HPE Surges as Cloud & AI Revenue Fuels Record Growth

HP Enterprise (HPE) has reported strong third-quarter fiscal 2026 results, exceeding market expectations. The company's revenue grew by 34% year-over-year to $12.2 billion, while adjusted earnings per share reached $1.11, beating analyst estimates of $0.92 per share and $11.93 billion in revenue.

The beat was driven by higher-than-expected Cloud & AI revenue and better Cloud & AI EBIT margins. HP Enterprise also reported record order growth of 42% year-over-year, with server revenue rising 35% year-over-year. Networking orders grew 36% year-over-year, with campus and branch refresh up in the low teens and data center switching and routing up in the high double digits.

Goldman Sachs has reiterated its Buy rating on HP Enterprise stock, maintaining a $75.00 price target. The company raised its fiscal 2027 outlook, projecting overall revenue growth of 13% to 17%, an increase from the previous range of 8% to 12%. Operating margin guidance was also lifted to 14% to 15% from 12% to 16% previously.