Hewlett Packard Enterprise (HPE) AI Stock Analysis

• Market Cap: $31.68B
• Dividend Yield: 2.16%
• Average Volume (3M): 29.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: 14.00%
• EPS Growth: -102.25%
• Country: US
• Employees: 61,000
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.62
• Shares Outstanding: 1,334,533,200
• 10 Day Avg. Volume: 34,884,296
• 30 Day Avg. Volume: 29,562,564
• 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: 1.54
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 18.62
• 1Y Price Target: $27.13
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $26.00 ▲(8.24% Upside)

Hewlett Packard Enterprise's overall stock score reflects strong earnings performance and strategic growth initiatives, particularly in networking and AI. However, challenges in profitability and valuation metrics, such as a negative P/E ratio, weigh down the score. The technical analysis suggests a cautious approach due to potential overbought conditions.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning HPE well for sustained expansion.

Networking Segment Success

The robust growth in networking highlights HPE's competitive advantage and strategic positioning in a high-demand sector, supporting long-term growth.

Strong Cash Flow

Strong cash flow generation enhances financial flexibility, allowing HPE to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Declining Profitability

The decline in profitability could impact HPE's ability to reinvest in business operations and maintain competitive pricing strategies.

Increased Leverage

Higher leverage may limit HPE's financial flexibility and increase risk, potentially affecting its ability to pursue strategic initiatives.

Decline in Server Revenue

The decline in server revenue suggests challenges in a key segment, which could impact overall growth if not addressed strategically.

Hewlett Packard Enterprise Business Overview & Revenue Model

Company Description

Hewlett Packard Enterprise (HPE) is a global technology company focused on enterprise products and solutions. Established as a spin-off from Hewlett-Packard in 2015, HPE specializes in servers, storage, networking, and software services designed to help businesses accelerate their digital transformation. The company operates in various sectors, including cloud computing, data management, and IT infrastructure, providing a broad range of products and services that cater to both large enterprises and small to medium-sized businesses.

How the Company Makes Money

Hewlett Packard Enterprise generates revenue through multiple streams, primarily from the sale of hardware, software, and services. Key revenue streams include the sale of servers, storage solutions, networking equipment, and software licenses. In addition, HPE offers consulting services and support through its IT services division. The company has made significant investments in hybrid cloud solutions, which have become a growing revenue driver as businesses increasingly seek flexible and scalable IT infrastructure. Strategic partnerships with major cloud providers and technology firms, such as Microsoft and Intel, further enhance HPE's market presence and revenue potential. Subscription-based models and as-a-service offerings are also contributing to recurring revenue, allowing HPE to capitalize on the shift towards pay-per-use consumption models in the technology sector.

Hewlett Packard Enterprise Financial Statement Overview

Summary

Hewlett Packard Enterprise demonstrates strong cash flow generation with a 55.60% increase in free cash flow, indicating efficient cash management. However, declining profitability metrics, such as a reduced net profit margin and increased leverage, are concerns. The balance sheet remains stable, but operational inefficiencies need addressing.

Income Statement

Hewlett Packard Enterprise has shown consistent revenue growth over the years, with a 3.88% increase in the latest annual report. However, the net profit margin has significantly decreased to 0.17% from 8.56% in the previous year, indicating a decline in profitability. The gross profit margin remains stable, but the EBIT margin has turned negative, suggesting operational challenges. Overall, while revenue growth is positive, declining profitability metrics are a concern.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.91, indicating higher leverage, but it remains manageable. Return on equity has significantly decreased to 0.23% from 10.39%, reflecting reduced profitability. The equity ratio is stable, suggesting a balanced asset structure. While the balance sheet shows stability, the increased leverage and reduced ROE are potential risks.

Cash Flow

Hewlett Packard Enterprise has demonstrated strong free cash flow growth of 55.60%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.12, suggesting efficient cash flow management. The free cash flow to net income ratio is 1.0, highlighting robust cash flow relative to net income. Overall, the cash flow statement reflects strong cash generation and management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.30B	30.13B	29.11B	28.11B	27.86B
Gross Profit	9.87B	9.88B	9.92B	8.82B	9.10B
EBITDA	2.63B	5.06B	4.85B	4.40B	6.32B
Net Income	57.00M	2.58B	2.02B	868.00M	3.43B
Balance Sheet
Total Assets	75.91B	71.26B	57.15B	57.12B	57.70B
Cash, Cash Equivalents and Short-Term Investments	5.77B	14.85B	4.27B	4.16B	4.00B
Total Debt	22.36B	19.82B	13.52B	13.48B	14.58B
Total Liabilities	51.15B	46.38B	35.91B	37.21B	37.68B
Stockholders Equity	24.69B	24.82B	21.18B	19.86B	19.97B
Cash Flow
Free Cash Flow	627.00M	1.97B	1.60B	1.47B	3.37B
Operating Cash Flow	2.92B	4.34B	4.43B	4.59B	5.87B
Investing Cash Flow	-13.19B	-53.00M	-3.28B	-2.09B	-2.80B
Financing Cash Flow	1.05B	6.28B	-1.36B	-1.80B	-3.36B

