Track market-moving stories before they get noisy

8.9.2026 22:09

Zámořské akciové trhy zakončily dnešní obchodování v záporném teritoriu. Index Dow Jones klesl o 1,18 % na 52 786,28 bodu, S&P 500 si odepsal 0,58 % a technologický Nasdaq Composite ztratil 0,32 %. Hlavním důvodem poklesu byl růst cen ropy způsobený geopolitickým napětím na Blízkém východě, který opět rozproudil obavy z vyšší inflace a možného zvýšení úrokových sazeb ze strany centrální banky.

V rámci indexu S&P 500 se nejvíce dařilo energetickému sektoru s růstem o 1 %, utilitám se ziskem 0,9 % a realitám, které přidaly 0 %. Naopak nejvýraznější propad zaznamenala zdravotní péče se ztrátou 2,6 %, finanční sektor klesající o 1,4 % a základní materiály nižší o 0,9 %. Z jednotlivých akcií výrazně posílily společnosti Lumentum Holdings (LITE) o 11 %, Intel Corp (INTC) o 9,1 %, Corning (GLW) o 7,6 %, Coherent Corp (COHR) o 7,1 % a Hewlett Packard Enterprise (HPE) o 7,8 %. Naopak nejvýrazněji propadly akcie společností Amgen (AMGN) o 10 %, Howmet Aerospace (HWM) o 11 %, Stryker Corp (SYK) o 8,8 %, Expedia Group (EXPE) o 7,9 % a GoDaddy (GDDY) o 8,3 %.

Na dluhopisovém trhu rostly výnosy krátkodobých cenných papírů a výnos desetiletého amerického vládního dluhopisu mírně stoupl na 4,79 %. Měnový trh zůstal bez výraznějších změn, euro stagnovalo na úrovni 1,1623 USD a kurz japonského jenu se pohyboval kolem 154,30 JPY za dolar. Komodity zaznamenaly smíšený vývoj, když lehká ropa WTI posílila o 1 % na 92,43 USD za barel, zatímco spotové zlato mírně odepsalo 0,3 % na 4 392,74 USD za trojskou unci.

Index Dow Jones -1,18 % na 52786,28 b.
S&P 500 -0,58 % na 7673,51 b.
Nasdaq Composite -0,32 % na 26421,41 b.

Index S&P 500 -0,58 % na 7673,51 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1 % Zdravotní péče -2,6 % Utility +0,9 % Finanční sektor -1,4 % Reality +0 % Základní materiály -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lumentum Holdings (LITE) +11 % Howmet Aerospace (HWM) -11 % Intel Corp (INTC) +9,1 % Amgen (AMGN) -10 % Hewlett Packard Enterprise (HPE) +7,8 % Stryker Corp (SYK) -8,8 % Corning (GLW) +7,6 % GoDaddy (GDDY) -8,3 % Coherent Corp (COHR) +7,1 % Expedia Group (EXPE) -7,9 %
Daniel Marván, Fio banka, a.s.

33.14K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HPE, DELL, ORCL either through stock ownership, options, or other derivatives. 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.

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Marie Myers, CFO of HPE (HPE), discusses the company's "exceptionally strong demand" thanks to the AI evolution that led to a beat and raise quarter. She explains how HPE is "drinking its own champagne" by expanding AI infrastructure and its existing partnership with Oracle (ORCL).

Key Takeaways HPE, AVGO, and DELL all posted strong results recently. AI-related demand has benefited each in a big way. The AI trade remains alive and well, with Hewlett Packard Enterprise (HPE - Free Report) , Broadcom (AVGO - Free Report) , and Dell Technologies (DELL - Free Report) all recently posting strong quarterly results.

AI infrastructure spending was the clear theme across all releases, with demand remaining robust for servers, networking, and custom accelerators. Still, market reactions have been mixed, indicating that expectations remain sky-high for many AI-focused names.

Let’s take a closer look at the results.

HPE Raises Its OutlookHewlett Packard Enterprise posted record quarterly revenue of $12.2 billion, reflecting 34% YoY growth. Adjusted earnings came in at $1.11 per share, climbing sharply from $0.44 in the same period last year and exceeding the Zacks Consensus EPS estimate by nearly 17%.

