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

Hewlett Packard Enterprise (NYSE:HPE) released its quarterly earnings results on Monday. The technology company reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.25, FiscalAI reports. The business had revenue of $10.68 billion during the quarter, compared to analysts’ expectations of $9.78 billion. Hewlett Packard Enterprise had a positive return on equity of 9.93% and a negative net margin of 0.41%. Hewlett Packard Enterprise updated its FY 2026 guidance to 3.350-3.450 EPS and its Q3 2026 guidance to 0.880-0.930 EPS.

Hewlett Packard Enterprise Stock Up 10.1%

HPE stock traded up $4.33 during midday trading on Monday, hitting $47.37. The company’s stock had a trading volume of 94,576,651 shares, compared to its average volume of 18,755,748. 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 has a 52-week low of $17.02 and a 52-week high of $47.97. The firm has a market capitalization of $62.85 billion, a P/E ratio of -249.32, a PEG ratio of 1.10 and a beta of 1.42. The firm has a 50-day simple moving average of $28.73 and a 200-day simple moving average of $24.63.

Hewlett Packard Enterprise Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 23rd. Shareholders of record on Tuesday, March 24th were given 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 (DPR) is currently -300.00%.

Wall Street Analysts Forecast Growth

HPE has been the subject of a number of research analyst reports. Morgan Stanley increased 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. Weiss Ratings reiterated a “hold (c-)” rating on shares of Hewlett Packard Enterprise in a report on Wednesday, March 25th. Wall Street Zen raised shares of Hewlett Packard Enterprise from a “hold” rating to a “buy” rating in a research report on Monday, May 25th. Raymond James Financial reaffirmed an “outperform” rating and set a $29.00 price objective (down from $30.00) on shares of Hewlett Packard Enterprise in a research report on Monday, April 13th. Finally, Bank of America increased their price objective on shares of Hewlett Packard Enterprise from $29.00 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, March 10th. One equities research 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. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $27.88.

Insiders Place Their Bets

In other news, Director Bethany Mayer sold 6,482 shares of Hewlett Packard Enterprise stock in a transaction on 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 directly owned 8,018 shares of the company’s stock, valued at approximately $233,323.80. The trade was a 44.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Fidelma Russo sold 34,001 shares of Hewlett Packard Enterprise stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $25.08, for a total transaction of $852,745.08. Following the sale, the executive vice president directly owned 17,001 shares of the company’s stock, valued at approximately $426,385.08. This trade represents a 66.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 702,402 shares of company stock worth $18,440,171. Corporate insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Hewlett Packard Enterprise

Several institutional investors have recently modified their holdings of the company. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Hewlett Packard Enterprise during the fourth quarter worth approximately $433,537,000. Amundi lifted its stake in Hewlett Packard Enterprise by 63.1% during the fourth quarter. Amundi now owns 11,514,029 shares of the technology company’s stock worth $276,567,000 after purchasing an additional 4,454,568 shares during the last quarter. Renaissance Technologies LLC purchased a new stake in Hewlett Packard Enterprise in the fourth quarter valued at $93,654,000. Arrowstreet Capital Limited Partnership lifted its position in Hewlett Packard Enterprise by 475.0% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,551,715 shares of the technology company’s stock valued at $87,230,000 after acquiring an additional 2,933,972 shares during the last quarter. Finally, Hawk Ridge Capital Management LP purchased a new stake in Hewlett Packard Enterprise in the fourth quarter valued at $66,612,000. 80.78% of the stock is owned by hedge funds and other institutional investors.

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

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.