Here’s What to Expect From Hewlett Packard Enterprise’s Next Earnings Report

Core Insights - Hewlett Packard Enterprise Company (HPE) is set to release its Q1 2026 earnings, with analysts projecting an EPS of $0.51, reflecting a 30.8% increase from $0.39 in the same quarter last year [2] - For fiscal 2026, the expected EPS is $1.95, which is a 26.6% increase from $1.54 in fiscal 2025, and a further rise to $2.33 is anticipated in fiscal 2027, representing a year-over-year growth of approximately 19.5% [3] Company Performance - HPE's stock has declined by 11.3% over the past 52 weeks, underperforming the S&P 500 Index's 13.7% increase and the State Street Technology Select Sector SPDR ETF's 21.8% return during the same period [4] - In Q4, HPE reported a revenue growth of 14.4% year-over-year to $9.7 billion, with an adjusted EPS of $0.62 that exceeded expectations; however, revenue missed estimates due to a decline in AI server shipments and softened storage demand [5] - Management's forward guidance was weaker than Wall Street's expectations, contributing to market skepticism despite some positive earnings news [5] Market Sentiment - Following the earnings report, Evercore ISI removed HPE from its "Tactical Outperform" list, leading to a decline in the stock price [6] - The broader U.S. IT hardware sector has been downgraded by Morgan Stanley, citing tightening corporate tech budgets due to economic uncertainty and rising component costs, with surveys indicating minimal growth in hardware spending for 2026 [6] - Concerns over tariff impacts and cost inflation have left HPE in a cautious market environment, despite some momentum in AI [6]