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Stock to Watch: Hewlett Packard Enterprise (HPE - Free Report) Headquartered in Spring, TX, Hewlett Packard Enterprise Company was formed as a result of the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.
HPE is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.56; value investors should take notice.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.37 to $3.81 per share. HPE also boasts an average earnings surprise of +19.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HPE should be on investors' short list.
Hewlett Packard Enterprise, a hybrid-cloud infrastructure vendor HPE , unveiled plans to support Nvidia OpenShell and introduce Vera CPU rack infrastructure, while shares traded at $54.60, down 6.14% at 11.20am EST on Thursday. The push targets businesses that need tighter control over autonomous AI systems, sensitive data and computing resources. More AI hardware gets HPE through the door. Security and governance could help it capture more spending once inside.
The earnings test is already taking shape. HPE's fiscal-third-quarter results showed Cloud and AI revenue of $9.0 billion, up 25.4% from a year earlier, while the segment's operating margin reached 17%, versus 7%. That 10-percentage-point improvement matters: growth delivered a much stronger profit contribution. The question now is whether new AI deployments can sustain that profitability as customers demand more complex systems and support.
The valuation leaves little room for sloppy execution. The chart places the shares 90.98% above the $28.59 GF Value estimate, suggesting substantial growth expectations remain priced in despite the selloff. That estimate is a valuation reference, not a guaranteed destination. HPE's next hurdle is turning its broader AI offering into revenue and cash flow while defending the margin gains it has already delivered.
SummaryTechnology sector volatility creates tax-loss harvesting opportunities, allowing investors to offset capital gains while repositioning portfolios toward stronger growth prospects.Weak earnings revisions, deteriorating momentum, and poor profitability identify three struggling technology stocks with heightened downside risk.Three Strong Buy technology stocks offer compelling alternatives, supported by sector-leading growth, positive earnings revisions, and favorable profitability metrics.Despite macroeconomic uncertainty, resilient corporate fundamentals support cautious optimism and a selective, long-term investment approach rather than abandoning technology exposure.I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income. PhanuwatNandee/iStock via Getty Images
Tax-Loss Harvesting: Best Tech Stocks to Buy and Sell in 2026 The technology sector’s uneven performance in 2026 has created an attractive environment for tax loss harvesting, as there are plenty of losers and winners to choose from. This allows investors to
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. Steven Cress is the Head of Quantitative Strategy at Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.
Cantor Fitzgerald Investment Advisors L.P. trimmed its position in shares of Hewlett Packard Enterprise Company (NYSE:HPE – Free Report) by 33.7% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 480,844 shares of the technology company’s stock after selling 244,093 shares during the quarter. Hewlett Packard Enterprise makes up 1.4% of Cantor Fitzgerald Investment Advisors L.P.’s holdings, making the stock its 14th biggest holding. Cantor Fitzgerald Investment Advisors L.P.’s holdings in Hewlett Packard Enterprise were worth $30,721,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors also recently made changes to their positions in HPE. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in Hewlett Packard Enterprise during the 2nd quarter worth approximately $1,027,139,000. Primecap Management Co. CA bought a new stake in Hewlett Packard Enterprise during the 2nd quarter worth approximately $773,225,000. Legal & General Group Plc acquired a new position in Hewlett Packard Enterprise in the 2nd quarter valued at approximately $512,721,000. Elliott Investment Management L.P. increased its position in Hewlett Packard Enterprise by 47.2% in the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock valued at $652,912,000 after acquiring an additional 8,790,757 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in Hewlett Packard Enterprise in the 2nd quarter valued at approximately $322,718,000. 80.78% of the stock is currently owned by institutional investors.
Hewlett Packard Enterprise Trading Up 3.6%
NYSE:HPE opened at $58.11 on Thursday. The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $77.14 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 0.50 and a beta of 1.39. The firm has a fifty day simple moving average of $59.39 and a two-hundred day simple moving average of $47.18. Hewlett Packard Enterprise Company has a 12 month low of $19.84 and a 12 month high of $73.56.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.18. The firm had revenue of $12.21 billion for the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The business’s quarterly revenue was up 33.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.44 earnings per share. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. Analysts expect that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.
Hewlett Packard Enterprise Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were paid a dividend of $0.1425 per share. This represents a $0.57 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio is 29.69%.
Here are the key news stories impacting Hewlett Packard Enterprise this week:
Positive Sentiment: AI infrastructure demand lifted the sector. Super Micro raised its quarterly revenue outlook and projected better gross margins, sending its shares sharply higher and pulling HPE and Dell Technologies along with it. The update provided fresh evidence that spending on AI computing infrastructure remains strong. Why are Dell and HPE stocks rising in premarket trading on Wednesday?
Positive Sentiment: New ProLiant Gen13 servers expand HPE’s AI opportunity. HPE launched servers using sixth-generation AMD EPYC processors, targeting AI inference, agentic AI, data-intensive simulations and financial modeling. Higher core density, expanded memory and enhanced security features could support higher-value infrastructure sales. Learn Why The Bull Case For HPE Stock Could Change Following Gen13 Server Launch
Positive Sentiment: Commercial and strategic projects add visibility. The Miami Heat selected HPE to modernize wired and wireless networking at Kaseya Center, while HPE’s Spaceborne Computer 4 is planned to run high-performance computing and AI benchmarks on the Moon. These projects are unlikely to materially affect near-term revenue but enhance HPE’s technology profile and potential customer relationships. Miami Heat Selects Hewlett Packard Enterprise to Modernize Infrastructure
Neutral Sentiment: Investors remain focused on execution. HPE recently reported earnings and revenue above consensus estimates, but the stock’s substantial rally has increased scrutiny of valuation, backlog conversion and the durability of AI-related demand.
Negative Sentiment: Analyst skepticism remains a risk. A recent downgrade triggered significant selling despite strong earnings growth and a record backlog, highlighting concerns that optimistic AI expectations may already be reflected in HPE’s valuation. HPE Has a 12x Forward PE and 400% Growth
Insiders Place Their Bets
In other Hewlett Packard Enterprise news, Director Gary M. Reiner sold 17,000 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $56.91, for a total value of $967,470.00. Following the transaction, the director owned 65,072 shares in the company, valued at approximately $3,703,247.52. This represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Rami Rahim sold 34,456 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total value of $2,116,287.52. Following the completion of the sale, the executive vice president directly owned 875,133 shares of the company’s stock, valued at $53,750,668.86. This trade represents a 3.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 551,456 shares of company stock worth $35,271,258. Corporate insiders own 0.44% of the company’s stock.
Wall Street Analysts Forecast Growth
Several equities analysts have recently issued reports on HPE shares. Citigroup raised their price target on shares of Hewlett Packard Enterprise from $76.00 to $92.00 and gave the company a “buy” rating in a research note on Thursday, October 1st. Evercore boosted their price objective on shares of Hewlett Packard Enterprise from $65.00 to $67.00 and gave the stock an “outperform” rating in a research note on Thursday, October 1st. Daiwa Securities Group upgraded Hewlett Packard Enterprise from a “neutral” rating to an “outperform” rating and increased their price objective for the company from $65.00 to $75.00 in a report on Friday, October 2nd. Bank of America increased their price objective on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a “buy” rating in a report on Monday, August 31st. Finally, UBS Group raised their target price on Hewlett Packard Enterprise from $59.00 to $66.00 and gave the stock a “neutral” rating in a research report on Thursday, October 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Hewlett Packard Enterprise currently has an average rating of “Moderate Buy” and a consensus target price of $65.44.
View Our Latest Analysis on Hewlett Packard Enterprise
About Hewlett Packard Enterprise
(Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and modernize data centers, hybrid cloud environments and edge computing operations.
HPE’s portfolio includes enterprise servers and compute systems, data storage, networking products, high-performance computing and artificial intelligence infrastructure.
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BERLIN--(BUSINESS WIRE)--NVIDIA GTC Berlin 2026-- HPE (NYSE: HPE) today announced new innovations across the HPE AI Factory with NVIDIA portfolio that help enterprises securely deploy and operate increasingly autonomous AI across hybrid and sovereign environments. HPE AI Factory with NVIDIA brings together models, infrastructure, data, and workflows to help enterprises run AI with greater control over performance and data access. “AI agents are becoming an essential part of how enterprises oper.
HOUSTON--(BUSINESS WIRE)--HPE Spaceborne Computer plans to run AI and HPC benchmarks on the Moon, laying the groundwork for future exploration and the emerging lunar economy.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Uber Technologies?The final step today is to look at a stock that meets our ESP qualifications. Uber Technologies (UBER - Free Report) earns a #3 (Hold) 15 days from its next quarterly earnings release on November 4, 2026, and its Most Accurate Estimate comes in at $1.01 a share.
By taking the percentage difference between the $1.01 Most Accurate Estimate and the $0.94 Zacks Consensus Estimate, Uber Technologies has an Earnings ESP of +7.78%. Investors should also know that UBER is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UBER is just one of a large group of Computer and Technology stocks with a positive ESP figure. Hewlett Packard Enterprise (HPE - Free Report) is another qualifying stock you may want to consider.
Hewlett Packard Enterprise is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on December 3, 2026. HPE's Most Accurate Estimate sits at $1.36 a share 44 days from its next earnings release.
The Zacks Consensus Estimate for Hewlett Packard Enterprise is $1.27, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +7.09%.
UBER and HPE's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
HPE just posted its worst week ever after a single analyst downgrade, yet its earnings are surging and its backlog hit a record high. The real question is whether the market sees a danger that the numbers are hiding.
Shares of Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) fell 20.56% in the week through October 19. It was its worst week ever, following an October 14 analyst downgrade that questioned HPE’s AI growth.
The drop hit a stock that already traded at a forward PE of roughly 12 to 15, while the broader market averages 30. Investors Dave Ahern and Stephen Morris recently debated whether that gap makes HPE an opportunity or a value trap.
Ahern asked: “Is that a lifetime opportunity, or does Wall Street know something that the rest of value investors maybe don’t know? Like, why is it so cheap?” The question is pressing because the results are strong.
Revenue in the fiscal third quarter rose 32.7% to $12.21 billion. Non-GAAP EPS of $1.11 beat the $0.93 consensus.
Morris rated HPE’s moat today as “next to non-existent,” and that view accounts for most of the discount.
A 12x Multiple Signals Doubt About Durability
A forward PE divides the share price by expected earnings. A low multiple therefore means investors doubt those estimates will hold, and the market is currently pricing in a fade in AI server demand.
The trailing P/E of 1300x is distorted by Juniper integration charges and a fiscal 2025 goodwill impairment. That is why the hosts focus on the forward number.
Analysts’ average fiscal 2027 EPS estimate is $4.7088, up from $4.0384 90 days ago. None of those analysts revised down in the past 30 days.
Management’s own fiscal 2027 framework calls for EPS of $4.40 to $4.60. That range leaves out the Helios AI rack opportunity.
Wall Street Turned Cautious After a Huge Run
Even after falling 8.05% over the past month, HPE is still up 135.22% year to date and 147.52% over the past year. Shares rose 1.29% on October 19 to $55.84. The post-downgrade rebound was small.
Although the market has embraced HPE this year, it remains unclear whether AI-driven earnings will last long enough to justify that price. Still, orders grew faster than revenue, and backlog hit a record while memory shortages held back shipments.
Servers Bring Growth Without Protection
Ahern’s long-term test sets the hype aside: “Forget the AI trade. What is a stock going to do 10 years from now?” AI server revenue fails that test because it is cyclical: orders shrink once data center buildouts slow, and nothing ties buyers to HPE.
Server revenue rose 35.3% to $6.77 billion on AI demand. Servers are a competitive, low-margin business, and customers switch suppliers over price, which is why the picks-and-shovels names behind the AI expansion (power, cooling, networking) often look more durable than the box makers; we rounded up seven of them in a free report here.
Management expects gross margin to return to historical levels as AI systems take up a larger share of sales. It guides Cloud and AI operating margin to about 13% in fiscal 2027.
Juniper Is HPE’s First Real Shot at a Moat
HPE closed its Juniper Networks acquisition and sold its remaining 19% stake in China-based H3C in May 2026. Together, those moves changed its business mix toward networking.
Networking gear is built into how a customer runs its operations, and it costs a lot to replace. The segment earned a 22% operating margin last quarter. With Juniper included, networking revenue jumped 74.9% to $2.89 billion, and orders rose 36%.
GreenLake lets customers pay for infrastructure as a service inside their own data centers, and it reached 52,000 customers, up 18%. Rising net retention would point to recurring revenue, while flat usage would suggest customers use it to finance hardware.
Discussing the chief executive’s vision, Morris said “the uncertainty around that statement is very high,” but added that if it “comes to fruition,” HPE “will be significantly untouchable.” Juniper likely moves HPE’s moat from absent to plausible, although the integration still has to prove it can hold customers.
What Could Close HPE’s Valuation Gap
HPE’s case looks strongest under Ahern’s 10-year test. The weekly drop and a forward multiple far below the market’s already price in heavy doubt.
Juniper savings are on track for a $600 million annual run rate by fiscal 2028. Meanwhile, a 1.07% dividend yield on a $74.1 billion company provides some income.
The thesis breaks if networking growth stalls after the integration, if GreenLake fails to become recurring revenue, or if AI server demand falls faster than networking can make up for it. Fiscal fourth-quarter results come next. Revenue is guided to $13.9 billion to $14.8 billion, and management has promised a fuller fiscal 2027 outlook.
Contact [email protected] for any questions or corrections.
HPE (NYSE: HPE) and the Miami HEAT today announced a network modernization project at Kaseya Center designed to enhance connectivity and create a more intelligent, resilient digital foundation for fans, staff and venue operations. This connectivity refresh is part of a series of updates being made to the venue ahead of the 2026-2027 NBA season to improve the arena experience for attendees.
As one of the NBA’s premier venues, Kaseya Center hosts events attended by tens of thousands of people with changing conditions and a slew of devices that put significant demands on its network infrastructure. To deliver a consistently high-performing connected experience across the arena, the Miami HEAT selected HPE to modernize both its wireless and wired infrastructure and establish Wi-Fi 7 connectivity.
The deployment combines HPE Aruba wireless outdoor and indoor access points and campus gateways with HPE Juniper switching that provides the power, bandwidth and capacity required to support high-density connectivity throughout the venue. HPE will also provide Arena Event Network Monitoring Assistance across five live events to help validate and optimize network performance under real-world conditions.
