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Hewlett Packard Enterprise
(NYSE:HPE)
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Rating:74Outperform
Price Target:
$69.00
▲(29.12% Upside)
Action:Reiterated
Date:09/30/26
HPE scores well on improving financial momentum and a very upbeat earnings outlook with raised guidance and strong demand signals (orders/backlog), supported by positive technical trend strength. The main constraint on the score is valuation (higher P/E with a modest dividend yield), alongside ongoing risks flagged around supply constraints, inventory, and margin normalization.
Positive Factors
Networking and AI expansion
HPE is positioning networking as a durable growth platform for AI-era infrastructure, supported by Juniper capabilities, expanding data-center demand, and higher synergy expectations. This combination can strengthen market position and improve operating leverage over multiple years.
Negative Factors
Persistent supply constraints
Ongoing component and wafer constraints can delay shipments, extend backlog conversion and limit HPE's ability to capture current customer demand. Management expects supply to remain constrained, making execution and revenue timing vulnerable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Networking and AI expansion
HPE is positioning networking as a durable growth platform for AI-era infrastructure, supported by Juniper capabilities, expanding data-center demand, and higher synergy expectations. This combination can strengthen market position and improve operating leverage over multiple years.
Read all positive factors
Hewlett Packard Enterprise Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where sales originate — Americas, EMEA, APAC — highlighting regions that drive growth or pose currency and macroeconomic risk. Regional trends help investors see market concentration, diversification, and sensitivity to local enterprise spending.
Shows where sales originate — Americas, EMEA, APAC — highlighting regions that drive growth or pose currency and macroeconomic risk. Regional trends help investors see market concentration, diversification, and sensitivity to local enterprise spending.
Data provided by:
The Fly
The FlyHewlett Packard Enterprise (HPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.63B
Dividend Yield0.93%
Average Volume (3M)22.72M
Price to Earnings (P/E)30.8
Beta (1Y)1.57
Revenue Growth26.63%
EPS Growth130.65%
CountryUS
Employees67,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)2.01
Shares Outstanding1,327,464,700
10 Day Avg. Volume20,394,523
30 Day Avg. Volume22,721,035
Financial Highlights & Ratios
PEG Ratio5.35
Price to Book (P/B)1.31
Price to Sales (P/S)0.94
P/FCF Ratio51.57
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$70.13Price Target Upside31.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)3.82
Revenue Forecast (FY)$46.56B
Hewlett Packard Enterprise Business Overview & Revenue Model
Company Description
Hewlett Packard Enterprise (HPE) is a global technology firm that provides comprehensive solutions, empowering clients across the Americas, Europe, the Middle East, Africa, Asia Pacific, and Japan to efficiently capture, analyze, and utilize their...
How the Company Makes Money
HPE makes money primarily by selling enterprise IT infrastructure products and by delivering ongoing services and subscription/consumption-based offerings tied to those products. Key revenue streams include: (1) Product revenue from hardware platf...
Hewlett Packard Enterprise Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive. HPE reported records across revenue, gross margin, operating profit, EPS and free cash flow, cited exceptionally strong demand and record orders and backlog, raised fiscal 2026 and fiscal 2027 guidance, and highlighted strong Juniper integration, AI momentum, deleveraging and shareholder returns. The principal challenges were supply constraints, higher inventory, expected margin normalization, a decline in data center networking revenue due to shipment timing, and flat Financial Services revenue, but these lowlights were outweighed by the company's reported achievements and outlook.Positive Updates
Record Third-Quarter Financial Results
HPE delivered record revenue of $12.2 billion, up 34% year over year, exceeding the high end of guidance. Non-GAAP gross margin reached a record 40%, non-GAAP operating profit reached a record $2 billion, up 2.5x from a year ago, and non-GAAP EPS was a record $1.11, the first quarter above $1.
Negative Updates
Supply Constraints Limited Revenue Conversion
Supply constraints continued to limit HPE's ability to convert strong customer demand and record orders into revenue. Management cited constraints involving DDR5, DDR4, NAND and wafer capacity, and said supply would continue to be constrained.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Third-Quarter Financial Results
HPE delivered record revenue of $12.2 billion, up 34% year over year, exceeding the high end of guidance. Non-GAAP gross margin reached a record 40%, non-GAAP operating profit reached a record $2 billion, up 2.5x from a year ago, and non-GAAP EPS was a record $1.11, the first quarter above $1.
