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With a market cap of $21.7 billion, Hewlett Packard Enterprise Company (HPE) is a Texas-based multinational technology firm that focuses on enterprise IT solutions, including servers, storage, networking, cloud computing, and data management services. Formed in 2015 after the corporate split of Hewlett-Packard, HPE serves large organizations, governments, and data-intensive industries, helping them modernize IT infrastructure and accelerate digital transformation.
HPE is scheduled to release its fiscal Q2 2025 earnings results on Tuesday, Jun. 3. Ahead of this event, analysts expect the tech titan to report a profit of $0.27 per share, a 12.5% rise from $0.24 per share in the year-ago quarter. The company has exceeded Wall Street's earnings expectations in two of the past four quarters while missing on two other occasions. In the most recent quarter, HPE missed the consensus EPS estimate by a 11.4% margin.
For the current year ending in October, analysts expect HPE’s EPS to decline 12.1% from $1.73 in fiscal 2024to $1.52. Looking ahead, its EPS is expected to rebound in 2026, growing 19.7% annually to $1.82 in fiscal 2026.
Shares of HPE have dropped 5.1% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 8.7% gain and the Technology Select Sector SPDR Fund's (XLK) 4.2% return over the same period.
On April 15, HPE shares surged 7.3% after activist investor Elliott Management revealed a $1.5 billion stake in the company. The move sparked investor optimism, as activist involvement typically signals potential efforts to enhance cost efficiency, boost shareholder returns, and unlock value through asset optimization or buybacks.
Analysts' consensus view on HPE stock remains fairly upbeat, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, six recommend a "Strong Buy," one "Moderate Buy," and eight give a "Hold" rating. Its average analyst price target of $19.86 represents a potential upswing of 21.8% from the current market prices.
On the date of publication, Kritika Sarmah 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.
