Hewlett Packard Enterprise Company develops intelligent solutions through its subsidiaries across the United States, the Americas, Europe, the Middle East, Africa, Asia Pacific, Japan, and other international markets. It operates in five segments: Server, Hybrid Cloud, Networking, Financial Services, and Corporate Investments and Other. Its offerings include general-purpose and workload-optimized servers, integrated systems, cloud-native and hybrid solutions, networking and security products and services, and investment solutions such as leasing and financing. The company was founded in 1939 and is headquartered in Spring, Texas.
HPE's $700 Million AI Networking Backlog Tests Supply Chain
Hewlett Packard Enterprise is sitting on a record pile of AI networking orders it cannot yet ship, and the gap between bookings and revenue is now the central question for the stock. Orders for the Networks for AI portfolio reached $700 million in fiscal Q3 2026, a new high, after the company blew past its cumulative fiscal 2026 target of at least $2 billion and raised that target to $2.5 billion to $3 billion. The hardware behind those orders includes routers and switches HPE is supplying to Oracle for one of the largest AI cloud infrastructure build-outs, work that extends more than a decade of engineering between Oracle and Juniper Networks, the business HPE acquired last year. Networking revenue rose 10% in fiscal Q3 2026 against a prior-year base that includes Juniper Networks, while networking orders rose 36%, and the segment brought in $2.9 billion of the $12.2 billion in total revenue HPE reported for the quarter. Management attributes the gap to supply, citing memory and wafer capacity that have gated supply since the start of fiscal 2026, and HPE has more than doubled its networking purchase commitments quarter over quarter while signing multiyear supply agreements to lock capacity. Networking revenue growth is guided to 11% to 13% in fiscal Q4 2026 and 14% to 17% in fiscal 2027, with the next scheduled look at the business coming at the Networking Investor Day on September 30, 2026.
HPE Expands Oracle AI Data Center Deal and Signs Tottenham Hotspur Project
Hewlett Packard Enterprise expanded its global AI infrastructure partnership with Oracle, bringing HPE Juniper Networking into Oracle AI data centers, and separately agreed to a large-scale digital modernization project with Tottenham Hotspur Football Club focused on stadium hybrid cloud and AI infrastructure. Both collaborations highlight new client deployments for HPE across AI data centers and digitally enabled sports venues. The Oracle expansion supports the view that Juniper networking widens HPE's role in AI-centric data centers, where Cisco and Arista are key rivals, and shows Juniper integration moving into multi-year deployments. The Tottenham project reinforces HPE's GreenLake and as-a-service infrastructure business by turning a complex, multi-site venue into a single hybrid cloud environment. The article does not answer how far HPE can shift its overall revenue mix away from legacy servers toward these recurring, software-rich contracts.
Apple Weighs Enterprise AI Servers Using M-series Ultra Chips and Nvidia Networking
Apple is considering building enterprise servers powered by its M-series Ultra processors, according to The Information, potentially pairing those chips with networking equipment from Nvidia. The servers would reportedly be sold to businesses rather than used only inside Apple's own data centers, putting two very different chip strategies inside the same machine. Apple has spent years designing processors to reduce its dependence on outside suppliers, while Nvidia has become the backbone of much of the AI data-center market. Such a move would push Apple silicon beyond Macs, iPhones and its own computing ecosystem into the larger enterprise infrastructure market, where it would compete more directly with Dell, Hewlett Packard Enterprise and Supermicro. The project is still under consideration, so there is no guarantee Apple moves forward.
HPE Jumps 4% After Evercore ISI Downgrade as Oracle AI Networking Deal Anchors Bull Case
Hewlett Packard Enterprise stock rose 4% to $57.42 on Tuesday, one session after Evercore ISI downgraded the shares to In Line from Outperform, with the bounce erasing Monday's selling and leaving the stock up 141% year to date. Analyst Amit Daryanani kept his $65 price target unchanged and wrote that shares are fairly valued at current levels, framing the downgrade as a valuation call rather than a fundamental concern, and also flagged that networking margins have yet to improve materially and remain a laggard relative to networking peers. HPE separately extended its collaboration with Oracle, under which Oracle deploys HPE Juniper Networking across its AI data centers, a contracted buildout at gigawatt scale that the article describes as a practical answer to Daryanani's near-term catalyst concern. Dell Technologies climbed 4% to $555.42 in sympathy on continued enthusiasm for AI server suppliers, while Super Micro Computer slipped 0.8% to $36.46, leaving the server complex splintering rather than trading as one group. The iShares U.S. Technology ETF was down 0.5% to $249.76 and the SPDR S&P 500 ETF Trust was off 0.6% to $756.55, a soft backdrop that makes HPE's gain read as stock-specific rather than a broad sector bid.
