AI server maker HPE's Q4 adjusted EPS beats expectations
Overview
HPE fiscal Q4 revenue grows 14% yr/yr to $9.7 bln, missing analyst expectations
Adjusted EPS for fiscal Q4 beats analyst estimates, reflecting strong operational performance
Company raises FY26 guidance, citing operational discipline and strategic initiatives
Outlook
HPE estimates Q1 2026 revenue between $9 bln and $9.4 bln
HPE raises FY26 GAAP EPS guidance to $0.62-$0.82
HPE raises FY26 non-GAAP EPS guidance to $2.25-$2.45
Result Drivers
JUNIPER ACQUISITION - Completion of Juniper Networks acquisition contributed to networking revenue growth
OPERATIONAL DISCIPLINE - Focus on disciplined spending and cost management led to record gross profit and robust non-GAAP operating profit
CASH FLOW GENERATION - Strong free cash flow generation exceeded outlook, supported by disciplined execution
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $9.68 bln | $9.94 bln (17 Analysts) |
Q4 Adjusted EPS | Beat | $0.62 | $0.58 (17 Analysts) |
Q4 Net Income | $175 mln | ||
Q4 Cash Flow from Operations | $2.50 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for Hewlett Packard Enterprise Co is $26.00, about 16.8% above its December 3 closing price of $22.26
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release:
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