Cloud & AI revenue reached $9.0 billion, up 25% YoY, with Server revenue climbing 35% to $6.8 billion. Networking results were even stronger, with revenue jumping 75% to $2.9 billion. Data Center Networking revenue more than doubled, while Routing revenue climbed 270%.

Importantly, the demand picture remains bright. AI Systems orders reached $2.4 billion during the quarter, with backlog climbing to $6.8 billion. HPE also raised its FY26 revenue growth outlook to 34%-37% and now expects adjusted EPS of $3.75-$3.85. Looking further ahead, management boosted its FY27 revenue growth outlook to 13%-17%, paired with expected adjusted EPS growth of 16%-20%.

The numbers were undoubtedly positive, though supply constraints and the lower-margin nature of some AI systems remain items to keep in mind. Still, the raised outlook and favorable Zacks Rank #2 (Buy) reflect a constructive earnings picture overall.

Image Source: Zacks Investment Research

Broadcom’s AI Growth AcceleratesBroadcom delivered another monster quarter, posting $29.6 billion in revenue, up 86% YoY. Adjusted EPS of $3.32 grew 96% from the year-ago period and came in 3% above the Zacks Consensus estimate.

To little surprise, AI again stole the show. AI semiconductor revenue reached $16.7 billion, surging 221% YoY and 54% sequentially as demand for custom accelerators and networking products remained red-hot. Semiconductor Solutions revenue overall climbed 127% to $20.8 billion, while Infrastructure Software revenue rose 29% to $8.8 billion.

And the momentum isn’t expected to slow down anytime soon. Broadcom expects AI semiconductor revenue of $21.7 billion next quarter, reflecting 236% YoY growth, with total revenue forecasted at roughly $34.8 billion. Management has also outlined roughly $115 billion of AI semiconductor revenue for FY27, with the longer-term opportunity potentially reaching $230 billion in FY28.

Interestingly enough, shares traded lower following the release despite the eye-popping growth. Expectations for Broadcom have clearly become massive, making even great results a tough act to follow. AVGO currently carries a Zacks Rank #3 (Hold), with the earnings-revision picture worth watching following the release.

Image Source: Zacks Investment Research

Dell’s AI Backlog SurgesDell Technologies arguably posted the most impressive results of the group, with shares surging following the release.

Revenue climbed 58% YoY to a record $47.0 billion, while adjusted EPS of $7.04 reflected growth of more than 200% and crushed the Zacks Consensus estimate. Infrastructure Solutions Group revenue jumped 89% to $31.8 billion, with segment operating income soaring 225% to $4.8 billion.

AI-Optimized Server revenue doubled to $16.4 billion, but the order and backlog figures were perhaps even more impressive. Dell booked a record $60.9 billion of AI server orders during the quarter and exited with a massive $95 billion backlog, providing strong top line visibility.

The strength wasn’t isolated to AI, either. Traditional Servers and Networking revenue jumped 122%, Storage revenue grew 26%, and Client Solutions Group sales climbed 20%. Dell raised its FY27 revenue outlook by $25 billion to $192 billion while boosting its AI-Optimized Server revenue expectation to $74 billion from $60 billion previously.

DELL currently sports a Zacks Rank #2 (Buy), with the combination of accelerating AI demand, a huge backlog, and raised guidance providing a rock-solid near-term backdrop.

Image Source: Zacks Investment Research

Bottom Line

The latest results from Hewlett Packard Enterprise (HPE - Free Report) , Broadcom (AVGO - Free Report) , and Dell Technologies (DELL - Free Report) further strengthened the AI infrastructure growth story.

Demand remains robust across several areas of the buildout, ranging from Dell and HPE’s AI servers and networking offerings to Broadcom’s custom accelerators and networking chips. And importantly, all three provided upbeat forward-looking commentary alongside their strong quarterly growth.

Hewlett Packard Enterprise (HPE) has seen a significant drop in its stock price, even after reporting a strong Q3 performance and issuing optimistic guidance fo

The post-earnings surge in Snowflake (SNOW) shares is something Mark Gibbens sees reinforcing newfound market confidence in software. Even though HPE (HPE) did not rally after reporting strong numbers, he says the a still-strong AI story backs the company's momentum.

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Hewlett Packard Enterprise is rated a buy following a post-earnings dip, with a favorable setup versus Dell. HPE reported Q3 FY26 revenue of $12.2B (+34% YoY), driven by strong Networking and Cloud & AI segment growth and margin expansion. Networking margins remain robust above 20%, while Cloud & AI margins hit 17%, though this is seen as a near-term ceiling.