Super Micro's DCBBS Bundles Cooling, Power and Networking to Expand AI Data Center Market
Super Micro Computer is positioning itself as a one-stop provider for AI factory and modern data center infrastructure with its Data Centre Building Block Systems, or DCBBS, which combines rack-scale systems, networking, power, cooling, software and deployment services into an integrated solution. The portfolio includes liquid-cooling solutions such as in-rack coolant distribution units, chilled doors and cooling towers, with the company saying its in-rack CDUs can support cooling capacity of up to 250 kilowatts while cooling towers can support between 1 and 50 megawatts. DCBBS also includes 400G/800G networking solutions, power shelves capable of providing up to 33 kilowatts per shelf, battery backup systems and generators, plus software tools including SuperCloud Composer, SuperCloud Automation Center, SuperCloud Developer Console and SuperCloud Director. Supermicro said most of its Direct Liquid Cooling production lines support dense 250kW-class racks, and its fiscal 2027 capacity plan calls for more than 6,000 racks per month, including more than 3,000 direct liquid-cooled racks. The company faces competition from Hewlett Packard Enterprise, which combines compute, storage, networking and its GreenLake platform with NVIDIA technologies, and from Dell Technologies, which is expanding its Dell AI Factory ecosystem and recently introduced PowerEdge R9822 and M9822 servers. Super Micro Computer shares have gained 37% year to date compared with the Zacks Computer – Storage Devices industry's growth of 233.3%, and the stock trades at a forward 12-month P/S multiple of 0.39X versus the industry's 3.15X. The Zacks Consensus Estimate implies fiscal 2027 and 2028 earnings growth of approximately 22% and 18%, respectively, with fiscal 2026 and 2027 estimates revised upward in the past 30 days.
Oracle's $664 billion backlog lifts Dell and HPE as AI financing costs loom
Oracle's fiscal first-quarter results sent a powerful signal to Dell Technologies and Hewlett Packard Enterprise, whose shares surged on the read-through from the software giant's ballooning AI infrastructure commitments. Oracle's total revenue rose 30% to $19.3 billion, cloud infrastructure revenue surged 121% to $7.4 billion, and remaining performance obligations climbed $209 billion to $664 billion. Oracle said it added 850 megawatts of data center capacity in the quarter and more than 300,000 GPUs to AI cloud clients since the end of its previous quarter, and won more than $30 billion in new AI-related cloud services contracts. Dell, which reported record fiscal second-quarter revenue of $47 billion, up 58% year-over-year, booked a record $60.9 billion of AI server orders and exited the quarter with a $95 billion AI server backlog, lifting its fiscal 2027 revenue forecast by $25 billion to $192 billion. HPE reported record fiscal third-quarter revenue of $12.2 billion, up 34%, with its Cloud & AI segment earning $9.04 billion, up 25%, and server revenue rising 35% to $6.77 billion. Oracle's buildout is capital-intensive: it posted record first-quarter operating cash flow of $23 billion but negative $5 billion in free cash flow, sold $20 billion in stock, and raised $43 billion in debt and $5 billion in equity in fiscal 2026 against a $23.7 billion negative free cash flow, with plans to raise $40 billion in debt and equity in fiscal 2027. The Federal Reserve left its benchmark rate unchanged at 3.5% to 3.75% at its July meeting, with its next policy meeting scheduled for Sept. 15-16.
Hewlett Packard Enterprise Shares Up Over 120% as AI Orders Reach $2.4 Billion
Hewlett Packard Enterprise Company shares have climbed more than 120% over the past year, with the stock rallying after its September 2nd earnings report. The enterprise computing infrastructure provider posted revenue growth of 16.2% and networking revenue growth of 75%, while non-GAAP gross margin expanded to 16.2% from 8.5%. The company also raised its fiscal year 2026 revenue growth guidance to a range of 34% to 37% and reported $2.4 billion of AI orders in Q3, up from 1.8 billion in Q2. Despite the top-line strength, profitability remains a concern, as the Networking operating profit margin for the nine months ending came in at 22.4%, down from 25.1% in the prior period, and management noted that orders grew 3x to 5x times faster than revenue, which could delay recognition. Hedge fund interest rose as well, with 85 funds holding a stake in Q2 versus 58 in Q1, including a new $120 million position from Point72 Asset Management.
