Hewlett Packard Enterprise (HPE) AI Stock Analysis

• Market Cap: $29.35B
• Dividend Yield: 2.17%
• Average Volume (3M): 17.92M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.74
• Revenue Growth: 14.17%
• EPS Growth: -102.25%
• Country: US
• Employees: 61,000
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.65
• Shares Outstanding: 1,326,854,100
• 10 Day Avg. Volume: 20,182,468
• 30 Day Avg. Volume: 17,921,984
• PEG Ratio: -5.55
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 51.57
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 24.37
• 1Y Price Target: $27.22
• Price Target Upside: 26.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.41
• Revenue Forecast (FY): $40.82B

• Rating: 65 Neutral
• Price Target: $23.00 ▲(6.83% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily supported by solid cash generation and a constructive earnings call with raised FY26 guidance and strong networking/AI demand indicators. Offsetting this are weakened TTM profitability (including a small net loss), some balance-sheet tightening from higher debt, and neutral-to-soft technical momentum.

Positive Factors

Networking leadership & Juniper integration

The combined networking franchise (Aruba + Juniper) is a durable margin engine, now driving a disproportionate share of profits. High routing/switching demand and completed sales integration improve cross-sell, pricing power, and structural profitability at scale across enterprise and data center customers.

GreenLake subscription traction

Growing GreenLake ARR strengthens recurring revenue mix and customer stickiness, converting hardware refresh cycles into multi-year contracts. This consumption model enhances revenue visibility, increases lifetime value, and supports steady service margins and cross-sell into storage and networking.

Strong cash generation and raised FCF guidance

Robust free cash flow and an upgraded FCF target provide durable financial flexibility to fund investments, repay debt, and maintain shareholder returns. Reliable cash conversion supports strategic priorities (AI systems, GreenLake) and cushions the business against cyclical revenue swings.

Negative Factors

Severe memory & NAND shortages

Sustained commodity supply tightness raises product costs and constrains shipment cadence for servers and AI systems. That pressure can compress margins, force order prioritization, and introduce variability in revenue recognition as high-margin orders are prioritized over broader demand.

Rising leverage & recent debt issuance

Increased debt and fresh issuance extend maturities but raise interest and principal commitments. Higher leverage reduces financial flexibility for opportunistic investments, increases sensitivity to margin pressure, and elevates the need for sustained cash generation to meet obligations over the medium term.

Profitability deterioration & uneven AI/Cloud timing

A swing to a TTM net loss and softer Cloud & AI growth signal earnings volatility. Uneven AI shipment timing and mix risks can delay margin recovery, making returns cyclical and reliant on sustained demand and execution to restore prior profitability levels.

Hewlett Packard Enterprise Business Overview & Revenue Model

Company Description

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem and HPE Synergy; and solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products; and HPE Superdome Flex, HPE Nonstop, HPE Integrity, and HPE Edgeline products. In addition, the company provides HPE Aruba product portfolio that includes wired and wireless local area network hardware products, such as Wi-Fi access points, switches, routers, and sensors; HPE Aruba software and services comprising cloud-based management, network management, network access control, analytics and assurance, and location; and professional and support services, as well as as-a-service and consumption models for the intelligent edge portfolio of products. Further, it offers various leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. Additionally, the company invests in communications and media solutions. It has a partnership with Striim, Inc. to offer high performance and mission-critical solutions with real-time analytics. It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Houston, Texas.

