Nov. 28 at 3:23 AM
$HPE "Heads up alert! Upcoming earnings on Thursday, 12/4/2025 for
$HPE
Bearish (3.5)
---
Hewlett Packard Enterprise (HPE) is currently navigating a complex landscape characterized by both promising opportunities and significant challenges.
Despite recent contracts, including a substantial
$931 million agreement with the U.S.
Defense Department aimed at modernizing cloud infrastructure, the company faces headwinds from rising memory costs and integration risks stemming from its recent Juniper Networks acquisition.
Analysts have expressed concerns about HPE's ability to maintain margin expansion and earnings growth amidst these pressures.
The company’s P/E ratio stands at approximately 16.5, which is in line with industry averages, but its earnings per share (EPS) growth is projected to decline in the upcoming quarters.
Revenue forecasts indicate a modest increase, but the consensus price target has seen a slight reduction from
$26.51 to
$26.50, reflecting cautious sentiment.
Comparatively, HPE's performance lags behind competitors like Cisco Systems (CSCO), which has recently reported strong revenue growth driven by AI demand.
Furthermore, HPE's annual recurring revenue (ARR) has shown a 40% organic growth, attributed to its hybrid cloud initiatives, yet this is overshadowed by the broader market's volatility and the mixed reception of its strategic moves.
---
Looking ahead, HPE is set to report its fourth-quarter earnings for fiscal 2025, with analysts anticipating a notable decline in earnings compared to previous periods.
Historical performance has shown that HPE often experiences fluctuations around earnings announcements, and the current consensus estimates suggest a cautious outlook.
Analysts expect the company to report lower EPS figures, primarily due to rising operational costs and market competition.
The potential impact of these results could lead to further adjustments in stock valuations, especially given the recent downgrades from firms like Morgan Stanley, which cited concerns over profit margins.
The upcoming earnings report will be critical in shaping investor sentiment and could either reinforce or challenge the current bearish outlook.
---
In terms of sector performance, the technology sector, particularly hardware and networking, has experienced heightened volatility due to macroeconomic factors and supply chain disruptions.
The sector has seen a mixed performance relative to the S&P 500, with many companies struggling to maintain margins in the face of rising costs.
While some firms, particularly those aligned with AI and cloud computing, have thrived, others like HPE are facing significant challenges that could hinder their growth trajectory.
Overall, the technology sector remains dynamic, with opportunities for growth tempered by the realities of competitive pressures and cost management.
- Funds were net buyers of
$HPE during the previous reporting quarter.
- Funds with large holdings in
$HPE include:
- Elliott Investment Management LP, MV:
$458MM. Fund Rank: 79%
- Analog Century Management, MV:
$61MM. New position. Fund Rank: 88%
www.analogcm.com
- Alyeska Investments, MV:
$41MM. New position. Fund Rank: 85%
- Canada Pension , MV:
$40MM. Fund Rank: 83%
- Adage Capital P, MV:
$23MM. Fund Rank: 88%
www.adagecapital.com
- Last 10 days performance: 1%
- Last 30 days performance: -11%
- Last 90 days performance: -4%
Some of the latest news articles:
- Title: SMCI Aims for
$36B in FY26 Revenues: Is the Growth Target Realistic?
Publication Date: 11/27/2025 3:06:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/smci-aims-36b-fy26-revenues-150600781.html?.tsrc=rss
- Title: Hewlett Packard Enterprise (HPE) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
Publication Date: 11/27/2025 3:00:03 PM, Source: yahoo
URL: https://finance.yahoo.com/news/hewlett-packard-enterprise-hpe-earnings-150003399.html?.tsrc=rss
- Title: VRT Rides on Accelerating AI Infrastructure Demand: What's Ahead?
Publication Date: 11/26/2025 5:36:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/vrt-rides-accelerating-ai-infrastructure-173600761.html?.tsrc=rss
- Title: How Recent Moves Are Rewriting the Story for HPE Investors
Publication Date: 11/26/2025 6:12:35 AM, Source: yahoo
URL: https://finance.yahoo.com/news/recent-moves-rewriting-story-hpe-061235253.html?.tsrc=rss
Follow us on stocktwits.com for more earnings alerts. Not a financial advice. Not a trading signal."
