HPE (HPE) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 16 2026
0mins
Should l Buy HPE?
Source: NASDAQ.COM
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Analyst Views on HPE
Wall Street analysts forecast HPE stock price to fall
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 32.070
Low
21.00
Averages
27.13
High
31.00
Current: 32.070
Low
21.00
Averages
27.13
High
31.00
About HPE
Hewlett Packard Enterprise Company is a global technology company focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. Its customers range from small-and-medium-sized businesses to large global enterprises and governmental entities. Its segments include Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. The Networking segment develops and sells high-performance networking and security products and services. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
HPE Stock Rises Amid Increased Activist Investor Interest
- Activist Investor Pressure: HPE faces dual pressure from Irenic Capital's recent involvement and Elliott Management's existing stake of approximately $1.5 billion, which previously attempted to oust CEO Antonio Neri but settled for board representation.
- Strong Stock Performance: HPE shares rose about 5% on Wednesday, and the stock has roughly doubled since Elliott first entered, indicating strong market confidence in the company's future direction.
- Successful Acquisition: Last year, HPE completed its largest-ever deal, acquiring Juniper Networks for $16 billion, overcoming an 18-month regulatory battle, which has expanded its business capabilities significantly.
- Improved Financial Results: HPE reported an 18% year-over-year revenue increase in Q1 2026, driven by robust demand in networking and AI infrastructure, and raised its full-year guidance in March, reflecting strong momentum in high-margin AI and cloud solutions.
See More
Citi Raises Price Targets for Dell and HPE Ahead of Earnings
- Price Target Increase: Citi analyst Asiya Merchant raised Dell's price target from $235 to $290, reflecting optimism about sustained AI and server growth, alongside improvements in storage execution and steady PC progress.
- Positive Stock Reaction: Following Citi's price target upgrades, Dell's shares rose 1.9% in premarket trading, while HPE's shares increased by 5%, indicating market confidence in the future performance of both companies.
- HPE Target Price Boost: Citi also raised HPE's price target from $27 to $39, primarily based on positive outlooks for post-Juniper networking momentum and supportive commentary on AI server demand, suggesting increasing needs for enterprise AI and neocloud deployments.
- Upcoming Earnings Reports: Dell is set to release its fiscal fourth-quarter results on May 28, while HPE will report its fiscal second-quarter results on June 1, with the market eagerly anticipating these earnings, which could further drive stock price increases.
See More
HPE Completes Sale of H3C Stake for $986.8M
- Stake Sale Completed: HPE announced on Thursday that it has successfully sold a 13.8% stake in H3C Technologies for $986.8 million to several Chinese entities, including Unisplendour International Technology Limited, marking a significant step in HPE's strategy in the Chinese market.
- Future Sale Plans: HPE expects to sell the remaining 5.2% stake in H3C held by its subsidiaries for approximately $370.4 million, demonstrating the company's ongoing confidence in H3C's future and potentially enhancing its competitive position in the IT solutions market.
- Positive Stock Reaction: Following the announcement, HPE's shares rose 3.2% in premarket trading, reflecting a positive market response to the company's strategic adjustments and investor confidence, which may attract more attention from investors.
- Activist Investor Involvement: The rise in HPE's stock price is also linked to additional activist investors taking stakes, indicating market recognition of HPE's growth potential, which could drive further investments in technology innovation and market expansion.
See More
Cisco Announces Job Cuts and Revenue Forecast Increase Amid AI Demand
- Stock Surge: Cisco shares jumped 19% in premarket trading on Thursday, potentially adding about $75 billion to its market value at the current price of $120.98, reflecting strong investor confidence in its AI infrastructure strategy.
- Restructuring Plan: The company announced nearly 4,000 job cuts, with a restructuring cost of $1 billion aimed at reallocating investments toward AI and related growth areas, impacting less than 5% of its workforce.
- Order Growth: Cisco has secured $5.3 billion in AI infrastructure orders this fiscal year, raising its full-year order expectation from $5 billion to $9 billion, indicating robust demand from hyperscalers.
- Market Competitiveness: With a forward price-to-earnings ratio of 22.77, Cisco remains competitively positioned in the high-speed networking equipment market, especially as AI continues to drive demand for its products.
See More
Cisco Reports Strong Earnings Guidance, Shares Surge
- Earnings Beat Expectations: Cisco expects revenue for the quarter ending in July to be between $16.7 billion and $16.9 billion, surpassing analyst expectations of $15.8 billion, indicating strong market performance that is likely to drive stock price increases.
- Layoffs and Investment Restructuring: The company announced layoffs of 4,000 employees, roughly 5% of its workforce, to reallocate funds towards silicon chips, fiber optics, and security, with severance costs potentially reaching $1 billion, reflecting strategic adjustments for the AI era.
- Surge in AI Infrastructure Orders: Cisco has received $5.3 billion in orders for hyperscaler and AI infrastructure this year, raising its full-year order expectations to $9 billion from $5 billion, highlighting robust demand and growth potential in the AI market.
- Optimistic Market Sentiment: Following the earnings report, Cisco shares surged nearly 20% in after-hours trading and have gained 32% year-to-date, with investors expressing “extremely bullish” sentiments on social media, indicating strong confidence in the company's future performance.
See More
HPE Shares Rise as Activist Investors Increase Stakes
- Activist Investor Stakes: Hewlett Packard Enterprise (HPE) shares rose 2.5% following reports of increased stakes by activist investors like Irenic Capital, indicating market confidence in the company's future prospects.
- Investor Engagement: Irenic Capital has engaged with HPE executives regarding its holdings and concerns, although its specific intentions remain unclear, this move may prompt other investors to consider HPE's potential value.