How the Company Makes Money

HPE makes money primarily by selling and supporting enterprise IT infrastructure and by providing subscription/consumption-based offerings. 1) Product revenue (infrastructure sales) - Compute (servers and related systems): HPE generates revenue from selling enterprise servers and associated components and options used in data centers and edge deployments. - Storage: Revenue comes from selling storage arrays and related hardware and software capabilities that support data management, backup, and performance needs. - Networking: HPE earns revenue from selling networking equipment and solutions (including those associated with its Aruba networking portfolio) used for campus, branch, and data center connectivity. These product lines generally generate upfront revenue at the time of sale, often through direct enterprise sales and through channel partners such as value-added resellers, systems integrators, and distributors. 2) Services revenue (support and professional services) - Support services: A significant revenue stream comes from maintenance, warranties, and ongoing technical support contracts for HPE hardware and software installed at customer sites. - Professional services: HPE earns revenue from consulting, design, implementation, migration, and optimization services that help customers deploy or modernize infrastructure, including hybrid IT and data center projects. Services revenue is typically recurring over the contract term for support, and project-based for professional services. 3) Software and platform revenue - HPE generates revenue from software that is sold via licenses and/or subscriptions and that is commonly bundled with or complements its infrastructure offerings (for example, software for management, operations, automation, security, or data services). 4) Consumption-based / “as-a-service” revenue (cloud-like delivery) - HPE makes money through offerings that deliver infrastructure and services via subscription or usage-based pricing, where customers pay over time rather than primarily upfront. This model is designed to provide on-premises or hybrid infrastructure with cloud-like procurement and billing. Revenue under these offerings is recognized over the period services are delivered and/or as usage occurs, depending on contract structure. 5) Financing and related offerings - Where offered, HPE can earn revenue through financing arrangements that help customers procure HPE solutions, typically through interest income and related fees (to the extent applicable based on the structure of the offering). Key factors and partnerships that support earnings - Channel and alliance ecosystem: HPE relies on a global partner ecosystem (resellers, distributors, systems integrators, and technology partners) to extend reach, attach services, and deliver integrated solutions. - Installed base and lifecycle motion: A large installed base of HPE infrastructure supports recurring support and services revenue and drives refresh cycles for compute, storage, and networking. - Hybrid IT demand: Customer demand to operate across on-premises infrastructure and public cloud environments supports HPE’s focus on hybrid solutions and consumption-based offerings. null

Hewlett Packard Enterprise Financial Statement Overview

Summary

Mixed fundamentals: revenue growth is improving and free cash flow is a clear strength (TTM FCF rebounded sharply), but profitability deteriorated to a small TTM net loss and shareholder returns weakened. Leverage looks manageable (debt-to-equity just under 1.0) but debt has risen, increasing the importance of an earnings recovery.

Income Statement

Revenue growth is improving, with TTM (Trailing-Twelve-Months) up 4.3% versus near-flat growth in the latest annual period. However, profitability has weakened materially: TTM (Trailing-Twelve-Months) shows a small net loss and compressed operating profitability versus strong profits in 2023–2024. Gross margin remains generally stable around ~29–34%, but the sharp swing from solid earnings (2024) to a slight loss (TTM) is a key concern.

Balance Sheet

The balance sheet is reasonably supported by a sizable equity base, with debt-to-equity just under 1.0 in the latest periods, suggesting manageable (though meaningful) leverage. Total debt has risen versus 2022–2023 levels, which reduces flexibility. Returns to shareholders have deteriorated to slightly negative in TTM (Trailing-Twelve-Months), reflecting weaker earnings power despite relatively stable equity.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) operating cash flow is solid and free cash flow rebounded sharply (up ~92% versus the prior period shown), reaching ~$4.4B. That said, cash flow conversion versus reported earnings looks distorted by the current net loss, and year-to-year free cash flow has been volatile (notably weak in 2025 annual), which raises predictability risk.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	35.79B	34.30B	30.07B	29.11B	28.11B	27.86B
Gross Profit	10.99B	9.87B	9.55B	9.92B	8.82B	9.10B
EBITDA	1.89B	2.63B	5.56B	4.85B	4.40B	6.32B
Net Income	-156.00M	57.00M	2.58B	2.02B	868.00M	3.43B
Balance Sheet
Total Assets	75.77B	75.91B	71.26B	57.15B	57.12B	57.70B
Cash, Cash Equivalents and Short-Term Investments	4.84B	5.77B	14.85B	4.27B	4.16B	4.00B
Total Debt	21.61B	22.36B	19.82B	13.52B	13.48B	14.58B
Total Liabilities	50.99B	51.15B	46.38B	35.91B	37.21B	37.68B
Stockholders Equity	24.77B	24.69B	24.82B	21.18B	19.86B	19.97B
Cash Flow
Free Cash Flow	4.37B	627.00M	1.97B	1.60B	1.47B	3.37B
Operating Cash Flow	4.49B	2.92B	4.34B	4.43B	4.59B	5.87B
Investing Cash Flow	-13.96B	-13.19B	-53.00M	-3.28B	-2.09B	-2.80B
Financing Cash Flow	491.00M	1.05B	6.28B	-1.36B	-1.80B	-3.36B

Hewlett Packard Enterprise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPE, the sentiment is Negative. The current price of 21.53 is above the 20-day moving average (MA) of 21.32, below the 50-day MA of 21.84, and below the 200-day MA of 21.99, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HPE.

