Hewlett Packard Enterprise (NYSE:HPE – Get Free Report) released its quarterly earnings results on Wednesday. The technology company reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.18, FiscalAI reports. The firm had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a net margin of 3.94% and a return on equity of 11.91%. The company’s revenue was up 33.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.44 EPS. Hewlett Packard Enterprise updated its Q4 2026 guidance to 1.200-1.300 EPS and its FY 2026 guidance to 3.750-3.850 EPS.
Here are the key takeaways from Hewlett Packard Enterprise’s conference call:
- HPE reported record fiscal Q3 results, including $12.2 billion in revenue (+34% year over year), 40% non-GAAP gross margin, $2 billion in operating profit, $1.11 EPS, and $958 million in free cash flow.
- Strong AI and networking demand drove record orders and backlog, with orders growing 42% on a normalized basis and networking orders up 36%; HPE raised its FY2026 EPS outlook to $3.75-$3.85 and expects at least $3.75 billion in free cash flow.
- Management raised its FY2027 framework to 13%-17% consolidated revenue growth, 14%-18% cloud and AI growth, $4.40-$4.60 EPS, and at least $5 billion in free cash flow, supported by enterprise AI inferencing, agentic AI, networking, and storage demand.
- The Juniper Networks integration and synergies remain ahead of schedule, while an expanded Oracle collaboration will deploy HPE Juniper networking across a gigawatt-scale AI infrastructure build-out; HPE also said its cumulative networks-for-AI orders exceeded its prior target.
- Supply constraints involving memory, wafers, and other components continue to limit conversion of orders into revenue, while management expects gross margins to moderate as AI systems represent a larger mix and traditional server pricing normalizes.
Hewlett Packard Enterprise Stock Up 1.9%
Shares of NYSE:HPE opened at $51.85 on Thursday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.75 and a current ratio of 1.09. Hewlett Packard Enterprise has a 52-week low of $19.84 and a 52-week high of $64.25. The business’s 50 day simple moving average is $49.63 and its two-hundred day simple moving average is $37.46. The firm has a market cap of $68.66 billion, a P/E ratio of 48.46, a PEG ratio of 0.54 and a beta of 1.43.
Hewlett Packard Enterprise Dividend Announcement
Analyst Upgrades and Downgrades
Several equities research analysts have recently weighed in on the stock. Barclays increased their price objective on shares of Hewlett Packard Enterprise from $28.00 to $67.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 2nd. UBS Group upped their price target on shares of Hewlett Packard Enterprise from $25.00 to $65.00 and gave the company a “neutral” rating in a research report on Tuesday, June 2nd. Piper Sandler reiterated a “neutral” rating and set a $63.00 price target (up from $23.00) on shares of Hewlett Packard Enterprise in a report on Tuesday, June 2nd. Loop Capital upgraded Hewlett Packard Enterprise from a “hold” rating to a “buy” rating and increased their price target for the stock from $23.00 to $75.00 in a report on Tuesday, June 2nd. Finally, Sanford C. Bernstein lifted their price objective on Hewlett Packard Enterprise from $35.00 to $62.00 and gave the stock a “market perform” rating in a research report on Tuesday, June 2nd. Twelve research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $69.44.
Read Our Latest Research Report on Hewlett Packard Enterprise
Insider Activity at Hewlett Packard Enterprise
In other news, SVP Kirt P. Karros sold 18,785 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $48.50, for a total transaction of $911,072.50. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is currently owned by corporate insiders.
Institutional Trading of Hewlett Packard Enterprise
Hedge funds have recently bought and sold shares of the business. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Hewlett Packard Enterprise during the fourth quarter worth $433,537,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Hewlett Packard Enterprise by 0.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,193,841 shares of the technology company’s stock valued at $316,916,000 after buying an additional 49,508 shares during the last quarter. Amundi grew its holdings in shares of Hewlett Packard Enterprise by 63.1% during the fourth quarter. Amundi now owns 11,514,029 shares of the technology company’s stock valued at $276,567,000 after buying an additional 4,454,568 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Hewlett Packard Enterprise by 2.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 10,209,062 shares of the technology company’s stock worth $245,222,000 after acquiring an additional 222,495 shares in the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Hewlett Packard Enterprise by 32.5% during the fourth quarter. AQR Capital Management LLC now owns 5,902,556 shares of the technology company’s stock worth $141,779,000 after acquiring an additional 1,447,680 shares in the last quarter. Institutional investors and hedge funds own 80.78% 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 reported fiscal Q3 revenue of $12.21 billion, up 33.7% year over year and above the $11.97 billion consensus estimate. Adjusted EPS of $1.11 also exceeded expectations, while earnings rose sharply from $0.44 a year earlier. HPE Reports Fiscal 2026 Third Quarter Results
- Positive Sentiment: Accelerating demand for AI servers and networking drove record revenue, orders and profitability. HPE reported a record non-GAAP gross margin of 40% and said AI should remain a multiyear growth driver. HPE raises annual forecasts as AI demand lifts quarterly revenue
- Positive Sentiment: The company raised fiscal 2026 guidance to $3.75–$3.85 in EPS and $46.0–$47.0 billion in revenue, above analyst forecasts. Q4 guidance also exceeded consensus, and HPE projected fiscal 2027 revenue growth of 13%–17% with at least $5 billion in free cash flow. HPE fiscal 2027 forecast
- Positive Sentiment: HPE expanded its collaboration with Oracle to deploy Juniper Networking across Oracle’s AI data centers, potentially strengthening its position in large-scale AI infrastructure. HPE and Oracle networking collaboration
- Positive Sentiment: Deutsche Bank initiated coverage with a Buy rating and a $62 price target, implying meaningful upside from the referenced share price. Deutsche Bank HPE coverage
- Neutral Sentiment: HPE declared a quarterly dividend of $0.1425 per share, payable October 16 to shareholders of record September 17. The dividend yield is approximately 1.1%.
- Negative Sentiment: Despite the earnings beat and higher outlook, shares fell in extended trading as investors evaluated whether margin gains can persist as AI products become a larger part of the business. Ongoing supply constraints could also limit the company’s ability to meet demand. Why HPE shares fell despite strong results
About Hewlett Packard Enterprise
Hewlett Packard Enterprise (HPE) is an enterprise technology company that designs, develops and sells IT infrastructure, software and services for business and government customers. Its core offerings span servers, storage, networking, and related software, together with consulting, integration and support services aimed at modernizing and managing enterprise IT environments. HPE’s product portfolio includes systems for traditional data centers as well as solutions for high-performance computing, edge computing and telecommunications infrastructure.
A major focus for HPE is hybrid cloud and consumption-based IT.
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