Thursday, December 4, 2025

HPE stock | AI server maker HPE's Q4 adjusted EPS beats expectations

 

AI server maker HPE's Q4 adjusted EPS beats expectations

Refinitiv1 min read

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:

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

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