Read all positive updates
Company Guidance
For Q4, HPE expects revenue to be between $13.9 billion and $14.8 billion, networking revenue to grow 11% to 13%, networking operating margin to improve modestly quarter-over-quarter, Cloud & AI revenue to grow 60% to 72%, Cloud & AI operating margin to moderate sequentially to a mid-teens rate, total operating expenses to decrease sequentially by a low single digit, EPS between $1.20 and $1.30, and GAAP EPS between $1.12 and $1.22; for FY '26, HPE raised EPS guidance to $3.75 to $3.85, GAAP EPS to $2.93 to $3.03, and free cash flow to at least $3.75 billion; for fiscal '27, HPE expects consolidated revenues to grow 13% to 17%, networking revenue growth of 14% to 17%, Cloud & AI revenue growth of 14% to 18%, company operating profit growth of 14% to 18%, company operating margin of 14% to 15%, networking operating margin in the mid- to high 20% range, Cloud & AI operating margin of approximately 13%, EPS of $4.40 to $4.60, which implies growth of 16% to 20% versus the midpoint of our FY '26 EPS outlook, and free cash flow of at least $5 billion.Hewlett Packard Enterprise Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.89B | 34.30B | 30.07B | 29.11B | 28.11B | 27.86B |
| Gross Profit | 15.09B | 9.87B | 9.55B | 9.92B | 8.82B | 9.10B |
| EBITDA | 5.66B | 2.63B | 5.56B | 4.85B | 4.40B | 6.32B |
| Net Income | 2.75B | 57.00M | 2.58B | 2.02B | 868.00M | 3.43B |
Balance Sheet | ||||||
| Total Assets | 83.60B | 75.91B | 71.26B | 57.15B | 57.12B | 57.70B |
| Cash, Cash Equivalents and Short-Term Investments | 6.22B | 5.77B | 14.85B | 4.27B | 4.16B | 4.00B |
| Total Debt | 20.24B | 24.08B | 19.82B | 13.52B | 13.48B | 14.58B |
| Total Liabilities | 57.08B | 51.15B | 46.38B | 35.91B | 37.21B | 37.68B |
| Stockholders Equity | 26.51B | 24.69B | 24.82B | 21.18B | 19.86B | 19.97B |
Cash Flow | ||||||
| Free Cash Flow | 4.16B | 627.00M | 1.97B | 1.60B | 1.47B | 3.37B |
| Operating Cash Flow | 6.69B | 2.92B | 4.34B | 4.43B | 4.59B | 5.87B |
| Investing Cash Flow | 229.00M | -13.19B | -53.00M | -3.28B | -2.09B | -2.80B |
| Financing Cash Flow | -5.27B | 1.05B | 6.28B | -1.36B | -1.80B | -3.36B |
Hewlett Packard Enterprise Technical Analysis
Positive
53.44
Price Trends
54.51
Positive
48.78
Positive
36.09
Positive
Market Momentum
2.52
Negative
57.79
Neutral
65.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPE, the sentiment is Positive. The current price of 53.44 is below the 20-day moving average (MA) of 58.27, below the 50-day MA of 54.51, and above the 200-day MA of 36.09, indicating a bullish trend. The MACD of 2.52 indicates Negative momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPE.
Hewlett Packard Enterprise Risk Analysis
Hewlett Packard Enterprise disclosed 32 risk factors in its most recent earnings report. Hewlett Packard Enterprise reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hewlett Packard Enterprise Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
89 Outperform | $255.85B | 63.33 | 30.78% | ― | 32.57% | 24.40% | |
74 Outperform | $81.63B | 30.84 | 10.87% | 0.93% | 26.63% | 130.65% | |
74 Outperform | $41.09B | 28.60 | 113.67% | 0.99% | 12.15% | 24.60% | |
73 Outperform | $343.08B | 31.43 | -574.57% | 0.43% | 48.86% | 152.40% | |
69 Neutral | $27.71B | 11.72 | -727.30% | 3.90% | 8.67% | -4.70% | |
68 Neutral | $26.95B | 11.59 | 25.08% | ― | 77.79% | 104.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
HPE
Hewlett Packard Enterprise
63.89
39.40
160.89%
HPQ
HP
31.28
5.88
23.13%
NTAP
NetApp
210.08
93.62
80.39%
SMCI
Super Micro Computer
41.07
-11.32
-21.61%
ANET
Arista Networks
203.59
54.32
36.39%
DELL
Dell Technologies
537.95
390.15
263.98%
Hewlett Packard Enterprise Corporate Events
Business Operations and StrategyFinancial Disclosures
HPE Elevates Networking Growth Outlook and AI Strategy
Positive
Sep 30, 2026
On Sept. 30, 2026, HPE used its Networking Investor Day to sharpen its long-term growth narrative, raising its fiscal 2027 revenue growth outlook for the Networking segment to the high-teens to low-20s percent range, while reaffirming operating ma...
Business Operations and StrategyDividends
HPE Announces Dividend on Series C Preferred Stock
Positive
Aug 4, 2026
On August 4, 2026, Hewlett Packard Enterprise Company’s board approved a cash dividend of $0.953125 per share on its 7.625% Series C Mandatory Convertible Preferred Stock, payable September 1, 2026 to shareholders of record as of August 15, ...
Business Operations and StrategyExecutive/Board Changes
HPE Appoints David Goulden to Board of Directors
Positive
Jul 24, 2026
On July 24, 2026, HPE appointed David I. Goulden, former Executive Vice President and Chief Financial Officer of Booking Holdings Inc., to its Board of Directors and named him to the Finance Investment and HR Compensation committees. With more t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.