New York, June 2, 2026, 04:14 EDT
- HPE was indicated near $61 ahead of the NYSE open in premarket trading, after the company posted a record quarter in what’s typically a quieter session.
- The company boosted its fiscal 2026 revenue growth outlook to 29%–33% and said it could hit some 2028 financial goals this year.
- The reset is tied to AI server and networking demand, plus synergies from Juniper Networks. Dell and Super Micro come up as the nearest read-across names.
Hewlett Packard Enterprise stock jumped at the open Tuesday. The company raised its full-year forecast, saying stronger-than-expected AI infrastructure demand is speeding up growth.
The stock was up 28.7% at $60.96 in early trading at 04:13 a.m. Eastern, after ending Monday close to $47. Regular NYSE hours are 9:30 a.m. to 4 p.m. Eastern and stocks in premarket can move a lot once regular trading kicks in.
HPE is getting priced more like an AI supplier these days and less like a standard enterprise hardware company. The company, in the same space as Dell Technologies and Super Micro Computer for AI servers, said uptick in customer orders for servers and networking equipment to power AI workloads is driving the change.
HPE’s revenue for its fiscal second quarter was $10.7 billion, a gain of 40% from the same period last year. The company reported non-GAAP diluted earnings per share at 79 cents. Non-GAAP earnings leave out some items and are often used on Wall Street, but differ from net income calculated under standard accounting.
Hewlett Packard Enterprise posted results above expectations, clearing consensus of 54 cents a share and $9.78 billion in sales, MarketBeat data showed. The numbers weren’t close. The beat was big enough to shift the next day’s tape.
HPE CEO Antonio Neri said on the analyst call that the company put up “record-breaking results” for the period and said “demand was even stronger than revenue growth.” Orders more than doubled in the quarter, with HPE reporting what management called a record backlog—unfilled demand booked and not yet shipped. Alphastreet
HPE’s updated outlook was the key point. The company now sees fiscal 2026 revenue growing 29%–33%, with adjusted EPS of $3.35–$3.45. Free cash flow, or what’s left after capital spending, should reach at least $3.5 billion. All of those figures top the targets HPE had set for fiscal 2028.
Networking stood out with revenue up 148.2% to $2.7 billion, boosted by Juniper Networks. Cloud & AI revenue was up 22.9% to $7.7 billion, and server revenue increased 32.7%. The results give investors more clarity on how to value the Juniper deal—as more than just a cost-cutting move, but as an AI-networking play too.
HPE CFO Marie Myers told the earnings call a “large backlog” and better demand visibility backed the higher forecast. Myers said DRAM and NAND inflation—memory chips for servers and storage—has pushed HPE to raise prices. Alphastreet
HPE has pushed into agentic AI, which means AI that can handle multi-step jobs with less input from people. Myers told Reuters the company was “agile” passing higher costs to customers. HPE expects to “ship and convert significantly more AI revenue” in the second half, with the biggest bump in revenue conversion expected in Q4. Reuters
Investors face the risk that much of the market move could happen before regular trading starts. Activity is lighter in extended-hours trading, component costs are still shifting, and HPE still needs to turn backlog into shipped products while working through the Juniper deal and supply constraints. Neri told Raymond James analyst Simon Leopold there was “no evidence” of order pull-ins and “no cancellations,” but that’s the main area investors are set to test now. Alphastreet
HPE laid out an early look at its fiscal 2027 targets too, telling investors to expect revenue growth between 8% and 12%, adjusted EPS up 12% to 16%, and at least $4.5 billion in free cash flow. The big question now: is Tuesday’s move just a quick earnings pop, or the start of a higher valuation level for HPE?
