Upside case
Bull case
$57+20.8%
HPE would need investors to value it at roughly 17x earnings — about 3x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Hewlett Packard Enterprise Company (HPE) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
39
analysts
18 bullish · 1 bearish · 39 covering HPE
Strong Buy
0
Buy
18
Hold
20
Sell
1
Strong Sell
0
Consensus Target
$69
+46.1% vs today
Scenario Range
$27 – $57
Model bear to bull value window
Coverage
39
Published analyst ratings
Valuation Context
13.9x
Forward P/E · Market cap $62.8B
HPE price targets
Three scenarios for where HPE stock could go
Current
~$47
Confidence
48 / 100
Updated
Jun 18, 2026
Where we are now
Current · $47
Bear
$27
Base
$43
Bull
$57
Market caseClosest to today
Base case
$43-8.4%
This is close to how the market is already pricing HPE — at roughly 13x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$27-42.3%
If investor confidence fades or macro conditions deteriorate, a 6x multiple contraction could push HPE down roughly 42% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Hewlett Packard Enterprise Company
HPE · NYSETechnologyCommunication EquipmentOctober year-end
Hewlett Packard Enterprise is a global technology company that provides enterprise hardware, software, and services for hybrid cloud and edge computing environments. It generates revenue primarily through server and storage sales (~40% of revenue), intelligent edge networking solutions (~30%), and high-performance computing and AI systems (~15%), supplemented by financial services and software. The company's key advantage lies in its integrated HPE GreenLake platform — which offers everything-as-a-service consumption models — and its deep enterprise relationships built over decades.
Market Cap
$62.8B
Revenue TTM
$38.9B
Net Income TTM
$1.5B
Net Margin
3.9%
HPE Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+9.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.44/$0.42
Revenue
$9.1B/$8.8B
Q4 2025
EPS
$0.62/$0.58
Revenue
$9.7B/$9.9B
Q1 2026
EPS
$0.65/$0.59
Revenue
$9.3B/$9.3B
Q2 2026
EPS
$0.79/$0.54
Revenue
$10.7B/$9.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.44/$0.42 | +5.5% | $9.1B/$8.8B | +3.3% |
| Q4 2025 | $0.62/$0.58 | +7.1% | $9.7B/$9.9B | -2.1% |
| Q1 2026 | $0.65/$0.59 | +10.7% | $9.3B/$9.3B | -0.5% |
| Q2 2026 | $0.79/$0.54 | +47.7% | $10.7B/$9.8B | +9.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$42.1B
+8.3% YoY
FY2
$46.8B
+11.0% YoY
EPS Outlook
FY1
$2.00
+88.8% YoY
FY2
$2.41
+20.6% YoY
Trailing FCF (TTM)$5.6B
FCF Margin: 14.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
HPE beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
HPE Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $34.3B
Product Mix
Latest annual revenue by segment or product family
Server Segment
51.7%
+11.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
46.2%
+19.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Server Segment is the largest disclosed segment at 51.7% of FY 2025 revenue, up 11.4% YoY.
Americas is the largest reported region at 46.2%, up 19.7% YoY.
HPE Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly expensive versus peers
Fair value est. $40 — implies -16.1% from today's price.