Ciena Targets at Least 30% Fiscal 2027 Revenue Growth as Premium Valuation Draws Scrutiny
Ciena Corporation is guiding for at least 30% revenue growth in fiscal 2027, to between $8.3 billion and $8.4 billion, with adjusted gross margin projected at 45%-46% and adjusted operating margin at 25%-27%. The outlook leans on AI-driven bandwidth demand, and peers are spending at scale: Cisco Systems reported $9.3 billion of fiscal 2026 AI infrastructure orders from hyperscalers and expects $7.5 billion of AI infrastructure revenues in fiscal 2027, while Hewlett Packard Enterprise reported fiscal third-quarter 2026 Cloud & AI revenues of $9 billion, up 25.4%, with AI systems orders up more than 30% sequentially to $2.4 billion. Ciena trades at 35.7X forward 12-month earnings against a five-year median of 25.5X, slightly below the Zacks sub-industry's 36.3X but well above the Zacks Computer and Technology sector's 20.4X and the S&P 500's 19.7X. Supply secured through 2029 requires upstream investment that management expects to reduce fiscal fourth-quarter 2026 operating cash flow, and purchase orders totaled $3.3 billion as of Aug. 1, 2026, with only a portion firm and non-cancelable, while nine-month inventory excess and obsolescence provisions were $72.4 million. Direct cloud-provider revenues were 53% of fiscal third-quarter sales, two cloud providers generated 41.7% of total revenues, and roughly half of the business now comes directly from hyperscalers, leaving the fiscal 2027 plan exposed to hyperscaler budgets and order timing; the stock carries a Zacks Rank #1 (Strong Buy), a Momentum Score of A, a Growth Score of B, a Value Score of F and a VGM Score of C.
Dell, HPE and HP Surge on AI Demand and PC Refresh
Shares of Dell, Hewlett Packard Enterprise and HP each jumped 8% or more in Friday morning trading, lifted by sustained enterprise AI demand and a PC refresh cycle. HPE also got a boost from strong earnings at Oracle, which earlier this month announced a partnership to deploy HPE's routing and switching platforms across all of its data centers as it scales AI infrastructure; Oracle's remaining performance obligations grew $209B in the first quarter to $664B, including more than $30B in additional AI cloud contracts. Dell received an Outperform rating and a $640 price target as RBC Capital Markets initiated coverage, with analyst David Paige noting Dell exited 2Q27 with $95bn in AI server backlog and converted roughly $132bn into orders over the last twelve months. RBC also initiated coverage on HP with a Sector Perform rating and a $33 target, citing AI PC adoption, edge computing and data privacy needs, and noting HP is targeting AI PC shipments of 60-70% by FY27, up from about 45% in 3Q26.
Hewlett Packard Enterprise and Oracle announced an expanded collaboration on September 2 to scale Oracle's global AI infrastructure using HPE Juniper Networking across Oracle Cloud Infrastructure data centers, building on over a decade of joint engineering. HPE issued stock warrants to Oracle to align long-term incentives. Following the announcement, Barclays raised HPE's price target by $12 to $79, while Morgan Stanley boosted Oracle's target by $3 to $210. HPE reported record Q3 2026 revenue of $12.2 billion, up 34% year over year, with networking revenue up 74.9% to $2.9 billion, and raised its full-year revenue growth guidance to 34%-37%. Oracle ended fiscal 2026 with record Q4 revenue of $19.2 billion, up 21%, and full-year revenue of $67.4 billion, up 17%, with cloud infrastructure revenue surging 93% to $5.8 billion and remaining performance obligations jumping 363% to $638 billion. The partnership aims to support Oracle's gigawatt-scale GPU superclusters, positioning both companies for growth in AI networking and cloud infrastructure.
Hewlett Packard Enterprise Jumps on Surging AI Server Demand
Hewlett Packard Enterprise Company (NYSE:HPE) saw its shares surge nearly 90% in the second quarter of 2026, driven by soaring AI server demand and the successful integration of its Juniper Networks acquisition, according to Harbor Mid Cap Fund's Q2 2026 investor letter. The company reported record revenue with earnings per share significantly beating estimates. As of September 4, 2026, HPE closed at $52.00 per share, with a market capitalization of $69.03 billion and a 52-week range of $19.84 to $64.25. The stock has risen 127.30% over the past year, though it declined 2.31% in the past month. Harbor Mid Cap Fund, which returned 13.99% in Q2, outperforming its benchmark, highlighted HPE as a top contributor alongside TD Synnex and Arrow Electronics. The fund noted that HPE's AI-driven growth remains dependent on operational execution, and 85 hedge funds held HPE positions at the end of Q2, up from 58 in the prior quarter.
AI demand surges as Broadcom, Dell, HPE report strong results
Earnings season continues to deliver blockbuster AI numbers, with Broadcom, Dell, and Hewlett Packard Enterprise all reporting surging demand. Broadcom's revenue jumped 86% year over year, with adjusted earnings per share up 96%, driven by AI semiconductor revenue tripling to $16.7 billion. CEO Hock Tan projected shipping $350 billion in AI chips to six hyperscaler customers over the next two years. Dell's revenue outlook exceeded estimates by $25 billion, and Nvidia projected 70% sales growth. Hewlett Packard Enterprise reported fiscal third-quarter revenue of $12.21 billion, up 34%, with adjusted EPS climbing over 30% to $1.11, and raised its full-year growth outlook to as high as 37%. Despite the strong results, HPE shares fell on profit-taking, which the author calls 'nuts.' The upbeat reports come ahead of the Goldman Sachs Communacopia tech conference, where the author will interview C-suite executives and cover potential IPOs from OpenAI and Anthropic.