“Today’s sports and entertainment venues need networks that can deliver exceptional experiences for tens of thousands of people while also simplifying operations behind the scenes,” said Rami Rahim, executive vice president, president and general manager, Networking at HPE. “Together with the Miami HEAT, we’re building a self-driving network at Kaseya Center that is designed to improve connectivity, increase operational efficiency and create new possibilities for digital experiences for fans and staff.”
Building the foundation for a more connected Kaseya Center
The project began with the Miami HEAT seeking to improve wireless performance in high-density areas of Kaseya Center, particularly the lower bowl. Through technical assessment and design, the effort expanded beyond a wireless refresh to include modernization of the underlying wired infrastructure required to support next-generation access points.
The new HPE networking infrastructure will help the Miami HEAT:
Deliver a Wi-Fi 7 experience for fans and staff across Kaseya CenterImprove wireless reliability and performance in high-density and critical seating areasProvide the power and bandwidth required for next-generation wireless access pointsEstablish a modern network foundation that can support future digital experiences and venue innovationOptimize performance during live events with self-driving operations, specialized network monitoring and tuning services“Providing a reliable, seamless digital experience for everyone who enters Kaseya Center is critical, and important to us to ensure the best possible fan experience whether attending a HEAT game, a concert or another live event,” said Drew Dorben, Vice President and CTO of the Miami HEAT. “With HPE, we're modernizing our digital foundation to better serve fans and staff today and into the future.”
HPE’s AI-native networking capabilities are designed to help organizations move from reactive network management toward increasingly autonomous operations. HPE’s self-driving network uses AI-driven insights and automation to proactively identify and resolve connectivity issues, optimize performance and simplify troubleshooting, which helps IT teams maintain reliable connectivity while reducing the operational burden of managing increasingly complex environments.
For a high-density venue such as Kaseya Center, this approach provides the Miami HEAT with a scalable foundation to support evolving connectivity demands across basketball games, concerts and other major events.
The wireless deployment is expected to be completed ahead of the start of the 2026-2027 NBA season, with the broader campus switching modernization continuing in phases across the venue.
HPE is working with AT&T, which will provide communication services and CSPi Technology Solutions that will provide implementation expertise and ongoing managed IT services to support the networking environment.
About HPE
HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261019627224/en/
After last week's brutal selloff wiped out Hewlett Packard Enterprise's worst week on record, AI server stocks are staging a sharp morning reversal, and whether this bounce holds depends on a debate over memory prices, margins, and a brand-new finance…
AI server makers are bouncing back together after a sharp hardware selloff last week. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock is up 4% to $32.87 in morning trading, leading the group. Meanwhile, Hewlett Packard Enterprise (NYSE:HPE) stock is up 3% to $57.01, just behind Super Micro Computer stock.
Dell Technologies (NYSE:DELL) stock is up 2% to $462.64, though Hewlett Packard Enterprise stock rose more. For a broader read on tech, the iShares U.S. Technology ETF (NYSEARCA:IYW) is up 1.59%. Alongside it, the Invesco QQQ Trust (NASDAQ:QQQ) is up 1.55%, putting AI hardware at the front of a broader tech rebound.
Last week’s slide in Dell and Hewlett Packard Enterprise stock followed a Barclays report that downgraded both companies to Equal Weight on valuation. The Barclays report highlighted possible server and storage pressure as memory prices normalize.
Shares of Dell led a broad data center selloff last Wednesday, with Super Micro Computer stock slipping alongside it. Hewlett Packard Enterprise stock went on to log its worst week ever.
Super Micro Names a New Finance Chief Super Micro Computer named Mark Long, who previously led finance at a major storage maker, as its chief financial officer last week, replacing David Weigand. The appointment lands as Super Micro Computer scales a business that builds rack-scale AI servers on thin margins.
In its Q4 FY2026 report, Super Micro Computer posted revenue of $11.12 billion, up 93.2% year over year, slightly missing the $11.56 billion estimate. Founder Charles Liang spoke on the earnings call. He described the shortfall as “purely a timing story,” citing short-term customer delays tied to power, cooling and networking.
A better enterprise customer mix lifted Super Micro Computer’s GAAP gross margin to 17.5% from 9.5% a year earlier. Even so, the company guided Q1 FY2027 gross margin to just 10.4% to 10.8%, a reminder of how thin its AI server economics can run.
For Mark Long, cash generation is central to his new role at Super Micro Computer. During Q4, the company produced $722 million of free cash flow while its inventory rose to $12.9 billion ahead of expected FY2027 growth. With its $7.5 billion in cash and net debt down to $1.2 billion, the company enters Long’s tenure with more balance-sheet room than it had a quarter earlier.
Super Micro’s Cash Flow Test Super Micro Computer now faces a key question: can its new finance chief steady the company’s cash flow. Its FY2027 guidance calls for revenue of $65 billion to $72 billion after more than $60 billion in new orders during FY2026, and funding that growth could keep its working capital stretched. On the August earnings call, Liang asserted, “The demand for our AI IT solutions is even stronger than ever before.”
Whether Super Micro Computer’s inventory begins converting into cash as its record backlog ships is worth tracking. Dell and Hewlett Packard Enterprise stock remain tied to last week’s Barclays debate over valuation and memory prices.
A sharp bounce in Super Micro Computer, Dell and Hewlett Packard Enterprise stock could fade quickly if last week’s worries return. The server names sit alongside the power, cooling, and networking suppliers we profiled in a free AI infrastructure report, available here. Position sizes should stay modest until the AI server selloff ends.
Contact [email protected] for any questions or corrections.
Counterpoint Mutual Funds LLC lifted its stake in shares of Hewlett Packard Enterprise Company (NYSE:HPE – Free Report) by 8.9% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 179,170 shares of the technology company’s stock after buying an additional 14,636 shares during the quarter. Hewlett Packard Enterprise comprises 1.0% of Counterpoint Mutual Funds LLC’s portfolio, making the stock its 9th largest position. Counterpoint Mutual Funds LLC’s holdings in Hewlett Packard Enterprise were worth $11,447,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors also recently modified their holdings of the company. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Hewlett Packard Enterprise in the 2nd quarter worth about $1,027,139,000. Primecap Management Co. CA purchased a new position in Hewlett Packard Enterprise during the 2nd quarter valued at about $773,225,000. Legal & General Group Plc purchased a new position in Hewlett Packard Enterprise during the 2nd quarter valued at about $512,721,000. Elliott Investment Management L.P. boosted its stake in Hewlett Packard Enterprise by 47.2% during the first quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock worth $652,912,000 after acquiring an additional 8,790,757 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Hewlett Packard Enterprise during the second quarter worth about $322,718,000. Hedge funds and other institutional investors own 80.78% of the company’s stock.
Wall Street Analysts Forecast Growth A number of brokerages have weighed in on HPE. Morgan Stanley upped their price objective on shares of Hewlett Packard Enterprise from $67.00 to $72.00 and gave the stock an “overweight” rating in a report on Thursday, October 1st. Deutsche Bank Aktiengesellschaft started coverage on shares of Hewlett Packard Enterprise in a report on Tuesday, September 1st. They set a “buy” rating and a $62.00 target price for the company. Truist Financial reissued a “buy” rating and issued a $75.00 price target (up from $70.00) on shares of Hewlett Packard Enterprise in a research report on Thursday, October 1st. Barclays downgraded Hewlett Packard Enterprise from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $83.00 to $77.00 in a research note on Wednesday. Finally, Raymond James Financial raised their price objective on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an “outperform” rating in a research report on Thursday, September 3rd. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $65.44.
Check Out Our Latest Stock Analysis on Hewlett Packard Enterprise Hewlett Packard Enterprise Stock Performance Shares of Hewlett Packard Enterprise stock opened at $55.32 on Friday. The stock has a market cap of $73.44 billion, a price-to-earnings ratio of 28.81, a PEG ratio of 0.49 and a beta of 1.39. The firm’s 50-day moving average is $59.34 and its 200 day moving average is $46.33. Hewlett Packard Enterprise Company has a 1 year low of $19.84 and a 1 year high of $73.56. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, beating the consensus estimate of $0.93 by $0.18. The company had revenue of $12.21 billion for the quarter, compared to the consensus estimate of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. Hewlett Packard Enterprise’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.44 EPS. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. Sell-side analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.
Hewlett Packard Enterprise Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Thursday, September 17th were issued a dividend of $0.1425 per share. The ex-dividend date was Thursday, September 17th. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.0%. Hewlett Packard Enterprise’s dividend payout ratio is presently 29.69%.
Insider Activity at Hewlett Packard Enterprise In related news, EVP Rami Rahim sold 34,456 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total transaction of $2,116,287.52. Following the completion of the sale, the executive vice president owned 875,133 shares of the company’s stock, valued at $53,750,668.86. This trade represents a 3.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary M. Reiner sold 17,000 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $56.91, for a total transaction of $967,470.00. Following the completion of the transaction, the director owned 65,072 shares of the company’s stock, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 551,456 shares of company stock valued at $35,271,258 over the last 90 days. Corporate insiders own 0.44% of the company’s stock.
Hewlett Packard Enterprise News Roundup Here are the key news stories impacting Hewlett Packard Enterprise this week:
Positive Sentiment: HPE announced a planned $75 million expansion in Chippewa Falls, Wisconsin, expected to create 75 jobs. The investment supports the company’s manufacturing and infrastructure operations, although its near-term effect on earnings is likely limited. HPE to spend $75M to expand, add 75 jobs in Chippewa Falls Positive Sentiment: Some investors remain constructive because HPE has reported record revenue, orders and backlog, while demand for traditional servers, AI systems and networking—and higher server prices—has supported recent results. HPE stock was also reported to be up substantially for the year before the latest retreat. What Was HPE Telling You Before Its Stock Ran? Neutral Sentiment: ETF selling added to short-term pressure, while some dip buyers are betting that HPE can convert its AI and server orders into revenue. However, the recent decline has raised questions about whether earlier dip-buying strategies will continue to work. ETFs Are Net Sellers of Hewlett Packard Enterprise Negative Sentiment: Barclays downgraded HPE to Equal Weight from Overweight and lowered its price target to $77 from $83. The firm questioned how quickly corporate customers will adopt AI hardware and suggested that memory-component inflation, rather than new AI deployments, may be driving server revenue growth. Why Hewlett Packard Enterprise Stock Is Trading Lower Today Negative Sentiment: Concerns over how customers will finance large AI infrastructure projects have spread across hardware stocks, including HPE, Dell and Super Micro. The resulting sector-wide selling, combined with scrutiny of HPE’s server revenue quality and adoption timeline, drove a roughly 20% decline between October 9 and October 15. AI Financing Worries Extend Hardware Selloff (Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and modernize data centers, hybrid cloud environments and edge computing operations.
HPE’s portfolio includes enterprise servers and compute systems, data storage, networking products, high-performance computing and artificial intelligence infrastructure.
See Also Five stocks we like better than Hewlett Packard Enterprise Rocket Lab’s Neutron Delay Leaves Wall Street Bullish But Raises the Stakes for 2027 ManpowerGroup Stock Sinks on Q3 Results, But Fundamentals Stay Solid Does the AI Selloff Put Alphabet’s Breakout in Doubt? Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery Want to see what other hedge funds are holding HPE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Hewlett Packard Enterprise Company (NYSE:HPE – Free Report).
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AdvisorNet Financial Inc lifted its position in Hewlett Packard Enterprise Company (NYSE:HPE – Free Report) by 809.6% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 43,563 shares of the technology company’s stock after purchasing an additional 38,774 shares during the quarter. AdvisorNet Financial Inc’s holdings in Hewlett Packard Enterprise were worth $2,749,000 at the end of the most recent quarter.
A number of other hedge funds also recently added to or reduced their stakes in HPE. Elliott Investment Management L.P. raised its holdings in Hewlett Packard Enterprise by 47.2% in the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock valued at $652,912,000 after acquiring an additional 8,790,757 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in Hewlett Packard Enterprise during the second quarter worth about $1,027,139,000. Primecap Management Co. CA bought a new position in Hewlett Packard Enterprise in the 2nd quarter worth about $773,225,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Hewlett Packard Enterprise by 6.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,088,774 shares of the technology company’s stock worth $590,435,000 after buying an additional 756,972 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Hewlett Packard Enterprise during the second quarter worth approximately $512,721,000. 80.78% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling In related news, CEO Antonio F. Neri sold 250,000 shares of Hewlett Packard Enterprise stock in a transaction on Monday, October 5th. The shares were sold at an average price of $68.31, for a total value of $17,077,500.00. Following the transaction, the chief executive officer owned 1,182,393 shares in the company, valued at $80,769,265.83. This trade represents a 17.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $56.91, for a total transaction of $967,470.00. Following the sale, the director directly owned 65,072 shares of the company’s stock, valued at $3,703,247.52. The trade was a 20.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 551,456 shares of company stock valued at $35,271,258. 0.44% of the stock is owned by insiders.
Hewlett Packard Enterprise News Summary Here are the key news stories impacting Hewlett Packard Enterprise this week: Positive Sentiment: HPE announced a planned $75 million expansion in Chippewa Falls, Wisconsin, expected to create 75 jobs. The investment supports the company’s manufacturing and infrastructure operations, although its near-term effect on earnings is likely limited. HPE to spend $75M to expand, add 75 jobs in Chippewa Falls Positive Sentiment: Some investors remain constructive because HPE has reported record revenue, orders and backlog, while demand for traditional servers, AI systems and networking—and higher server prices—has supported recent results. HPE stock was also reported to be up substantially for the year before the latest retreat. What Was HPE Telling You Before Its Stock Ran? Neutral Sentiment: ETF selling added to short-term pressure, while some dip buyers are betting that HPE can convert its AI and server orders into revenue. However, the recent decline has raised questions about whether earlier dip-buying strategies will continue to work. ETFs Are Net Sellers of Hewlett Packard Enterprise Negative Sentiment: Barclays downgraded HPE to Equal Weight from Overweight and lowered its price target to $77 from $83. The firm questioned how quickly corporate customers will adopt AI hardware and suggested that memory-component inflation, rather than new AI deployments, may be driving server revenue growth. Why Hewlett Packard Enterprise Stock Is Trading Lower Today Negative Sentiment: Concerns over how customers will finance large AI infrastructure projects have spread across hardware stocks, including HPE, Dell and Super Micro. The resulting sector-wide selling, combined with scrutiny of HPE’s server revenue quality and adoption timeline, drove a roughly 20% decline between October 9 and October 15. AI Financing Worries Extend Hardware Selloff Analyst Ratings Changes A number of research analysts recently commented on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Hewlett Packard Enterprise in a research report on Tuesday, September 1st. They set a “buy” rating and a $62.00 price objective on the stock. Daiwa Securities Group upgraded shares of Hewlett Packard Enterprise from a “neutral” rating to an “outperform” rating and increased their target price for the company from $65.00 to $75.00 in a research note on Friday, October 2nd. The Goldman Sachs Group raised their price objective on shares of Hewlett Packard Enterprise from $75.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, October 6th. Bank of America lifted their price target on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a “buy” rating in a report on Monday, August 31st. Finally, Raymond James Financial increased their price objective on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $65.44.
