Hewlett Packard Enterprise (NYSE:HPE) Releases FY 2026 Earnings Guidance

Key Points

• HPE raised its FY 2026 outlook to EPS of $3.75–$3.85 and revenue of $46.0–$47.0 billion, both above consensus estimates. Q4 EPS guidance was set at $1.20–$1.30.
• Strong demand for AI servers, networking equipment and infrastructure helped drive third-quarter EPS of $1.11 and revenue of $12.21 billion, exceeding analyst expectations, while revenue increased 33.7% year over year.
• Analysts remain broadly positive, with 12 Buy ratings and six Holds for a Moderate Buy consensus and an average price target of $69.44. Shares rose to $51.85, though elevated expectations have limited the market reaction.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 3.750-3.850 for the period, compared to the consensus EPS estimate of 3.340. The company issued revenue guidance of $46.0 billion-$47.0 billion, compared to the consensus revenue estimate of $45.1 billion. Hewlett Packard Enterprise also updated its Q4 2026 guidance to 1.200-1.300 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on HPE. Truist Financial reiterated a "buy" rating and set a $69.00 price target (up from $31.00) on shares of Hewlett Packard Enterprise in a research note on Tuesday, June 2nd. Piper Sandler reaffirmed a "neutral" rating and issued a $63.00 price objective (up from $23.00) on shares of Hewlett Packard Enterprise in a report on Tuesday, June 2nd. Bank of America raised their price target on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a "buy" rating in a report on Monday. The Goldman Sachs Group lifted their price target on Hewlett Packard Enterprise from $32.00 to $79.00 and gave the company a "buy" rating in a research note on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on Hewlett Packard Enterprise in a report on Tuesday. They set a "buy" rating and a $62.00 price objective on the stock. Twelve investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $69.44.

Hewlett Packard Enterprise Price Performance

Shares of HPE traded up $0.98 on Wednesday, reaching $51.85. The stock had a trading volume of 60,047,120 shares, compared to its average volume of 20,786,529. Hewlett Packard Enterprise has a twelve month low of $19.84 and a twelve month high of $64.25. The firm has a market capitalization of $68.66 billion, a PE ratio of 48.46, a PEG ratio of 0.56 and a beta of 1.43. The firm has a 50-day moving average of $49.63 and a 200 day moving average of $37.46. The company has a quick ratio of 0.75, a current ratio of 1.09 and a debt-to-equity ratio of 0.72.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. The company had revenue of $12.21 billion for the quarter, compared to the consensus estimate of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 11.91% and a net margin of 3.94%.Hewlett Packard Enterprise's quarterly revenue was up 33.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.44 earnings per share. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. Sell-side analysts expect that Hewlett Packard Enterprise will post 2.92 EPS for the current year.

Insider Activity at Hewlett Packard Enterprise

In related news, SVP Kirt P. Karros sold 18,785 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $48.50, for a total value of $911,072.50. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is owned by corporate insiders.

Key Stories Impacting Hewlett Packard Enterprise

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: Q3 results exceeded expectations: HPE reported adjusted earnings of $1.11 per share, up from $0.44 a year earlier and above the roughly $0.93-$0.95 consensus estimate. Revenue reached $12.21 billion, topping the $11.97 billion forecast. Hewlett Packard Enterprise Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Raised outlook: Fourth-quarter EPS guidance of $1.20-$1.30 and revenue guidance of $13.9-$14.8 billion were well above analyst estimates of $1.04 and $13.0 billion, respectively. HPE also raised its full-year forecasts and long-term growth targets. HPE raises annual forecasts as AI and networking demand lifts quarterly revenue
• Positive Sentiment: AI demand is driving growth: Strong customer demand for AI servers, networking equipment and related infrastructure lifted revenue across HPE’s business and helped produce more than a fivefold increase in quarterly profit. HPE Boosts Outlook as AI Demand Drives Surge in Third-Quarter Profit
• Positive Sentiment: Oracle partnership expands: HPE will deploy Juniper Networking solutions and provide support and financing capabilities for Oracle’s gigawatt-scale AI data centers, creating a potential source of future infrastructure demand. HPE and Oracle Deepen Networking Collaboration
• Neutral Sentiment: Positive sector sentiment: Dell Technologies’ strong AI order backlog and raised outlook boosted confidence in enterprise hardware stocks ahead of HPE’s results. Deutsche Bank also initiated coverage with a Buy rating and a $62 price target. Dell AI backlog boosts hardware peers
• Negative Sentiment: High expectations limited the reaction: Despite the earnings and guidance beats, HPE shares wavered and briefly moved lower as investors focused on whether the company can sustain its rapid AI-infrastructure growth and meet elevated valuation expectations. HPE shares slide despite strong Q3 and raised guidance

Institutional Trading of Hewlett Packard Enterprise

Institutional investors and hedge funds have recently modified their holdings of the business. Headlands Technologies LLC acquired a new position in shares of Hewlett Packard Enterprise during the 2nd quarter worth approximately $26,000. IFC & Insurance Marketing Inc. acquired a new stake in Hewlett Packard Enterprise during the 4th quarter valued at $40,000. Quarry LP purchased a new stake in Hewlett Packard Enterprise during the 3rd quarter worth about $45,000. DV Equities LLC acquired a new position in Hewlett Packard Enterprise in the 4th quarter valued at about $45,000. Finally, Geneos Wealth Management Inc. raised its stake in Hewlett Packard Enterprise by 44.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company's stock valued at $69,000 after purchasing an additional 1,377 shares during the last quarter. Hedge funds and other institutional investors own 80.78% of the company's stock.

Hewlett Packard Enterprise Company Profile

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 contact@marketbeat.com.

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