Nvidia's $12.9B Hugging Face Deal Praised by HPE CEO
Nvidia's $12.9 billion acquisition of Hugging Face is being hailed as a strategic move by Hewlett Packard Enterprise CEO Antonio Neri, who says it benefits not only Nvidia but the broader tech industry advancing through the AI era. The deal, confirmed on Thursday, gives Nvidia access to the world's largest repository of AI models and datasets, used by over 18 million developers and 200,000 enterprise organizations. Neri noted that the acquisition provides Nvidia with real-time visibility into developer trends and model preferences, and stressed the importance of a stronger presence in open-source communities. Meanwhile, HPE reported fiscal third-quarter revenue of $12.21 billion, up 34% year over year, with adjusted earnings per share climbing over 30% to $1.11, both beating Wall Street estimates, driven by strong demand for AI servers and networking infrastructure. The company raised its fiscal 2027 revenue growth outlook to 13% to 17% and expects earnings to increase by 16%.
HPE CEO: AI demand exceptional but supply chain constrained
Hewlett Packard Enterprise CEO Antonio Neri said AI demand is "exceptional" but the supply chain remains constrained, echoing Nvidia CEO Jensen Huang's comments about supply limitations. In an interview with Yahoo Finance, Neri noted that in networking, orders grew three and a half times faster than revenue, and in traditional servers, orders rose 75% year over year while revenue grew only 35%. He attributed the crunch to wafer capacity and clean room yields, expecting some improvement but not a full resolution until wafer capacity expands. Despite this, HPE raised guidance for Q4 2026 and 2027, anticipating exceptional demand continuing into 2027 and beyond, with record orders for AI networking equipment and an extended partnership with Oracle.
Snowflake Surges 24% on Strong Results, Lifting Software Peers
Snowflake shares surged 24% in premarket trading after its second-quarter results beat analyst expectations, with adjusted earnings of 62 cents per share on revenue of $1.55 billion, surpassing the LSEG consensus of 45 cents and $1.48 billion, and the company raised its full-year product revenue guidance. The rally lifted software peers, with Datadog jumping over 5%, ServiceNow up 3%, and Salesforce rising 1.5%. In other moves, Hewlett Packard Enterprise slipped 3% after forecasting earnings growth of 16% to 20% for fiscal 2027, below the FactSet consensus of 18.7%, while Broadcom lost 2.5% as its fourth-quarter revenue forecast of $34.8 billion missed the $35.03 billion estimate. Campbell's Company fell nearly 7% on weak fiscal 2027 guidance, and Ultragenyx Pharmaceutical plunged over 46% after its Angelman syndrome drug failed a Phase 3 trial. On the upside, Petco jumped almost 9% on better-than-expected margins, Argan popped 7.5% on strong earnings, Five Below rose 4.5% on a beat, and Netskope gained 12% on upbeat revenue guidance, while Victoria's Secret sank over 18% on a revenue miss and NetApp shed 8% on soft deferred revenue.
Snowflake, ChargePoint Surge; NetApp, HPE Fall on Mixed Earnings
Stock futures were mixed in premarket trading Thursday as investors weighed escalating U.S.-Iran geopolitical friction against persistent interest rate concerns. Among the biggest movers, Snowflake shares surged 24% after the data warehousing company reported strong fiscal Q2 results and issued an upbeat outlook, with product revenue rising 37% year-over-year to $1.49 billion, and management highlighting accelerating AI adoption. ChargePoint Holdings jumped 18% after beating Q2 expectations with revenue up 17.8% year-over-year, while its adjusted EBITDA loss narrowed sharply to $4.8 million from $22.1 million. On the downside, NetApp fell 9% despite record revenue of $2.03 billion, as free cash flow declined 35% year-over-year to $401 million, and Hewlett Packard Enterprise dropped 5% even after topping expectations with Q2 revenue of $12.21 billion, as the company raised its full-year outlook and expanded its Oracle collaboration.
HPE raises annual forecast on AI demand but shares fall on supply constraints
Hewlett Packard Enterprise (HPE) reported third-quarter (May-July) results on Tuesday that beat market expectations for revenue and adjusted earnings per share (EPS), and also raised its full-year outlook. Surging AI-related demand for networking equipment and servers drove growth, but supply constraints persisted, sending shares down more than 3% in after-hours trading. Revenue rose 33.7% year-over-year to $12.21 billion, beating the expected $11.91 billion, while adjusted EPS of $1.11 beat the expected $0.93. The company raised its fiscal 2026 revenue growth forecast to 34-37% from 29-33%, and its adjusted EPS outlook to $3.75-$3.85 from $3.35-$3.45. Chief Financial Officer Marie Myers said supply remains tight, with the main bottlenecks being memory, followed by NAND, CPUs, and drives, and that the company is entering into long-term supply agreements to improve component procurement.
