TLDR
- HPE stock climbed 1% Thursday, reaching a fresh all-time high after a record close Wednesday.
- The company landed a $1.2 billion order from cloud firm Vultr for AMD-powered Helios AI server racks.
- HPE raised its fiscal 2027 networking revenue growth outlook to the high-teens to low-20s range.
- Citigroup lifted its price target to $92 and kept a Buy rating on the stock.
- CEO Antonio Neri and a company director both sold stock in recent weeks under prearranged trading plans.
HPE stock rose 1% on Thursday. That pushed it to a new all-time high, building on a record close the day before.
The year has been kind to the networking and server maker. Shares are up 166% so far in 2026.
Hewlett Packard Enterprise Company, HPE
The rally ties back to one theme: AI demand. Data centers need more servers and faster networking gear, and HPE sits right in the middle of that build-out.
CFO Marie Myers summed it up plainly on Wednesday. “Demand is continuing to outpace supply,” she told Yahoo Finance, adding that AI tailwinds aren’t fading anytime soon.
Networking Outlook Raised
At its investor day, HPE said fiscal 2026 networking orders should top $3 billion. That beats the company’s own third-quarter guidance of $2.5 billion to $3 billion.
Executives also bumped up the fiscal 2027 revenue growth forecast for the networking unit. The new range sits in the high-teens to low-20s percent, with operating margins expected in the mid-to-high 20s.
Networking chief Rami Rahim pointed to the Juniper and Aruba combination as a reason for confidence. He told investors the market opportunity across networking keeps growing.
The bigger headline came from Vultr. The privately held cloud company ordered $1.2 billion worth of HPE’s new Helios AI server racks, which run on AMD chips.
It’s HPE’s first order for the Helios system. The racks will go into Vultr’s U.S. data centers.
Myers described the hardware with some enthusiasm. She called the switch unveiled on the show floor “a work of art,” noting it packs in 1,700 copper cables.
Wall Street took notice. Citigroup raised its price target from $76 to $92 and kept a Buy rating. Morgan Stanley, Barclays, UBS and Zacks Research all adjusted targets or ratings this quarter too, with the average analyst target now at $71.88.
Insider Sales Continue
Not everyone is adding to their stake. CEO Antonio Neri sold 250,000 shares on September 11 at an average price of $60.44, a transaction worth about $15.1 million under a 10b5-1 trading plan.
Director Gary Reiner also sold stock that month, offloading 17,000 shares at an average of $56.91. Both sales were disclosed in SEC filings and cut each insider’s position by roughly 15% to 21%.
Insiders now own just 0.44% of the company’s stock. Institutional investors hold a much bigger chunk, at 80.78%.
The company’s last earnings report, posted September 2, beat expectations. HPE posted $1.11 in earnings per share against a $0.93 estimate, on revenue of $12.21 billion versus $11.97 billion expected.
That revenue figure was up 33.7% year over year. HPE has guided for $3.75 to $3.85 in full-year EPS.
HPE also confirmed its quarterly dividend of $0.1425 per share, payable October 16 to shareholders of record as of September 17. That works out to an annualized yield of 0.9%.
The stock’s 50-day moving average sits at $55.04, well below Thursday’s trading levels. Its market cap now stands at $85.75 billion.
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