| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 51 | 30.2x | 17.3x | Around median | |
Growth | 89 | 26.6% | 7.1% | Top tier | |
Quality | 62 | 5.6% | 4.5% | Around median | |
Safety | 56 | 2.0x | 2.6x | Around median | |
Capital Return | 78 | 0.95% | 0.06% | Top tier | |
Momentum | 93 | 175.1% | -1.6% | Top tier | |
Sentiment | 41 | 12 | 3 | Around median |
The floor: what the company is worth if growth stopped today
86% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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, listed under the ticker HPE, sells servers, AI systems, storage, networking equipment, and related management software, and provides hybrid cloud services through GreenLake and infrastructure financing solutions through HPE Financial Services. The company combines hardware sales with related services and software, while the acquisition of Juniper Networks expanded its switching, routing, and security portfolio. Its differentiation lies in connecting the Mist and Aruba Central network management platforms with Alletra MP storage and private cloud AI solutions, serving enterprises that want to run applications while retaining control over their data.
In quarter 3 of fiscal year 2026, ended 2026-07-31, revenue reached 12.2 billion dollars, up 33.7% from the same quarter a year earlier, while net income reached 1.5 billion dollars and diluted earnings per share were 1.06 dollars. The operating margin expanded to 11.4% from 2.7% in quarter 3 of fiscal year 2025, an increase of 8.7 percentage points. Cloud & AI revenue in quarter 3 of fiscal year 2026 was approximately 9 billion dollars, compared with 2.9 billion dollars for networking; computing therefore remains the largest revenue source, despite management's move to make networking central to the company's strategy.
According to EL7 data, operating cash flow in quarter 3 of fiscal year 2026, ended 2026-07-31, was approximately 1.6 billion dollars. For the last 12 months through 2026-07-31, revenue reached 41.9 billion dollars and net income reached 2.8 billion dollars, while free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months reached 4.2 billion dollars. These results combine improved profitability with cash generation, but their sustainability depends on converting orders into deliveries while controlling inventory and component costs.
Q3 FY2026
Last 12 months to 2026-07-31
When: 2026-12-03
Achieving revenue for quarter 4 of fiscal year 2026 within the range of 13.9 billion dollars to 14.8 billion dollars
Networking revenue growth in quarter 4 of fiscal year 2026 within the range of 11% to 13% compared with the same quarter a year earlier
The industry-multiple valuation is 88 dollars, within a range of 59 dollars to 147 dollars, pricing next year's earnings at a median multiple of 21.6 across 18 comparable companies. The median analyst price target is 70 dollars, within a range of 57 dollars to 86 dollars across 6 analysts, reflecting their expectations for growth and execution, with this method tending toward optimism. The no-growth valuation is 7.78 dollars at a discount rate of 11.4%, representing the value of current after-tax operating profit if it remains constant forever. The industry-multiple and analyst-target ranges overlap, but the peer-comparison valuation exceeding the median target, and the wide gap between both and the no-growth valuation, illustrate the differing comparison and growth assumptions and the importance of sustaining operating improvements.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
No; Cloud & AI revenue was approximately 9 billion dollars and networking revenue was 2.9 billion dollars in quarter 3 of fiscal year 2026, ended 2026-07-31. The company's portfolio includes traditional servers, Alletra MP storage, and private cloud, alongside Juniper and Aruba equipment and software. The number of GreenLake customers rose 18% to 52000 compared with the same quarter a year earlier, demonstrating the breadth of activity beyond supplying AI systems alone.
Juniper expands HPE's capabilities in routing, switching, and network management, including PTX, QFX, and Mist. In quarter 3 of fiscal year 2026, ended 2026-07-31, networking orders grew 36% compared with the same quarter a year earlier on a combined basis, versus revenue growth of 10% on the same basis. Expanded collaboration with Oracle includes the use of Juniper products in multi-gigawatt AI infrastructure over multiple years. An update cited in a news report dated 2026-10-02 raised the annual savings target from the acquisition to 800 million dollars by fiscal year 2028.
Automated analysis for informational purposes only — not investment advice.
Achieving diluted earnings per share under generally accepted accounting principles in quarter 4 of fiscal year 2026 within the range of 1.12 dollars to 1.22 dollars
Inventory reached 11.8 billion dollars in quarter 3 of fiscal year 2026, ended 2026-07-31, up 65.1% compared with the same quarter a year earlier, while revenue grew 33.7% over the same comparison period. Management said that constraints involving DDR5, DDR4, NAND, and chip manufacturing capacity limit product availability and affect costs and pricing. It also explained that a large portion of server growth came from average selling prices while volumes were constrained. Continued improvement therefore requires converting inventory into deliveries and collections, while demonstrating resilient demand as component costs rise.
According to EL7 data, operating cash flow reached 6.7 billion dollars for the last 12 months through 2026-07-31, compared with net income of 2.8 billion dollars for the same period, equivalent to 240%. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the last 12 months through 2026-07-31 was approximately 4.2 billion dollars. In contrast, debt according to EL7 data was approximately 20.2 billion dollars in quarter 3 of fiscal year 2026, ended 2026-07-31, compared with cash and short-term investments of 10.1 billion dollars. These figures support the quality of cash conversion, while debt management and inventory financing remain important.
The industry-multiple valuation is 88 dollars, based on next year's earnings and a median multiple of 21.6 across 18 companies. The median target of 6 analysts is 70 dollars, while the no-growth valuation is 7.78 dollars at a discount rate of 11.4%. The first method measures peer comparison, the second reflects growth expectations, and the third holds current after-tax operating profit constant forever. Their differences therefore reflect different assumptions and do not make any one of them the sole definitive value.
The expected earnings announcement date is 2026-12-03. The company expects revenue of between 13.9 billion dollars and 14.8 billion dollars for quarter 4 of fiscal year 2026, with diluted earnings per share under generally accepted accounting principles of between 1.12 dollars and 1.22 dollars. It also expects networking revenue growth of 11% to 13% compared with the same quarter a year earlier, making the conversion of Juniper orders into shipments a clear test of execution.