Snowflake shares surge on strong Q2 results and raised outlook
Snowflake shares surged in after-hours trading after the company reported strong second-quarter results and raised its full-year product revenue forecast to more than $6 billion, with product revenue jumping 37% and management citing accelerating AI adoption as a key growth driver. Meanwhile, Hewlett Packard Enterprise reported better-than-expected earnings and revenue for the third quarter and raised its guidance for the current fiscal year and next, driven by AI workloads boosting demand for networking equipment and servers, though its stock swung between gains and losses and was modestly lower. Five Below shares also jumped after its second-quarter results beat expectations, with same-store sales up 14% and full-year guidance coming in well above street estimates, projecting low double-digit same-store sales growth.
HPE and Oracle Expand Networking Deal for AI Infrastructure
HPE and Oracle have announced an expanded collaboration to deploy HPE Juniper Networking across Oracle's AI data centers globally, supporting one of the industry's largest AI infrastructure buildouts. The multi-year agreement includes routing and switching platforms, networking support services, and financing, building on over a decade of engineering work between Oracle and Juniper Networks. HPE Juniper Networking PTX and MX routers and QFX and EX switches will be deployed across Oracle Cloud Infrastructure's data centers, with QFX switches providing high-density connectivity for large RoCEv2 AI backend networks. The companies are also collaborating on intelligent telemetry to improve visibility into network behavior and detect issues faster. As part of the agreement, HPE has issued Oracle warrants to purchase shares of HPE common stock.
Dell Surges 9% on Record $95B AI Backlog, Raises Revenue Guide
Dell Technologies shares surged 9% to $463 in early Wednesday trading after the company posted a record AI order book and raised its full-year outlook, lifting enterprise hardware peers along with it. Hewlett Packard Enterprise climbed 4% to $53 on read-across from its closest enterprise peer, while Super Micro Computer ticked up 1% to $37, lagging despite carrying the purest AI server mix of the three. Dell reported fiscal Q2 2027 revenue of $47 billion, up 58% year over year, with adjusted EPS of $7.04, up 203%, and exited the period with a record $95 billion AI backlog and an AI customer base above 6,500. The company raised its fiscal 2027 revenue guide by $25 billion to $192 billion, now expecting AI server revenue to triple to $74 billion for the year, and guided Q3 revenue to $49 billion at the midpoint with non-GAAP EPS of $6.50. CEO Jeff Clarke said, "With AI momentum accelerating and our opportunity expanding across the portfolio, we're raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year." The move reverses Tuesday's pre-earnings selloff and highlights how the AI hardware trade has broadened from chips into full-stack servers, storage, and networking, with NVIDIA stock up only 17% year to date versus Dell's 241% gain.
U.S. stock futures fell Wednesday as the 10-year Treasury yield climbed to its highest level in nearly three years, with rising oil prices adding to inflation concerns. The yield reached 4.814% intraday, its highest since November 2023, while Dow futures slipped 66 points, S&P 500 futures lost 0.2%, and Nasdaq 100 futures fell 0.6%. West Texas Intermediate crude surpassed $90 per barrel, a level not seen since late July, following U.S. military strikes against Iran, and Brent crude stood at $94.62, about $20 above pre-conflict levels. Bond yields rose globally, with Germany's 10-year yield at 3.39%, potentially its highest close in 15 years, and borrowing costs in France and Japan also drifted higher. Overseas equities fell broadly, with Japan's Nikkei down 2.85%, South Korea's Kospi off 4%, and European markets also weaker. Investors await ADP payrolls, factory orders, the Fed's Beige Book, and earnings from Hewlett Packard Enterprise, Snowflake, and Broadcom.
Arrow Electronics Expands HPE Offerings with Full Networking Portfolio
Arrow Electronics has been awarded distribution rights for the HPE Networking product portfolio across North America and select EMEA countries, broadening its ability to offer the complete HPE portfolio, including HPE Aruba Networking and HPE Juniper Networking solutions. The expansion enables channel partners to deliver end-to-end networking, hybrid cloud, AI, and infrastructure solutions with greater simplicity and scale. Arrow's global president of enterprise computing solutions, Eric Nowak, said the expanded relationship gives partners a stronger platform for growth, backed by technical expertise and enablement resources. HPE's vice president for North America Channel & Partner Ecosystem, Jeremiah Jenson, noted that Arrow's reach and technical depth complement HPE's global distribution model. The full HPE portfolio will be available in the United States, Canada, and select European countries, with local communications to follow where required.
