Company Reports

Hewlett Packard Enterprise reported exceptional fiscal third-quarter results, as revenue increased 34% year over year while non-GAAP earnings per share exceeded the high end of guidance.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

Hewlett Packard Enterprise reported stellar second-quarter results that fundamentally shift the timeline of its formerly multiyear turnaround. Revenue was up 40% year over year, while all guidance points were raised materially.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

HPE delivered solid first-quarter fiscal 2026 earnings, with revenue increasing 18% year over year while non-GAAP earnings per share was up 33%. Management raised its free cash flow outlook for the year.

HPE reported fourth-quarter 2025 earnings that roughly matched guidance. Normalized revenue grew 14% year over year while non-GAAP EPS was 0.62, just ahead of the guided range of 0.56-0.60.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

At its securities analyst event, HPE unveiled fiscal 2026 guidance, details on its Juniper-driven networking roadmap, as well as new business targets through fiscal 2028.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

HPE reported fiscal third-quarter 2025 earnings one month after closing the acquisition of Juniper. Excluding Juniper, revenue of $8.7 billion came in above management's guidance. The AI server backlog grew.

Over the weekend, the US Department of Justice reached a settlement with Hewlett Packard Enterprise and Juniper, allowing HPE to finish its acquisition of Juniper Networks.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

No-moat Hewlett Packard Enterprise reported fiscal second-quarter results that exceeded our expectations, with adjusted EPS of $0.38 versus our estimate of $0.34. Strong demand for hybrid cloud solutions and artificial intelligence servers, along with lower-than-anticipated tariff headwinds, drove the beat. However, margins remained under pressure due to an unfavorable server mix and operational inefficiencies, though cost-control efforts helped offset some of the impact. Management lowered full-year GAAP earnings guidance to reflect a large goodwill charge, but raised non-GAAP EPS guidance to $1.78–$1.90. Revenue guidance was lowered to 7% to 9% growth in constant currency (from 7% to 11%), as the firm braces for tariff headwinds after the end of the 90-day tariff pause on July 9.

No-moat-rated Hewlett Packard Enterprise reported fiscal first-quarter results that largely met our expectations, with adjusted EPS of $0.49 versus our expectation of $0.50. However, the updated full-year outlook was a bit of a shocker, as HPE announced a new cost-cutting program, impacts from tariffs, and unexpected margin pressure. As we sort through these, our impression is that these are temporary issues. After updating our forecasts, we expect a rough second and third quarter, but a recovery in the fourth quarter, putting HPE back on track with our original expectations.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, or OEM, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

No-moat-rated Hewlett Packard Enterprise reported fiscal fourth-quarter results that largely met our overall expectations, with adjusted EPS of $0.58 versus our expectation of $0.57. Within these results, growth in hybrid cloud was exceptional, as was expense control. At the same time, the artificial intelligence order backlog also remained intact when counting orders that occurred once the quarter closed. This keeps all key parts of our thesis intact, and we raise our fair value estimate to $25 per share from $23. When we raised our fair value to $23 per share from $17 back in late August, shares were trading close to $18, and even fell below $17 in September. Shares have since appreciated roughly 15%, and we think HPE shares still have upside remaining. With our latest fair value raise, shares are once again trading at greater than a 10% discount. We believe HPE has the opportunity to execute on its AI opportunity, improve margins within the hybrid cloud business, improve growth rates within the hybrid cloud and intelligent edge segments, and execute the Juniper acquisition satisfactorily, which we believe would cause shares to be rewarded with a higher multiple.

Hewlett Packard Enterprise is an IT hardware provider of servers, storage arrays, and networking equipment. It is an original equipment manufacturer, which means it sells finished products that are manufactured and often assembled by original device manufacturers. HPE provides its specifications to the ODMs, which handle much of the manufacturing, and the final product is sold under the HPE brand by HPE. The company helps coordinate a complex supply chain, offers the necessary services, support, and product specs for enterprises, and provides a brand and salesforce that can place IT hardware in the hands of enterprises. HPE is a top-five player in its core markets, and we expect it to remain so, competing with Dell, Lenovo, Supermicro, and others. We view the OEM space as very price-competitive, with true hardware differentiation difficult to achieve. Most of the end markets are also growth-constrained since they are more mature, with the exception of the latest artificial intelligence boom.

Hewlett Packard Enterprise reported fiscal third-quarter results largely as we expected. With few surprises and no major updates to full-year guidance, we maintain our fair value estimate of $23. We view shares as mildly undervalued (20% as of this writing), and we think executing on additional growth within artificial intelligence servers, improving margins within the hybrid cloud business, and stronger growth within the hybrid cloud and intelligent edge segments should all help shares rerate higher over time. Another important part of our thesis is that the Juniper acquisition is generally satisfactory (still on track for an end-of-2024 or early 2025 close), as we think this could derisk some of the worries about poor execution on what is a large acquisition for HPE.