Start here if you're new
what it is
HPE sells the servers, networking gear, cloud tools, and financing that keep large companies' tech running.
how it gets paid
Last year Hp Enterprise made $34.3B in revenue. Server was the main engine at $18.2B, or 53% of sales.
why it's growing
Revenue grew 13.8% last year. EDGAR shows revenue up 18% in the latest quarter while EPS dropped 30% vs. prior year.
what just happened
Latest quarter revenue hit $9.3B, up 18% vs. prior year, but EPS fell to $0.31 and the market cared about that part.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
85/100 earnings predictability — you can trust these numbers
12.3x trailing p/e — the market's not buying it — or you found a deal
2.4% dividend yield — cash in your pocket every quarter
11.0% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
HPE sells the servers, networking gear, cloud tools, and financing that keep large companies' tech running.
Big companies do not rip out core infrastructure for fun. HPE had 62,000 employees and $34.3 billion in annual revenue, which means it can sell you servers, networking, software, and financing in one package. That bundle creates switching costs (pain of leaving) so what: once your systems are wired into HPE, changing vendors gets expensive and annoying.
How they make money
$34.3B
annual revenue · their business grew +13.8% last year
Server
$18.2B
Hybrid Cloud
$6.2B
Intelligent Edge
$5.1B
Financial Services
$3.8B
Other
$1.0B
The products that matter
enterprise hardware and networking
Servers, Storage, and Networking
$34.3B revenue
this is the whole $34.3B business today, and its 4.2% core growth rate tells you why investors want more than another box-selling cycle.
core
pending networking expansion
Juniper acquisition
$14B deal size
this $14B acquisition is large relative to a $32B market cap. if it closes and integrates well, HPE looks more like a networking and software platform. if it does not, you are back to the old story.
strategic bet
as-a-service transition
GreenLake
FY2026 EPS guide: $2.25–$2.45
greenlake matters because the market pays more for recurring revenue than for hardware shipments. this page does not include a clean run-rate number, which is its own data point: the story is still more promise than proof.
multiple driver
Key numbers
12.3x
trailing p/e
You are paying 12.3 times trailing earnings for a company expected to do $39 billion of fiscal 2026 revenue, which is cheap for tech if profits stabilize.
$39B
2026 revenue est
That is the base case for next year, up from $34.3 billion trailing revenue, so HPE needs to turn scale into better earnings.
$16.9B
long-term debt
Debt is borrowed money, so what: HPE has less flexibility than a cash-rich peer if costs rise or a deal goes sideways.
2.4%
dividend yield
You get paid to wait, but income only matters if earnings stop sliding from $2.15 in 2023 to $1.94 in 2025.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $16.9B (35% of capital)
- net profit margin 9.8% — keeps 10 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HPE 3 years ago → it's now worth $15,940.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Latest quarter revenue hit $9.3B, up 18% vs. prior year, but EPS fell to $0.31 and the market cared about that part.
EDGAR shows revenue up 18% in the latest quarter while EPS dropped 30% vs. prior year. Yahoo Finance says the last reported EPS came in 81.36% below estimates, which explains why investors stayed skeptical.
$9.3B
revenue
$0.31
eps
+18%
revenue growth
the number that mattered
The key number was the 30% EPS drop, because revenue growth without profit growth is just heavier boxes moving through the warehouse.
-
wall street is still skeptical of hewlett packard enterprises’ ability to reinvigorate earnings growth. (fiscal 2025 ended october 31st.) fourth-quarter evenues were a bit lower than anticipated, but operating margins expanded by 110 basis points over the year-ago quarter.business across hewlett’s varied end markets remains mixed, though its larger presence in networking (october marked the first quarter with juniper’s acquired operations) was ahead of expectations. management kept its earnings-per-share target for fiscal 2026 ($2.25 to $2.45), but the stock’s valuation remains subdued.
-
rising commodity costs will likely hinder profit expansion.
-
we have cut a nickel from our fiscal 2026 earnings per share estimate due to increasingly expensive memory-related components used in servers.management reiterated its earnings outlook based on the assumption that price increases will be passed on, but this is far from certain. previous assertions by leadership regarding the server business’ ability to gain share in data center markets, or withstand competitive pressures, have disappointed wall street in the past.
-
and it seems as though investors are taking a wait and see approach given the modest p/e multiple.
-
opportunities for better growth exist.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is antitrust or regulatory friction around the $14B juniper acquisition.
med
juniper does not close cleanly
this is not a small add-on. it is a $14B acquisition against a roughly $32B market cap. delays, remedies, or a block would keep HPE tied to the slower business investors are already discounting.
if this breaks, the re-rating story weakens fast because the market is left valuing a 4.2% core-growth infrastructure business on its own.
med
server component costs stay elevated
analysts already cut fiscal 2026 EPS by $0.05 because memory components are expensive. HPE says it can pass pricing through. that works until customers decide it does not.
the stock looks cheap at 12.3x earnings. it looks less cheap if the "E" keeps getting revised down.
med
greenlake remains more story than proof
the market wants recurring revenue and software-like visibility. this page does not have the clean segment disclosure to prove greenlake is large enough to change the whole earnings profile yet.
if recurring revenue stays too small to matter, investors keep assigning HPE a hardware multiple — and hardware multiples do not get generous by accident.
the combined risk picture is simple: a $14B acquisition and a recurring-revenue transition are doing the narrative heavy lifting, while the existing $34.3B business only grew 4.2% at its core.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings print
the next report needs to do more than repeat the story. watch whether FY2026 guidance stays at $2.25–$2.45 and whether management sounds more confident on demand.
risk
juniper regulatory path
a $14B deal is too large to treat as background noise. any sign of delay, remedies, or pushback matters to the whole thesis.
metric
EPS revisions
one $0.05 estimate cut is manageable. a string of downward revisions would tell you cost pressure is winning.
trend
core growth versus headline growth
13.8% total growth looked good. 4.2% core growth was the quieter number. you want those two lines moving closer together for the right reasons.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup, not a near-term breakout.
risk profile
average
stability score 3 — this is a middle-of-the-road risk profile, neither especially safe nor especially fragile.
chart momentum
top 20%
technical score 2 — the chart has been better than the fundamentals debate would suggest.
earnings predictability
85 / 100
management is usually directionally reliable. the question is less about surprise and more about how much growth is real.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 570 buyers vs. 396 sellers in 3q2025. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$17
$44
$24
current price
$31
target midpoint · +30% from current · 3-5yr high: $45 (+90% · 19% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive