TLDR
- HP Enterprise surged over 16% and Dell jumped 10.6% after Oracle reaffirmed its FY27 capital expenditure plans
- Oracle CFO confirmed spending will flow directly to AI rack, cooling and networking vendors including HPE and Dell
- HPE posted record Q3 FY2026 revenue of $12.2 billion, up 34% year-over-year
- RBC Capital Markets initiated Dell with an Outperform rating and a $640 price target, citing $95 billion in AI server backlog
- HP also rose after RBC initiated coverage with a Sector Perform rating and a $33 target
HP Enterprise and Dell Technologies shares jumped sharply on Friday after Oracle reaffirmed its capital expenditure guidance for fiscal year 2027. Oracle CFO Hilary Maxson said the spending would go directly to AI rack, cooling and networking suppliers, naming HP Enterprise and Dell as beneficiaries.
HP Enterprise shares climbed more than 16%, while Dell rose around 10.6%. HP also gained more than 8% on the day.
HPE Posts Record Results
HP Enterprise had already reported strong earnings before Friday’s rally. The company posted Q3 FY2026 revenue of $12.2 billion, up 34% year-over-year. Non-GAAP earnings per share came in at $1.11, the first time the company has crossed the $1.00 mark.
Free cash flow hit nearly $1 billion for the quarter. Management raised its full-year free cash flow guidance to at least $3.75 billion and set a FY2027 target of more than $5 billion.
Purchase commitments grew sharply, rising to $30 billion from $6 billion in the prior quarter. Networking commitments doubled quarter-over-quarter.
Earlier this month, HP Enterprise and Oracle announced a partnership. Oracle plans to deploy HPE’s routing and switching platforms across all its data centers as it scales AI infrastructure globally.
Oracle’s remaining performance obligations grew by $209 billion in Q1 to $664 billion, including more than $30 billion in new AI cloud contracts. That growth signals continued demand for the hardware HP Enterprise supplies.
Analysts Back Dell and HP
RBC Capital Markets initiated Dell with an Outperform rating and a $640 price target. Analyst David Paige said Dell exited Q2 FY2027 with $95 billion in AI server backlog, with the pipeline continuing to grow.
Paige noted the environment is supply-constrained rather than demand-limited, primarily due to memory availability. He expects the backlog to persist through FY27, giving visibility into FY28.
RBC also cited agentic AI as a driver of additional CPU and traditional server demand. Enterprise server refresh, PC refresh, and AI inference migration were listed as further growth vectors.
Large enterprises are signing multi-year deals of three to five years to secure supply access, RBC said.
For HP, RBC assigned a Sector Perform rating and a $33 target. The firm said HP is well positioned to benefit from AI PC adoption and edge computing demand. HP is targeting AI PC shipments of 60 to 70% by FY27, up from around 45% in Q3 FY2026.
Several analysts upgraded price targets on HP Enterprise following earnings. Bank of America raised its target to $88, Truist lifted its target to $70, and Evercore ISI maintained an Outperform rating.
HP Enterprise also announced a Networking Investor Day on September 30, 2026 in Sunnyvale, California. The event is being watched as a potential catalyst for the stock.
HP Enterprise shares were trading at $61.43 on Friday, approaching but still below the 52-week high of $64.25.
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