Hewlett Packard Enterprise (HPE) has seen its shares rise by 25.9% over the past three months, significantly outperforming the Zacks Computer – Integrated Systems industry’s 2.2% increase. Despite this growth, HPE retains a forward price-to-sales ratio of 1.5, well below the industry average of 4.81. In the third quarter of fiscal 2026, HPE reported Cloud & AI revenues of $9 billion, up 25% year-over-year, alongside a record non-GAAP gross margin of 40.4%.
Key highlights include a 35% increase in server revenues and a substantial boost in AI systems orders, totaling $2.4 billion for the quarter. HPE’s overall AI backlog reached $7.6 billion, indicating strong demand as enterprises transition from pilot projects to full-scale deployments. The company has raised its fiscal 2026 earnings outlook, forecasting non-GAAP earnings-per-share of $3.75-$3.85 for fiscal 2027.
HPE is further solidifying its market position through partnerships with major semiconductor companies like AMD, Intel, and NVIDIA, expanding its compute ecosystem and offering robust solutions for AI and hybrid cloud deployments. This strategic alignment is expected to strengthen HPE’s profitability and investor appeal moving forward.
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