Key Highlights
- HPE shares climbed 4.7% to $53.28 in pre-market trading Wednesday before the company’s fiscal Q3 earnings announcement scheduled for after-hours
- Dell Technologies’ impressive $95 billion AI server backlog and stellar Q2 performance fueled optimism throughout the AI hardware sector, including HPE
- Deutsche Bank launched coverage on HPE with a Buy recommendation and $62 target; Bank of America increased its price objective to $82 from $80
- Wall Street forecasts approximately 32% revenue increase year-over-year and EPS expected to more than double from the prior year period
- HPE maintains a $6.3 billion AI server backlog, with approximately two-thirds allocated to enterprise and sovereign customer deployments
Hewlett Packard Enterprise (HPE) shares reached $53.28 during Wednesday’s pre-market session, climbing 4.7% above Tuesday’s closing price of $50.87, as market participants anticipated the company’s fiscal third-quarter 2026 financial results scheduled for after-hours release.
Hewlett Packard Enterprise Company, HPE
This upward momentum extended a 3.99% after-hours rally from Tuesday evening that elevated shares to $52.90, a movement sparked by Dell Technologies’ impressive Q2 financial performance.
Dell disclosed $46.97 billion in quarterly revenue alongside an unprecedented $95 billion AI server backlog, while simultaneously increasing its full-year financial outlook. This combination energized investor sentiment throughout the AI infrastructure sector, where HPE maintains a competitive presence.
HPE finished Tuesday’s regular trading session at $50.87, declining 2.62% during the day, before the after-hours rally reversed a significant portion of those losses.
Wall Street Upgrades Pre-Earnings
A pair of analyst moves contributed additional momentum ahead of the earnings release. On September 1, Deutsche Bank launched coverage with a Buy rating and established a $62 price objective. Meanwhile, Bank of America elevated its HPE target to $82 from a previous $80, highlighting the company’s strategic positioning within AI infrastructure markets.
These price objectives represent analyst projections and should not be interpreted as guaranteed future valuations.
Wall Street’s Revenue and Earnings Projections
Market consensus anticipates approximately 32% year-over-year revenue expansion for the company’s fiscal third quarter.
Wall Street analysts also project earnings per share will more than double versus the comparable quarter from the previous year.
HPE has surpassed consensus EPS forecasts in all four of its most recent quarterly reports, delivering an average beat of approximately 16%. Historical results do not ensure future outcomes.
HPE’s current AI server backlog totals $6.3 billion. Roughly two-thirds of this figure stems from enterprise and sovereign customer commitments, providing insight into demand sources.
The technology firm recently unveiled a “Saudi Made, Developed, Deployed” initiative in collaboration with Intel and Saudi Arabia’s Ministry of Communications and Information Technology. HPE has also expanded its manufacturing collaboration with Saudi company Alfanar, establishing formal local server production and assembly operations within the Kingdom.
Throughout the past year, HPE shares have appreciated 124%, fluctuating between a 52-week floor of $19.84 and a ceiling of $64.25. The company’s current market capitalization stands at approximately $67.36 billion.
Broadcom is scheduled to release its earnings Wednesday as well, maintaining investor attention on AI infrastructure stocks.
HPE’s fiscal Q3 financial report is scheduled for release following Wednesday’s market close.
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