• JPMorgan said secular tailwinds are driving HPE's "robust demand backdrop" across its product segments.
• Out of 23 analysts covering the stock, 11 rate HPE a ‘Buy’ or higher; 11 rate it ‘Hold’ and one ‘Sell,’ according to data from Koyfin.
• For the second quarter, total revenue came in at $10.7 billion, and adjusted earnings per share were $0.79, both comfortably beating the consensus estimates.

Shares of enterprise computing solutions provider HPE (HPE) surged nearly 30% in Tuesday’s premarket trading and are on track to open at a fresh record high for a second consecutive day, if session gains hold. 

Following its beat-and-raise second-quarter results, JPMorgan cheered HPE, saying the company enjoys a "robust demand backdrop" across its product segments, driven by secular tailwinds beyond the pull-forward of demand ahead of price increases, according to TheFly.

The firm also said that it believes HPE's stronger medium-term earnings outlook warrants a higher valuation multiple. It maintained its bullish ‘Overweight’ rating and raised its price target by $31 to $68, implying more than 44% upside potential as of the stock’s previous closing price.

Other Analyst Takeaways

At the time of writing, at least 13 firms raised their price targets on the company, and one analyst turned bullish. 

Citi noted that HPE reported a "strong beat and raise" quarter, driven by solid demand for agentic AI compute; Truist said HPE’s results were stellar and its very promising outlook implies "white-hot" demand backdrop, which is likely to persist for at least another six quarters; Morgan Stanley highlighted that HPE is seeing material upside to results as server pricing and orders are far stronger than 90 days ago, TheFly reported.

Bank of America assigned the highest price target of $80 to HPE, implying an upside potential of more than 70%. The firm said it sees potential upside to fiscal 2027 topline growth due to strong demand, continued inflation and pricing, and further wins in networking.

Out of 23 analysts covering the stock, 11 rate HPE a ‘Buy’ or higher; 11 rate it ‘Hold’ and one ‘Sell,’ according to data from Koyfin.

HPE Results At A Glance

For the second quarter (Q2), the company’s total revenue surged 40% to $10.7 billion, beating the $9.77 billion consensus estimate polled by Fiscal AI. Adjusted earnings per share (EPS) were $0.79, handily beating the consensus estimate of an adjusted EPS of $0.53.

For the third quarter, HPE expects revenue between $11.5 billion and $12.1 billion, ahead of the $10.88 billion estimate. It forecast adjusted EPS of $0.88 to $0.93, with the midpoint largely in line with the $0.92 estimate.

For the full year, the company now expects revenue to grow 29% to 33%, revised from the previously guided 17% to 22%. 

What Retail Thinks About HPE

On Stocktwits, retail sentiment toward the HPE stock remained in ‘extremely bullish’ territory over the last 24 hours. 

One user on the platform noted that the company’s latest results highlight the strength of enterprise spending on compute and data center expansion.

https://stocktwits.com/minimalistreview/message/655070976 

Another user said HPE and peers in the sector are gaining momentum amid capital rotation across the broader computer and infrastructure space.

https://stocktwits.com/researchcompass/message/655064854 

HPE stock has nearly doubled in value so far this year and nearly tripled over the past 12 months, outperforming the benchmark S&P Index.

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