HOUSTON--(BUSINESS WIRE)--HPE (NYSE: HPE) will host its Networking Investor Day on September 30, 2026, in Sunnyvale, California. Join the live webcast for an in-depth presentation on the HPE Networking business from Rami Rahim, executive vice president, president, and general manager, Networking, HPE. Additional Networking executives will also participate in the event and take part in a live panel discussion. The program will highlight HPE Networking's strategy, portfolio differentiation, and g.

Revenue: Record revenue of $12.2 billion, up 34% year-over-year.Gross Margin: Record non-GAAP gross margin of 40%.Operating Profit: Record non-GAAP operating pr

Hewlett Packard Enterprise Company (HPE) Q3 2026 Earnings Call September 2, 2026 4:30 PM EDT

Company Participants

Shannon Cross - Senior VP, Chief Strategy Officer & Investor Relations
Antonio Neri - CEO, President & Director
Marie Myers - Executive VP & CFO

Conference Call Participants

Katherine Campagna - Goldman Sachs Group, Inc., Research Division
Amit Daryanani - Evercore ISI Institutional Equities, Research Division
Aaron Rakers - Wells Fargo Securities, LLC, Research Division
Joseph Cardoso - JPMorgan Chase & Co, Research Division
Wamsi Mohan - BofA Securities, Research Division
Asiya Merchant - Citigroup Inc., Research Division
Erik Woodring - Morgan Stanley, Research Division
Timothy Long - Barclays Bank PLC, Research Division
David Vogt - UBS Investment Bank, Research Division
Mark Newman - Bernstein Institutional Services LLC, Research Division
Matthew Niknam - Truist Securities, Inc., Research Division

Presentation

Operator

Good day, and welcome to the Third Quarter 2026 Hewlett Packard Enterprise Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Ms. Shannon Cross, Chief Strategy Officer. Please go ahead.

Shannon Cross
Senior VP, Chief Strategy Officer & Investor Relations

Good afternoon. I'm Shannon Cross, Chief Strategy Officer for HPE. I'd like to welcome you to our fiscal 2026 third quarter earnings conference call with Antonio Neri, HPE's President and Chief Executive Officer; and Marie Myers, HPE's Chief Financial Officer.

Before handing the call to Antonio, let me remind you that this call is being webcast. A replay of the webcast will be available shortly after the call concludes. We have posted the press release and the slide presentation accompanying the release on our HPE Investor Relations web page. Elements of the financial information referenced on this call are forward-looking and are based on our best view of our business and the external factors affecting us as we see them today. HPE assumes no obligation

The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI FutureHewlett Packard Enterprise NYSE: HPE reported record fiscal 2026 third-quarter results, citing accelerating demand for AI infrastructure, continued networking momentum and disciplined pricing. The company also raised its fiscal 2026 outlook and updated its fiscal 2027 growth framework as orders outpaced revenue and backlog reached a record level.

Revenue for the quarter totaled $12.2 billion, up 34% from a year earlier and above the high end of the company’s guidance range. HPE reported a record non-GAAP gross margin of 40%, non-GAAP operating profit of $2 billion and non-GAAP diluted earnings per share of $1.11. GAAP EPS was $1.06.

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AMD’s Helios Launch Could Create Winners Beyond AMD StockFree cash flow reached $958 million, HPE’s highest third-quarter result, while operating cash flow was $1.6 billion. Chief Executive Officer Antonio Neri said the company exceeded its financial commitments across revenue, gross margin, operating profit and earnings per share.

“AI has become a multi-year growth driver, expanding demand across our HPE portfolio,” Neri said. “Customer demand in the quarter accelerated across both business segments, with orders growing faster than revenues.”

Orders, backlog and supply constraints 5 Tech Stocks Holding Their Ground Through the AI Trade PullbackHPE said normalized order growth was 42% year over year, led by demand for traditional servers, AI systems and networking products. The company said it booked more orders than in any prior quarter, producing a record backlog.

However, management said supply constraints continue to limit its ability to convert demand into revenue. Neri cited constraints involving DDR5 and DDR4 memory, NAND flash and other components affected by wafer capacity. HPE is seeking to address the situation through increased purchase commitments, multiyear supplier agreements, alternative product configurations and closer demand planning with customers.