Premium to Fair Value
16.1%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
HPE
-1063.0x
vs
S&P 500
24.4x
4448% discount
vs Technology Trailing P/E
HPE
-1063.0x
vs
Technology
29.0x
3765% discount
vs HPE 5Y Avg P/E
Today
-1063.0x
vs
5Y Average
11.8x
9073% discount
Forward PE
13.9x
S&P 500
18.8x
-26%
Technology
22.3x
-38%
5Y Avg
—
—
Trailing PE
-1063.0x
S&P 500
24.4x
-4448%
Technology
29.0x
-3765%
5Y Avg
11.8x
-9073%
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
18.5x
S&P 500
15.2x
+22%
Technology
16.6x
+11%
5Y Avg
7.3x
+154%
Price/FCF
100.1x
S&P 500
20.7x
+384%
Technology
19.2x
+421%
5Y Avg
19.2x
+421%
Price/Sales
1.8x
S&P 500
3.1x
-41%
Technology
2.4x
-25%
5Y Avg
0.8x
+136%
Dividend Yield
1.27%
S&P 500
1.91%
-34%
Technology
1.11%
+15%
5Y Avg
2.92%
-57%
| Metric | HPE | S&P 500 | Technology | 5Y Avg HPE |
|---|---|---|---|---|
| Forward PE | 13.9x | 18.8x-26% | 22.3x-38% | — |
| Trailing PE | -1063.0x | 24.4x-4448% | 29.0x-3765% | 11.8x-9073% |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | 18.5x | 15.2x+22% | 16.6x+11% | 7.3x+154% |
| Price/FCF | 100.1x | 20.7x+384% | 19.2x+421% | 19.2x+421% |
| Price/Sales | 1.8x | 3.1x-41% | 2.4x-25% | 0.8x+136% |
| Dividend Yield | 1.27% | 1.91% | 1.11% | 2.92% |
HPE trades above S&P 500 benchmarks on 2 of 5 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolHPE Financial Health
Verdict
Adequate
HPE generates $5.6B in free cash flow at a 14.5% margin — returns 1.6% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$38.9B
Revenue Growth
TTM vs prior year
+23.2%
Gross Margin
Gross profit as a share of revenue
32.9%
Operating Margin
Operating income divided by revenue
6.6%
Net Margin
Net income divided by revenue
3.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.06
Free Cash Flow (TTM)
Cash generation after capex
$5.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
14.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
3.4%
ROA
Return on assets, trailing twelve months
2.0%
Cash & Equivalents
Liquid assets on the balance sheet
$5.8B
Net Debt
Total debt minus cash
$18.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.2× FCF
~3.2 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
6.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.6%
Dividend
1.3%
Buyback
0.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$202M
Dividend / Share
Annualized trailing dividend per share
$0.60
Payout Ratio
Share of earnings distributed as dividends
1396.5%
Shares Outstanding
Declining as buybacks retire shares
1.3B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageHPE Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Execution risks
Integration challenges with Juniper and maintaining margins amid component supply constraints pose significant risks.
High Risk
Macroeconomic headwinds
Challenging macroeconomic environment, rising interest rates, and broader economic slowdown could negatively impact performance.
High Risk
Earnings shortfall
Fiscal 2026 guidance significantly below market expectations, triggering a stock price drop and investor skepticism.
Medium
Supply chain disruptions
Component supply constraints could hinder operations and margin sustainability.
Medium
Legacy challenges
Shrinking market share, thin margins, and high debt costs overshadow future potential.
Lower
Market volatility
Increased volatility and sector-specific pressures could drive the stock price down further.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why HPE Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
Strong Q1 2026 results
Hewlett Packard Enterprise reported 18% year-over-year revenue growth and rising annual recurring revenue of US$2.87 billion, signaling robust financial performance.
Record AI systems growth
HPE achieved record performance in AI systems, highlighting its leadership and growth potential in the AI technology sector.
Attractive valuation metrics
HPE's forward P/E of 10.73 suggests the stock is undervalued compared to its trailing P/E of 29.60, presenting a potential investment opportunity.
Leadership in enterprise technology
HPE is a leader in essential enterprise technology, integrating AI, cloud, and networking to help organizations achieve their ambitious goals.
