low of $19.84 and a twelve month high of $64.25.

Hewlett Packard Enterprise Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Thursday, September 17th will be given a $0.1425 dividend. This represents a $0.57 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s payout ratio is presently 53.27%.

Insider Activity

In related news, SVP Kirt Karros sold 18,785 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $48.50, for a total transaction of $911,072.50. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Hewlett Packard Enterprise during the 4th quarter valued at about $433,537,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Hewlett Packard Enterprise by 0.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,193,841 shares of the technology company’s stock worth $316,916,000 after purchasing an additional 49,508 shares during the last quarter. Amundi lifted its position in shares of Hewlett Packard Enterprise by 63.1% in the fourth quarter. Amundi now owns 11,514,029 shares of the technology company’s stock worth $276,567,000 after buying an additional 4,454,568 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Hewlett Packard Enterprise by 2.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 10,209,062 shares of the technology company’s stock worth $245,222,000 after buying an additional 222,495 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in Hewlett Packard Enterprise by 32.5% during the fourth quarter. AQR Capital Management LLC now owns 5,902,556 shares of the technology company’s stock valued at $141,779,000 after buying an additional 1,447,680 shares during the last quarter. Institutional investors own 80.78% of the company’s stock.

Wall Street Analyst Weigh In

HPE has been the topic of a number of recent research reports. Wells Fargo & Company lowered their target price on Hewlett Packard Enterprise from $67.00 to $54.00 and set an “equal weight” rating on the stock in a report on Thursday. Loop Capital raised shares of Hewlett Packard Enterprise from a “hold” rating to a “buy” rating and raised their price objective for the stock from $23.00 to $75.00 in a report on Tuesday, June 2nd. Truist Financial lifted their price target on shares of Hewlett Packard Enterprise from $69.00 to $70.00 and gave the stock a “buy” rating in a research note on Thursday. Zacks Research lowered Hewlett Packard Enterprise from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Finally, Citigroup lifted their target price on Hewlett Packard Enterprise from $74.00 to $76.00 and gave the company a “buy” rating in a research report on Thursday. Twelve investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, Hewlett Packard Enterprise currently has an average rating of “Moderate Buy” and an average target price of $69.44.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: HPE reported fiscal Q3 adjusted EPS of $1.11, well above estimates near $0.93-$0.95, while revenue reached approximately $12.2 billion, up 33.7% year over year and ahead of expectations. HPE Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $3.75-$3.85 and revenue guidance to $46-$47 billion, both above consensus. Fourth-quarter guidance also exceeded analysts’ forecasts, and HPE projected fiscal 2027 revenue growth of 13%-17% with at least $5 billion in free cash flow. HPE raises annual forecasts as AI, networking demand lifts quarterly revenue
• Positive Sentiment: Executives cited exceptionally strong, broad-based AI demand, record orders and a backlog that exceeds available supply. Networking revenue reportedly rose 75%, including a 270% increase in routing revenue, strengthening the case that the Juniper networking business is becoming a major AI infrastructure growth engine. HPE Q3 Earnings Call Highlights AI Demand, Networking Shift
• Positive Sentiment: HPE expanded its collaboration with Oracle to deploy Juniper Networking across Oracle’s gigawatt-scale AI data centers. A reported warrant arrangement involving more than four million HPE shares could further align Oracle with HPE’s infrastructure rollout, although investors should monitor dilution and execution details. HPE and Oracle Deepen Networking Collaboration
• Positive Sentiment: Several analysts raised price targets, including Raymond James, Citi, Barclays and Truist, while unusual options activity showed call volume substantially above normal—signals of improving investor expectations.
• Neutral Sentiment: HPE will hold a Networking Investor Day on September 30, potentially providing additional detail on strategy, margins and AI-related demand.
• Negative Sentiment: Memory, CPU and other hardware bottlenecks remain a concern. Investors are questioning whether supply limitations could delay deliveries or pressure margins as AI systems represent a larger share of sales. UBS, Wells Fargo and Piper Sandler maintained cautious ratings or reduced targets. HPE Earnings Soar but Supply Constraints Aren’t Going Away

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.