View Our Latest Research Report on HPE
Hewlett Packard Enterprise Trading Down 5.6% Shares of Hewlett Packard Enterprise stock opened at $55.32 on Friday. The firm’s 50 day moving average is $59.34 and its 200 day moving average is $46.33. Hewlett Packard Enterprise Company has a 1 year low of $19.84 and a 1 year high of $73.56. The firm has a market capitalization of $73.44 billion, a PE ratio of 28.81, a price-to-earnings-growth ratio of 0.52 and a beta of 1.39. The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last released its earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.18. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The business had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter in the prior year, the firm posted $0.44 EPS. The company’s revenue for the quarter was up 33.7% compared to the same quarter last year. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. Equities research analysts forecast that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current fiscal year.
Hewlett Packard Enterprise Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Friday, October 16th. Shareholders of record on Thursday, September 17th were given a dividend of $0.1425 per share. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $0.57 annualized dividend and a dividend yield of 1.0%. Hewlett Packard Enterprise’s dividend payout ratio (DPR) is currently 29.69%.
(Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.
HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.
Featured Articles Five stocks we like better than Hewlett Packard Enterprise Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? Want to see what other hedge funds are holding HPE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Hewlett Packard Enterprise Company (NYSE:HPE – Free Report).
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Assenagon Asset Management S.A. grew its stake in Hewlett Packard Enterprise Company (NYSE:HPE – Free Report) by 10.6% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,371,297 shares of the technology company’s stock after acquiring an additional 131,297 shares during the period. Assenagon Asset Management S.A. owned 0.10% of Hewlett Packard Enterprise worth $87,612,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other large investors also recently modified their holdings of the stock. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Hewlett Packard Enterprise during the 2nd quarter worth about $1,027,139,000. Primecap Management Co. CA bought a new position in shares of Hewlett Packard Enterprise in the 2nd quarter valued at about $773,225,000. Legal & General Group Plc bought a new position in shares of Hewlett Packard Enterprise in the 2nd quarter valued at about $512,721,000. Elliott Investment Management L.P. grew its position in shares of Hewlett Packard Enterprise by 47.2% during the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock worth $652,912,000 after buying an additional 8,790,757 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Hewlett Packard Enterprise during the 2nd quarter worth approximately $322,718,000. 80.78% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several equities analysts recently weighed in on HPE shares. Raymond James Financial increased their price objective on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an “outperform” rating in a report on Thursday, September 3rd. Loop Capital reduced their price objective on shares of Hewlett Packard Enterprise from $75.00 to $65.00 and set a “buy” rating on the stock in a research note on Tuesday, September 8th. Piper Sandler lifted their target price on shares of Hewlett Packard Enterprise from $57.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, October 1st. Barclays cut shares of Hewlett Packard Enterprise from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $83.00 to $77.00 in a research report on Wednesday. Finally, Wells Fargo & Company increased their price target on Hewlett Packard Enterprise from $54.00 to $63.00 and gave the company an “equal weight” rating in a research note on Thursday, October 1st. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $65.44.
Read Our Latest Stock Report on HPE Insiders Place Their Bets In other news, Director Gary M. Reiner sold 17,000 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $56.91, for a total transaction of $967,470.00. Following the completion of the transaction, the director directly owned 65,072 shares in the company, valued at $3,703,247.52. This represents a 20.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Rami Rahim sold 34,456 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total value of $2,116,287.52. Following the completion of the transaction, the executive vice president owned 875,133 shares of the company’s stock, valued at $53,750,668.86. The trade was a 3.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 551,456 shares of company stock valued at $35,271,258 in the last three months. 0.44% of the stock is currently owned by corporate insiders.
Key Headlines Impacting Hewlett Packard Enterprise Here are the key news stories impacting Hewlett Packard Enterprise this week:
Positive Sentiment: HPE announced a planned $75 million expansion in Chippewa Falls, Wisconsin, expected to create 75 jobs. The investment supports the company’s manufacturing and infrastructure operations, although its near-term effect on earnings is likely limited. HPE to spend $75M to expand, add 75 jobs in Chippewa Falls Positive Sentiment: Some investors remain constructive because HPE has reported record revenue, orders and backlog, while demand for traditional servers, AI systems and networking—and higher server prices—has supported recent results. HPE stock was also reported to be up substantially for the year before the latest retreat. What Was HPE Telling You Before Its Stock Ran? Neutral Sentiment: ETF selling added to short-term pressure, while some dip buyers are betting that HPE can convert its AI and server orders into revenue. However, the recent decline has raised questions about whether earlier dip-buying strategies will continue to work. ETFs Are Net Sellers of Hewlett Packard Enterprise Negative Sentiment: Barclays downgraded HPE to Equal Weight from Overweight and lowered its price target to $77 from $83. The firm questioned how quickly corporate customers will adopt AI hardware and suggested that memory-component inflation, rather than new AI deployments, may be driving server revenue growth. Why Hewlett Packard Enterprise Stock Is Trading Lower Today Negative Sentiment: Concerns over how customers will finance large AI infrastructure projects have spread across hardware stocks, including HPE, Dell and Super Micro. The resulting sector-wide selling, combined with scrutiny of HPE’s server revenue quality and adoption timeline, drove a roughly 20% decline between October 9 and October 15. AI Financing Worries Extend Hardware Selloff Hewlett Packard Enterprise Stock Performance Shares of Hewlett Packard Enterprise stock opened at $55.32 on Friday. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The firm has a market cap of $73.44 billion, a price-to-earnings ratio of 28.81, a price-to-earnings-growth ratio of 0.52 and a beta of 1.39. The stock’s 50-day moving average is $59.34 and its 200-day moving average is $46.33. Hewlett Packard Enterprise Company has a one year low of $19.84 and a one year high of $73.56.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.18. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The company had revenue of $12.21 billion during the quarter, compared to analysts’ expectations of $11.97 billion. During the same period last year, the business earned $0.44 EPS. The business’s quarterly revenue was up 33.7% on a year-over-year basis. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. Equities analysts predict that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current fiscal year.
Hewlett Packard Enterprise Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, October 16th. Shareholders of record on Thursday, September 17th were given a dividend of $0.1425 per share. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $0.57 annualized dividend and a yield of 1.0%. Hewlett Packard Enterprise’s payout ratio is 29.69%.
(Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.
HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.
See Also Five stocks we like better than Hewlett Packard Enterprise Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? Want to see what other hedge funds are holding HPE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Hewlett Packard Enterprise Company (NYSE:HPE – Free Report).
Receive News & Ratings for Hewlett Packard Enterprise Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hewlett Packard Enterprise and related companies with MarketBeat.com's FREE daily email newsletter.
HPE sells servers, data storage, networking, AI, cloud containerization software, technology consulting, and customer support to large business customers, which is making it a key supplier in the AI build-out. The company’s third-quarter fiscal 2026 report showed record revenue of $12.2 billion (a 34% year-over-year gain), $9 billion in cloud and AI revenue (a 25% gain), per-share earnings of $1.11 (a 152.3% rise), and called for EPS of up to $1.30 next quarter.
No wonder HPE shares are up 144% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
A Wall Street downgrade questioning the timeline for corporate artificial intelligence spending sent Hewlett Packard Enterprise (HPE -4.15%) tumbling 20.2% this week.
Hewlett Packard Enterprise stock changed hands at $58.63 as of the close on Thursday, October 15, down 20.2% from Friday, October 9's close. Over the same period, the S&P 500 (^GSPC -0.38%) slipped 0.9%, and the Nasdaq-100 was down 3.1%.
$56.20-$2.44 (-4.15%)
NYSE · As of 11:27 AM ET 10/16/26
Wall Street casts doubt on enterprise AI timingAnalysts at Barclays downgraded Hewlett Packard Enterprise on Wednesday to the equivalent of a hold rating, citing concerns that corporate adoption of artificial intelligence hardware is taking longer than expected.
The firm noted that businesses currently allocate roughly 5% of their IT budgets to AI projects, suggesting that recent server revenue gains reflect higher memory component costs rather than a surge in enterprise AI deployments. The downgrade also hit sector peers like Dell Technologies (DELL -2.82%), which plunged 6.7% over the week.
Hewlett Packard Enterprise sells server hardware, data storage, and networking equipment to corporate IT departments and cloud providers, which use it to run data centers. The company had been riding a strong wave of server demand, with server revenue expanding 35% in its last reported fiscal third quarter, which ended July 31, 2026. However, the downgrade underscores that much of the recent top-line momentum stemmed from hardware price increases rather than from increased unit shipments among corporate customers.
Investors had pushed the stock higher on expectations that high-margin servers and networking gear would fuel multi-year earnings expansion. If corporate clients delay large-scale AI infrastructure commitments, profit margins could drift back toward historical averages as traditional server pricing normalizes.
This week's downgrade by Barclays sharpens concerns that enterprise AI hardware spending may take longer to materialize than Wall Street's lofty expectations implied.
What's next for Hewlett Packard EnterpriseThe next major test for the company comes on Dec. 3, 2026, when management is scheduled to report fiscal fourth-quarter earnings. Investors will watch gross margins closely after adjusted gross margin reached 40% in the prior quarter, seeking evidence that server pricing power remains intact.
Hewlett Packard Enterprise stock trades at a trailing price-to-earnings (P/E) ratio of 29.2, above the peer average of 16.1, with Dell Technologies (DELL -2.82%) at 27.1, HP Inc. (HPQ -1.25%) at 11.6, and Super Micro Computer (SMCI -7.51%) at 9.6.
Investors will accept this premium only if demand for AI servers accelerates. With $6.2 billion in cash and short-term investments as of July 31, 2026, against $20.2 billion in total debt, including lease obligations, the balance sheet provides operational flexibility. However, any further delay in corporate AI spending leaves HPE's valuation exposed.
Image source: Getty Images.
Is Hewlett Packard Enterprise stock a buy?No hypergrowth run lasts forever. Even the AI data center boom must slow down someday, and Barclays thinks the tipping point is approaching quickly.
That may be the case, and I understand if you're bracing for a harsh end to the AI surge. But HPE is positioned to do well even if the data center orders dry up in 2027.
I could talk about this all day, but let's focus on three key details:
Last year's acquisition of Juniper Networks made HPE a giant in the enterprise networking space. The integration is running ahead of schedule, set to deliver stronger synergies with HPE's systems business than expected.The stock looks expensive from certain angles, but downright affordable with other metrics. Crucially, HPE trades at 17.9 times free cash flow on Oct. 16. Dell's ratio is 33.8x and SuperMicro is burning cash these days.The GreenLake hardware subscription service is a hard-to-copy competitive advantage, and HPE's customers typically sign multi-year contracts. That's a high-quality revenue stream, still in its early stagesAmong these three pillars of my HPE thesis, the GreenLake service appears especially important. The subscription service provides a stable revenue platform in any market.
"GreenLake remains one of our greatest differentiators," CEO Antonio Neri said in the Q3 earnings call. "In Q3, the number of GreenLake customers grew 18% to 52,000, up from 44,000 a year ago."
Barclays may be right that enterprise AI is running behind schedule, but HPE's record backlog says customers are still placing orders faster than the company can fill them. A 20% haircut for a business targeting at least $5 billion in free cash flow next year looks like an overreaction to me.
Worries over how the AI infrastructure boom gets paid for are rippling through hardware stocks again. Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) stock is down 5% at $55.87 this morning, extending a selloff that has swept across the…
Worries over how the AI infrastructure boom gets paid for are rippling through hardware stocks again. Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) stock is down 5% at $55.87 this morning, extending a selloff that has swept across the biggest names in AI servers.
Meanwhile, Super Micro Computer (NASDAQ:SMCI) stock is down 7% to $32.78, a larger slide than Hewlett Packard Enterprise stock. Dell Technologies (NYSE:DELL) stock is down 3% to $458.78, a softer decline than Hewlett Packard Enterprise stock.
Servers, storage and networking equipment make up the Hewlett Packard Enterprise lineup, while Dell sells servers, storage and PCs. Super Micro Computer builds AI-optimized servers, giving it a more direct tie to AI data center buildouts than Hewlett Packard Enterprise or Dell.
AI Financing Doubts Extend the Hardware Selloff
Pressure on Hewlett Packard Enterprise stock extends a selloff in AI hardware as investors question how AI infrastructure spending gets financed. Data center buildouts demand heavy upfront expenditures. Doubts about who funds them flow straight back to the companies that sell the equipment, including Hewlett Packard Enterprise. We pulled together seven suppliers riding that same expansion, from power to cooling and networking, in a free report here.
Barclays heightened that debate on Wednesday when it cut its ratings on Hewlett Packard Enterprise and Dell to the equivalent of hold. The firm argued that businesses haven’t yet meaningfully increased their AI spending and that recent hardware revenue strength owes more to higher memory component prices.
Broader technology funds are slipping by smaller margins. The iShares U.S. Technology ETF (NYSEARCA:IYW) is down 2%. Large-cap tech is holding up even better (though it’s still selling off), as the Invesco QQQ Trust (NASDAQ:QQQ) is down 1.3%.
Networking Growth Versus Component Price Risk
The upside story for Hewlett Packard Enterprise rests on AI server demand and its expanded networking business. Networking gives the company a second growth engine alongside servers, which could buffer Hewlett Packard Enterprise if AI server orders cool.
