AI server maker HPE's Q4 adjusted EPS beats expectations

Overview

• HPE fiscal Q4 revenue grows 14% yr/yr to $9.7 bln, missing analyst expectations

• Adjusted EPS for fiscal Q4 beats analyst estimates, reflecting strong operational performance

• Company raises FY26 guidance, citing operational discipline and strategic initiatives

Outlook

• HPE estimates Q1 2026 revenue between $9 bln and $9.4 bln

• HPE raises FY26 GAAP EPS guidance to $0.62-$0.82

• HPE raises FY26 non-GAAP EPS guidance to $2.25-$2.45

Result Drivers

• JUNIPER ACQUISITION - Completion of Juniper Networks acquisition contributed to networking revenue growth

• OPERATIONAL DISCIPLINE - Focus on disciplined spending and cost management led to record gross profit and robust non-GAAP operating profit

• CASH FLOW GENERATION - Strong free cash flow generation exceeded outlook, supported by disciplined execution

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Hewlett Packard Enterprise Co is $26.00, about 16.8% above its December 3 closing price of $22.26

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw4thVX3a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)