Hewlett Packard Enterprise Company (HPE) is listed on NYSE and operates in the Communication Equipment industry (Technology sector).
Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem and HPE Synergy; and solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products; and HPE Superdome Flex, HPE Nonstop, HPE Integrity, and HPE Edgeline products. In addition, the company provides HPE Aruba product portfolio that includes wired and wireless local area network hardware products, such as Wi-Fi access points, switches, routers, and sensors; HPE Aruba software and services comprising cloud-based management, network management, network access control, analytics and assurance, and location; and professional and support services, as well as as-a-service and consumption models for the intelligent edge portfolio of products. Further, it offers various leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. Additionally, the company invests in communications and media solut...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 15 |
| Hold | 21 |
| Sell | 1 |
| Strong Sell | 0 |
Hewlett Packard Enterprise Company, headquartered in Houston, Texas, provides technology solutions across the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers a range of servers, including general-purpose, workload-optimized, and specialized servers such as HPE ProLiant, HPE BladeSystem, and HPE Synergy. It also provides storage solutions like HPE Modular Storage Arrays and HPE XP. The HPE Apollo and Cray product lines, along with HPE Superdome Flex, HPE Nonstop, HPE Integrity, and HPE Edgeline, are part of its offerings. HPE Aruba includes wired and wireless network hardware, software, and services, focusing on cloud-based management, network access control, and analytics. The company also offers leasing, financing, IT consumption, and asset management services to support technology deployment. Additionally, HPE invests in communications and media solutions and collaborates with partners like Striim, Inc. to deliver real-time analytics solutions. Founded in 1939, HPE serves commercial and large enterprise clients, including business and public sector enterprises, through a network of resellers, distribution partners, and other collaborators.
Over the past three fiscal years, the company experienced consistent revenue growth, with a compound annual growth rate (CAGR) of 8.5%, increasing from $29.1 billion in 2023 to $34.3 billion in 2025. Despite this top-line growth, profitability metrics showed a downward trend. The gross margin decreased by 5.3 percentage points, from 34.1% to 28.8%, while the operating margin compressed by 3.5 percentage points, ending at 4.8%. This margin compression was reflected in the net margin, which dropped significantly from 7.0% to a mere 0.2%, resulting in a negative EPS of -$0.0446 in 2025. Cash generation also weakened, with operating cash flow declining from $4.4 billion to $2.9 billion, and free cash flow (FCF) decreasing from $1.6 billion to $627 million, leading to a reduced FCF margin of 1.8%. The company's net debt position increased substantially, from $9.2 billion to $16.6 billion, indicating a higher leverage level. Despite these challenges, the cash conversion ratio improved dramatically to 51.2, suggesting that earnings were increasingly backed by actual cash. However, the interest coverage ratio fell below zero, highlighting potential concerns about the company's ability to meet its interest obligations. Overall, while revenue growth was robust, the period was marked by significant profitability and cash flow challenges, alongside increased leverage.
Hewlett Packard Enterprise (HPE) has seen a significant 16.7% increase in its stock price since its last earnings report, as noted by Zacks Investment Research on April 8, 2026. This surge reflects positive market sentiment following the company's financial performance. In related developments, institutional trading activity has been notable, with Freestone Capital Holdings LLC reducing its stake in HPE by 8% in the fourth quarter, now holding shares worth $1,854,000. Similarly, Ritholtz Wealth Management decreased its holdings by 5% during the same period. Despite these reductions, other firms like Chilton Capital Management LLC and Headlands Technologies LLC have acquired new stakes in HPE, indicating varied investor strategies. Additionally, HPE is highlighted as a potential key player in the AI infrastructure space, as large enterprises are expected to expand their data centers, a trend that could benefit HPE alongside peers like Cisco and Dell. This combination of strong stock performance, strategic positioning in AI infrastructure, and dynamic institutional trading activity underscores HPE's current market relevance and potential future growth.