TLDR
- HPE stock surged over 8% after Lenovo reported record revenue of $26.9 billion, up 43% year-over-year
- Goldman Sachs maintained a Buy rating with a $75 price target; Morgan Stanley upgraded to Overweight with a $69 target
- HPE’s last earnings showed $0.79 EPS and $10.68 billion in revenue, both beating estimates; revenue up 40% year-over-year
- Institutional investors own 80.78% of HPE; analyst consensus is “Moderate Buy” with an average target of $69.80
- Sector peers Dell Technologies and HP Inc. also rose in pre-market following Lenovo’s results
HPE stock opened at $58.78 on Thursday, up more than 8% on the day. The move was driven largely by Lenovo’s blowout quarterly results, which investors read as a positive signal for HPE’s server and AI infrastructure business.
Hewlett Packard Enterprise Company, HPE
Lenovo posted total revenue of $26.9 billion for its most recent quarter, a 43% jump year-over-year and the strongest quarter in the company’s history. Its infrastructure solutions division nearly doubled in size. That kind of beat, well above analyst consensus, told the market that enterprise demand for AI computing hardware is holding strong.
HPE was not the only beneficiary. Dell Technologies and HP Inc. also climbed in pre-market trading after the Lenovo numbers dropped, pointing to a broader sector re-rating rather than anything HPE-specific.
The move also had support from Wall Street. Goldman Sachs has HPE as one of its top U.S. hardware picks, with a Buy rating and a $75 price target. Morgan Stanley upgraded HPE to Overweight earlier this week, setting a $69 price target and arguing that HPE’s earnings power is being underestimated by the market.
Super Micro Computer had already set a positive tone for the sector the session before, when it released blowout fiscal 2027 revenue guidance that lifted sentiment across AI infrastructure names.
Strong Earnings Already in the Books
HPE’s most recent earnings report, released June 1st, gave investors plenty to work with. The company posted $0.79 EPS against a consensus estimate of $0.54, a beat of $0.25. Revenue came in at $10.68 billion versus expectations of $9.78 billion, up 40% year-over-year.
For context, the same quarter last year saw HPE report a loss of $0.82 per share. The turnaround has been sharp.
HPE guided full-year fiscal 2026 EPS of $3.35 to $3.45, and Q3 2026 EPS of $0.88 to $0.93. Sell-side analysts on average expect $2.90 EPS for the current year.
Institutional Interest and Analyst Targets
Institutional ownership sits at 80.78% of HPE. Oak Thistle LLC picked up 82,918 HPE shares in Q2, valued at around $3.74 million. Several other funds also added or initiated positions in recent quarters.
Of the analysts covering the stock, eleven have a Buy rating and six have a Hold.
The average price target is $69.80. Raymond James, Argus, Loop Capital, and Bank of America all issued or raised Buy-equivalent ratings following the June earnings print, with Bank of America setting the highest target at $80.
HPE pays a quarterly dividend of $0.1425, equivalent to a 1.0% annual yield. The 52-week range runs from $19.84 to $64.25. The 50-day moving average stands at $47.90, while the 200-day sits at $34.10.
SVP Kirt P. Karros sold 18,785 HPE shares on June 22nd at an average price of $48.50, totaling just over $911,000, under a pre-arranged 10b5-1 trading plan.
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