Hewlett Packard Enterprise is still integrating Juniper Networks into its networking business, so much of the payoff depends on execution. Integration work can absorb management focus at a time when hardware demand faces fresh questions.
On the bear side, slower enterprise AI spending could leave the hardware growth at Hewlett Packard Enterprise tied to component prices. Under that view, revenue could cool once memory pricing settles down, even if customer orders hold steady.
Enterprise AI Spending Holds the Key
Corporate AI budgets sit at the center of this debate. Will businesses begin to lift that spending? The next test for Hewlett Packard Enterprise is whether they do so in a way that backs up its server and networking story. Clear signs of broader enterprise adoption could ease the financing worries weighing on Hewlett Packard Enterprise stock.
Memory pricing is the other open variable for Hewlett Packard Enterprise, since Barclays tied much of the recent hardware revenue strength to higher component prices, and investors can watch for whether the gap between Hewlett Packard Enterprise stock and the broader technology funds narrows as the financing debate plays out.
Hewlett Packard Enterprise still holds a credible growth path through AI servers and its expanded networking business, yet the hardware group is trading on financing doubts for now. Traders may prefer to keep their exposure smaller until the enterprise AI spending question resolves.
Contact [email protected] for any questions or corrections.
On October 15, 2026, Hewlett Packard Enterprise Co
HPE -7.1% 70
shares fell 7.1% amid a tumultuous trading day, bringing the current price to $58.63 within a 52-week range of $19.84 to $73.56. This decline follows a challenging week where the stock lost 17.4%, although it remains up 147.0% year-to-date and 138.3% over the past year.
GF Value™ verdict: HPE is currently priced at $58.63, which is 106.2% above the GF Value™ estimate of $28.44, indicating it is overvalued.GF Score™ of 70/100 suggests the company is performing above average in several key areas.Insider activity shows significant selling, with insiders disposing of $71.1 million worth of shares in the past 12 months and no reported buying.Is HPE Overvalued or Undervalued?The current market price of Hewlett Packard Enterprise Co
HPE -7.1% 70
at $58.63 is significantly above its GF Value™ estimate of $28.44. This discrepancy indicates that the stock is 106.2% overvalued according to the GuruFocus valuation model. GF Value™ is GuruFocus' proprietary intrinsic value estimate, which considers historical trading multiples, past business growth, and future performance estimates. Given this overvaluation, investors may face risks if the market corrects itself, reflecting a possible decline in the stock price toward its intrinsic value.
Moreover, the GF Valuation label categorizes HPE as significantly overvalued, emphasizing the caution investors should exercise when considering this stock. The substantial gap between the market price and GF Value™ suggests a lack of margin of safety, as there is little room for error in case the company's performance does not meet market expectations.
How Does HPE's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)30.6x13.9xForward P/E12.6xN/AHewlett Packard Enterprise's current P/E (TTM) ratio stands at 30.6, which is 121% higher than its 5-year median P/E of 13.9. The forward P/E of 12.6 suggests a potentially more favorable valuation in the future, but the current P/E indicates that the stock is trading well above its historical averages. This analysis aligns with the GF Value™ verdict, reinforcing the notion that HPE is overvalued at present.
What Does HPE's GF Score™ Tell Us?The GF Score™ is an overall rating that assesses a company's financial strength, profitability, growth potential, valuation, and momentum. HPE's score of 70/100 signifies that it performs above average in these metrics, but there are notable strengths and weaknesses to consider.
MetricRatingGF Score™70Financial Strength5/10Profitability6/10Growth8/10Valuation1/10Momentum6/10The highest sub-rank is Growth at 8/10, indicating that HPE has a promising outlook in terms of expanding its business. However, the Valuation rank of 1/10 is concerning, as it underscores the overvaluation issue seen in the GF Value™ assessment. The Financial Strength rating of 5/10 suggests that while the company is stable, there are areas for improvement. Overall, while HPE shows potential for growth, the valuation metrics raise red flags for prospective investors.
What Are Gurus and Insiders Doing with HPE?Currently, 16 gurus hold positions in HPE, with 7 increasing their stakes and 10 trimming their holdings in recent quarters. This mixed activity indicates a lack of consensus among institutional investors about the stock's future performance. In addition, insider activity reveals that insiders have sold $71.1 million worth of shares over the past year without any reported purchases, which may reflect a lack of confidence in the company's current valuation or future prospects.
The significant insider selling could be interpreted as a negative signal, suggesting that those closest to the company do not foresee an increase in value at current price levels. Such patterns can often lead to caution among retail investors, as insiders typically have deeper insights into the company's performance and outlook.
What This Means for InvestorsIn conclusion, Hewlett Packard Enterprise Co
HPE -7.1% 70
appears to be significantly overvalued based on the GF Value™ estimate, with the current market price far exceeding its intrinsic value. Investors should be aware of the risks associated with such overvaluation, particularly given the mixed signals from insiders and the valuation metrics. For more detailed information, you can visit the Hewlett Packard Enterprise Co (HPE) stock page and explore insights on its GF Value™ page or utilize the GuruFocus Stock Screener.
Frequently Asked QuestionsWhat is HPE's GF Score™?
HPE has a GF Score™ of 70/100, indicating that the company is performing above average in key areas such as growth and profitability.
Is HPE overvalued or undervalued?
HPE is deemed overvalued according to the GF Value™ estimate, which suggests a significant discrepancy between the market price and intrinsic value.
What is HPE's P/E ratio?
HPE's P/E (TTM) ratio is 30.6, which is considerably higher than its 5-year median of 13.9, indicating that the stock is trading above its historical valuation levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Sax Wealth Advisors LLC raised its position in Hewlett Packard Enterprise Company (NYSE:HPE – Free Report) by 97.1% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 17,310 shares of the technology company’s stock after purchasing an additional 8,528 shares during the period. Sax Wealth Advisors LLC’s holdings in Hewlett Packard Enterprise were worth $1,106,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Hewlett Packard Enterprise during the second quarter valued at approximately $1,027,139,000. Primecap Management Co. CA purchased a new stake in Hewlett Packard Enterprise in the 2nd quarter worth approximately $773,225,000. Legal & General Group Plc purchased a new stake in Hewlett Packard Enterprise in the 2nd quarter worth approximately $512,721,000. Elliott Investment Management L.P. grew its stake in Hewlett Packard Enterprise by 47.2% in the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock worth $652,912,000 after acquiring an additional 8,790,757 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in Hewlett Packard Enterprise in the 2nd quarter valued at $322,718,000. 80.78% of the stock is currently owned by hedge funds and other institutional investors.
Hewlett Packard Enterprise Stock Performance Hewlett Packard Enterprise stock opened at $63.22 on Thursday. Hewlett Packard Enterprise Company has a 12-month low of $19.84 and a 12-month high of $73.56. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The company has a market capitalization of $83.92 billion, a price-to-earnings ratio of 32.93, a price-to-earnings-growth ratio of 0.61 and a beta of 1.39. The firm’s fifty day moving average price is $59.18 and its 200 day moving average price is $46.02.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.18. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The company had revenue of $12.21 billion during the quarter, compared to analysts’ expectations of $11.97 billion. During the same period in the prior year, the company posted $0.44 EPS. The firm’s revenue for the quarter was up 33.7% on a year-over-year basis. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. On average, research analysts forecast that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year. Hewlett Packard Enterprise Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Thursday, September 17th will be paid a dividend of $0.1425 per share. This represents a $0.57 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio is 29.69%.
Insider Transactions at Hewlett Packard Enterprise In related news, EVP Rami Rahim sold 34,456 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total value of $2,116,287.52. Following the sale, the executive vice president directly owned 875,133 shares of the company’s stock, valued at $53,750,668.86. This represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio F. Neri sold 250,000 shares of the stock in a transaction on Monday, October 5th. The shares were sold at an average price of $68.31, for a total transaction of $17,077,500.00. Following the transaction, the chief executive officer owned 1,182,393 shares in the company, valued at $80,769,265.83. This trade represents a 17.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 551,456 shares of company stock valued at $35,271,258. 0.44% of the stock is currently owned by corporate insiders.
Hewlett Packard Enterprise News Summary Here are the key news stories impacting Hewlett Packard Enterprise this week:
Positive Sentiment: Daiwa upgraded HPE to Outperform, providing a positive counterpoint to the recent wave of rating cuts and suggesting that the company’s growth prospects remain attractive. Daiwa upgrades Hewlett Packard Enterprise stock to Outperform Positive Sentiment: HPE’s operating momentum remains a supportive factor. The company has reported accelerating sales growth, raised its fiscal 2026 and 2027 outlooks, increased its long-term networking growth forecast, and announced a $1.2 billion AI order from cloud provider Vultr. The Juniper Networks acquisition is also viewed as strengthening HPE’s networking and AI infrastructure position. Hewlett Packard Enterprise: Fears Mount For Bears As Juniper Acquisition Shows Strength Neutral Sentiment: HPE has been among the market’s strongest technology performers, trading near its 52-week high. That momentum supports investor interest, but it also raises the risk of profit-taking and makes the stock more sensitive to valuation-related downgrades. 4 Stocks Trading Near 52-Week High With Room to Rise Further Negative Sentiment: Barclays downgraded HPE from Overweight to Equal Weight and reduced its price target from $83 to $77. Analyst Tim Long cited elevated valuation and a lack of a “meaningful AI inflection,” while adopting a more cautious view of enterprise IT spending. The downgrade also pressured Dell and NetApp, intensifying sector-wide concerns. Dell, HPE and NetApp Stocks Slump After Downgrades on Worries About AI Spending Negative Sentiment: Evercore previously cut HPE to In Line, arguing that the valuation had become stretched after the rally and that limited near-term catalysts could support further multiple expansion. HPE was reportedly trading well above its historical earnings multiple, increasing downside sensitivity if AI growth fails to accelerate. How Evercore’s Valuation-Driven Downgrade At Hewlett Packard Enterprise Has Changed Its Investment Story Analyst Upgrades and Downgrades HPE has been the topic of a number of recent analyst reports. Susquehanna reduced their price target on Hewlett Packard Enterprise from $65.00 to $62.00 and set a “neutral” rating on the stock in a research note on Friday, September 4th. Weiss Ratings raised Hewlett Packard Enterprise from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 4th. Raymond James Financial upped their target price on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an “outperform” rating in a research note on Thursday, September 3rd. Barclays downgraded Hewlett Packard Enterprise from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $83.00 to $77.00 in a research report on Wednesday. Finally, Bank of America raised their price target on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $65.44.
View Our Latest Research Report on Hewlett Packard Enterprise
(Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.
HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.
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Data-center networking generated about 3.1% of quarterly sales, despite growing more than 100%.
Summary
HPE’s broader networking growth needs separation from its narrower data-center opportunity.
Hewlett Packard Enterprise, the networking and enterprise-computing supplier HPE, slid to $63.695, down approximately 7.4%, at 11:48 a.m. ET on October 14 as investors digested Barclays' downgrade. According to Investing.com, the bank lowered its rating to Equal Weight and trimmed its price target to $77 from $83, keeping its financial forecasts intact. That distinction matters. The downgrade challenges how much investors should pay for the growth story, rather than signaling weaker earnings expectations.
The AI-networking opportunity is growing fast. Its contribution to total sales remains small. HPE's September 2 earnings release reported data-center networking revenue of $382 million, up 112.2% year over year. That works out to roughly 3.1% of quarterly revenue of $12.2 billion. The broader Networking segment brought in $2.9 billion across data-center, campus, routing and security products, with a 22% operating margin versus 17% for Cloud & AI. Those figures show a profitable networking business, but they do not make every networking dollar an AI dollar.
The valuation picture raises the stakes: the $63.695 share price sits 124.2% above the displayed GF Value™ estimate of $28.41, suggesting investors already expect substantial growth. That estimate is a valuation reference, not a prediction of where the stock will trade. Still, rapid growth in a business contributing roughly 3% of sales needs time to move the whole company. Investors should watch whether data-center networking gains revenue share while the broader portfolio sustains profitability. With Barclays leaving its forecasts unchanged, the next earnings report needs to give investors stronger evidence that the premium has financial backing.
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Barclays downgraded the stock after a roughly 190% run, questioning how much of the growth story really comes from AI.
Summary
Barclays downgraded HPE to Equal Weight.
Shares of Hewlett Packard Enterprise Co. (HPE, Financials) saw pressure after Barclays claimed its AI story may have grown ahead of the facts.
The company downgraded the stock to Equal Weight and dropped its price objective to $77 from $83.
That call comes after an incredible run. HPE shares are up around 190% this year, with less space for disappointment.
Barclays is concerned that part of the revenue momentum investors attribute to artificial intelligence is perhaps due to positive commodities trends.
This difference is important.
Investors have been prepared to pay more for firms likely to gain from the AI infrastructure development. The market may have to reevaluate how much of that premium is deserved if HPE's recent success proves to be largely built on transient hardware pricing circumstances.
HPE still has significant exposure to AI infrastructure and networking, while its GreenLake business provides a recurring income component.
But after a quick surge like this, execution is more important.
The next test will be whether HPE can demonstrate that demand for AI is translating into sustained revenue and profits growth, not just a strong hardware cycle.
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Key Takeaways Four momentum stocks near their 52-week high show potential for continued upside.HPE, ARW, KSS and GCT demonstrate strong earnings growth and positive price momentum.The screening criteria target stocks trading within 20% of their highs with undervalued metrics.
Stocks hitting their 52-week high and delivering consistent performance offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
Investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Hewlett Packard (HPE - Free Report) , Arrow Electronics (ARW - Free Report) , Kohl's (KSS - Free Report) and GigaCloud Technology Inc. (GCT - Free Report) are expected to maintain their momentum and keep scaling new highs. Extensive information on a stock is necessary to understand whether or not there is scope for upside.
Here, we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on “buy high, sell higher.”
52-Week High: A Good IndicatorMany times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay a premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encourage investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their underreaction unwarranted, even if there are no company-specific driving forces.
Setting the Right FiltersWe ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.
Current Price/52 Week High >= .11: This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.11 implies that the stock is trading within 20% of its 52-week high range.
% Change Price – 4 Weeks > 0: It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 0: This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed: The lower, the better.
P/E using F(1) Estimate <= XIndMed: This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
1-Year EPS Growth F(1)/F(0) >= XIndMed: This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
Zacks Rank <=1: No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 8: This parameter will help screen stocks that are trading at $8 or higher.
Volume – 20 days (shares) >= 100000: The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are our four picks out of the 21 stocks, each carrying a Zacks Rank #1, that made it through the screen:
Hewlett Packard Enterprise is well-positioned to capitalize on accelerating enterprise AI demand. On its Networking Investor Day on Sept. 30, 2026, HPE raised its fiscal 2027 networking revenue growth outlook to high-teens to low-20s percent, with operating margins targeted in the mid-to-high 20s percent range. Data Center Networking is guided to grow at a low-to-high 50% CAGR through fiscal 2029.
HPE also lifted its Juniper Networks cost synergy target to $800 million in annual run-rate savings by fiscal 2028, up from $600 million. A $1.2 billion AMD Helios AI Rack order from Vultr validates HPE’s integrated AI strategy. The October 2026 ProLiant Gen13 launch and deepened NVIDIA collaboration for enterprise agentic AI further support a constructive near-term outlook.
The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has remained steady at $3.81 per share in the past 30 days. HPE’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 19.6%.
Arrow Electronics is well-positioned for near-term gains, supported by robust guidance and key September 2026 catalysts. For third-quarter 2026, management guided consolidated sales of $9.60 billion to $10.20 billion, with Global Components projected to grow 35% to 42% year over year. Book-to-bill ratios remain well above parity, and the backlog continues to expand.
In September, Arrow secured distribution rights for the complete HPE Networking portfolio—HPE Aruba and Juniper Networking—across North America and select EMEA, expanding revenues in AI, hybrid cloud, and data center modernization. Arrow increased its North American asset securitization facility from $1.5 billion to $1.75 billion and extended its maturity to September 2029. Deidra Merriwether’s appointment as president and COO on Sept. 8 reinforced ARW’s near-term growth momentum.
The Zacks Consensus Estimate for the company’s 2026 earnings has remained steady at $21.24 per share in the past 30 days. ARW surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 34.4%.
Kohl’s is positioned for near-term improvement, supported by raised full-year guidance and balance sheet progress. Management lifted its adjusted EPS outlook to $1.80–$2.40 and raised the adjusted operating margin guidance to 3.5%–4.0%. Gross margin expanded 305 basis points in the second quarter, while SG&A expenses continued to decline. Long-term debt was reduced by $195 million, enabling Kohl’s to restart share repurchases of up to $100 million.
The September 2026 Babies"R"Us expansion to 56 additional stores — featuring an exclusive collection and new brand additions, including Millie Moon diapers and Hallmark gift sets — deepens the family-focused assortment ahead of the critical holiday season. A Deal Days event in early October signals proactive promotional momentum to drive traffic and conversion through year-end.
The Zacks Consensus Estimate for the company’s 2026 earnings has remained steady at $2.10 per share in the past 30 days. KSS’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 84.76%.
GigaCloud Technology’s near-term setup looks constructive. Management guides third-quarter 2026 revenues of $375-$400 million, signaling continued demand across its B2B marketplace for large parcel merchandise. Expanding participation should support that outlook. Active third-party sellers reached 1,465 and active buyers 12,823 over the trailing 12 months, while third-party GMV, at $962.3 million, now makes up 55.2% of marketplace GMV, a mix supporting scalable growth.
Capital allocation adds support. The board approved a new three-year, $120 million repurchase program in August, and GigaCloud deployed roughly $18 million on buybacks after June 30. With $378.6 million in cash, restricted cash and investments as of June 30, the company retains flexibility to invest in growth while returning capital, positioning shares for a steadier trajectory.
The Zacks Consensus Estimate for the company’s 2026 earnings has moved 17.7% north to $4.92 per share in the past 30 days. GCT surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 42.08%.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways HPE & NVDA are expanding integrated AI infrastructure to simplify enterprise deployment & scale AI workloads.HPE's AI Factory and Private Cloud AI combine compute, storage, networking and cloud management capabilities.HPE shares have surged 205.9% YTD, while its forward price-to-sales ratio of 1.79 trails the industry's 4.60. Hewlett Packard Enterprise (HPE - Free Report) has partnered with NVIDIA (NVDA - Free Report) to help enterprises and other large AI customers simplify and scale generative AI, agentic AI and high-performance computing workloads. The integration enables Hewlett Packard Enterprise to provide integrated AI infrastructure, including hardware, software and cloud management.
At the core of the collaboration is HPE AI Factory with NVIDIA, a turnkey AI infrastructure solution that combines HPE's compute, storage, networking and GreenLake platform with NVIDIA's GPUs, CPUs, networking technologies and AI Enterprise software. The integrated offering allows enterprises to build and manage AI environments through a unified platform.
The companies have also jointly engineered HPE Private Cloud AI, which enables customers to deploy generative AI and agentic AI applications securely in on-premises or hybrid cloud environments. The solution comes with pre-integrated hardware and software, reducing deployment complexity while providing enterprise-grade capabilities.
HPE is further strengthening its AI hardware portfolio with AI-optimized servers such as the HPE ProLiant Compute DL394 Gen12, powered by NVIDIA's Vera CPU for reinforcement learning, AI agents, inference and large-scale data processing. The company also offers systems based on NVIDIA's Blackwell and Rubin architectures.
To accelerate AI workloads, HPE integrates NVIDIA's Blackwell, HGX and RTX Pro GPUs alongside Spectrum-X Ethernet, InfiniBand networking, BlueField DPUs and ConnectX SuperNICs across its AI infrastructure portfolio. HPE also incorporates NVIDIA Agent Toolkit, Nemotron models, NeMo and OpenShell into HPE Private Cloud AI, enabling enterprises to build, govern and monitor AI agents with enhanced security and observability.
How Competitors Fare Against HPEHPE competes with Super Micro Computer (SMCI - Free Report) and Dell Technologies (DELL - Free Report) in the AI infrastructure space. Both SMCI and DELL are collaborating with NVIDIA to strengthen their offerings. For instance, Super Micro Computer's competitive advantage lies in its modular Building Block architecture that enables rapid product customization by reusing components across thousands of server configurations.
Supported by more than 3,200 research and development engineers, SMCI quickly integrates new processors from NVIDIA, AMD, Intel and ARM. This rapid product development shortens time-to-market, lowers engineering costs and enables faster global shipments, making Super Micro Computer particularly attractive for customers seeking immediate AI deployment.
Dell Technologies, meanwhile, is pursuing a broader ecosystem strategy through its Dell AI Factory with NVIDIA. Rather than focusing solely on servers, DELL is expanding across compute, storage, networking, automation and software. Dell Technologies recently introduced PowerEdge R9822 and M9822 servers powered by NVIDIA Vera CPUs for Agentic AI workloads.
Although all three companies are leveraging NVIDIA's latest AI technologies, their competitive strategies differ. HPE is betting on integrated enterprise AI platforms that combine infrastructure with cloud software and managed services and has a visible edge in this arena.
HPE’s Price Performance, Valuation and EstimatesHewlett Packard Enterprise has skyrocketed 205.9% year to date, outperforming the Zacks Computer - Integrated Systems industry’s appreciation of 130.1% and the Zacks Computer and Technology sector’s return of 23.7%.
HPE YTD Performance Chart
Image Source: Zacks Investment Research
Despite the appreciation in the share price, HPE trades at a discount. From a valuation standpoint, HPE trades at a forward price-to-sales ratio of 1.79, below the industry’s 4.60.
The Zacks Consensus Estimate for HPE’s fiscal 2026 margin implies year-over-year growth of 96.4%. Estimates have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
HPE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hewlett Packard Enterprise is benefiting from AI infrastructure demand, with surging server sales, a growing AI backlog and GreenLake adoption supporting its growth outlook.
TOKYO--(BUSINESS WIRE)--HPE (NYSE: HPE) and Mizuho Securities today announced that Mizuho Securities will build a new direct liquid cooling ready data center and deploy HPE Cray XD2000. The new infrastructure will support Mizuho Securities in advancing its global business strategy and delivering higher-value financial products and services to a wider customer base. Installation of the liquid cooling equipment, network buildout, and operational validation will begin this fall, with the system sc.
Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) has spent the past month convincing the market that its networking business drives its role in artificial intelligence (AI) infrastructure. Shares of Hewlett Packard Enterprise are trading at $72.
Hewlett Packard Enterprise (HPE) stock rose 3% on Wednesday after the company introduced four new servers powered by Advanced Micro Devices' latest EPYC processors, expanding its portfolio of infrastructure designed for artificial intelligence and data-centre workloads. HPE shares reached a fresh record high of $73.28 as the broader market traded lower amid rising Treasury yields and oil prices.
HOUSTON--(BUSINESS WIRE)--HPE (NYSE: HPE) today announced the first four of its HPE ProLiant Gen13 Servers powered by 6th Generation AMD EPYC™ Server processors. The new systems expand compute, memory, and I/O capabilities to help enterprises accelerate agentic AI and inference, analytics, virtualization, simulation, and modeling while strengthening security, simplifying operations, and providing reliability across distributed IT environments. As AI systems evolve from generating insights to ta.
Hewlett Packard Enterprise Company (NYSE:HPE – Get Free Report) reached a new 52-week high during mid-day trading on Tuesday. The company traded as high as $70.44 and last traded at $70.1430, with a volume of 1223501 shares traded. The stock had previously closed at $68.36.
Analyst Upgrades and Downgrades A number of research firms recently commented on HPE. Argus reissued a “buy” rating and issued a $70.00 target price on shares of Hewlett Packard Enterprise in a research note on Friday, September 4th. Deutsche Bank Aktiengesellschaft assumed coverage on Hewlett Packard Enterprise in a research report on Tuesday, September 1st. They set a “buy” rating and a $62.00 price objective on the stock. Morgan Stanley raised their price objective on Hewlett Packard Enterprise from $67.00 to $72.00 and gave the company an “overweight” rating in a report on Thursday, October 1st. Bank of America upped their target price on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Finally, Wells Fargo & Company increased their price target on shares of Hewlett Packard Enterprise from $54.00 to $63.00 and gave the company an “equal weight” rating in a research report on Thursday, October 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $72.06.
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Hewlett Packard Enterprise Stock Up 2.9% The stock has a 50 day moving average price of $56.21 and a 200-day moving average price of $43.72. The stock has a market capitalization of $93.34 billion, a P/E ratio of 36.66, a PEG ratio of 0.62 and a beta of 1.39. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping the consensus estimate of $0.93 by $0.18. The firm had revenue of $12.21 billion for the quarter, compared to the consensus estimate of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The company’s quarterly revenue was up 33.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.44 earnings per share. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. As a group, research analysts expect that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.
Hewlett Packard Enterprise Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Thursday, September 17th will be paid a dividend of $0.1425 per share. This represents a $0.57 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio is 29.69%.
Insider Transactions at Hewlett Packard Enterprise In related news, EVP Rami Rahim sold 34,456 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total transaction of $2,116,287.52. Following the completion of the sale, the executive vice president directly owned 875,133 shares in the company, valued at $53,750,668.86. This represents a 3.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio Neri sold 250,000 shares of the firm’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the completion of the sale, the chief executive officer directly owned 1,432,393 shares in the company, valued at approximately $86,573,832.92. This trade represents a 14.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 301,456 shares of company stock worth $18,193,758. Insiders own 0.44% of the company’s stock.
Institutional Inflows and Outflows Hedge funds have recently bought and sold shares of the business. Ferguson Wellman Capital Management Inc. bought a new position in Hewlett Packard Enterprise during the 3rd quarter valued at approximately $241,000. Eastern Bank raised its holdings in shares of Hewlett Packard Enterprise by 206.4% during the third quarter. Eastern Bank now owns 28,994 shares of the technology company’s stock valued at $1,852,000 after acquiring an additional 19,532 shares in the last quarter. Silverleafe Capital Partners LLC purchased a new stake in Hewlett Packard Enterprise in the third quarter worth $880,000. Polaris Financial Partners purchased a new stake in Hewlett Packard Enterprise in the third quarter worth $282,000. Finally, CX Institutional boosted its holdings in Hewlett Packard Enterprise by 15.1% in the third quarter. CX Institutional now owns 23,990 shares of the technology company’s stock valued at $1,533,000 after acquiring an additional 3,139 shares in the last quarter. Hedge funds and other institutional investors own 80.78% of the company’s stock.
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Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.
HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.
Featured Articles Five stocks we like better than Hewlett Packard Enterprise AI Chip Demand Gives Linde a New Growth Catalyst Qualcomm’s Huawei Deal Adds Strategic Depth to Its AI Expansion 3 Sectors Where Volatility Is Creating Entry Points, Not Exit Signals D-Wave’s Gate-Model Tech Notches a Major Milestone Receive News & Ratings for Hewlett Packard Enterprise Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hewlett Packard Enterprise and related companies with MarketBeat.com's FREE daily email newsletter.
HPE (HPE) shifting from a compute company into a networking company is something Zeus Kerravala sees as a positive shift for the firm's growth potential. He explains how Juniper technology, obtained through HPE's acquisition of Juniper Networks, gives the company added leverage with its AMD Inc. (AMD) partnership.
Argent Capital Management LLC cut its holdings in Hewlett Packard Enterprise Company (NYSE:HPE – Free Report) by 5.3% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 514,892 shares of the technology company’s stock after selling 28,981 shares during the period. Hewlett Packard Enterprise comprises approximately 0.2% of Argent Capital Management LLC’s holdings, making the stock its 27th biggest position. Argent Capital Management LLC’s holdings in Hewlett Packard Enterprise were worth $32,896,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also recently bought and sold shares of HPE. Capital World Investors acquired a new stake in shares of Hewlett Packard Enterprise during the 4th quarter worth approximately $901,751,000. Elliott Investment Management L.P. boosted its position in Hewlett Packard Enterprise by 47.2% during the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock valued at $652,912,000 after purchasing an additional 8,790,757 shares during the period. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Hewlett Packard Enterprise during the 2nd quarter valued at approximately $1,027,139,000. Primecap Management Co. CA bought a new position in Hewlett Packard Enterprise during the 2nd quarter worth $773,225,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Hewlett Packard Enterprise by 6.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,088,774 shares of the technology company’s stock worth $590,435,000 after buying an additional 756,972 shares during the period. Institutional investors and hedge funds own 80.78% of the company’s stock.
