MarketBeat

Sun, September 13, 2026 at 4:02 PM EDT 6 min read

Key Points

• Interested in Hewlett Packard Enterprise Company? Here are five stocks we like better.

• HPE raised its fiscal 2027 outlook to 13%–17% revenue growth and 16%–20% EPS growth, supported by strong demand and a free-cash-flow target of at least $5 billion.

• AI networking is the primary growth driver: networking orders rose 36%, and HPE lifted its fiscal 2026 AI-networking order target to $2.5 billion–$3 billion from $1.5 billion.

• HPE reported $2.4 billion in quarterly AI-server orders and nearly $7 billion in backlog, while expanding opportunities through its Oracle win, Juniper integration and AMD Helios offerings.

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Hewlett Packard Enterprise (NYSE:HPE) Chief Strategy Officer Shannon Cross said the company is seeing strong demand across networking, storage and traditional servers, while supply availability and order conversion remain key priorities as it targets growth in fiscal 2027.

Speaking at the Goldman Sachs Communacopia + Technology Conference, Cross highlighted HPE's most recent quarterly performance, including $1.11 in earnings per share, nearly $1 billion in free cash flow and what she described as the company's first quarter with more than $1 in earnings per share. She said the company also raised its free-cash-flow target to at least $3.75 billion for fiscal 2026 and at least $5 billion for the following year.

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• Why Hewlett Packard Enterprise's Sell-Off May Not Last

Goldman Sachs analyst Kat Murphy noted that HPE had raised its fiscal 2026 and fiscal 2027 outlook, with fiscal 2027 guidance calling for 13% to 17% revenue growth and 16% to 20% EPS growth. Cross said the company is focused on translating its expanding order backlog into revenue.

Networking Demand Drives Outlook

Cross said networking revenue increased 10% in the latest quarter, while orders rose 36%. Storage revenue also grew 10%, with order growth running at roughly twice that rate, she said. Traditional server orders increased 75% year over year.

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HPE's confidence in its outlook partly reflects larger multiyear supply agreements for components in tight supply, Cross said. She noted that disclosed purchase commitments rose from $6 billion to $30 billion, with networking commitments doubling sequentially and the remaining increase tied to cloud and AI-related components.