Key Takeaways
- Bank of America set a new street-high price target of $38 for HPE while reaffirming its “Buy” recommendation
- Q1 FY2026 results showed revenue reaching $9.3 billion, representing an 18% year-over-year increase, with earnings per share of $0.65 surpassing projections
- The company’s Networking division exploded 152% to $2.7 billion, driven by the Juniper Networks integration
- Over the trailing twelve months, HPE stock has climbed approximately 73%, reaching a record peak of $29.63
- Institutional ownership stands at 80.78% of outstanding shares; Wall Street consensus leans “Moderate Buy”
Bank of America has elevated its price objective for Hewlett Packard Enterprise to $38 — a jump from the previous $32 mark — establishing a new high-water mark on Wall Street. The firm maintained its “Buy” stance while highlighting “agentic AI” as an emerging catalyst powering demand for HPE’s infrastructure portfolio.
Hewlett Packard Enterprise Company, HPE
Led by analyst Wamsi Mohan, BofA’s research team positions HPE as a top-tier AI server provider poised to capture increasing market share as sophisticated AI workloads expand. The bank projects HPE will deliver approximately $6.5 billion in AI server sales throughout 2026.
The $38 price objective suggests potential upside of about 34% from present trading levels. HPE shares started Thursday’s session at $28.30, with a 52-week trading band spanning $15.71 to $29.63.
HPE’s latest quarterly results provided substantial momentum for shareholders. The technology giant delivered Q1 FY2026 revenue totaling $9.3 billion, marking an 18.4% year-over-year expansion. Adjusted earnings per share reached $0.65, exceeding Wall Street’s $0.59 forecast by six cents.
The headline performer was the Networking division, which exploded 152% to reach $2.7 billion following completion of the Juniper Networks transaction. This segment now represents over half of HPE’s consolidated operating profit.
Non-GAAP gross margins expanded to 36.6%. The company also disclosed a record $5 billion order backlog for AI systems alongside strengthening demand for Wi-Fi 7 infrastructure equipment.
Upward Guidance Revision and Optimistic Forecast
For the second quarter of FY2026, HPE projected revenue in the $9.6 billion to $10 billion corridor, with adjusted earnings per share ranging from $0.51 to $0.55. The company lifted its full-year non-GAAP EPS outlook to $2.30–$2.50.
Chief Executive Antonio Neri disclosed that the “AI Factory” order objective has been increased to nearly $1.9 billion through fiscal year-end. This represents tangible evidence that customer appetite for HPE’s purpose-built AI infrastructure continues strengthening.
The enterprise generated $1.2 billion in operating cash flow during the quarter and distributed a $0.1425 per share quarterly dividend in April 2026.
Institutional Ownership Expands
Several major institutional holders expanded their HPE positions during the fourth quarter. Vanguard grew its stake by 1.1%, now controlling more than 173 million shares valued at roughly $4.16 billion. Viking Fund Management increased its position by 22.5%, while Merit Financial Group more than doubled its holdings.
Vest Financial LLC expanded its ownership by 64.6%, acquiring an additional 42,629 shares for a total position of 108,579 shares.
Institutional shareholders collectively control 80.78% of HPE’s outstanding stock — a metric that underscores widespread institutional conviction in the company’s strategic trajectory.
Regarding insider activity, company executives divested 602,337 shares valued at approximately $15.4 million during the past 90 days, though these transactions occurred through previously established Rule 10b5-1 trading arrangements.
While BofA leads with its upgraded outlook, the overall analyst consensus registers as “Moderate Buy” with an average price target of $26.71 — modestly beneath current market prices. Among the 20 covering analysts, nine assign a “Strong Buy,” one rates it “Moderate Buy,” and 10 maintain “Hold” recommendations.
HPE currently trades at a forward price-to-earnings multiple of approximately 14.6 times. HPE stock has advanced roughly 73% during the trailing twelve-month period.
