HPE
Hewlett Packard Enterprise Co (HPE) Q2 2026 Earnings Call Highlights: Record Revenue and Strong ...
Article Summary
HOLD- Hewlett Packard Enterprise Co. (NYSE: HPE) delivered record Q2 2026 results with 40% revenue growth and a record $10.7 billion backlog, driven by $1.8 billion in AI systems orders and $2 billion in new Alletra MP storage orders.
- Non-GAAP EPS increased 108% to $0.79, and free cash flow improved significantly to $915 million, supported by strong cash flow from operations.
- Networking and Cloud and AI segments delivered double-digit revenue and order growth, while Hewlett Packard Enterprise Co. maintained strong capital returns with $343 million in dividends and $154 million in share repurchases.
- Guidance was raised to $11.5 billion to $12.1 billion for Q3 and $3.35-3.45 EPS for fiscal 2026, reflecting expectations of continued elevated costs due to supply-chain constraints in DRAM and NAND.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 15.0% | 25% | 60.0 ptsModerate (15.0%) - Decent growth |
| EPS Growth Next 5Y ? | 23.3% | 25% | 70.0 ptsGood (23.3%) - Solid outlook |
| Target Price Upside ? | 15.8% above | 20% | 0.0 ptsAbove Target (15.8% above) - Target: $48.93 vs Current: $58.10 |
| Gross Margin % ? | 29.9% | 15% | 40.0 ptsModerate (29.9%) - Adequate margins |
| Drawdown from 52-Wk High ? | 21.1% | 15% | 20.0 ptsBarely a Dip (21.1%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About HPE
- Hewlett Packard Enterprise Company, together with its subsidiaries, develops intelligent solutions in the United States, the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and internationally.
- It operates in five segments: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other.
- The company offers general-purpose servers, workload-optimized servers, and integrated systems, including HPE ProLiant Rack and Tower servers; HPE Synergy; HPE Scale Up servers; HPE Edgeline servers; HPE Cray EX; HPE Cray XD; and HPE NonStop.
- It also provides cloud-native and hybrid solutions, such as HPE Alletra Storage; HPE InfoSight; HPE CloudPhysics; and HPE GreenLake.
- In addition, the company develops and sells networking and security products and services comprising hardware products, which include Wi-Fi and private cellular access points, MX and PTX routers, and gateways, as well as QFX, EX, and CX switches; software products, such as Mist and Aruba Central; and services comprising professional, maintenance, support services, management software, and education and training programs.
- Further, it offers investment solutions, including leasing, financing, IT consumption, utility programs, and asset management services, as well as supports financial solutions for on-premise flexible consumption models.
- The company serves commercial and large enterprise groups, as well as business and public sector enterprises.
- It sells its products through resellers, distribution partners, master area partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms.
- The company was founded in 1939 and is headquartered in Spring, Texas.