Hewlett Packard Enterprise Price Performance Shares of NYSE:HPE traded down $1.06 during trading on Monday, reaching $68.27. The company had a trading volume of 6,863,687 shares, compared to its average volume of 21,286,521. The firm’s fifty day moving average is $55.81 and its 200 day moving average is $43.39. The firm has a market capitalization of $90.63 billion, a PE ratio of 35.57, a price-to-earnings-growth ratio of 0.62 and a beta of 1.39. Hewlett Packard Enterprise Company has a twelve month low of $19.84 and a twelve month high of $70.29. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.72 and a current ratio of 1.11.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, beating analysts’ consensus estimates of $0.93 by $0.18. The business had revenue of $12.21 billion for the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The business’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same quarter last year, the business earned $0.44 earnings per share. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. On average, equities analysts forecast that Hewlett Packard Enterprise Company will post 3.34 EPS for the current year. Hewlett Packard Enterprise Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Thursday, September 17th will be issued a $0.1425 dividend. The ex-dividend date is Thursday, September 17th. This represents a $0.57 annualized dividend and a dividend yield of 0.8%. Hewlett Packard Enterprise’s dividend payout ratio is 29.69%.
Analyst Upgrades and Downgrades Several brokerages have recently issued reports on HPE. Barclays boosted their price target on shares of Hewlett Packard Enterprise from $79.00 to $83.00 and gave the company an “overweight” rating in a report on Thursday. Truist Financial reiterated a “buy” rating and issued a $75.00 price objective (up from $70.00) on shares of Hewlett Packard Enterprise in a research report on Thursday. Daiwa Securities Group raised shares of Hewlett Packard Enterprise from a “neutral” rating to an “outperform” rating and set a $75.00 target price for the company in a research note on Friday. Raymond James Financial raised their price target on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an “outperform” rating in a research note on Thursday, September 3rd. Finally, UBS Group boosted their price objective on Hewlett Packard Enterprise from $59.00 to $66.00 and gave the stock a “neutral” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Hewlett Packard Enterprise presently has an average rating of “Moderate Buy” and a consensus price target of $72.06.
Read Our Latest Stock Report on HPE
Insider Activity at Hewlett Packard Enterprise In related news, Director Gary M. Reiner sold 17,000 shares of Hewlett Packard Enterprise stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $56.91, for a total transaction of $967,470.00. Following the transaction, the director directly owned 65,072 shares of the company’s stock, valued at $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Antonio Neri sold 250,000 shares of the business’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the completion of the sale, the chief executive officer owned 1,432,393 shares in the company, valued at approximately $86,573,832.92. This trade represents a 14.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 301,456 shares of company stock valued at $18,193,758 over the last 90 days. 0.44% of the stock is currently owned by corporate insiders.
(Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.
HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.
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Shares of Hewlett Packard Enterprise (HPE +7.36%) rose 22.3% in September 2026, according to data from S&P Global Market Intelligence. It started with a blowout earnings report on Sept. 2. On the tail end, HPE recorded a $1.2 billion order for a new AI server rack. Both stories point to the same theme: HPE has become a serious supplier to the AI data center boom.
Image source: Getty Images.
AI data center orders powered HPE's rallyHPE's fiscal third-quarter revenue rose 34% year over year to $12.2 billion, topping the $11.93 billion consensus estimate. Earnings of $1.11 per share cleared the consensus by $0.19, and the company raised guidance for both fiscal 2026 and fiscal 2027. The fourth-quarter revenue forecast of $13.9 billion to $14.8 billion was comfortably ahead of the $13.0 billion analysts expected at the time.
AI demand drove the beat. AI systems orders jumped more than 30% from the previous quarter to $2.4 billion, and the AI systems backlog reached a record high. Networking orders rose 36%, including a record $700 million of AI networking orders. HPE also announced an expanded deal to supply routers and switches for a gigawatt-scale Oracle (ORCL +3.06%) AI cloud build-out, plus a multibillion-dollar AI inferencing server contract with an unnamed hyperscaler. I'm still just talking about Sept. 2.
The mid-month ride wasn't smooth. Shares gave back most of their early gains between Sept. 11 and Sept. 14, when AI stocks broadly took a breather. CEO Antonio Neri also sold 250,000 shares, worth roughly $15 million, on Sept. 11. The stock recovered over the rest of the month, but HPE's chart made a decent impression of a saw blade in close-up.
But all's well that ends well. On Sept. 30, HPE announced a $1.2 billion order from cloud provider Vultr for AMD Helios AI racks built by HPE. It's the first order for the system, which pairs Advanced Micro Devices (AMD +2.95%) graphics processors with HPE networking gear. When HPE issued its fiscal 2027 framework on Sept. 2, it excluded Helios entirely, so the order represents potential upside. In fact, management raised its networking revenue guidance that day, alongside stronger synergies from the $14 billion Juniper buyout.
Premium Feature
Moneyball Superscore
81/100
Today's Change
(
7.36
%) $
4.75
Current Price
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69.33
What HPE investors should watch nextHere's the surprising part. Even after nearly tripling in 2026 (up 188.6% year to date as of Oct. 2), HPE trades at about 14.8 times forward earnings estimates. That's not a bubble-level price for a company guiding toward fiscal 2027 free cash flow of at least $5 billion.
The catch is that HPE's record margins probably won't last. Management expects gross margins to drift back toward historical levels as lower-margin AI systems take up more of the sales mix, and the memory shortage isn't going away soon.
Still, HPE keeps adding reasons to watch. The fiscal fourth-quarter report, covering the period ending Oct. 31, will show whether HPE can continue converting AI orders into shipments.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Hewlett Packard Enterprise, and Oracle. The Motley Fool has a disclosure policy.
Americké akciové trhy končí týdenní obchodování solidním ziskem. Je to díky stále větším průtokům ropy skrze úzké hrdlo v Hormuzu a z toho plynoucí klesající ceny této komodity. Druhým důvodem byla dnes slabší tvorba nových pracovních míst což implikuje menší tlak na cetrální banku ve snaze zvedat sazby. Prim tak dnes hrály růstové sektory zbytné spotřeby a technologií. Nad jiné vyčnívá pokračující pád akcií Nike, která přistupuje ke škrtům.
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Index S&P 500 +0,73 % na 7722,72 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zbytná spotřeba +1,4 % Zdravotní péče 0 % Informační technologie +1,1 % Finanční sektor +0 % Základní materiály +1 % Nezbytná spotřeba +0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Teradyne (TER) +8,0 % Western Digital Corp (WDC) -10 % Hewlett Packard Enterprise (HPE) +7,4 % Seagate Technology Holdings (STX) -10 % EchoStar Corp (ECHO) +6,8 % Accenture (ACN) -6,3 % ON Semiconductor Corp (ON) +6,0 % Corteva (CTVA) -5,2 % Monolithic Power Systems (MPWR) +5,8 % AppLovin Corp (APP) -4,7 %
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Hewlett Packard Enterprise Company (NYSE:HPE – Get Free Report)’s stock price reached a new 52-week high on Wednesday. The company traded as high as $67.10 and last traded at $64.0230, with a volume of 6257088 shares. The stock had previously closed at $61.49.
More Hewlett Packard Enterprise News Here are the key news stories impacting Hewlett Packard Enterprise this week:
Positive Sentiment: HPE secured a $1.2 billion order from cloud infrastructure provider Vultr for AMD Helios AI Rack systems to be deployed at U.S. data centers. The order is HPE’s first for AMD’s new rack-scale AI platform and supports its positioning as a supplier of high-performance AI infrastructure. HPE Secures Its First AMD Helios Order in $1.2 Billion Deal With Vultr Positive Sentiment: The company raised its long-term networking revenue outlook at its investor event, citing AI-driven demand across data-center networking, routing, campus and branch, and security markets. Management also said AI demand continues to exceed supply, strengthening the growth narrative. HPE boosts networking growth outlook and gets AI order Positive Sentiment: Analysts raised targets following the announcements: Citi to $92 with a buy rating, Barclays to $83 with an overweight rating, Truist to $75, Morgan Stanley to $72 with an overweight rating, and UBS to $66. These revisions reinforce the view that HPE’s AI and networking opportunity may support additional upside. Neutral Sentiment: Analyst opinion is divided after HPE’s sharp advance. Wells Fargo raised its target to $63 but maintained equal weight, while UBS kept a neutral rating at $66. Commentary also highlights that HPE trades at a lower forward multiple than many AI infrastructure peers, but some investors believe the recent rally has already priced in substantial growth. HPE Networking Outlook Gets Boost Neutral Sentiment: EVP Rami Rahim sold 34,456 shares for approximately $2.1 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his position by 3.79%, but he still directly owns about 875,000 shares, limiting the transaction’s significance as a bearish signal. SEC insider trading filing Analyst Upgrades and Downgrades A number of research firms have commented on HPE. Evercore cut Hewlett Packard Enterprise from an “outperform” rating to an “in-line” rating and set a $65.00 price target on the stock. in a research note on Monday, September 14th. Barclays boosted their price objective on Hewlett Packard Enterprise from $79.00 to $83.00 and gave the company an “overweight” rating in a report on Thursday. Wells Fargo & Company increased their target price on Hewlett Packard Enterprise from $54.00 to $63.00 and gave the stock an “equal weight” rating in a research note on Thursday. Citigroup lifted their target price on Hewlett Packard Enterprise from $76.00 to $92.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Hewlett Packard Enterprise in a research note on Tuesday, September 1st. They set a “buy” rating and a $62.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Hewlett Packard Enterprise currently has a consensus rating of “Moderate Buy” and an average target price of $71.88.
Read Our Latest Stock Analysis on HPE Hewlett Packard Enterprise Stock Performance The firm has a market capitalization of $85.75 billion, a price-to-earnings ratio of 33.65, a PEG ratio of 0.57 and a beta of 1.39. The firm has a 50 day moving average price of $55.38 and a 200-day moving average price of $43.05. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72.
Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) last released its earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping the consensus estimate of $0.93 by $0.18. The firm had revenue of $12.21 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.Hewlett Packard Enterprise’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.44 EPS. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. As a group, sell-side analysts expect that Hewlett Packard Enterprise Company will post 3.33 earnings per share for the current fiscal year.
Hewlett Packard Enterprise Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Thursday, September 17th will be paid a dividend of $0.1425 per share. This represents a $0.57 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio is presently 29.69%.
Insider Buying and Selling In other Hewlett Packard Enterprise news, Director Gary Reiner sold 17,000 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $56.91, for a total value of $967,470.00. Following the sale, the director directly owned 65,072 shares of the company’s stock, valued at approximately $3,703,247.52. This represents a 20.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Antonio F. Neri sold 250,000 shares of Hewlett Packard Enterprise stock in a transaction on Friday, September 11th. The stock was sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the sale, the chief executive officer directly owned 1,432,393 shares of the company’s stock, valued at approximately $86,573,832.92. This trade represents a 14.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 301,456 shares of company stock worth $18,193,758 over the last 90 days. 0.44% of the stock is owned by insiders.
Institutional Investors Weigh In On Hewlett Packard Enterprise Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Capital World Investors purchased a new stake in shares of Hewlett Packard Enterprise in the 4th quarter valued at about $901,751,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in Hewlett Packard Enterprise during the 2nd quarter worth approximately $1,027,139,000. Primecap Management Co. CA purchased a new position in Hewlett Packard Enterprise during the 2nd quarter worth approximately $773,225,000. Legal & General Group Plc acquired a new position in Hewlett Packard Enterprise during the second quarter worth approximately $512,721,000. Finally, Elliott Investment Management L.P. increased its holdings in shares of Hewlett Packard Enterprise by 47.2% in the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock valued at $652,912,000 after acquiring an additional 8,790,757 shares during the period. 80.78% of the stock is currently owned by institutional investors and hedge funds.
(Get Free Report)
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.
HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.
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It has been about a month since the last earnings report for Hewlett Packard Enterprise (HPE - Free Report) . Shares have added about 18.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Hewlett Packard Enterprise due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
HPE Q3 Earnings Surpass Expectations, Revenues Rise Y/YHewlett Packard Enterprise posted non-GAAP earnings of $1.11 per share for the third quarter of fiscal 2026, which increased 152.3% year over year and beat the Zacks Consensus Estimate of 95 cents by 16.8%.
Revenues of $12.21 billion rose 33.7% year over year and beat the consensus estimate by 1%. The quarter benefited from accelerating demand for traditional servers, AI systems and networking, while disciplined pricing and a richer networking mix supported profitability.
HPE’s normalized orders increased 42% year over year, and total AI backlog reached a record $7.6 billion exiting the quarter.
HPE's Networking Orders Outpace ShipmentsNetworking revenues were $2.89 billion, up 74.9% year over year on a reported basis and 10% on a normalized basis. The segment's operating margin was 22% compared with 22.1% in the year-ago quarter.
Normalized Networking orders increased 36%, materially faster than revenues as supply constraints limited conversions. Campus & Branch revenues were $1.44 billion, while Routing contributed $788 million. Networks for AI orders reached $700 million in the quarter, taking cumulative orders to $2.2 billion and prompting HPE to raise its fiscal 2026 target to $2.5-$3 billion.
The company also signed a gigawatt-scale deal with Oracle for routers and switches supporting a major AI cloud infrastructure buildout. Management said networking purchase commitments more than doubled sequentially to help improve supply availability and convert the elevated backlog.
Hewlett Packard Enterprise's Cloud & AI Demand AcceleratesCloud & AI revenues totaled $9.04 billion, up 25.4% year over year. The segment's operating margin expanded to 17% from 7%, supported by strong server demand, pricing and scale.
Server revenues rose 35.3% to $6.77 billion, while Storage revenues increased 10.2% to $1.29 billion. AI Systems orders were $2.4 billion, and backlog climbed to $6.8 billion. After quarter-end, HPE was awarded a $3.5 billion inferencing deal with a hyperscaler customer.
Private Cloud AI orders increased at a triple-digit rate year over year, while the HPE GreenLake customer count grew 18% to 52,000. Management said enterprises are moving from AI pilots toward production use cases, particularly agentic AI and inferencing workloads.
HPE Expands Margins on Pricing and MixNon-GAAP gross profit reached $4.93 billion, up from $2.73 billion a year ago. The non-GAAP gross margin widened to 40.4% from 29.9%, reflecting pricing discipline in traditional servers and a favorable mix.