HPE and Tottenham Hotspur Expand Partnership to Modernize Stadium Technology
HPE and Tottenham Hotspur Football Club announced an expansion of their long-standing partnership, with HPE named the Club's Official Hybrid Cloud and IT Enterprise Networking Partner to modernize the technology powering Tottenham Hotspur Stadium. The transformation will support every digital interaction across the supporter journey, from ticketless entry and cashless payments to mobile apps and high-density connectivity, while enabling rapid introduction of new services. At the heart of the transformation, HPE GreenLake will provide a unified hybrid cloud operating model, consolidating distributed environments from eight locations into two core environments using HPE ProLiant Compute Gen12 servers and HPE Alletra Storage MP. The Club is also deploying HPE Networking infrastructure, including one of the first stadium deployments of outdoor Wi-Fi 7, managed through HPE Aruba Central, to create an AI-native network with autonomous operations. HPE Financial Services will support a sustainable technology lifecycle, buying back eligible legacy equipment for refurbishment through its Technology Renewal Center, while HPE Services and Managed Services will provide end-to-end expertise and ongoing operational support.
The LTO Program Technology Provider Companies—Hewlett Packard Enterprise, IBM, and Quantum—reported that tape media capacity shipments rose 57% year-over-year in Q1 2026, driven by AI and archive demand. The growth reflects strong LTO-9 shipments and the early ramp of LTO-10, with a new 40 TB native-capacity cartridge also contributing. Annual shipments in 2025 totaled 160.3 exabytes, down 9% from the record 176.5 exabytes in 2024, but still the second-highest ever. Quantum CEO Hugues Meyrath cited unprecedented data growth and cost, energy, and cyber resilience pressures, while analyst Tom Coughlin noted cautious purchasing due to trade uncertainty. The LTO Program anticipates another record-setting year in 2026.
Hewlett Packard Enterprise Set to Report Q2 Earnings Wednesday
Hewlett Packard Enterprise will report its fiscal second-quarter earnings after the market close on Wednesday, with analysts expecting revenue to grow 31.2% year over year, up from an 18.5% increase in the same quarter last year. The company beat revenue expectations last quarter with $10.68 billion in sales, up 40% year on year, and also impressed with its annual recurring revenue. Analysts have generally reaffirmed their estimates over the past 30 days, though HPE has missed Wall Street revenue estimates multiple times in the last two years. Peers in the hardware and infrastructure segment have already reported, with HP posting 12.5% revenue growth and Everpure up 37.7%, both beating expectations. HPE shares have risen 4.3% over the past month, and the average analyst price target is $65.28, compared to the current price of $52.40.
The global UNIX market is projected to grow from $3.28 billion in 2025 to $3.36 billion in 2026, a compound annual growth rate of 2.3%, and reach $3.7 billion by 2030, according to a new report from ResearchAndMarkets.com. Growth is driven by digital transformation, data center expansion, and rising cybersecurity threats, with trends including hybrid cloud adoption, high-performance computing, and containerization. North America led the market in 2025, while Asia-Pacific is expected to be the fastest-growing region. The report profiles key players such as IBM, Hewlett Packard Enterprise, and Oracle, and covers segments including hardware, software, and services.
Tech-heavy earnings slate next week: AVGO, DOCU, NIO, DELL
Next week brings a tech-heavy earnings slate, with investors focused on AI infrastructure, cybersecurity, enterprise software, and semiconductor demand. Broadcom, Credo Technology, Dell Technologies, Ciena, Ambarella, and NetApp will provide signals on AI networking and data-center spending, while Snowflake, MongoDB, GitLab, UiPath, and DocuSign offer a read on enterprise software. Cybersecurity takes center stage with Palo Alto Networks and Zscaler, and Hewlett Packard Enterprise adds insight into AI server demand. Consumer and international names include lululemon and NIO, with NIO reporting Q2 2026 results before Tuesday's open, having delivered 107,658 vehicles in Q2, below its guidance, and options pricing a potential 8.76% move. Broadcom reports FQ3 after Wednesday's close, with AI semiconductor revenue expected at $16B, and DocuSign reports Q2 FY2027 after Thursday's close, with IAM platform surpassing $350M in ARR.
J.P. Morgan Expects Dell and HPE to Raise Guidance
J.P. Morgan analysts led by Joseph Cardoso expect Dell and HPE to increase their guidance during upcoming earnings reports, driven by strong AI and non-AI infrastructure demand. For Dell, the firm anticipates a raise to its FY27 revenue guidance, building on an already upgraded outlook of +47% growth, with AI server demand and improved non-AI infrastructure forecasts supporting further upside. Dell is scheduled to report second-quarter results on Tuesday, Sept. 1, with consensus estimates of $4.92 adjusted EPS and $44.5B revenue. For HPE, J.P. Morgan expects tailwinds across AI and non-AI infrastructure to support a raise to its FY26 revenue and earnings outlook, citing strength in Traditional Servers, Campus Networking, and Cloud Routing. HPE reports third-quarter results on Wednesday, Sept. 2, with consensus estimates of $0.93 adjusted EPS and $11.94B revenue. J.P. Morgan maintains Overweight ratings on both stocks, with price targets of $565 for Dell and $70 for HPE.
