Hewlett Packard Enterprise (NYSE:HPE) Releases Quarterly Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• Hewlett Packard Enterprise reported quarterly EPS of $0.79, beating analyst estimates by $0.25, while revenue came in at $10.68 billion versus expectations of $9.78 billion.
• The stock jumped 10.1% in mid-day trading after the earnings release, reaching $47.37 on unusually heavy volume.
• Recent news highlights say HPE is benefiting from surging AI compute demand, with management pulling forward long-term financial targets and launching new AI-focused server products.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) released its quarterly earnings results on Monday. The technology company reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.25, FiscalAI reports. Hewlett Packard Enterprise had a positive return on equity of 9.93% and a negative net margin of 0.41%.The company had revenue of $10.68 billion during the quarter, compared to analysts' expectations of $9.78 billion.

Hewlett Packard Enterprise Stock Up 10.1%

HPE stock traded up $4.33 during mid-day trading on Monday, hitting $47.37. The stock had a trading volume of 81,649,020 shares, compared to its average volume of 18,590,492. The company has a current ratio of 1.03, a quick ratio of 0.75 and a debt-to-equity ratio of 0.71. Hewlett Packard Enterprise has a 1-year low of $17.02 and a 1-year high of $47.97. The company has a fifty day moving average of $28.73 and a 200 day moving average of $24.63. The stock has a market capitalization of $62.85 billion, a price-to-earnings ratio of -249.32, a PEG ratio of 1.10 and a beta of 1.42.

Hewlett Packard Enterprise Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 23rd. Investors of record on Tuesday, March 24th were paid a $0.1425 dividend. This represents a $0.57 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Tuesday, March 24th. Hewlett Packard Enterprise's dividend payout ratio is currently -300.00%.

Insider Buying and Selling

In other news, CEO Antonio F. Neri sold 264,432 shares of the stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $25.18, for a total transaction of $6,658,397.76. Following the transaction, the chief executive officer owned 1,837,329 shares of the company's stock, valued at approximately $46,263,944.22. This represents a 12.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Neil B. Macdonald sold 112,652 shares of the stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $25.09, for a total value of $2,826,438.68. Following the transaction, the executive vice president directly owned 56,494 shares in the company, valued at approximately $1,417,434.46. This represents a 66.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 702,402 shares of company stock worth $18,440,171. Insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in HPE. Itau Unibanco Holding S.A. lifted its position in shares of Hewlett Packard Enterprise by 42.9% in the 4th quarter. Itau Unibanco Holding S.A. now owns 5,587 shares of the technology company's stock worth $134,000 after acquiring an additional 1,677 shares during the period. Zions Bancorporation National Association UT lifted its position in shares of Hewlett Packard Enterprise by 145.1% in the 4th quarter. Zions Bancorporation National Association UT now owns 7,448 shares of the technology company's stock worth $179,000 after acquiring an additional 4,409 shares during the period. Palisade Asset Management LLC bought a new stake in shares of Hewlett Packard Enterprise in the 3rd quarter worth approximately $123,000. Prelude Capital Management LLC bought a new stake in shares of Hewlett Packard Enterprise in the 3rd quarter worth approximately $203,000. Finally, Harvest Fund Management Co. Ltd bought a new stake in shares of Hewlett Packard Enterprise in the 3rd quarter worth approximately $151,000. Institutional investors and hedge funds own 80.78% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently weighed in on HPE. Bank of America raised their target price on Hewlett Packard Enterprise from $29.00 to $32.00 and gave the company a "buy" rating in a research note on Tuesday, March 10th. Truist Financial began coverage on Hewlett Packard Enterprise in a research note on Tuesday, March 31st. They set a "buy" rating and a $31.00 target price for the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Hewlett Packard Enterprise in a research note on Wednesday, March 25th. Citigroup upped their target price on Hewlett Packard Enterprise from $27.00 to $39.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Finally, Morgan Stanley upped their target price on Hewlett Packard Enterprise from $25.00 to $33.00 and gave the company an "equal weight" rating in a report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, Hewlett Packard Enterprise currently has a consensus rating of "Moderate Buy" and a consensus target price of $27.88.

Hewlett Packard Enterprise News Roundup

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

• Positive Sentiment: HPE reported fiscal second-quarter results that beat Wall Street expectations, with record revenue, stronger-than-expected profitability, and higher free cash flow, suggesting solid execution and improving fundamentals. HPE Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: The company said surging demand for AI compute helped drive results and led it to pull forward its long-term financial targets by two years, a sign that management sees momentum accelerating faster than expected. HPE Pulls Forward Long-Term Targets as Surging AI Compute Demand Boosts Revenue
• Positive Sentiment: Reuters reported that HPE now expects to hit its 2028 financial targets this year after a record quarter, underscoring how AI data-center expansion is boosting demand for its servers and networking products. HPE expects to achieve 2028 financial targets this year after record quarter on AI boom
• Positive Sentiment: HPE launched a new server powered by NVIDIA Vera CPU, designed for agentic AI and high-performance data workloads, reinforcing its position in the AI infrastructure market. HPE Introduces CPU Server with NVIDIA Vera CPU, Purpose-built for Agentic AI
• Neutral Sentiment: HPE appointed Elliott partner Chris Hsu to its board of directors, which could support strategic oversight but does not by itself change the company’s operating outlook. HPE Names Chris Hsu to Board of Directors

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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