Hewlett Packard Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 24.02 is above the 20-day moving average (MA) of 22.87, above the 50-day MA of 23.26, and above the 200-day MA of 20.15, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 61.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPE.

Hewlett Packard Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	77 Outperform	$300.28B	28.66	23.01%	2.12%	8.91%	14.53%
ERIC	74 Outperform	$32.20B	12.84	25.45%	2.55%	1.04%	―
HPE	68 Neutral	$31.68B	-313.91	0.23%	2.16%	14.00%	-102.25%
NOK	66 Neutral	$34.78B	35.00	4.03%	2.31%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UI	60 Neutral	$32.82B	41.49	155.78%	0.51%	36.77%	102.83%
ASTS	54 Neutral	$22.73B	-52.95	-39.22%	―	641.24%	41.70%

Hewlett Packard Enterprise Corporate Events

Hewlett Packard Enterprise Reports Record Q4 2025 Revenue

On December 4, 2025, Hewlett Packard Enterprise (HPE) announced its financial results for the fourth quarter of fiscal 2025, highlighting a record quarterly revenue of $9.7 billion, a 14% increase from the previous year. The company also reported a significant rise in its annualized revenue run-rate and gross margins. HPE completed the acquisition of Juniper Networks and expanded its AI and cloud businesses, which contributed to its strong performance and strategic momentum. The company raised its fiscal year 2026 guidance for diluted net earnings per share and free cash flow, reflecting confidence in its operational discipline and cost management initiatives.

HPE Subsidiary Sells 9% Stake in H3C Technologies

On November 28, 2025, H3C Holdings Limited, a subsidiary of Hewlett Packard Enterprise, entered into share purchase agreements with three Chinese entities to sell 9% of H3C Technologies’ share capital for approximately $643 million. This transaction, subject to various conditions and governmental approvals, is part of a strategic move to adjust HPE’s holdings in H3C, potentially impacting its market positioning and stakeholder interests.

HPE Sells 10% Stake in H3C Technologies

On November 17, 2025, H3C Holdings Limited, a subsidiary of Hewlett Packard Enterprise, entered into share purchase agreements with several entities in China to sell 10% of H3C Technologies Co., Limited’s share capital for approximately $714 million. This transaction is part of a strategic move to dispose of H3C’s shares, with implications for HPE’s operational focus and market positioning in China. The agreements are subject to various conditions, including governmental approvals and shareholder consents, and involve amendments to existing arrangements with UNIS, a key stakeholder. The outcome of these transactions could significantly impact HPE’s financial structure and its strategic partnerships in the region.

Hewlett Packard Enterprise Approves Cash Dividend for Series C

On October 29, 2025, Hewlett Packard Enterprise‘s Board of Directors approved a cash dividend of $0.953125 per share for its 7.625% Series C Mandatory Convertible Preferred Stock, payable on December 1, 2025. This decision reflects the board’s discretion and is contingent on legally available sources, impacting shareholders and potentially influencing market perceptions of HPE’s financial health.

HPE Expands Share Repurchase, Plans Juniper Integration

On October 15, 2025, Hewlett Packard Enterprise held its 2025 Securities Analyst Meeting, where it outlined strategic priorities and provided a financial outlook for the 2026 fiscal year. The company announced a $3 billion increase in its share repurchase program and discussed integration plans for Juniper Networks, including workforce reductions expected to cost approximately $240 million. These moves are aimed at enhancing shareholder value and strengthening HPE’s market position.

Hewlett Packard Enterprise Updates Executive Compensation Metrics

On December 5, 2024, Hewlett Packard Enterprise‘s HR and Compensation Committee approved new performance metric weightings and goal achievement levels for executive officers under its fiscal 2025 annual incentive program. This decision, influenced by the acquisition of Juniper Networks, Inc., reflects changes in the calculation of the annualized revenue run-rate (ARR) to include software licenses support and maintenance revenue. The updated financial performance metrics aim to align with the combined company’s operations, impacting the target goals for executive bonuses.