Hewlett Packard Enterprise shares climbed 19.4 percent week-on-week as continued investment in artificial intelligence drove investors to increase their exposure to the stock. The rally followed Oracle Corp.'s indication in an earnings call last week that it will keep pouring heavily into AI, which investors took as a cue to buy shares expected to benefit. Earlier in the month, Hewlett Packard Enterprise signaled an optimistic outlook, targeting full fiscal year 2026 revenue growth of 34 to 37 percent, with the networking segment alone expected to accelerate by 73 to 74 percent, and projecting GAAP earnings per share of $2.93 to $3.03 and non-GAAP earnings per share of $3.75 to $3.85. For the fourth quarter, the company targets revenues of $13.9 billion to $14.8 billion, GAAP earnings per share of $1.12 to $1.22 and non-GAAP earnings per share of $1.20 to $1.30. In the last quarter, net income attributable to shareholders reached $1.511 billion, up 447 percent from $276 million a year earlier, as net revenues rose 33.7 percent to $12.2 billion from $9.14 billion, with cloud revenues contributing $9 billion and networking revenues growing 74.9 percent to $2.9 billion. The board approved a dividend of $0.1425 per share payable on October 16, 2026, with a new cutoff date of Thursday, September 17, while data from Insider Monkey showed 85 hedge funds held the stock in the second quarter, up from 58 in the first quarter, with collective holdings rising 77.4 percent to $5.66 billion from $3.19 billion.
Hewlett Packard Enterprise CoHPE guided to strong FY26 revenue growth of 34-37% and Q4 targets, with net income up 447% and a dividend approved.
Oracle CorporationOracle indicated in its earnings call it will keep pouring heavily into AI, which lifted AI-linked stocks including HPE.