HPE to Report Q3 Earnings with Revenue Guidance of $11.5-$12.1 Billion
Hewlett Packard Enterprise is scheduled to report third-quarter fiscal 2026 results on September 2, after market close, with revenue guidance of $11.5-$12.1 billion and non-GAAP earnings per share of 88-93 cents. The Zacks Consensus Estimate for revenue is $12.1 billion, implying about 32% year-over-year growth, while the earnings estimate is 94 cents per share, reflecting a 113.6% increase. HPE has beaten earnings estimates in each of the trailing four quarters, with an average surprise of 16%, and the company's Earnings ESP of +6.54% and Zacks Rank #2 suggest another beat is likely. Growth is expected from AI infrastructure demand, networking, and hybrid cloud solutions, including offerings co-engineered with NVIDIA, and the Juniper acquisition has expanded its networking opportunity. HPE shares have surged 126.6% year-to-date, outperforming the industry's 103.3% growth, and trade at a forward P/S multiple of 1.45X versus the industry's 5.26X.
HPE Q3 Earnings Expected to Rise 113.6% to 94 Cents a Share
Analysts project Hewlett Packard Enterprise will report third-quarter earnings of 94 cents per share, up 113.6% year over year, on revenue of $12.12 billion, a 32.6% increase. The consensus estimate has been revised 2.4% higher over the past 30 days. Within that total, Services revenue is seen at $4.04 billion, Products at $8.09 billion, and Financing income at $234.76 million. By region, Americas is expected to bring in $5.73 billion, Asia Pacific and Japan $2.56 billion, and Europe, Middle East and Africa $4.06 billion. HPE shares have gained 15.4% in the past month, and the stock carries a Zacks Rank of 2, or Buy.
Netlist Stock Quintuples in 2026 on Samsung Deal and Legal Wins
Netlist, a small AI hardware company, has more than quintupled in value this year, outperforming Micron and Nvidia, and its rally may continue. The company reported $109.8 million in second-quarter revenue, a 163% year-over-year increase, and swung to a $1.4 million net profit from a $6.1 million loss a year earlier. A landmark five-year deal with Samsung provides $239 million upfront plus up to $32.9 million in quarterly royalties through 2031, and Netlist can buy up to $300 million in Samsung memory products annually. Following the Samsung settlement, Netlist sought exclusion and cease-and-desist orders against Micron, Supermicro, Hewlett Packard Enterprise, and Lenovo for patent infringement, which could block imports of memory chips into the U.S. Netlist also has a pending $445 million award against Micron from 2024, and it has named Alphabet, Nvidia, and Broadcom in another patent infringement case.
Hedge funds and mutual funds split on AI trade, Goldman says
Hedge funds and mutual funds took sharply different approaches to individual AI stocks during the second quarter, according to Goldman Sachs. Hedge funds bought Microsoft and Amazon while mutual funds reduced positions in both, and hedge funds cut exposure to Alphabet, Meta Platforms, Nvidia, Broadcom, Lam Research, Marvell Technology, Cisco Systems, Hewlett Packard Enterprise and Applied Materials. Mutual funds bought Advanced Micro Devices, Micron Technology and Sandisk while hedge funds reduced exposure to those stocks. Goldman identified 12 AI infrastructure stocks purchased by both groups, including American Electric Power, Bloom Energy, CoreWeave, Flex, NiSource, Seagate Technology, Talen Energy and Xcel Energy. The analysis covers 991 hedge funds with $5.4 trillion of gross equity positions and 504 large-cap active mutual funds with $4.6 trillion in equity assets.
Netlist filed new patent infringement actions with the U.S. International Trade Commission and a California federal court targeting Hewlett Packard Enterprise and others over DDR5 memory modules in August 2026. The filings come as HPE was recognized as a Leader in Gartner's 2026 Magic Quadrant for Enterprise Storage, highlighting its unified data platform and AI-focused Alletra infrastructure. HPE also presented its enterprise technology roadmap at the OCP APAC Summit in Taipei. The company's investment narrative projects $55.8 billion revenue and $4.8 billion earnings by 2029, requiring 12.9% yearly revenue growth and a $3.4 billion earnings increase from $1.4 billion today. Bearish analysts see revenue reaching only about $53.5 billion and earnings about $5.1 billion by 2029.
Super Micro, Dell Fall as Netlist Files DDR5 Patent Complaint
Super Micro Computer fell 4% and Dell Technologies dropped 3% after Netlist filed an International Trade Commission complaint over DDR5 memory module patents. The complaint names Super Micro, Micron Technology, Hewlett Packard Enterprise and Lenovo, targeting DDR5 RDIMMs and MRDIMMs used in AI-optimized servers. Dell was not named in the disclosed ITC complaint, making its decline a sympathy trade. Micron rallied 4% despite being named, and the iShares Semiconductor ETF gained 2%, signaling sector rotation rather than fading AI demand. Super Micro booked over $60 billion in new orders last quarter and guided fiscal 2027 revenue of $65 billion to $72 billion.
