Hewlett Packard Enterprise (HPE)
NYSE:HPE
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Hewlett Packard Enterprise
(NYSE:HPE)
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Rating:73Outperform
Price Target:
$32.00
▲(21.03% Upside)
Action:UpgradedDate:05/05/26
The score is driven by constructive technical momentum and a strong, guidance-raising earnings call, supported by solid recent free cash flow generation. Offsetting these positives are concerns around weakened TTM profitability and supply/commodity cost headwinds that could create volatility in near-term results.
Positive Factors
Strong free cash flow generation
HPE's rebound to roughly $4.4B TTM free cash flow provides durable funding for capex, deleveraging, and shareholder returns. Reliable cash generation supports continued investment in GreenLake, AI systems and networking while cushioning operating volatility and strategic execution.
Negative Factors
Weakened trailing profitability
A swing to a small TTM net loss and materially compressed operating profits undermines earnings quality and return on capital. This deterioration increases sensitivity to cost inflation and supply disruptions, complicates forecasting and capital allocation, and raises execution risk across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
HPE's rebound to roughly $4.4B TTM free cash flow provides durable funding for capex, deleveraging, and shareholder returns. Reliable cash generation supports continued investment in GreenLake, AI systems and networking while cushioning operating volatility and strategic execution.
Read all positive factors
Hewlett Packard Enterprise (HPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.09B
Dividend Yield2.17%
Average Volume (3M)18.79M
Price to Earnings (P/E)17.3
Beta (1Y)1.62
Revenue Growth15.04%
EPS Growth-108.60%
CountryUS
Employees61,000
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.17
Shares Outstanding1,326,854,100
10 Day Avg. Volume14,193,770
30 Day Avg. Volume18,793,224
Financial Highlights & Ratios
PEG Ratio-5.55
Price to Book (P/B)1.31
Price to Sales (P/S)0.94
P/FCF Ratio51.57
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit5.19
Enterprise Value/Ebitda30.12
Forecast
1Y Price Target
$28.73Price Target Upside8.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)2.41
Revenue Forecast (FY)$40.81B
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 ...
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 f...
Hewlett Packard Enterprise Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyHewlett Packard Enterprise Earnings Call Summary
Earnings Call Date:Mar 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution and several clear wins: robust top-line growth (driven primarily by Networking and the Juniper integration), record non-GAAP EPS, solid free cash flow, growing GreenLake traction, a sizable AI backlog and clear progress on cost and synergy programs. Those positives were balanced against material industry headwinds—particularly severe memory/NAND shortages and sustained price inflation—which are constraining supply, pressuring product costs, and forcing the company to prioritize higher‑margin orders (affecting near-term Cloud & AI revenue growth and creating uneven AI revenue timing). On balance, HPE presented credible mitigation actions, raised its fiscal outlook, and demonstrated margin and cash flow resilience, so the overall tone is constructive despite meaningful near-term risks.Positive Updates
Strong Q1 Financial Performance
Revenue of $9.3 billion, up 18% year-over-year; record non-GAAP EPS of $0.65 (well above the high end of guidance); gross margin improved to 36.6% and operating margin was 12.7%; strong free cash flow of $708 million in Q1 (seasonally notable as Q1 is typically a cash outflow).
Negative Updates
Commodity Supply Tightness and Memory Price Inflation
Severe industry memory shortages (DRAM and NAND) and rapidly rising component costs—management noted triple-digit price increases between CQ4 and CQ1 in industry reports and expects double-digit memory price increases to continue through 2026 into 2027; DRAM/NAND now constitute over half of a traditional server bill-of-materials, pressuring product costs and customer quoting dynamics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Performance
Revenue of $9.3 billion, up 18% year-over-year; record non-GAAP EPS of $0.65 (well above the high end of guidance); gross margin improved to 36.6% and operating margin was 12.7%; strong free cash flow of $708 million in Q1 (seasonally notable as Q1 is typically a cash outflow).
