Hewlett Packard Enterprise (NYSE:HPE) Announces Quarterly Earnings Results

Hewlett Packard Enterprise (NYSE:HPE) issued its earnings results on Monday. The technology company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.59 by $0.06, FiscalAI reports. The company had revenue of $9.30 billion during the quarter, compared to analysts’ expectations of $9.31 billion. Hewlett Packard Enterprise had a net margin of 0.17% and a return on equity of 9.15%. The business’s revenue for the quarter was up 18.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.49 EPS. Hewlett Packard Enterprise updated its FY 2026 guidance to 2.300-2.500 EPS and its Q2 2026 guidance to 0.510-0.550 EPS.

Here are the key takeaways from Hewlett Packard Enterprise’s conference call:

• HPE reported Q1 revenue of $9.3B (+18%), record non‑GAAP EPS of $0.65 and $708M free cash flow, and raised its FY26 outlook for EPS and free cash flow.
• Networking is the clear standout — now ~30% of revenue and >50% of operating profit, with strong data‑center switching and routing orders, completed Juniper sales integration, and a target of $1.7–$1.9B cumulative “networks for AI” orders by FY26 end.
• Management warned of prolonged DRAM and NAND shortages and rising memory costs (expected into 2027), has shortened quote commitments and reserved the right to reprice orders, and is prioritizing higher‑margin SKUs — actions that could limit AI systems revenue conversion.
• The Cloud & AI segment saw revenue down 3% but operating profit up 18%; HPE flagged a record $5B AI systems backlog and strong pipeline, yet lowered full‑year cloud & AI growth guidance as it shifts mix toward margin‑accretive orders.

Hewlett Packard Enterprise Stock Up 3.3%

Shares of HPE opened at $21.82 on Tuesday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.76 and a current ratio of 1.01. Hewlett Packard Enterprise has a 52 week low of $11.97 and a 52 week high of $26.44. The stock has a market capitalization of $28.99 billion, a price-to-earnings ratio of -363.61, a PEG ratio of 0.58 and a beta of 1.31. The stock has a fifty day moving average of $22.11 and a 200-day moving average of $23.09.

Hewlett Packard Enterprise Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 23rd. Stockholders of record on Tuesday, March 24th will be paid a $0.1425 dividend. This represents a $0.57 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Tuesday, March 24th. Hewlett Packard Enterprise’s dividend payout ratio is presently -950.00%.

Analysts Set New Price Targets

HPE has been the subject of several research analyst reports. Zacks Research upgraded shares of Hewlett Packard Enterprise from a “strong sell” rating to a “hold” rating in a research report on Monday, December 8th. Citigroup lowered their price target on Hewlett Packard Enterprise from $28.00 to $26.00 and set a “buy” rating for the company in a report on Tuesday, February 17th. Argus upped their price objective on Hewlett Packard Enterprise from $25.00 to $30.00 and gave the stock a “buy” rating in a research report on Wednesday, December 10th. Morgan Stanley reduced their price objective on Hewlett Packard Enterprise from $25.00 to $23.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 18th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Hewlett Packard Enterprise in a research report on Friday, December 26th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $25.29.

Hewlett Packard Enterprise News Roundup

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

• Positive Sentiment: Q1 earnings beat and raised outlook — HPE reported $0.65 EPS vs. $0.59 expected and raised FY2026 EPS guidance to $2.30–2.50 (above consensus), while Q2 EPS and revenue guidance also topped views. That earnings/guidance beat is the primary bullish catalyst. HPE Raises Earnings Outlook, Expects Memory Shortage to Persist
• Positive Sentiment: Networking and AI-server strength — Networking revenue nearly tripled (data center networking up ~5x) and HPE flagged large enterprise AI server orders (NVIDIA-based), driving higher-margin growth and supporting the revenue guide. HPE Sales Rise on Networking Growth Despite Cloud and AI Decline
• Positive Sentiment: Dividend declared — HPE declared a quarterly dividend of $0.1425/share (annual yield ~2.6%), signaling shareholder returns alongside growth investments. HPE Reports Fiscal 2026 First Quarter Results (press release)
• Positive Sentiment: Strategic integration: Juniper and AI networking push — New AI-native networking products and deeper Juniper integration are positioned to capture service-provider and enterprise spend over the medium term. HPE Expands AI Networking As Juniper Integration Tests Long Term Growth Story
• Neutral Sentiment: Memory shortage / pricing dynamics — Management says memory costs will remain elevated and that HPE will pass on price increases; this supports revenue but is a mixed margin/volume signal to monitor. HPE Stays Ahead of Memory Shortage With Price Hikes — Market Talk
• Negative Sentiment: Small revenue miss and cost/headwind risk — Q1 revenue was $9.30B vs. ~$9.31B expected (a rounding miss) and rising component costs could pressure margins if price pass-through softens. Investors may watch upcoming quarters for margin durability. HPE misses Q4 CY2025 sales expectations

Insider Buying and Selling at Hewlett Packard Enterprise

In other news, EVP Maeve C. Culloty sold 35,958 shares of Hewlett Packard Enterprise stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $24.66, for a total transaction of $886,724.28. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Jeremy Cox sold 13,463 shares of the business’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $24.68, for a total value of $332,266.84. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 400,793 shares of company stock worth $9,921,393 over the last three months. 0.44% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hewlett Packard Enterprise

Hedge funds have recently added to or reduced their stakes in the business. Headlands Technologies LLC bought a new stake in Hewlett Packard Enterprise during the 2nd quarter worth approximately $26,000. IFC & Insurance Marketing Inc. acquired a new position in Hewlett Packard Enterprise in the 4th quarter valued at approximately $40,000. Quarry LP bought a new position in shares of Hewlett Packard Enterprise during the third quarter valued at $45,000. DV Equities LLC acquired a new position in shares of Hewlett Packard Enterprise during the fourth quarter worth $45,000. Finally, Geneos Wealth Management Inc. lifted its holdings in shares of Hewlett Packard Enterprise by 44.7% during the first quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company’s stock worth $69,000 after purchasing an additional 1,377 shares during the period. 80.78% of the stock is currently owned by institutional investors and hedge funds.

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.