Non-GAAP operating profit increased to $1.98 billion from $777 million, while the operating margin improved to 16.2% from 8.5%. Non-GAAP operating expenses rose 17.3% sequentially to $2.95 billion, mainly because of higher variable compensation.
Management expects gross margin to moderate as AI Systems become a larger portion of sales and traditional server margins normalize. Juniper integration synergies remain on track to reach a $600 million annualized run rate by the end of fiscal 2028, with the integration running ahead of plan.
Hewlett Packard Enterprise Strengthens Cash FlowOperating cash flow was $1.64 billion, while free cash flow totaled $958 million. HPE returned $324 million to common shareholders through dividends and share repurchases during the quarter.
Cash and cash equivalents ended the period at $6.22 billion. Total net debt fell to $14.03 billion, and the net debt-to-adjusted EBITDA ratio declined to 1.8 times, below the company's two-times target more than a year ahead of its original plan.
HPE Raises Fiscal 2026 and 2027 OutlookFor the fourth quarter of fiscal 2026, HPE expects revenues of $13.9-$14.8 billion and non-GAAP earnings of $1.20-$1.30 per share. Networking revenues are projected to grow 11-13%, while Cloud & AI revenues are expected to increase 60-72%.
For fiscal 2026, HPE raised its revenue growth outlook to 34-37% and non-GAAP earnings-per-share guidance to $3.75-$3.85. Free cash flow is now expected to be at least $3.75 billion.
For fiscal 2027, management raised its revenue growth framework to 13-17% and projected non-GAAP earnings-per-share growth of 16-20%. The company expects a 14-15% non-GAAP operating margin and free cash flow of at least $5 billion, with Networking revenue growth of 14-17% and Cloud & AI growth of 14-18%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 23.86% due to these changes.
VGM ScoresAt this time, Hewlett Packard Enterprise has a average Growth Score of C, a score with the same score on the momentum front. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hewlett Packard Enterprise has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Stocks clawed back from a wild Thursday session, oil surged past $100, and Wall Street analysts reshuffled their bets on names from Airbnb to Northrop Grumman. Find out which stocks got upgraded, downgraded, or newly covered heading into the first…
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Pre-Market Stock Futures: Futures are trading higher as we head into the first Friday of the fourth quarter of 2026. Investors rode a stock market rollercoaster Thursday as major indices moved back and forth between positive and negative territory through the morning and noon hour before turning higher in the afternoon; ultimately, all the U.S. indices finished the day positive. The small-cap Russell 2000, which has been blistered recently, posted the best day, closing at 2,807, up 0.39%, while the S&P 5000 closed at 7,666, up 0.20%. The tech-heavy Nasdaq closed slightly higher at 26,871, up 0.04%, while the Dow Jones Industrial squeezed out a victory, closing at 50,927, also up 0.04%. Traders cited the interest-rate turnaround as a big reason for the solid start to the fourth quarter.
Treasury Bonds: For the first time in a while, interest rates fell across the entire Treasury curve as guaranteed U.S. sovereign debt became too tempting on a yield basis for many bond traders. The rally came after bonds plunged in the morning, sending yields on longer debt to the highest levels on some maturities in almost 25 years. Then came a massive afternoon rally, and Reuters noted after the close that the huge recovery was triggered by a flight to safety as hedge funds unwound bullish positions in European debt amid political turmoil in France, prompting investors to seek refuge in safer U.S. and German bonds. In addition, comments from Federal Reserve Vice Chair Philip Jefferson suggesting the central bank may exercise patience before raising rates again further eased the selling pressure. When the dust settled, the 30-year bond closed the session at 5.61%, while the 10-year note was last seen at 5.24%.
Oil and Gas: Oil prices surged again on Thursday, after news reports indicated that the United States was sending a third aircraft carrier to the Middle East, prompting worries of continued conflict with Iran. In addition, traders pointed to China suspending October fuel exports to prioritize domestic supplies. Brent Crude finished the day at $102.30, up 4.40%, while West Texas Intermediate closed trading at $92.92, up 2.76%. Natural gas also finished the day lower at $2.95, down 2.51%.
Gold: Gold rallied for the second day running as investors continued to add the bullion, with many firms across Wall Street still seeing a much higher price by year-end. Analysts pointed to softer-than-expected recent U.S. inflation data, which slightly cooled aggressive expectations for near-term Federal Reserve rate hikes and offered brief relief to non-yielding precious metals. Gold closed at $4,172, up 0.41%, while Silver ended Thursday at $60.84, up 0.92%.
Crypto: Cryptocurrency markets traded modestly higher on Thursday, recovering from an early morning slump as major assets broke out of a week-long tight range. Market sentiment was heavily boosted by a bullish institutional report from Citigroup, which raised its 12-month forecasts for the leading digital assets. Cryptos are rallying, and at 8 AM EDT, Bitcoin traded at $86,520, while Ethereum was quoted at $2,749.
24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations from Friday, October 2, 2026.
Upgrades: Abbott Laboratories (NYSE: ABT | ABT Price Prediction) was upgraded to Buy from Neutral at Rothschild & Co Redburn, which bumped the target price for the healthcare giant to $127 from $119. Airbnb (NASDAQ: ABNB) was upgraded to Overweight from Sector Weight at Keybanc, with a $191 target price. Arko Petroleum (NYSE: APC) was raised to Outp[erform from Neutral at Mizuho, with a $22 target price. Cerebras Systems (NASDAQ: CBRS) was upgraded to Buy from Hold at Freedom Capital, which has a $209 target price for the shares. Hewlett Packard Enterprise (NYSE: HPE) was raised to Outperform from Neutral at Daiwa, with a $75 target price. Downgrades: AST Space Mobile (NASDAQ: ASTS) was cut to Neutral from Buy at B. Riley, which lowered the target price for the stock to $65 from $85. Edison International (NYSE: EIX) was downgraded to Underperform from Hold at Jefferies, which cut the target price for the utility giant to $42 from $53. Northrop Grumman (NYSE: NOC) was downgraded to Sector Perform from Outperform at RBC Capital, which slashed the target price for the legacy defense company to $525 from $640. Pershing Square (NYSE: PS) was downgraded to Underweight from Equal Weight at Wells Fargo, which nudged the price target to $41 from $36 for Bill Ackman’s hedge fund. Synaptics (NASDAQ: SYNA) was cut to Equal Weight from Overweight at Wells Fargo, which dropped the target price to $123 from $140 Initiations: Coinbase Global (NASDAQ: COIN) was initiated with an Equal Weight rating at Wells Fargo, with a $200 target price objective. Intercontinental Exchange (NYSE: ICE) was initiated with an Underweight rating at Wells Fargo, with a $150 target. Patterson-UTI Energy (NASDAQ: PTEN) was initiated with a Neutral rating at UBS, with a $13 target price. Regency Centers Corporation (NYSE: REG) was started with a Buy rating at Truist Financial, with an unchanged $84 target price.
Robinhood Markets (NASDAQ: HOOD) was started with an Equal Weight rating at Wells Fargo, with a $125 target price. Contact [email protected] for any questions or corrections.
HPE (HPE) has more room to the upside, according to an upgrade from Daiwa, even though the stock already climbed more than 160% over the last 12 months. Rick Ducat shows the bullish and bearish trends he believes are the most important to watch in HPE's forward moves.
Key Takeaways Rigetti will supply PSC a 9-qubit Novera system for hybrid quantum-HPC testing, with deployment due in 2027.Rigetti sees 50-60 nanosecond gate speeds as key to complementing CPUs and GPUs in hybrid computing.Rigetti delivered two 9-qubit systems to commercial customers in 2026 as it pursues a 1,000-qubit roadmap. Rigetti Computing (RGTI - Free Report) is increasingly positioning its superconducting quantum computing technology for integration into high-performance computing (HPC) environments. A key development is the company's expanded collaboration with Hewlett Packard Enterprise (HPE - Free Report) and the Pittsburgh Supercomputing Center (“PSC”), under which Rigetti will provide a full 9-qubit Novera quantum computing system for PSC's TangleLab test bed. The system is expected to combine Rigetti's quantum processor, refrigeration and control infrastructure with Hewlett Packard’s HPC environment, allowing researchers and industry users to develop and test hybrid quantum-classical workloads. Rigetti expects the deployment in 2027. Management views the initiative as an important step toward moving its relationship with Hewlett Packard from early experimentation to commercially relevant quantum-enabled HPC solutions.
The hybrid computing opportunity is particularly relevant to Rigetti's strategy because the company believes its superconducting architecture can provide the processing speed needed to work alongside conventional CPUs and GPUs. Management cited gate speeds in the 50-60 nanosecond range and highlighted the potential for faster quantum processing to complement classical computing in workloads where quantum acceleration can reduce time to results or improve computational capabilities.
Beyond the collaboration with HPE, Rigetti is also seeing increasing interest from commercial organizations. The company delivered its first two 9-qubit systems in 2026 to commercial customers for research purposes. While these deployments do not yet represent production quantum workloads, the broader customer mix suggests that commercial engagement is beginning to develop alongside government and university demand.
With Rigetti continuing to improve the fidelity of its 108-qubit Cepheus system and pursuing a chiplet-based roadmap toward approximately 1,000 qubits, the company's strategy is increasingly centered on building the infrastructure and partnerships needed to support broader quantum adoption as the technology advances.
Peers UpdatesQuantum Computing Inc. (QUBT - Free Report) recently signed a three-year Framework Agreement with Hamad Bin Khalifa University in Qatar to collaborate on quantum computing, quantum sensing and quantum communications initiatives. The partnership will support joint academic research, executive education programs, industry-focused projects, quantum application development and co-marketing efforts aimed at accelerating quantum technology adoption across Qatar and beyond. The companies also plan to develop practical quantum solutions for real-world challenges while helping cultivate the next generation of quantum talent and leadership.
IonQ (IONQ - Free Report) recently announced a contract with Florida International University (“FIU”) to deliver and install a Superion 256-qubit trapped-ion quantum computer on the university's campus. The agreement marks the first sale and deployment of a Superion 256 system in Florida and establishes FIU as IonQ's flagship academic partner in the state, creating a hub for quantum research, education and workforce development. The on-campus deployment is expected to provide FIU's faculty, students and regional industry partners with direct access to advanced quantum computing capabilities, while FIU's engagement with federal agencies could support research initiatives spanning sensing, cryptography, commercialization and workforce development.
The partnership strengthens IonQ's presence in the academic quantum ecosystem and expands physical access to its hardware, potentially supporting broader adoption and talent development in the region.
Index Dow Jones +0,58 % na 51222,07 b., S&P 500 +1 % na 7742,99 b., Nasdaq Composite +1,65 % na 27314,84 b.
Nejsledovanější americké indexy v úvodu pátečního obchodování posilují. Trhy se dnes významně soustředily na makroekonomická data z trhu práce v USA.
Společnost Nike (-6,0 %) dnes reportovala výsledky za 1Q fiskálního roku. Tržby výrobce sportovního oblečení meziročně klesly o 4,3 % na 11,21 miliard USD a zaostaly tak za očekáváním agentury Bloomberg ve výši 11,33 mld. USD. Společnost také ve čtvrtek oznámila restrukturalizační plán, od kterého očekává úspory ve výši 2,5 miliardy USD během příštích pěti let. Opatření byla představena společně se slabšími než očekávanými tržbami za poslední čtvrtletí a neuspokojivým výhledem na současný fiskální rok.
Analytici ze společnosti Susquehanna zvýšili cílovou cenu společnosti Hewlett Packard Enterprise (+5,6 %) z 40 USD na 70 USD a ponechali stávající stupeň doporučení „Neutral“.
Společnosti Seagate Technology (-12,0 %) a Western Digital (-11,0 %) v úvodu zaznamenávají pokles. Podle agentury Bloomberg plánuje jejich japonský konkurent Toshiba investovat 60 mld. jenů do zdvojnásobení své výrobní kapacity disků používaných v datových centrech.
Index S&P 500 +1 % na 7742,99 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zbytná spotřeba +1,8 % Energie -1,1 % Informační technologie +1,6 % Nezbytná spotřeba 0 % Základní materiály +1,5 % Zdravotní péče +0 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Teradyne (TER) +6,2 % Seagate Technology Holdings (STX) -12 % Monolithic Power Systems (MPWR) +5,6 % Western Digital Corp (WDC) -11 % Hewlett Packard Enterprise (HPE) +5,6 % NIKE (NKE) -6,0 % Tesla (TSLA) +5,3 % Accenture (ACN) -5,1 % Super Micro Computer (SMCI) +5,2 % Valero Energy Corp (VLO) -4,2 % Zdroj: Bloomberg
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Daiwa Capital analyst Louis Miscioscia upgraded Hewlett Packard Enterprise Co (NYSE:HPE) from Neutral to Outperform and raised the price target from $65 to $75. Hewlett Packard closed at $64.58 on Thursday. See how other analysts view this stock. Rothschild & Co analyst Ed Ridley-Day upgraded Abbott Laboratories (NYSE:ABT) from Neutral to Buy and boosted the price target from $119 to $127. Abbott shares closed at $96.69 on Thursday. See how other analysts view this stock. Keybanc analyst Sergio Segura upgraded Airbnb Inc (NASDAQ:ABNB) from Sector Weight to Overweight and announced a $191 price target. Airbnb closed at $160.47 on Thursday. See how other analysts view this stock. Piper Sandler analyst Nathan Race upgraded Horizon Bancorp Inc (NASDAQ:HBNC) from Neutral to Overweight and raised the price target from $23 to $24. Horizon Bancorp shares closed at $19.08 on Thursday. See how other analysts view this stock. B. Riley Securities analyst Hal Goetsch upgraded Triumph Financial Inc (NYSE:TFIN) from Neutral to Buy and maintained the price target of $82. Triumph Financial closed at $61.13 on Thursday. See how other analysts view this stock. Considering buying HPE stock? Here’s what analysts think:
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HPE just shattered its 52-week high on a single session surge, yet its forward multiple still sits far below every major competitor building the same AI infrastructure boom. Something in the valuation math does not add up.
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Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) trades at $66.93 this morning. That is up 8.85% on the session as AI demand keeps raising its networking business. Our 24/7 Wall St. price target for HPE is $73.07 over the next 12 months. The model rates it a buy with high confidence.
