Hewlett Packard Enterprise Company (HPE) AI Stock Analysis

Hewlett Packard Enterprise Company delivers technology solutions that enable organizations to harness and analyze data. The company operates across six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. Its Compute division offers servers such as HPE ProLiant and HPE Synergy. The Storage segment provides modular arrays, disk products, and HPE XP storage systems. Advanced computing offerings include HPE Cray supercomputers and HPE Apollo systems. In edge computing, HPE delivers Wi-Fi access points, switches, and network management software under the HPE Aruba portfolio. It also offers leasing, financing, and asset management via Financial Services.

HPE's annual revenue expanded from $27.86B in FY2021 to $34.30B in FY2025, reflecting a 5-year revenue CAGR of 4.9%. Revenue growth accelerated to 14.1% in FY2025, though net margin dropped to 0.2% with net income of $57.0M, compared to $2.58B in FY2024. Gross margin narrowed from 32.7% in FY2021 to 28.8% in FY2025. Over the trailing twelve months ending July 31, 2026, revenue totaled $41.87B with an operating margin of 12.6% and a net profit margin of 6.7%. In the latest quarter, HPE posted quarterly revenue growth of 33.7% and quarterly earnings growth of 410.2% year-over-year.

As of July 31, 2026, HPE held $6.22B in cash and short-term investments against total debt of $20.24B, resulting in net debt of $14.03B. Shareholders' equity stood at $26.51B, yielding a debt-to-equity ratio of 0.76 and a current ratio of 1.11. For FY2025, operating cash flow was $2.92B, supporting free cash flow of $627.0M after capital expenditures of $2.29B. Cash distributions in FY2025 included $796.0M in dividends paid and $202.0M in share buybacks.

HPE trades at a trailing P/E of 28.4x and a forward P/E of 13.6x, compared to the median of its S&P 500 Technology peers at 31.5x and 20.9x, respectively. Its price-to-sales ratio is 1.7x and EV-to-EBITDA is 14.3x, both lower than peer medians of 6.3x and 19.9x. The company holds an enterprise value of $96.77B on a market capitalization of $73.18B. Over the past year, HPE delivered a return of 149.4%, outpacing the S&P 500 benchmark return of 16.8%, while its 5-year return reached 316.7%.

HPE pays an annual forward dividend of $0.57 per share, representing a dividend yield of 1.03% and a payout ratio of 18.6%. Dividends are distributed on a quarterly frequency and have been paid for 12 consecutive years, reflecting a 5-year annualized dividend growth rate of 2.1%. The last ex-dividend date was September 17, 2026.

Wall Street sentiment includes 10 Strong Buy, 4 Buy, and 10 Hold ratings, with 0 Sell recommendations. The mean price target is $71.74, representing a 30.1% upside compared to the last close of $55.13. HPE has exceeded EPS estimates in each of the last 4 quarters. For the current fiscal year ending October 31, 2026, analysts forecast revenue of $46.48B and EPS of $3.83, implying 97.2% EPS growth. The next earnings release date is December 3, 2026.

This page is an AI-written research summary of Hewlett Packard Enterprise Company (HPE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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