How Schwab Network’s view on $HPE changed

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2026-09-03Bullish

“HPE CFO on Company "Drinking Its Own Champagne" Thanks to AI Demand”

HPE's strong AI/sovereign positioning and execution support continued growth.

HPE emerges from a record quarter with another upward revision of expectations, but a big part of the story is the demand for artificial intelligence from enterprises and sovereign customers all the way to large-scale deployments like Oracle.

But the question now is how this demand will, of course, translate into more sustainable growth in revenues and margins in the future. I mean, congratulations on all this success this quarter, from record orders to record revenue and profitability.

And he raised expectations, of course, once again . So, from your position as a financial manager, what actually drives confidence that HPE can maintain this level of demand, and therefore growth, in the future?

Watch the source00:02

2026-09-03Bearish

“Half of SPX Stocks Below 50-Day SMA, NVDA Buying Hugging Face for $12.93B”

HPE stock weakness is driven by margin concerns (40.1% gross margin, expected to decline) despite strong top-line growth.

Yes, it outperformed in revenue. Revenue growth rate reached $12.2 billion. That was higher than expectations, which were around $12 billion. It's only a slight advantage. The adjusted earnings per share amounted to $1.11.

That was also higher than expected. If you look at some of the internal details of this matter. The networking aspect of their business achieved a 75% year-on-year growth, to approximately $2.9 billion .

Cloud and artificial intelligence revenues reached $9 billion . That was an increase of more than 25% year-on-year. Server revenues specifically grew by more than 35% to reach approximately $6.8 billion.

Total adjusted orders jumped 42% year-on-year, continuing to outpace revenue growth.

Watch the source06:24