Evercore ISI Removes HPE From Tactical Outperform List, Keeps Long-Term Bull Case

Core Viewpoint - Hewlett Packard Enterprise Company (NYSE:HPE) has shown strong financial performance in fiscal Q4 2025, but faced some challenges in revenue guidance for the upcoming quarter, leading to its removal from Evercore ISI's "Tactical Outperform" list while maintaining a long-term positive outlook [2][3]. Financial Performance - HPE reported record fiscal Q4 2025 earnings with revenue of $9.7 billion, reflecting a 14% year-over-year increase [3]. - Non-GAAP operating profit increased by 26%, indicating strong profitability [3]. - Free cash flow for the quarter was $1.9 billion, exceeding expectations, which supports the company's solid fiscal performance [4]. Future Outlook - Based on the positive momentum, HPE raised its fiscal 2026 non-GAAP diluted EPS guidance and increased the midpoint of its free cash flow outlook [5]. - The company plans to sell its remaining 19% stake in H3C for approximately $1.4 billion, with the deal expected to close in the first half of 2026 [5]. - Proceeds from the sale are intended to help reduce net leverage to around 2x by the end of fiscal 2027 [5]. Strategic Moves - HPE has completed the acquisition of Juniper Networks, which is expected to enhance its position in the networking sector and create a new industry leader [6]. - Integration efforts are progressing well, with positive feedback from employees, customers, and partners [6]. Company Overview - HPE is a global IT company focused on edge-to-cloud solutions, offering a portfolio that includes servers, storage, networking, software, and services to support business operations [7].