Hewlett Packard Enterprise (NYSE:HPE) grew its share price by 19.4 percent week-on-week amid the growth opportunities from continued investment outpour in the artificial intelligence sector, which pushed investors to increase their exposure to its stock.
Investor optimism was supported by Oracle Corp.’s indication in an earnings call last week that it will continue to pour heavily into AI. Investors took it as a cue to invest in shares that are expected to largely benefit from the news.
Hewlett Packard Enterprise (NYSE:HPE) is a technology giant providing business-focused IT infrastructure, software, and services. It is heavily focused on servers and AI compute designed for data centers, complex enterprise applications, and AI models, among others.
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Higher FY26 Growth Outlook
Earlier in the month, Hewlett Packard Enterprise (NYSE:HPE) signaled a highly optimistic outlook about its business, thanks to the record backlogs in the third quarter driven by strong customer demand.
For the full fiscal year 2026, the company is targeting to grow its revenues by 34 to 37 percent, with the networking segment alone expected to accelerate further by 73 to 74 percent.
Earnings per share (EPS) are projected at $2.93 to $3.03 on a GAAP basis, and at $3.75 to $3.85 on a non-GAAP basis.
For the fourth quarter alone, revenues are targeted at $13.9 billion to $14.8 billion. GAAP EPS is expected at $1.12 to $1.22, while non-GAAP EPS is projected at $1.20 to $1.30.
Last quarter, Hewlett Packard Enterprise (NYSE:HPE) raked in $1.511 billion in net income attributable to shareholders, marking a 447 percent jump from only $276 million in the same period last year.
Net revenues rose by 33.7 percent to $12.2 billion from $9.14 billion year-on-year, with cloud revenues contributing the largest chunk at $9 billion, or a 25.4 percent increase year-on-year.
Networking revenues grew by 74.9 percent to $2.9 billion.
Dividends
Investors are expected to load up on shares of Hewlett Packard Enterprise (NYSE:HPE) heading into Thursday, September 17—the new cutoff date for its next dividend payment.
According to the technology firm, its board of directors approved the distribution of dividends amounting to $0.1425 per share to all its common shareholders, payable on October 16, 2026.
Hedge Funds Want More Exposure
Institutional investors continued to show their bullish stance for companies riding the artificial intelligence boom, including Hewlett Packard Enterprise (NYSE:HPE), as evidenced by the whopping jump in the number of hedge fund holders and their committed capital in the second quarter of the year.
