HPE Stock Soars After-Hours As AI Demand Spurs Expectation-Beating Sales Forecast

• Reports Q2 earnings of $0.79 per share, beating expectations of $0.53 per share.
• The laptop maker raised its FY26 revenue growth outlook to 29% to 33%, up from 17% to 22%, driven by AI demand.
• HPE estimates revenue growth to be in the range of 8% to 12% for FY27. 

Hewlett Packard Enterprise (HPE) share price surged 38% after-hours after the company furnished revenue and earnings forecasts that significantly beat analyst estimates owing to a surge in demand for AI tools and services. 

HPE reported Q2 adjusted earnings of $0.79 per share on revenue of $10.7 billion, significantly ahead of the $0.53 per share on revenue of $9.77 billion that analysts expected, as per data from Fiscal.ai. 

“Customers continue to invest in modernizing their infrastructure and scaling AI…,” said Antonio Neri, president and CEO of HPE. 

“HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business.” 

The overall Cloud & AI revenue came in at $7.71 billion and server revenue, which is a sub-division of the cloud and artificial intelligence unit, came in at $5.45 billion, both higher than what analysts expected.  

As more companies increase their exposure to AI and related technologies, the need and demand for infrastructure such as servers and large memory capacity are growing at an exceptional pace. Dell, which is a direct competitor to HPE, also reported robust earnings, primarily driven by a jump in server revenues. 

HPE Q3 and FY26 Guidance

The company raised its fiscal 2026 revenue growth outlook to a range of 29% to 33%, which was higher than the prior revenue growth forecast of 17% to 22% HPE guided for last quarter. 

For the third quarter, HPE estimates revenue to be in the range of $11.5 billion to $12.1 billion, higher than $10.88 billion expected by analysts surveyed by Fiscal.ai. HPE estimates GAAP diluted net EPS to be in the range of $0.84 to $0.89 and non-GAAP diluted net EPS(1) to be in the range of $0.88 to $0.93. 

CEO Antonio Neri also told in an interview to CNBC that traditional server bookings are up triple digits, and it is the biggest backlog the company has ever seen. 

FY27 Outlook 

HPE estimates revenue growth to be in the range of 8% to 12%, higher than the 5.3% growth analysts expect according to Bloomberg. 

HPE Retail View 

Retail sentiment on Stocktwits was “extremely bullish” with “extremely high” message volumes. 

One user expects HPE and DELL stock to go parabolic. 

HPE stock has soared 96% year-to-date.

Read More: S&P 500 And Nasdaq Rise To Record Highs, Powered By NVDA Gains Amid New PC Chip, While Trump’s Positive Commentary On US-Iran Supports Dow — NVDA, ARM, MGM, ZM, AMC In Focus

For updates and corrections, email newsroom[at]stocktwits[dot]com.