- Cooperation Agreement Impact: Prominent activist investor Elliott Investment Management entered into a cooperation pact with HPE in July, and the impending expiration of this agreement is expected to attract more activist interest in HPE, further driving up the stock price.
- Positive Market Reaction: Elliott's $1.5 billion investment in HPE last April has heightened expectations regarding its subsequent actions, which could further enhance HPE's market performance.
See More
HPE Stock Rises Amid Increased Activist Investor Interest
- Activist Investor Pressure: HPE faces dual pressure from Irenic Capital's recent involvement and Elliott Management's existing stake of approximately $1.5 billion, which previously attempted to oust CEO Antonio Neri but settled for board representation.
- Strong Stock Performance: HPE shares rose about 5% on Wednesday, and the stock has roughly doubled since Elliott first entered, indicating strong market confidence in the company's future direction.
- Successful Acquisition: Last year, HPE completed its largest-ever deal, acquiring Juniper Networks for $16 billion, overcoming an 18-month regulatory battle, which has expanded its business capabilities significantly.
- Improved Financial Results: HPE reported an 18% year-over-year revenue increase in Q1 2026, driven by robust demand in networking and AI infrastructure, and raised its full-year guidance in March, reflecting strong momentum in high-margin AI and cloud solutions.
See More
Citi Raises Price Targets for Dell and HPE Ahead of Earnings
- Price Target Increase: Citi analyst Asiya Merchant raised Dell's price target from $235 to $290, reflecting optimism about sustained AI and server growth, alongside improvements in storage execution and steady PC progress.
- Positive Stock Reaction: Following Citi's price target upgrades, Dell's shares rose 1.9% in premarket trading, while HPE's shares increased by 5%, indicating market confidence in the future performance of both companies.
- HPE Target Price Boost: Citi also raised HPE's price target from $27 to $39, primarily based on positive outlooks for post-Juniper networking momentum and supportive commentary on AI server demand, suggesting increasing needs for enterprise AI and neocloud deployments.
- Upcoming Earnings Reports: Dell is set to release its fiscal fourth-quarter results on May 28, while HPE will report its fiscal second-quarter results on June 1, with the market eagerly anticipating these earnings, which could further drive stock price increases.
See More
HPE Completes Sale of H3C Stake for $986.8M
- Stake Sale Completed: HPE announced on Thursday that it has successfully sold a 13.8% stake in H3C Technologies for $986.8 million to several Chinese entities, including Unisplendour International Technology Limited, marking a significant step in HPE's strategy in the Chinese market.
- Future Sale Plans: HPE expects to sell the remaining 5.2% stake in H3C held by its subsidiaries for approximately $370.4 million, demonstrating the company's ongoing confidence in H3C's future and potentially enhancing its competitive position in the IT solutions market.
- Positive Stock Reaction: Following the announcement, HPE's shares rose 3.2% in premarket trading, reflecting a positive market response to the company's strategic adjustments and investor confidence, which may attract more attention from investors.
- Activist Investor Involvement: The rise in HPE's stock price is also linked to additional activist investors taking stakes, indicating market recognition of HPE's growth potential, which could drive further investments in technology innovation and market expansion.
See More
Cisco Announces Job Cuts and Revenue Forecast Increase Amid AI Demand
- Stock Surge: Cisco shares jumped 19% in premarket trading on Thursday, potentially adding about $75 billion to its market value at the current price of $120.98, reflecting strong investor confidence in its AI infrastructure strategy.
- Restructuring Plan: The company announced nearly 4,000 job cuts, with a restructuring cost of $1 billion aimed at reallocating investments toward AI and related growth areas, impacting less than 5% of its workforce.
- Order Growth: Cisco has secured $5.3 billion in AI infrastructure orders this fiscal year, raising its full-year order expectation from $5 billion to $9 billion, indicating robust demand from hyperscalers.
- Market Competitiveness: With a forward price-to-earnings ratio of 22.77, Cisco remains competitively positioned in the high-speed networking equipment market, especially as AI continues to drive demand for its products.
See More
Cisco Reports Strong Earnings Guidance, Shares Surge
- Earnings Beat Expectations: Cisco expects revenue for the quarter ending in July to be between $16.7 billion and $16.9 billion, surpassing analyst expectations of $15.8 billion, indicating strong market performance that is likely to drive stock price increases.
- Layoffs and Investment Restructuring: The company announced layoffs of 4,000 employees, roughly 5% of its workforce, to reallocate funds towards silicon chips, fiber optics, and security, with severance costs potentially reaching $1 billion, reflecting strategic adjustments for the AI era.
- Surge in AI Infrastructure Orders: Cisco has received $5.3 billion in orders for hyperscaler and AI infrastructure this year, raising its full-year order expectations to $9 billion from $5 billion, highlighting robust demand and growth potential in the AI market.
- Optimistic Market Sentiment: Following the earnings report, Cisco shares surged nearly 20% in after-hours trading and have gained 32% year-to-date, with investors expressing “extremely bullish” sentiments on social media, indicating strong confidence in the company's future performance.
See More
HPE Shares Rise as Activist Investors Increase Stakes
- Activist Investor Stakes: Hewlett Packard Enterprise (HPE) shares rose 2.5% following reports of increased stakes by activist investors like Irenic Capital, indicating market confidence in the company's future prospects.
- Investor Engagement: Irenic Capital has engaged with HPE executives regarding its holdings and concerns, although its specific intentions remain unclear, this move may prompt other investors to consider HPE's potential value.
- Cooperation Agreement Impact: Prominent activist investor Elliott Investment Management entered into a cooperation pact with HPE in July, and the impending expiration of this agreement is expected to attract more activist interest in HPE, further driving up the stock price.
- Positive Market Reaction: Elliott's $1.5 billion investment in HPE last April has heightened expectations regarding its subsequent actions, which could further enhance HPE's market performance.
See More