Metric Value Current Price $66.93 Price Target from 24/7 Wall St. $73.07 Upside 9.2% Recommendation BUY Confidence Level 90% We ran the model off Tuesday’s close of $61.49, showing to 18.84% upside. Today’s jump cuts the remaining gap to 9.2%. Our confidence rests on five straight EPS beats, guidance raised through fiscal 2027, and zero Sell ratings on the Street.
Record Q3 Results Pushed HPE Past Its Prior 52-Week High HPE is up 9.67% over the past week, 28.25% over the past month and 181.79% year to date. Today’s price sits above its prior 52-week high of $65.65 and far above the $19.57 low.
Fiscal Q3 revenue hit $12.21B, up 32.7%, exceeding the $11.91B consensus. Non-GAAP EPS of $1.11 cleared the $0.93 estimate. Networking revenue rose 74.9% to $2.89B, and routing went up 270%. HPE announced a $3.5 billion inferencing server deal with a hyperscaler and expanded work with Oracle (NYSE:ORCL) on gigawatt-scale AI networking.
The AI expansion keeps pulling in suppliers well beyond the chipmakers, and networking gear like HPE’s is a big part of the plumbing (we covered seven of these non-chip AI infrastructure names in a free report available here: 7 Stocks Powering the AI Boom).
Why Bulls See $83 and Beyond In the model’s bull case, HPE reaches $83.23. Management’s fiscal 2027 framework calls for EPS of $4.40 to $4.60 and free cash flow of at least $5 billion. That framework leaves out the AMD (NASDAQ:AMD) Helios opportunity, which the CEO sized at “tens of billions of dollars” across the market.
Networks for AI orders reached $700 million in the quarter. Juniper synergies are on track for $600 million in annual run-rate savings by FY28.
The Street is supportive, with 5 Strong Buy ratings, 10 Buys and 8 Holds. The stock already trades above the $68.08 consensus target, so analysts may raise their numbers.
Margin Normalization Is the Risk Worth Watching Under a downside scenario, HPE slips to $56.43. Management expects gross margin to normalize as AI systems grow. Operating margin guidance of 14-15% for FY27 trails Q3’s 16.2%. Stripping out Juniper, networking grew just 10%.
DDR5 and NAND shortages slow shipments. Orders outpace revenue: networking orders rose 36% with record backlog, suggesting supply delays revenue rather than kills demand.
HPE Trades at a Steep Discount to Dell and Arista Company Forward P/E Quarterly Revenue Growth (YoY) HPE 14x 33.7% Dell 21x 57.7% Arista 39x 37.7% Dell Technologies (NYSE:DELL) competes directly for AI server spending. Dell grows faster, earning a higher forward multiple. HPE’s larger networking mix yields higher margins that its 14x forward P/E does not reflect.
Arista Networks (NYSE:ANET) competes head-on in data center switching. Arista’s operating margin is 45.4% versus 12.6% for HPE, explaining most of its premium. HPE’s networking margin is guided to the mid to high 20% range, so part of that gap should close. Our target of about 15x forward earnings looks conservative.
HPE’s Backlog Tips the Scale Toward Upside Our $73.07 target carries a buy rating with 90% confidence. A record backlog priced at a valuation well below peers tips the scale toward upside.
The case strengthens if supply eases and backlog turns to revenue in Q4. It weakens if gross margins contract faster than networking growth can offset. HPE’s valuation still falls behind its fundamentals.
Year Price Target from 24/7 Wall St. 2026 $63.11 2027 $77.21 2028 $85.24 2029 $93.56 2030 $102.38 These projections assume HPE keeps executing on its networking-led strategy. A strong Helios ramp could drove results higher, while long-running memory shortages could hold them back.
Contact [email protected] for any questions or corrections.
Hewlett Packard Enterprise Company (NYSE:HPE) shares are lower Thursday. They are testing an important resistance level. If they can clear is, it will be a ‘breakout’. A breakout can set the stage for a move higher. This is why Hewlett Packard is the Stock of the Day.
Many new traders lose sight of the fact that the stock market is driven by supply and demand.
For example, if demand for shares to buy exceeds supply of shares for sale, investors and traders will be forced to outbid each other and pay higher prices to execute their orders. This will create an uptrend.
When a resistance level is reached, the dynamic changes.
At these levels, supply is sufficient to satisfy all demand. That is why rallies end or pause at resistance.
Sometimes stocks reverse and head lower after reaching resistance.
This happens when some of the sellers who created the resistance become anxious and impatient. They worry that other sellers will sell at a lower price than they do, and they know this is where the buyers will go.
As a result, they reduce their offer prices. Other anxious sellers see this and do the same. They start to undercut each other and it turns into a snowball effect that pushes the price lower.
Sometimes, when a stock reaches resistance, the buyers eventually overpower the sellers. They buy all their shares, and then the price moves higher. When this happens, traders say it is a ‘breakout’.
This can be a bullish signal.
It shows that the sellers who created the resistance are gone. They have finished or canceled their orders. With this supply off the market, buyers will be forced to outbid each other again, pushing the price higher.
Traders will be watching Hewlett Packard closely to see if it breaks out. If it does, there will be opportunities to profit.
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Citi, Barclays, and Wells Fargo all lifted their HPE price targets after Networking Investor Day, yet the three firms land in very different places on whether the stock's explosive run has already consumed the upside.
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Three Wall Street firms raised their price targets on Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) after its Networking Investor Day.
Citi moved its target to $92 from $76, Barclays to $83 from $79, and Wells Fargo to $63 from $54. None of the three changed its rating.
All three point to networking as HPE’s main growth engine, but they still disagree on how much of that upside the stock already prices in.
Ticker Company Firm Action Old Rating New Rating Old Target New Target HPE Hewlett Packard Enterprise Citi Price Target Raised Buy Buy $76 $92 HPE Hewlett Packard Enterprise Barclays Price Target Raised Overweight Overweight $79 $83 HPE Hewlett Packard Enterprise Wells Fargo Price Target Raised Equal Weight Equal Weight $54 $63 Analysts Agree Networking Now Drives the Story Barclays said HPE raised its fiscal 2027 networking outlook to high-teens to low-20s percent growth. At its September earnings call, the company had guided to 14% to 17%, and that figure left out the Helios platform from Advanced Micro Devices (NASDAQ:AMD). Barclays now says HPE sees Helios as an over $1B networking opportunity over the next two years.
Citi said the near-term financial update surprised investors and showed “strong” confidence in sustained growth over the longer term. The firm called the company’s messaging “incrementally bullish” for the shares.
Wells Fargo, taking a more measured view, cited a positive strategy overview and a higher FY27 outlook, and it found the Juniper integration better than expected. It added that performance on winning market share will be the focus.
HPE Snapshot: A Record Quarter Set the Stage Third-quarter fiscal 2026 revenue reached $12.21B, up 32.7% from a year earlier. Non-GAAP EPS of $1.11 beat the $0.93 consensus, making it the fifth straight quarterly EPS beat. Networking revenue rose 74.9% to $2.89B, and routing climbed 270%.
Orders for HPE’s networks for AI hit a quarterly record of $700 million. Juniper synergies remain on track for $600 million in annual run-rate savings by the end of FY28.
Why These Target Hikes Matter Now Hewlett Packard Enterprise stock trades at $63.71. That is up 168.23% year to date and 22.24% over the past month. The price already sits just above Wells Fargo’s new target, which helps explain why that firm still rates the shares Equal Weight.
Earnings estimates are rising along with the price. Consensus FY27 EPS now stands at $4.5974, compared with $4.1063 30 days ago. Analysts made 15 up revisions in that period and zero down ones.
What It Means for Your Portfolio A stronger networking outlook supports HPE’s growth case for long-term investors, though the stock’s sharp run-up raises the bar for performance. Shortages of DDR5 memory and NAND flash continued to restrict the conversion of demand into revenue. The company also lists trade policy and Juniper integration as risks.
All that AI-driven networking demand has to be powered and cooled by someone, and the suppliers behind the data-center expansion rarely get the attention the chipmakers do. We featured seven of them in a free report you can grab here.
Income-focused investors get a modest dividend yield of 0.94%. HPE also plans to return at least 75% of fourth-quarter free cash flow to shareholders.
The next checkpoint is the fiscal fourth-quarter report. HPE has guided for revenue of $13.9B to $14.8B and non-GAAP EPS of $1.20 to $1.30. Investors should also keep an eye on Helios ordering, which management expects to open later in the calendar year.
Contact [email protected] for any questions or corrections.
Hewlett Packard Enterprise (HPE) has seen a significant increase in its stock price, achieving a new all-time high. This surge follows the company's raised outl
Hewlett Packard Enterprise shares rallied to a record high after the networking hardware maker raised its growth targets and said it struck a big server deal.
Hewlett Packard Enterprise Company (HPE) Analyst/Investor Day September 30, 2026 11:30 AM EDT
Company Participants
Shannon Cross - Chief Strategy Officer
Rami Rahim - Executive VP, President & GM of Networking
Praveen Jain
AE Natarajan - Executive VP & Chief Development Officer
David Hughes - Founder & Chairman of the Board
Sujai Hajela - Executive Vice President of AI-Driven Enterprise
Conference Call Participants
Sajeev Nair
Joseph Cardoso - JPMorgan Chase & Co, Research Division
Erik Woodring - Morgan Stanley, Research Division
Asiya Merchant - Citigroup Inc., Research Division
Simon Leopold - Raymond James & Associates, Inc., Research Division
Wamsi Mohan - BofA Securities, Research Division
Louis Miscioscia - Daiwa Capital Markets America Inc., Research Division
Ananda Baruah - Loop Capital Markets LLC, Research Division
George Notter - Wolfe Research, LLC
David Vogt - UBS Investment Bank, Research Division
Victor Santiago - Evercore ISI Institutional Equities, Research Division
Presentation
Shannon Cross
Chief Strategy Officer
Good morning, everyone, and welcome to HPE Networking Investor Day. Thank you for joining us both here in person and on the webcast. I'm Shannon Cross, Chief Strategy Officer at HPE. As you all know, we posted record Q3 results earlier this month. In Networking, for example, we reported both record revenue and orders.
Today, we'll take a closer look at the business and the strategy we have in place to capture new opportunities we see for the future. Over the next few hours, you'll hear from Rami Rahim, Executive Vice President, President and General Manager of HPE Networking about how AI is reshaping the networking market and why networking is considered critical infrastructure in the AI era. We will also talk about how the combination of HPE and Juniper Networks strengthens our ability to compete and win in this increasingly important market. We'll discuss our integration progress and the financial benefits we are already seeing. We'll then invite the leaders of our networking business to join me for
Hewlett Packard Enterprise Co (NYSE:HPE, XETRA:2HP) shares rose nearly 5% Wednesday after the company announced a $1.2 billion order from cloud infrastructure provider Vultr for its new AMD Helios AI Rack systems.
Vultr, the world's largest privately held cloud infrastructure company, will deploy the systems at its cloud data center locations in the United States.
The order is HPE's first for the AMD Helios system, which features purpose-built HPE Networking scale-up switching and software.
HPE and AMD will support Vultr's effort to meet service provider and enterprise demand for model training and inferencing workloads in its AI data centers.
"AI is driving the largest infrastructure buildout in history and together with AMD and Vultr, we are building an open foundation to accelerate the next phase of AI," said Antonio Neri, CEO of HPE.
The order builds on nearly three years of collaboration between Vultr and Juniper Networks, which continues to grow now that Juniper is part of HPE.
"Demand for high-performance AI infrastructure continues to outpace available capacity, and our work with AMD and HPE enables us to bring Helios rack-scale compute and scale-up networking online for customers faster," said JJ Kardwell, CEO of Vultr.
The AMD Helios AI Rack by HPE is part of the HPE AI Data Center Solutions portfolio, an integrated, production-ready infrastructure stack with AMD built on open standards.
HPE stock gained 5% on Wednesday after Hewlett Packard Enterprise announced a $1.2 billion order from Vultr for AMD Helios AI Rack systems across Vultr’s US data centers.
The order marks HPE’s first for the new AMD Helios system and gives the company a major customer for AMD’s latest rack-scale AI platform.
HPE will supply networking infrastructure, liquid cooling and deployment services for the systems.
HPE shares also reached a 52-week high of $67.10 during Wednesday’s trading. The stock has gained more than 160% this year.
Each AMD Helios rack combines 72 AMD Instinct MI455X GPUs with AMD EPYC “Venice” CPUs, Pensando Vulcano AI networking cards and ROCm software.
HPE said the configuration was designed by AMD for training trillion-parameter models and high-volume inference.
HPE will provide the networking infrastructure, including six HPE Juniper Networking QFX5252 scale-up Ethernet switch trays per rack to connect all 72 GPUs.
The company will also provide liquid cooling and deployment services through its global services arm.
The order builds on a relationship between Vultr and Juniper Networks that dates back nearly three years and predates HPE’s acquisition of Juniper, which was completed in 2025.
Vultr CEO J.J. Kardwell said demand for high-performance AI infrastructure “continues to outpace available capacity.”
He added that the new systems would help Vultr bring rack-scale computing and networking online faster for customers running large training and inference workloads.
HPE President and CEO Antonio Neri said, “AI is driving the largest infrastructure buildout in history and together with AMD and Vultr, we are building an open foundation to accelerate the next phase of AI.”
Separately, HPE updated its outlook for fiscal 2027 and beyond, with the company expecting networking revenue to grow in the high-teens to low-20s percentage range in fiscal 2027.
HPE said it is gaining share in the data-center networking market.
Data-center networking revenue is expected to grow at a low-to-high 50s percentage compound annual rate through fiscal 2029.
The company also expects routing revenue to grow in the low-to-high 20s percentage range through 2029.
Rami Rahim, executive vice president, president and general manager of Networking at HPE, said AI is increasing the strategic importance of networking and driving additional demand from enterprises and service providers.
“AI is reshaping the technology stack, making the network more strategic and driving significant new demand from enterprises and service providers,” Rahim said.
He added that HPE expects to address that demand through its networking portfolio, sales reach and cross-selling capabilities.
HPE also increased its target for annual run-rate savings from its Juniper Networks acquisition.
The company now expects to achieve $800 million in annual run-rate savings by the end of fiscal 2028, up from its previous target of at least $600 million.
The expanded synergy target comes as HPE outlines its longer-term networking expectations and highlights the role of AI infrastructure in driving demand for networking products.
