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

Key Points

• Hewlett Packard Enterprise raised its FY 2026 outlook, guiding for EPS of $3.35 to $3.45 and revenue of $44.2 billion to $45.6 billion, both well above Wall Street consensus estimates. It also lifted Q3 2026 EPS guidance to $0.88 to $0.93.
• The company recently beat quarterly expectations, reporting $0.79 EPS versus the $0.54 estimate and revenue of $10.68 billion versus $9.78 billion expected. The results were described as supported by strong execution and improving fundamentals.
• AI demand is becoming a major growth driver for HPE, with reports that surging AI compute demand helped boost results and pushed management to pull forward long-term financial targets. The company also launched a new NVIDIA Vera CPU-powered server aimed at agentic AI and high-performance workloads.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) issued an update on its FY 2026 earnings guidance on Monday morning. The company provided earnings per share guidance of 3.350-3.450 for the period, compared to the consensus earnings per share estimate of 2.330. The company issued revenue guidance of $44.2 billion-$45.6 billion, compared to the consensus revenue estimate of $40.8 billion. Hewlett Packard Enterprise also updated its Q3 2026 guidance to 0.880-0.930 EPS.

Hewlett Packard Enterprise Stock Performance

NYSE:HPE traded up $4.33 during midday trading on Monday, reaching $47.37. The stock had a trading volume of 94,576,651 shares, compared to its average volume of 18,755,748. The stock has a market cap of $62.85 billion, a P/E ratio of -249.32, a P/E/G ratio of 1.10 and a beta of 1.42. Hewlett Packard Enterprise has a 12-month low of $17.02 and a 12-month high of $47.97. The firm has a fifty day simple moving average of $28.73 and a two-hundred day simple moving average of $24.63. The company has a quick ratio of 0.75, a current ratio of 1.03 and a debt-to-equity ratio of 0.71.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last posted its quarterly earnings data on Monday, June 1st. The technology company reported $0.79 EPS for the quarter, beating analysts' consensus estimates of $0.54 by $0.25. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.93%. The company had revenue of $10.68 billion during the quarter, compared to the consensus estimate of $9.78 billion. Hewlett Packard Enterprise has set its FY 2026 guidance at 3.350-3.450 EPS and its Q3 2026 guidance at 0.880-0.930 EPS. On average, equities analysts expect that Hewlett Packard Enterprise will post 1.97 EPS for the current year.

Hewlett Packard Enterprise Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 23rd. Shareholders of record on Tuesday, March 24th were paid a $0.1425 dividend. This represents a $0.57 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Tuesday, March 24th. Hewlett Packard Enterprise's dividend payout ratio (DPR) is presently -300.00%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on HPE shares. Bank of America increased 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. Wall Street Zen raised Hewlett Packard Enterprise from a "hold" rating to a "buy" rating in a research report on Monday, May 25th. Morgan Stanley lifted their price target on Hewlett Packard Enterprise from $25.00 to $33.00 and gave the stock an "equal weight" rating in a report on Thursday, May 21st. Raymond James Financial restated an "outperform" rating and set a $29.00 price objective (down from $30.00) on shares of Hewlett Packard Enterprise in a research note on Monday, April 13th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Hewlett Packard Enterprise in a research report on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, Hewlett Packard Enterprise has an average rating of "Moderate Buy" and a consensus target price of $27.88.

Insider Buying and Selling

In other news, Director Bethany Mayer sold 6,482 shares of the business's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $29.10, for a total transaction of $188,626.20. Following the completion of the sale, the director owned 8,018 shares of the company's stock, valued at $233,323.80. The trade was a 44.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio F. Neri sold 150,000 shares of the company's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $26.50, for a total transaction of $3,975,000.00. Following the completion of the transaction, the chief executive officer owned 1,687,329 shares in the company, valued at approximately $44,714,218.50. This represents a 8.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 702,402 shares of company stock worth $18,440,171 over the last three months. 0.44% of the stock is currently owned by company insiders.

Key Stories Impacting Hewlett Packard Enterprise

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Headlands Technologies LLC purchased a new position in Hewlett Packard Enterprise during the second quarter worth approximately $26,000. IFC & Insurance Marketing Inc. purchased a new position in Hewlett Packard Enterprise during the fourth quarter valued at approximately $40,000. DV Equities LLC bought a new stake in Hewlett Packard Enterprise in the fourth quarter worth approximately $45,000. Quarry LP acquired a new stake in shares of Hewlett Packard Enterprise in the third quarter worth $45,000. Finally, Geneos Wealth Management Inc. grew its holdings in Hewlett Packard Enterprise by 44.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company's stock worth $69,000 after acquiring an additional 1,377 shares during the last quarter. 80.78% of the stock is currently owned by institutional investors and hedge funds.

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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