Super Micro, Dell, and HP Jump After Strong Lenovo Earnings
Shares of AI server and PC hardware makers rallied after Lenovo reported a blowout quarter. Super Micro Computer surged 10% to $41, Dell Technologies rose 3% toward $500, Hewlett Packard Enterprise gained 5%, and HP Inc. added 3%. Lenovo's April-to-June revenue of $26.94 billion beat Wall Street's $22.44 billion estimate, and its AI server pipeline jumped 157% sequentially to $54 billion. Super Micro also guided fiscal 2027 revenue to $65 billion to $72 billion, far above the $53.3 billion consensus, though negative operating cash flow remains a concern.
Morgan Stanley Upgrades HPE to Overweight With $69 Target
Morgan Stanley upgraded Hewlett Packard Enterprise to Overweight with a $69 price target after the stock surged 159% year-to-date to a fresh 52-week high of $58.79 on August 12, 2026. The upgrade cites hardware demand amid an AI boom, and shares opened the next morning up another 4.38% to $61.37. HPE's trailing P/E of 1,263 is distorted by $1.621 billion in goodwill impairment tied to the Juniper Networks acquisition, while the forward P/E sits at 14. Q2 FY26 revenue of $10.68 billion and non-GAAP EPS of $0.79 beat the company's own guidance of $0.51 to $0.55, and management raised FY26 free cash flow guidance to at least $3.5 billion, a figure originally targeted for FY28. Insiders are net sellers across 38 recent transactions, and the stock trades at roughly double its 200-day moving average of $30.66, making a pullback toward $48 a more measured entry zone.
Super Micro's $65B-$72B FY2027 Revenue Guidance Sends AI Server Stocks Surging
Super Micro Computer issued fiscal 2027 revenue guidance of $65 billion to $72 billion, far above the $52.5 billion consensus, driving its shares up 13% and lifting peers Dell Technologies and Hewlett Packard Enterprise by 5% and 3%, respectively. The company also reported fourth-quarter adjusted earnings per share of $1.70 on revenue of $11.1 billion, nearly double the prior year, and disclosed a record $60 billion order book. Analysts at Barclays, Citi, Goldman Sachs, and Bank of America raised their price targets on Super Micro but maintained cautious ratings, questioning whether the 17.6% gross margin can be sustained. NVIDIA shares rose 2.5% as the strong server demand signaled continued investment in GPU-powered AI infrastructure.
Morgan Stanley sees more upside in hardware stocks as memory chipflation worsens
Morgan Stanley analyst Erik Woodring says enterprise hardware stocks exposed to server and storage themes have further upside to earnings estimates as memory chip prices keep rising. Woodring notes enterprises are accelerating purchases of PCs, servers and storage arrays to lock in favorable prices and limit supply shortages, calling the trend a multi-year structural headwind. He highlights Hewlett Packard Enterprise, Everpure, TD Synnex and Lenovo as bullish picks. JPMorgan strategist Jay Kwon separately estimates the memory chip shortage will last at least two years, with demand broadening from GPU to CPU and remaining a key source of potential upward revisions. Sandisk CEO David Goeckeler said on his earnings call that the company has over four years of demand visibility.
Dell Technologies expands D&H Distributing partnership to full North American server and storage authorization
Dell Technologies has expanded its partnership with D&H Distributing Co., making D&H a fully authorized distributor for Dell's complete storage and server portfolio in the US and Canada. The agreement broadens Dell's distribution reach across North America for its datacenter and infrastructure products, leveraging D&H's channel relationships with resellers and solution providers to increase access for a wider set of customers. The move places Dell's AI-focused servers and storage in front of mid-tier and regional customers that large direct sales teams may not reach efficiently, though analysts have flagged concerns that AI servers can be margin dilutive and that wider distribution could sharpen price competition against rivals like Hewlett Packard Enterprise and Lenovo.
Intel announces $15 billion stock offering, GameStop may drop eBay bid
Intel fell 3% premarket after announcing a $15 billion common stock offering to fund general corporate purposes including capital expenditures and working capital. GameStop rose more than 1.5% on a Bloomberg report that it is weighing abandoning its $56 billion bid for eBay, which eBay rejected in May as not credible. Hewlett Packard Enterprise gained over 5% after Morgan Stanley upgraded the stock to overweight, citing an attractive risk/reward profile. Verisk Analytics tumbled more than 6.5% after a Delaware judge ruled it must proceed with its $2.35 billion acquisition of AccuLynx, a deal it had terminated in December. Apple declined 1% following a Jefferies downgrade to underperform, with analysts citing canceled plans for an all-glass iPhone. Rocket Lab rose nearly 3% ahead of its second-quarter earnings report after the bell. Berkshire Hathaway added 0.5% after reporting a 16% increase in second-quarter operating earnings, driven by manufacturing, service, retailing, and energy profits, though insurance investment income fell 9%. Archer Aviation surged after announcing the acquisition of three Boeing subsidiaries, with Boeing taking an undisclosed stake.
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