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With a market cap of $37.5 billion, Hewlett Packard Enterprise Company (HPE) develops intelligent solutions across areas like servers, hybrid cloud, networking, and financial services, serving enterprises and public sector organizations worldwide. It delivers its products and services through a wide partner ecosystem, including resellers, OEMs, and systems integrators.
Shares of the Spring, Texas-based company have exceeded the broader market over the past 52 weeks. HPE stock has surged around 75% over this time frame, while the broader S&P 500 Index ($SPX) has risen 28.3%. In addition, shares of the company have increased 18.2% on a YTD basis, compared to SPX's 4.2% gain.
Looking closer, shares of the global technology company have surpassed the State Street Technology Select Sector SPDR ETF's (XLK) 52.5% return over the past 52 weeks.
Hewlett Packard Enterprise delivered strong Q1 2026 results on Mar. 9, with revenue of $9.3 billion (up 18%), adjusted EPS of $0.65, and free cash flow of $708 million, alongside a record $5 billion AI systems backlog signaling robust demand. Also, HPE raised its full-year adjusted EPS outlook to $2.30 - $2.50 and increased its free cash flow forecast to at least $2 billion, while highlighting surging networking performance, including $2.7 billion in revenue and up to 152% reported growth.
Further, management emphasized that orders are significantly outpacing supply, backed by $1.2 billion in AI system orders and expectations of $1.7 billion - $1.9 billion in AI networking orders. However, the stock fell 3.3% the next day.
For the fiscal year ending in October 2026, analysts expect Hewlett Packard Enterprise's EPS to grow 27.3% year-over-year to $1.96. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
On Apr. 27, Bank of America raised its price target on Hewlett Packard Enterprise to $38 and maintained a “Buy” rating.
As of writing, the stock is trading above the mean price target of $26.88. The Street-high price target of $38 suggests a 34.3% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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