Chief Financial Officer Marie Myers said inventory ended the quarter at $11.8 billion, reflecting higher commodity costs and targeted purchases intended to support rising orders and backlog. HPE’s cash conversion cycle improved by one day sequentially, helped by collections and billing timing, although higher inventory partially offset those gains.

Management said supply availability should improve enough to support higher revenue conversion in the fourth quarter, while remaining a constraint into fiscal 2027.

Networking momentum and Oracle collaboration Networking revenue was $2.9 billion, up 10% on a normalized basis, while orders increased 36%. Myers said orders grew about 3.5 times faster than revenue, with supply constraints and shipment timing limiting data center networking revenue conversion.

Networks for AI orders reached a quarterly record of $700 million and grew by triple digits. Cumulative networks-for-AI orders reached $2.2 billion, surpassing HPE’s previous fiscal 2026 target. The company raised its year-end target for cumulative networks-for-AI orders to between $2.5 billion and $3 billion.

Within networking, campus and branch revenue grew 8% on a normalized basis, routing revenue rose 23%, and security revenue increased 12%. Data center networking revenue declined 6% because of supply-constrained shipment timing. Networking operating margin was 22%, in line with HPE’s guidance.

HPE also announced an expanded collaboration with Oracle involving routers, switches, software and AI operations capabilities for Oracle’s AI cloud infrastructure build-out. Neri described the deployment as a multiyear, multi-gigawatt opportunity that includes QFX switching products and PTX routing products.

The company said a U.S. federal court approved its settlement with the Department of Justice related to the Juniper Networks acquisition in August. Neri said integration and cost-synergy efforts remain ahead of schedule, while Myers reiterated HPE’s target of achieving a $600 million annual run-rate of Juniper-related savings by the end of fiscal 2028.

Cloud and AI segment growth Cloud and AI revenue totaled $9 billion, up 25%, exceeding HPE’s outlook. The segment generated operating profit of more than $1.5 billion and an operating margin of 17%, which increased 460 basis points sequentially.

Server revenue rose 35%, driven by higher average selling prices in traditional servers, which offset supply-constrained unit volumes. Management said traditional server orders increased by a strong double-digit percentage year over year. HPE expects unit volumes to strengthen in the fourth quarter as supply becomes more available, though constraints are expected to persist.

AI systems orders were $2.4 billion, up more than 30% sequentially, while AI systems revenue was nearly $1.6 billion. HPE expects AI systems revenue to improve sequentially in the fourth quarter as backlog converts to revenue.

After the quarter ended, HPE said it received a multibillion-dollar server deal from a hyperscaler customer for internal AI inferencing usage. Neri emphasized that the transaction involves traditional servers for the customer’s own use rather than the type of cloud infrastructure deployments HPE had previously pursued with large hyperscalers.

Storage revenue increased 10%, aided by demand for higher-value owned intellectual property and private cloud offerings. Private Cloud AI orders grew by triple digits, while Alletra Storage MP orders and revenue also increased by strong double-digit percentages, according to management.

HPE GreenLake customers rose 18% year over year to 52,000. The company also said HPE Financial Services recorded third-quarter highs in financing volumes, residual value and return on equity as customers sought financing options for AI investments.

Outlook raised for 2026 and 2027 For the fiscal fourth quarter, HPE expects revenue of $13.9 billion to $14.8 billion. It forecast networking revenue growth of 11% to 13% and cloud and AI revenue growth of 60% to 72%. The company expects non-GAAP EPS of $1.20 to $1.30 and GAAP EPS of $1.12 to $1.22.

HPE raised its fiscal 2026 non-GAAP EPS outlook to $3.75 to $3.85 and its GAAP EPS outlook to $2.93 to $3.03. It also increased its fiscal-year free-cash-flow target to at least $3.75 billion.

For fiscal 2027, HPE now expects consolidated revenue growth of 13% to 17%, networking growth of 14% to 17%, and cloud and AI growth of 14% to 18%. The company forecast EPS of $4.40 to $4.60 and free cash flow of at least $5 billion.

Management said the fiscal 2027 framework includes some contribution from the Oracle collaboration and the recently announced hyperscaler inferencing deal. It does not include potential revenue from the AMD Helios opportunity, which HPE expects to become available for ordering later in the calendar year.