Read all positive updates
Company Guidance
HPE raised its fiscal 2026 outlook after a strong Q1 (revenue $9.3B, +18% YoY; non‑GAAP EPS $0.65 record; GAAP EPS $0.31; free cash flow $708M; gross margin 36.6%; operating margin 12.7%), and updated FY‑26 guidance to non‑GAAP EPS $2.30–$2.50 (up $0.05), GAAP EPS $1.02–$1.22 (up $0.40), OI&E $540–$590M, and free cash flow at least $2.0B (vs. prior $1.7–$2.0B); Networking (Q1 revenue ~$2.7B) is now ~30% of revenues and >50% of operating profits, with FY Networking growth guided to 68–73% reported (mid‑ to high‑single‑digit normalized), Q1 Networking margin 23.7% and full‑year margin targeted in the low‑20s%; HPE now targets $1.7B–$1.9B cumulative networks‑for‑AI orders by FY‑end; Cloud & AI revenue was lowered to mid‑ to high‑single digits with segment operating margin expected ~7–9%; near‑term/look‑ahead: Q2 revenue $9.6B–$10.0B, Q2 EPS $0.51–$0.55 (GAAP $0.09–$0.13); other metrics cited include AI Systems backlog $5B and Q1 AI Systems orders $1.2B, Alletra MP orders +42%, GreenLake ~50,000 customers and ARR on track to $3.5B, inventory $6.9B, pro‑forma net leverage improved to 2.6x, and $190M dividends + $158M share repurchases in Q1.Hewlett Packard Enterprise Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
74
Positive
| 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 | 3.81B | 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
Positive
26.44
Price Trends
22.77
Positive
22.68
Positive
22.52
Positive
Market Momentum
0.87
Negative
68.57
Neutral
81.53
Negative
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 26.44 is above the 20-day moving average (MA) of 24.38, above the 50-day MA of 22.77, and above the 200-day MA of 22.52, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 68.57 is Neutral, neither overbought nor oversold. The STOCH value of 81.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPE.
Hewlett Packard Enterprise Risk Analysis
Hewlett Packard Enterprise disclosed 32 risk factors in its most recent earnings report. Hewlett Packard Enterprise reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hewlett Packard Enterprise Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $60.77B | 35.83 | 120.56% | 0.49% | 38.19% | 99.65% | |
74 Outperform | $365.88B | 23.23 | 23.64% | 2.09% | 9.00% | 24.93% | |
73 Outperform | $38.09B | 17.34 | -0.64% | 2.17% | 15.04% | -108.60% | |
72 Outperform | $39.09B | 96.42 | 25.11% | 2.51% | 4.40% | 1595.74% | |
67 Neutral | $74.29B | 113.02 | 4.38% | 2.26% | 12.83% | 9.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $26.56B | -62.84 | -30.27% | ― | 1505.21% | 32.41% |
* Technology Sector Average
HPE
Hewlett Packard Enterprise
28.71
12.56
77.75%
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1,004.08
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AST SpaceMobile
68.43
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Hewlett Packard Enterprise Corporate Events
Dividends
Hewlett Packard Enterprise Declares Dividend on Series C Preferred
Positive
May 4, 2026
On May 4, 2026, Hewlett Packard Enterprise’s board approved a cash dividend of $0.953125 per share on its 7.625% Series C Mandatory Convertible Preferred Stock, payable June 1, 2026, to shareholders of record as of May 15, 2026. The move und...
Business Operations and StrategyShareholder Meetings
Hewlett Packard Enterprise Shareholders Approve Expanded Equity Plan
Neutral
Apr 3, 2026
On April 1, 2026, Hewlett Packard Enterprise stockholders approved an amendment to the 2021 Stock Incentive Plan that increases the pool of shares available for equity awards by 22 million, a move that could enhance the company’s ability to ...
Business Operations and StrategyPrivate Placements and Financing
HPE Completes $2 Billion Multi-Tranche Debt Offering
Positive
Mar 23, 2026
On March 23, 2026, Hewlett Packard Enterprise completed a $2 billion underwritten public debt offering, issuing floating rate notes due 2028 alongside fixed-rate tranches of $500 million 4.500% notes due 2028, $600 million 4.600% notes due 2029, a...
Business Operations and StrategyPrivate Placements and Financing
Hewlett Packard Enterprise Announces $2 Billion Debt Offering
Positive
Mar 18, 2026
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% note...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
HPE Delivers Strong Q1 Results and Raises Outlook
Positive
Mar 9, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.