Hewlett Packard Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	74 Outperform	$310.11B	23.23	23.64%	2.09%	8.91%	14.53%
UI	74 Outperform	$48.07B	35.83	120.56%	0.49%	36.77%	102.83%
ERIC	70 Outperform	$38.44B	11.10	29.57%	2.51%	1.04%	―
HPE	65 Neutral	$29.35B	17.34	-0.64%	2.17%	14.17%	-102.25%
NOK	63 Neutral	$45.83B	49.36	4.38%	2.26%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASTS	54 Neutral	$35.94B	-54.37	-30.27%	―	641.24%	41.70%

Hewlett Packard Enterprise Corporate Events

Hewlett Packard Enterprise Announces $2 Billion Debt Offering

On March 16, 2026, Hewlett Packard Enterprise launched and priced a multi‑tranche debt offering totaling $2.0 billion, including $300 million in floating rate notes due 2028, $500 million in 4.500% notes due 2028, $600 million in 4.600% notes due 2029 and $600 million in 5.250% notes due 2033. The registered notes, which are expected to close on March 23, 2026, will be senior unsecured obligations ranking pari passu with the company’s existing and future senior unsecured debt, underscoring HPE’s continued use of capital markets financing to support its balance sheet and strategic needs.

The offering was executed under an underwriting agreement with a syndicate led by Barclays Capital Inc., BofA Securities, Inc., SG Americas Securities, LLC and Wells Fargo Securities, LLC, reflecting strong engagement from major investment banks in placing HPE’s debt. By locking in staggered maturities across 2028–2033 and blending fixed and floating rate exposure, HPE is further shaping its liability profile, which may enhance financial flexibility and signal confidence in its long‑term funding strategy.

The most recent analyst rating on (HPE) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Hewlett Packard Enterprise stock, see the HPE Stock Forecast page.

HPE Delivers Strong Q1 Results and Raises Outlook

On March 9, 2026, Hewlett Packard Enterprise reported strong fiscal 2026 first-quarter results for the period ended January 31, 2026, highlighted by 18% year‑on‑year revenue growth to $9.3 billion and sharply higher margins, producing one of its most profitable quarters. Networking revenue surged 151.5% to $2.7 billion as the newly combined networking portfolio, including Juniper, drove robust gains across routing, data center, and campus offerings, while Cloud & AI revenue dipped 2.7% to $6.3 billion but delivered improved profitability.

Cash flow from operations rose to $1.2 billion and free cash flow reached $0.7 billion, enabling $348 million in capital returns via dividends and buybacks and underlining improved operational efficiency. Reflecting confidence in sustained demand and synergy realization, HPE raised its full‑year fiscal 2026 outlook, tightening expected revenue growth to 17%–22%, boosting Networking growth guidance to 68%–73%, lifting both GAAP and non‑GAAP EPS targets, and increasing its free cash flow guidance to at least $2.0 billion, signaling stronger earnings power and cash generation for shareholders.

HPE’s Board also declared a regular cash dividend of $0.1425 per share on the company’s common stock for the second quarter of fiscal 2026, payable in April to shareholders of record in March. For the second quarter, the company guided revenue between $9.6 billion and $10.0 billion and projected GAAP EPS of $0.09–$0.13 and non‑GAAP EPS of $0.51–$0.55, emphasizing continued profitability momentum as it integrates recent acquisitions and executes its portfolio transformation.

The most recent analyst rating on (HPE) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Hewlett Packard Enterprise stock, see the HPE Stock Forecast page.

HPE Board Declares Dividend on Series C Preferred Stock

On February 4, 2026, HPE’s board declared a $0.953125 per-share dividend on its 7.625% Series C Mandatory Convertible Preferred Stock, payable March 1 to holders of record February 15, reinforcing its commitment to preferred shareholders while remaining subject to available funds and board discretion.

The most recent analyst rating on (HPE) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Hewlett Packard Enterprise stock, see the HPE Stock Forecast page.