Spring, Texas-based Hewlett Packard Enterprise Company (HPE) develops intelligent solutions in the United States, the Americas, and internationally. The company has a market cap of $58.8 billion and operates in five segments: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other, and offers general-purpose servers, workload-optimized servers, and integrated systems, among others.
HPE stock has rallied the broader market over the past year, surging 113.1% compared to the S&P 500 Index’s ($SPX) 14.8% surge. Moreover, in 2026, the stock has grown by nearly 85%, outperforming the SPX’s 6.9% rise.
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Focusing on its industry benchmark, the State Street Technology Select Sector SPDR ETF (XLK) has risen 26.2% over the past year, underperforming the stock. In 2026, XLK has grown 15.7% and has also lagged behind the stock.
www.barchart.com On June 2, HPE stock grew by an impressive 19% after posting its better-than-expected Q2 2026 earnings. The company reported a revenue figure of $10.7 billion, up nearly 40% from the previous year’s quarter. Moreover, its adjusted EPS represented a solid 107% year-on-year growth and came in at $0.79. Both surpassed Wall Street’s forecasts by a significant margin as well. Management attributed the company’s amazing quarter performance to its Cloud and AI revenue, fueled by triple-digit growth in traditional server orders, driven by enterprise and sovereign customers investing in agentic AI and AI inferencing workloads.
According to a study by Fortune Business Insights, the global AI server market is expected to grow at a CAGR of 34.7% and reach $2.8 trillion by 2034. Companies like HPE are at the forefront of this growth, given its history of providing the required server infrastructure to run large-scale AI projects, and is expected to capitlize off of this expected growth immensely.
For the current year, which ends in October, analysts expect HPE’s EPS to rise 87% to $2.88 on a diluted basis. The company surpassed the consensus estimate in three of the last four quarters, while missing on one occasion.
Among the 20 analysts covering HPE stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
www.barchart.com The configuration has remained unchanged over the past month.
On July 24, Citigroup analyst Asiya Merchant maintained a “Buy” rating for HPE stock and raised its price target from $$70 to $74.
HPE’s mean price target of $68.17 indicates a 53.4% premium over the current market price. Its Street-high target of $80 implies a robust 80% upside from current levels.
On the date of publication, Aritra Gangopadhyay 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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