HPE returned $324 million to common shareholders during the quarter through $189 million in dividends and $135 million in share repurchases. The company said it exited the quarter with net leverage of 1.8 times, below its target of two times, and plans to return at least 75% of free cash flow to shareholders in the fourth quarter.

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

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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HPE lifted its long-term growth targets after revenue gains across both of its segments drove a more than fivefold increase in its profit during the third quarter.

Hewlett Packard Enterprise Co. (NYSE:HPE) posted its fiscal 2026 third-quarter results after Wednesday’s closing bell, beating estimates and raising its fiscal-year guidance above estimates.

HPE stock is moving. Watch the price action here. HPE Q3 Details       Hewlett Packard Enterprise reported quarterly earnings of $1.11 per share, which beat the consensus estimate of 93 cents by 19.35%, per Benzinga Pro data. 

Quarterly revenue clocked in at $12.21 billion, which beat the Street estimate of $11.91 billion and was up from $9.14 billion in the same period last year.

Hewlett Packard also annoucned an expanded partnership with Oracle Corp. (NYSE:ORCL) to deploy HPE Juniper Networking across Oracle’s AI data centers.

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“HPE Juniper Networking has been an important part of our cloud architecture and now plays a key role in our AI clusters, regional data centers, and edge networks with the scale, performance, and reliability our customers expect,” said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure.

Looking AheadHewlett Packard raised its fiscal 2026 adjusted EPS guidance to between  $3.75 and $3.85, versus the $3.43 analyst estimate, and raised its revenue outlook to between $45.96 billion and $46.99 billion, versus the $44.94 billion estimate.

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HPE Stock Price: According to data from Benzinga Pro, Hewlett Packard Enterprise stock was down 0.62% to $51.51 in Wednesday’s extended trading.  

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HOUSTON--(BUSINESS WIRE)--HPE (NYSE: HPE) today announced financial results for the third quarter ended July 31, 2026. “HPE's strategy is proving itself again this quarter. Our results demonstrate the durability of our profitable growth momentum. We delivered record revenue, orders, and profitability, fueled by surging customer demand across our portfolio,” said Antonio Neri, president and CEO of HPE. “AI is becoming a multi-year growth driver for HPE, and our differentiated portfolio positions.

Hewlett Packard Enterprise (HPE.N) raised its annual forecasts on Wednesday after reporting quarterly results that beat Wall Street expectations, ​as surging AI-related demand across networking and servers drove growth across its ‌business.

Shares of the company, however, fell 8% in extended trading.

HPE's high-powered servers, which are essential for building and training AI models, have been in high demand from cloud computing giants and large ​enterprises.

Enterprise IT infrastructure spending is strengthening, driven by continued investment in AI, ​server refresh cycles and rising demand for data center capacity, Citi ⁠analysts have said.

"It's clear to us that the market, the tailwinds in AI, ​particularly the adoption of AI in the enterprise, is really starting to settle in," ​CFO Marie Myers told Reuters in an interview.

HPE expects enterprise adoption of AI to support growth beyond the current fiscal year, Myers said, after customers spent fiscal 2025 and 2026 testing AI ​systems and beginning deployments that are showing productivity gains.

HPE on Wednesday also announced an ​expansion to its collaboration with Oracle (ORCL.N) to help scale the software giant's global AI infrastructure, deploying ‌HPE ⁠Juniper Networking equipment across Oracle's AI data centers.

Myers noted that supply remained constrained, with memory being the main bottleneck, followed by NAND, CPUs and drives, though HPE has signed longer-term supply agreements to improve access to components.

"Demand is far outstripping supply."

HPE forecast ​fiscal 2026 revenue ​growth of 34% ⁠to 37%, up from 29% to 33% previously, and raised its adjusted earnings forecast to between $3.75 and $3.85 per share, from $3.35 and $3.45.

For ​fiscal 2027, HPE now projects revenue growth of 13% to 17%, ​up from ⁠8% to 12%, with adjusted EPS growth of 16% to 20%, versus 12% to 16% forecast previously.

Third-quarter revenue grew 33.6% to $12.21 billion, beating estimates of $11.91 billion. HPE earned $1.11 ⁠per share ​on an adjusted basis, ahead of estimates of ​93 cents.

HPE's results follow strong forecasts from rivals Dell (DELL.N) and Super Micro (SMCI.O) as Big Tech's AI spending is set to ​exceed $730 billion this year.

