The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 40.9x | 20.8x | Around median | |
Growth | 71 | 22.6% | 6.1% | Top tier | |
Quality | 48 | 5.2% | 6.6% | Around median | |
Safety | 44 | 2.4x | 0.7x | Around median | |
Capital Return | 60 | 1.14% | 2.02% | Around median | |
Momentum | 96 | 160.5% | 4.1% | Top tier | |
Sentiment | 59 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Hewlett Packard Enterprise Company (HPE) is an enterprise infrastructure company that sells servers, AI systems, storage, networking, software, and hybrid cloud services. The company generates its revenue from selling platforms such as ProLiant and Alletra MP, from networking solutions tied to the Juniper, Aruba, and Mist portfolios, as well as from HPE GreenLake services and the HPE Financial Services business. After integrating Juniper Networks, the company’s operating story has become more tied to enterprise networking, data-center networks for AI, private cloud, and AI inference inside customer environments.
HPE’s current strategy is based on combining Networking and Cloud and AI into a single offering for customers modernizing data centers and building high-performance networks for AI. In the second quarter of fiscal 2026, management said GreenLake ended the quarter with about 15 thousand customers managing more than 6.7 million systems, compared with 5.3 million systems a year earlier, with a net retention rate near 110%. The company also presented specific customer examples such as Lowe's, which chose HPE Mist AI and HPE EdgeConnect SD-WAN to transform its network across more than 1.75 thousand stores in North America, and Dallas Cowboys, which adopted HPE GreenLake private cloud, ProLiant, Alletra MP, HPE Morpheus Enterprise, and HPE VM Essentials.
In the second quarter of fiscal 2026, HPE reported revenue of 10.7 billion dollars, up 40%, non-GAAP earnings per share of 0.79 dollars, up 108%, and GAAP earnings per share of 0.44 dollars. Gross margin was 36.9%, operating profit was 1.4 billion dollars with an operating margin of 13.3%, and the company generated free cash flow of 915 million dollars and operating cash flow of 1.4 billion dollars. By segment, Networking generated revenue of 2.7 billion dollars, while Cloud and AI generated revenue of 7.7 billion dollars, and Financial Services revenue rose 6% with return on equity above 30%.
The analyst consensus on HPE is neutral, with an average price target of 69.27 dollars, a high target of 80 dollars, and a low target of 62 dollars. Since the average target is above the upper end of the 52-week range of 64.25 dollars, the stock is below the average analyst target according to these data without needing to mention a specific real-time price. The data do not show a reliable current P/E multiple, so valuation remains more tied to HPE’s ability to execute its fiscal 2026 earnings per share guidance of between 3.35 and 3.45 dollars and convert AI and networking backlog into free cash flow.
Figures in the text are as of 2026-07-07; the live price is shown at the top of the page.
HPE sells enterprise infrastructure that includes servers, storage, networking, private cloud, and related software and services. Its important products and assets include ProLiant, Alletra MP, HPE GreenLake, HPE Morpheus Enterprise, and HPE VM Essentials, in addition to the Juniper, Aruba, and Mist networking portfolio. In the second quarter of fiscal 2026, the largest portion of revenue came from Cloud and AI at 7.7 billion dollars, while Networking generated revenue of 2.7 billion dollars.
HPE reported revenue of 10.7 billion dollars, up 40%, and non-GAAP earnings per share of 0.79 dollars, up 108%. Gross margin was 36.9% and operating margin was 13.3%, with operating profit of 1.4 billion dollars. Management said orders more than doubled, and that strong demand came from traditional servers, AI systems, Networking, and Alletra MP storage.
The integration of Juniper has become central because HPE said integration and synergies are running ahead of schedule. In the second quarter of fiscal 2026, the Networking segment recorded revenue of 2.7 billion dollars with 10% growth on a normalized basis, with campus and branch orders in the high-20s range and routing orders up about 30% on a normalized basis. Management also said it expects to exceed the annual Juniper synergy target of 200 million dollars by the end of fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
HPE benefits from artificial intelligence through AI systems, traditional servers configured for inference, storage, and networking for data centers. The company recorded 1.8 billion dollars of new AI systems orders in the second quarter of fiscal 2026, cumulative bookings reached 16.4 billion dollars, and it entered the third quarter with a backlog of 5.9 billion dollars. It also raised its fiscal 2026 Networks for AI order target to at least 2 billion dollars, and recent news dated 2026-07-06 announced a collaboration between HPE and NVIDIA to develop AI data centers for Vultr.
The main operational risk is that strong demand does not necessarily mean immediate conversion into revenue, because management discussed constraints in DRAM, NAND, chip capacity, and some networking components. HPE also said it does not assume additional supply in 2026, and that component costs may remain elevated in 2027. In addition, insider data indicate strong_sell with net selling of 10.1 million dollars over 3 months and 7 sales versus no purchases.
For its third quarter of fiscal 2026, HPE expects revenue between 11.5 and 12.1 billion dollars and non-GAAP earnings per share between 0.88 and 0.93 dollars. For fiscal 2026, the company raised its expectations to consolidated revenue growth between 29% and 33% on a reported basis, earnings per share between 3.35 and 3.45 dollars, and free cash flow of at least 3.5 billion dollars. For fiscal 2027, it provided an initial framework that includes consolidated revenue growth between 8% and 12%, earnings per share growth between 12% and 16%, and free cash flow of at least 4.5 billion dollars.