Hewlett Packard Enterprise (NYSE:HPE) Posts Earnings Results, Beats Expectations By $0.06 EPS

Hewlett Packard Enterprise (NYSE:HPE) issued its quarterly 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. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.97%. The business had revenue of $9.30 billion during the quarter, compared to the consensus estimate of $9.31 billion. During the same quarter in the prior year, the firm earned $0.49 EPS. The firm’s quarterly revenue was up 18.4% on a year-over-year basis. 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 Down 3.3%

Shares of HPE stock opened at $21.09 on Wednesday. The stock’s 50 day simple moving average is $22.05 and its 200 day simple moving average is $23.08. Hewlett Packard Enterprise has a twelve month low of $11.97 and a twelve month high of $26.44. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.76 and a current ratio of 1.01. The company has a market capitalization of $28.03 billion, a price-to-earnings ratio of -111.01, a PEG ratio of 0.60 and a beta of 1.31.

Hewlett Packard Enterprise Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 23rd. Investors 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 2.7%. The ex-dividend date of this dividend is Tuesday, March 24th. Hewlett Packard Enterprise’s dividend payout ratio (DPR) is presently -950.00%.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: Q1 beat and upgraded guidance — HPE reported $0.65 non‑GAAP EPS (beat) and raised FY‑2026 EPS and Q2 guidance, citing strong demand; management highlighted one of the company’s most profitable quarters. HPE Reports Fiscal 2026 First Quarter Results
• Positive Sentiment: Networking & AI server demand driving revenue — networking sales nearly tripled and HPE pointed to heavy orders for AI‑optimized servers (NVIDIA chips), underpinning the revenue and margin outlook. Hewlett Packard Enterprise forecasts revenue above estimates
• Positive Sentiment: Analyst support and higher price targets — banks raised targets/ratings (Bank of America to $32 buy; Morgan Stanley raised its target to $25), signaling increased analyst conviction on AI/networking exposure. Benzinga coverage TickerReport coverage
• Positive Sentiment: Dividend announced — HPE declared a quarterly dividend (record March 24), supporting income‑oriented investors and signaling cash‑return discipline.
• Neutral Sentiment: Short interest fell in February (~12% drop to ~79M shares; ~6% of float), which may reduce short‑selling pressure/volatility going forward but also reflects shifting positioning rather than fundamentals.
• Negative Sentiment: Market/geopolitical selling pressure — broader market reaction to Middle East developments and volatile oil prices drove weakness in the afternoon session, weighing on HPE along with other tech names. Hewlett Packard Enterprise, Sinclair, Vestis, First Advantage, and Insight Enterprises Shares Plummet, What You Need To Know
• Negative Sentiment: Security vulnerability — HPE warned of a critical AOS‑CX flaw that can allow admin password resets; remediation and reputational/enterprise‑support concerns could be a near‑term risk. HPE warns of critical AOS-CX flaw allowing admin password resets
• Negative Sentiment: Memory shortages and segment softness — management flagged persistent memory constraints and price increases; Cloud & AI revenue was softer, which could pressure some margin/volume assumptions despite networking strength. HPE sees surging AI orders and pull-forward, while memory shortages force pricing and supply strategies

Insider Activity

In other Hewlett Packard Enterprise news, SVP Jeremy Cox sold 13,463 shares of the stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $24.68, for a total transaction of $332,266.84. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Maeve C. Culloty sold 35,958 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $24.66, for a total transaction of $886,724.28. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 238,850 shares of company stock valued at $5,877,664. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Headlands Technologies LLC bought a new stake in Hewlett Packard Enterprise during the second quarter valued at about $26,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Hewlett Packard Enterprise in the fourth quarter valued at about $40,000. DV Equities LLC bought a new position in shares of Hewlett Packard Enterprise in the fourth quarter worth about $45,000. Quarry LP bought a new position in shares of Hewlett Packard Enterprise in the third quarter worth about $45,000. Finally, Geneos Wealth Management Inc. lifted its position in shares of 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 purchasing an additional 1,377 shares during the last quarter. Institutional investors and hedge funds own 80.78% of the company’s stock.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Citigroup cut their target price on shares of Hewlett Packard Enterprise from $28.00 to $26.00 and set a “buy” rating on the stock in a research note on Tuesday, February 17th. The Goldman Sachs Group assumed coverage on Hewlett Packard Enterprise in a research report on Tuesday, January 13th. They issued a “buy” rating and a $31.00 target price for the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Hewlett Packard Enterprise in a report on Friday, December 26th. Argus increased their price objective on Hewlett Packard Enterprise from $25.00 to $30.00 and gave the stock a “buy” rating in a research note on Wednesday, December 10th. Finally, Morgan Stanley raised their price objective on Hewlett Packard Enterprise from $23.00 to $25.00 and gave the stock an “equal weight” rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $25.82.

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.