Investors with an interest in Computer - Integrated Systems stocks have likely encountered both Hewlett Packard Enterprise (HPE - Free Report) and Advanced Micro Devices (AMD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Hewlett Packard Enterprise and Advanced Micro Devices are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HPE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

HPE currently has a forward P/E ratio of 14.78, while AMD has a forward P/E of 61.38. We also note that HPE has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMD currently has a PEG ratio of 4.09.

Another notable valuation metric for HPE is its P/B ratio of 2.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMD has a P/B of 11.16.

Based on these metrics and many more, HPE holds a Value grade of B, while AMD has a Value grade of F.

HPE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HPE is likely the superior value option right now.

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HPE buy

Buy Hewlett Packard Enterprise (HPE). Dell’s AI-server surge (record orders/backlog) is a direct demand signal for the same enterprise hardware stack, and the article flags HPE’s own prior margin expansion and a likely upside setup for the upcoming print. Technicals add fuel: HPE is in the handle of a rare cup-and-handle, with a clear trigger above $63.75 and a measured move toward ~$87.56 if the pattern confirms.

Key Risk: HPE’s earnings miss on revenue growth or margins, showing AI/server demand isn’t translating to HPE’s backlog and pricing power.

SMCI sell

Sell Super Micro Computer (SMCI). If Dell’s results are the “AI server demand proof,” the market will likely rotate toward the biggest, most diversified beneficiaries (Dell/HPE) and away from higher-variance, more headline-driven names. Use this as a relative-value trade: SMCI’s upside may be capped if investors decide the AI server cycle is already being captured by larger players.

Key Risk: SMCI reports another blowout quarter with accelerating margins/backlog, proving it’s still the primary share-gainer in AI servers.

HP Enterprise stock jumped by 4% in extended hours after Dell, its top competitor, announced strong financial results, which drove its shares up by nearly 10%. HPE jumped to $53.45, up modestly from Tuesday’s close of $50 as focus now shifts to its earnings.

HPE stock jumped after Dell, its top rival, released strong financial results, shedding more color on its business. In a statement, Dell said that its revenue jumped by 58% in the second quarter to $47 billion, with annual revenue expected to jump by 69% to $192 billion. The Chief Operating Officer (COO) said:

“That’s clearest in our AI server business, where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog. We’re seeing broader revenue growth as well, with traditional servers and networking up 122% and storage up 26%.”

These earnings are important because Dell and HP Enterprise provide similar products and services. HPE may also release strong results, as we saw with other top competitors like Lenovo Group and Super Micro Computer.

This is what happened in the last earnings report, which showed that its revenue jumped by 40% to $10.7 billion, with its gross margins rising by 750 basis points to 36.9%. Its growth was driven by its networking revenue, which jumped by 148% to $2.7 billion and its cloud and AI, which jumped by 23% during the quarter. 

Analysts expect the upcoming numbers to show that HP Enterprise’s revenue jumped by 30% in the last quarter to $12 billion. As we have seen with other companies in the AI industry, chances are that its revenue and earnings per share (EPS) will be better than expected. 

Traders will be looking at its revenue backlog and its margins, which are expected to continue growing. In Dell’s case, its gross margin rose to 20.9% from 18.3% in the same period last year as prices continued rising. 

These numbers come at a time when the company’s valuation seems like a bargain. It has a forward price-to-earnings ratio of 15, much lower than the technology sector median of 22. It is also lower than other technology companies like Nvidia and AMD.

HPE stock chart | Source: TradingView

The daily chart shows that the HPE share price has pulled back in the past few weeks, moving from a high of $63.75 in August to $50.87 on Tuesday. A closer look shows that the stock has formed a cup-and-handle pattern and is now in the handle section. This pattern normally leads to a strong rebound. 

In this case, the cup has a depth of 37%. Measuring the same distance from the cup’s upper side means that the stock may rebound to $87.56 in the long term. This view will be confirmed if it rises above the upper side of the cup at $63.75.

LONDON--(BUSINESS WIRE)--HPE (NYSE: HPE) and Tottenham Hotspur Football Club (Spurs), today announced an expansion of their long-standing partnership. As the Club's Official Hybrid Cloud and IT Enterprise Networking Partner, HPE will modernize the technology environment that powers Spurs' Stadium. From ticketless entry and cashless payments to mobile applications, digital wayfinding, and high-density connectivity, the transformation will support every digital interaction across the supporter jo.

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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 Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Hewlett Packard Enterprise?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Hewlett Packard Enterprise (HPE - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $1.01 a share two days away from its upcoming earnings release on September 2, 2026.

Hewlett Packard Enterprise's Earnings ESP sits at +6.54%, which, as explained above, is calculated by taking the percentage difference between the $1.01 Most Accurate Estimate and the Zacks Consensus Estimate of $0.94. HPE is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

HPE is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Garmin (GRMN - Free Report) as well.

Garmin, which is readying to report earnings on November 4, 2026, sits at a Zacks Rank #1 (Strong Buy) right now. Its Most Accurate Estimate is currently $2.41 a share, and GRMN is 65 days out from its next earnings report.

The Zacks Consensus Estimate for Garmin is $2.38, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.26%.

Because both stocks hold a positive Earnings ESP, HPE and GRMN could potentially post earnings beats in their next reports.

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 >>

Key Takeaways Dell Technologies is among five dividend-growth stocks selected as markets favor greater stability. Taiwan Semiconductor, EnerSys and others cleared screens for dividend, sales and earnings growth. The five stocks also showed favorable cash-flow valuations and stronger 52-week gains than the S&P 500. Wall Street closed on a mixed note on Aug. 24, 2026, highlighting a sharp sector divergence.

The S&P 500 and Nasdaq were dragged down by heavy sell-offs in tech stocks ahead of NVIDIA’s (NVDA - Free Report) highly anticipated fiscal second-quarter earnings report. However, the Dow Jones Industrial Average managed to inch higher as investors rotated out of high-valuation growth names and into defensive blue-chip stocks.

With persistent pressure from elevated bond yields and sticky inflation lingering in the background, this market shift underscores a growing preference for stability. 

Amid this backdrop, steady dividend-growth stocks offer a prudent balance of consistent income, lower volatility, and reliable long-term returns compared to their high-growth counterparts.

These dividend-growth stocks boast a consistent track record of raising payouts, underscoring the balance-sheet strength and cash-flow resilience required to navigate a period in which the traditional growth narrative is being reassessed.

Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks. 

We have selected five dividend growth stocks — Dell Technologies (DELL - Free Report) , Taiwan Semiconductor (TSM - Free Report) , Enersys Inc. (ENS - Free Report) , Cheesecake Factory (CAKE - Free Report) and Hewlett Packard (HPE - Free Report) — that could be solid choices for your portfolio.

Why Is Dividend Growth Better?Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty as well as broader market volatility. Their steadily rising payouts provide some measure of downside protection.

These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations.

A consistent history of dividend growth underscores the potential for continued growth ahead.

Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market or any other dividend-paying stock for an extended period.

As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account.

5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history.

5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues.

5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history.

Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.

Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.

52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.

Top Zacks Rank: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally outperform their peers in all types of market environments.

Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

These few criteria alone narrowed the universe from more than 7,700 stocks to just five.

Here are the five stocks that fit the bill:

Texas-based Dell Technologies is a leading provider of servers, storage and personal computers. The company’s IT solutions support customers in traditional infrastructure and multi-cloud environments. The Zacks Consensus Estimate for DELL’s fiscal 2027 revenues suggests a year-over-year improvement of 54.6%. The stock boasts a long-term (three-to-five years) earnings growth rate of 26.40%. It has an annual dividend yield of 0.57%.

DELL currently carries a Zacks Rank #2 and has a Growth Score of A. 

Headquartered in Taiwan, Taiwan Semiconductor is the world's largest dedicated integrated circuit (IC) foundry. The Zacks Consensus Estimate for TSM’s 2026 revenues suggests a year-over-year improvement of 35.7%. The stock boasts a long-term earnings growth rate of 26.50% and an annual dividend yield of 0.71%.

TSM currently sports a Zacks Rank #1 and a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pennsylvania-based EnerSys manufactures, markets, and distributes industrial batteries and related stored-energy products. It also develops battery chargers and accessories, power electronics, power equipment and outdoor cabinet enclosures. The Zacks Consensus Estimate for ENS’ fiscal 2027 revenues suggests a year-over-year improvement of 3.7%. The stock boasts a long-term earnings growth rate of 15% and has an annual dividend yield of 0.55%.

