Founded in 1939, Hewlett Packard Enterprise Company (HPE) develops intelligent solutions in the United States and internationally. The company has a market capitalization of $28.1 billion and operates in Server, Hybrid Cloud, Networking, Financial Services, Corporate Investments and Other segments.
The Spring, Texas-based company is expected to release its Q1 2026 earnings soon. Ahead of the event, analysts expect the company’s EPS to be $0.51 on a diluted basis, up 30.8% from $0.39 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in two of its last four quarters, while missing on two other occasions.
For fiscal 2026, analysts project the company’s EPS to be $1.95, up 26.6% from $1.54 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 19.5% year over year (YoY) to $2.33 in fiscal 2027.
HPE stock has declined 11.3% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 13.7% rise and the State Street Technology Select Sector SPDR ETF’s (XLK) 21.8% return during the same time frame.
HPE stock's performance has been about constant friction. The company delivered some good news in its Q4 earnings release – revenue grew 14.4% YoY to $9.7 billion, and adjusted EPS of $0.62 beat expectations. But the market tends to fixate on what went wrong, and there were a few speed bumps. Revenue still missed estimates as AI server shipments slipped, storage demand softened, and even a U.S. government shutdown got in the way. To make matters worse, management’s forward guidance came in lighter than Wall Street hoped, planting doubt just as optimism tried to take root.
Then sentiment turned. Evercore ISI dropped HPE from its “Tactical Outperform” list, and the stock slid. Zooming out, the backdrop has not helped either. Recently, Morgan Stanley downgraded the entire U.S. IT hardware sector, warning that corporate tech budgets are tightening as economic uncertainty and rising component costs bite. Surveys point to barely any growth in hardware spending in 2026, with many customers ready to delay purchases if prices rise. Even AI momentum has not fully offset tariff worries and cost inflation, leaving HPE stuck in a cautious market mood.
Analysts are moderately bullish on HPE, with the stock having a “Moderate Buy” rating overall. Among the 19 analysts covering the stock, nine are recommending a “Strong Buy,” nine suggest a “Hold,” and the remaining one analyst advises a “Strong Sell” for the stock. HPE’s average analyst price target is $26.69, indicating an upside of 27% from the current levels.
On the date of publication, Sristi Jayaswal 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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