Bullish analyst sentiment
Analysts and investors have presented bullish theses on HPE, indicating positive sentiment and potential upside for the stock.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
HPE Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$47.41
52W Range Position
64%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$17.49
+171.1% from the low
52-Week High
$64.25
-26.2% from the high
1 Month
+43.64%
3 Month
+120.26%
YTD
+96.2%
1 Year
+166.6%
3Y CAGR
+40.7%
5Y CAGR
+26.8%
10Y CAGR
+15.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
HPE vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
13.9x
vs 20.0x median
-31% below peer median
Revenue Growth
+8.3%
vs +5.1% median
+62% above peer median
Net Margin
3.9%
vs 15.6% median
-75% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
HPE HPE Hewlett Packard Enterprise Company | $62.8B | 13.9x | +8.3% | 3.9% | Hold | +46.1% |
DEL DELL Dell Technologies Inc. | $272.3B | 41.1x | +5.1% | 6.3% | Buy | +9.6% |
IBM IBM International Business Machines Corporation | $233.7B | 20.0x | +3.7% | 15.6% | Hold | +25.0% |
NTA NTAP NetApp, Inc. | $31.6B | 20.0x | +5.9% | 18.4% | Hold | +4.6% |
HPQ HPQ HP Inc. | $21.5B | 7.8x | +1.2% | 4.4% | Hold | -15.6% |
CSC CSCO Cisco Systems, Inc. | $471.2B | 28.0x | +6.4% | 19.7% | Buy | +3.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
HPE Dividend and Capital Return
HPE returns 1.6% total yield, led by a 1.27% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.6%
Dividend + buyback return per year
Buyback Yield
0.3%
Dividend Yield
1.27%
Payout Ratio
14.0%
How HPE Splits Its Return
Div 1.27%
Buyback 0.3%
Dividend 1.27%Buybacks 0.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.60
Growth Streak
Consecutive years of dividend increases
3Y
3Y Div CAGR
3.5%
5Y Div CAGR
2.1%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$202M
Estimated Shares Retired
4M
Approx. Share Reduction
0.3%
Shares Outstanding
Current diluted share count from the screening snapshot
1.3B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.28 | — | — | — |
| 2025 | $0.53 | +2.4% | 0.6% | 3.1% |
| 2024 | $0.52 | +6.1% | 0.6% | 3.2% |
| 2023 | $0.49 | +2.1% | 2.1% | 5.1% |
| 2022 | $0.48 | 0.0% | 2.7% | 6.0% |
FAQ
7 questionsHPE Investor Questions
Common questions answered from live analyst data and company financials.
01Is Hewlett Packard Enterprise Company (HPE) stock a buy or sell in 2026?
Hewlett Packard Enterprise Company (HPE) is rated Hold by Wall Street analysts as of 2026. Of 39 analysts covering the stock, 18 rate it Buy or Strong Buy, 20 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $69, implying +46.1% from the current price of $47. The bear case scenario is $27 and the bull case is $57.
02What is the HPE stock price target for 2026?
The Wall Street consensus price target for HPE is $69 based on 39 analyst estimates. The high-end target is $80 (+68.7% from today), and the low-end target is $62 (+30.8%). The base case model target is $43.
03Is Hewlett Packard Enterprise Company (HPE) stock overvalued in 2026?
HPE trades at 13.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals slightly expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Hewlett Packard Enterprise Company (HPE) stock in 2026?
The primary risks for HPE in 2026 are: (1) Execution risks — Integration challenges with Juniper and maintaining margins amid component supply constraints pose significant risks. (2) Macroeconomic headwinds — Challenging macroeconomic environment, rising interest rates, and broader economic slowdown could negatively impact performance. (3) Earnings shortfall — Fiscal 2026 guidance significantly below market expectations, triggering a stock price drop and investor skepticism. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Hewlett Packard Enterprise Company's revenue and earnings forecast?
Analyst consensus estimates HPE will report consensus revenue of $42.1B (+8.3% year-over-year) and EPS of $2.00 (+88.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $46.8B in revenue.
06When does Hewlett Packard Enterprise Company (HPE) report its next earnings?
A confirmed upcoming earnings date for HPE is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Hewlett Packard Enterprise Company generate?
Hewlett Packard Enterprise Company (HPE) generated $5.6B in free cash flow over the trailing twelve months — a free cash flow margin of 14.5%. HPE returns capital to shareholders through dividends (1.3% yield) and share repurchases ($202M TTM).