ENS currently sports a Zacks Rank #1 and a Growth Score of A. 

Headquartered in California, Cheesecake Factory is a restaurant and bakery company that owns and operates hundreds of upscale, full-service dining locations. The Zacks Consensus Estimate for CAKE’s 2026 revenues suggests a year-over-year improvement of 6.8%. The stock boasts a long-term earnings growth rate of 12.50% and an annual dividend yield of 1.06%.

CAKE currently holds a Zacks Rank #2 and a Growth Score of B. 

California-based Hewlett Packard is a leader in essential enterprise technology. The Zacks Consensus Estimate for HPE’s fiscal 2026 revenues suggests a 31.7% year-over-year improvement. The stock boasts a long-term earnings growth rate of 32% and has an annual dividend yield of 1.07%.

HPE currently carries a Zacks Rank #2 and a Growth Score of A.  

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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 (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.

After reaching an important support level, Hewlett Packard Enterprise (HPE - Free Report) could be a good stock pick from a technical perspective. HPE surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

HPE has rallied 17.2% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests HPE could be on the verge of another move higher.

The bullish case solidifies once investors consider HPE's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.

Investors may want to watch HPE for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

Key Takeaways HPE's Private Cloud AI gains traction as customer wins and orders continue to grow.HPE's AI Systems backlog provides visibility as enterprises move toward larger-scale AI deployments.HPE can cross-sell Private Cloud AI through its expanding GreenLake ecosystem and installed base. Hewlett Packard Enterprise’s (HPE - Free Report) Private Cloud AI business continues to gain traction as enterprises increasingly look to deploy AI workloads in their own IT environments. Rather than relying entirely on public cloud infrastructure, businesses are adopting private AI systems to gain greater control over data, security, performance and costs. HPE’s latest results suggest this shift is translating into sustained demand for its Private Cloud AI offerings.

Private Cloud AI orders have grown steadily over the past few quarters, supported by an increasing number of customer wins. The momentum was reinforced by broader strength across HPE’s Cloud & AI segment, where revenues grew strongly year over year, and orders continued to outpace revenues. This indicates that demand for AI infrastructure remains healthy and could support future revenue growth as existing orders convert to deployments.

HPE’s AI Systems backlog also provides visibility into the company’s future growth. The strong level of committed demand, combined with continued new orders, suggests that enterprises are progressing from AI experimentation toward larger-scale deployments. Increasing investments in compute infrastructure and unstructured data storage alongside Private Cloud AI further highlight the broader infrastructure requirements associated with enterprise AI adoption.

The expanding GreenLake ecosystem adds another potential growth avenue. With millions of systems already managed through the platform and a large enterprise customer base, HPE has an established channel to introduce Private Cloud AI and related infrastructure solutions. As customers modernize their IT environments, HPE can increasingly cross-sell AI capabilities into its existing installed base.

Overall, continued growth in customer wins, AI infrastructure demand and orders indicates a solid trajectory for HPE’s Private Cloud AI business. If enterprises maintain their preference for secure, controlled and scalable AI environments, Private Cloud AI could remain an increasingly important growth driver for HPE in the coming quarters.

How Competitors Fare Against HPEHewlett Packard Enterprise’s closest competitors in this domain are Dell Technologies (DELL - Free Report) and Cisco (CSCO - Free Report) . Dell AI Factory combined with NVIDIA is arguably the most direct alternative for HPE private cloud AI.

Dell provides pre-integrated GPU servers, storage, networking and software for enterprise AI and competes head-to-head with HPE for Fortune 1000 AI deployments. Cisco focuses on AI networking and integrated AI Pods. Cisco has started competing strongly with HPE after acquiring Splunk and through its partnership with NVIDIA.

HPE’s Price Performance, Valuation and EstimatesHPE has gained 122.5% in the year-to-date period, outperforming the Zacks Computer - Integrated Systems industry’s appreciation of 102.4%.

HPE YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, HPE trades at a forward price-to-sales ratio of 1.42, below the industry’s 5.24. The discounted valuation is also reflected by the Zacks Value Score of B.

HPE Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HPE’s fiscal 2026 margin indicates year-over-year growth rate of 75.8%. Estimates have remained unchanged for the past 60 days.

Image Source: Zacks Investment Research

HPE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.