HPE Will Hit Its 2028 Targets 2 Years Early. Unstoppable Juggernaut or AI Hype?

2 days ago 6

Rich Duprey

Tue, June 2, 2026 astatine 10:13 AM CDT 3 min read

Quick Read

Hewlett Packard Enterprise (HPE) reported Q2 FY26 gross of $10.68B, up 40% year-over-year, with non-GAAP EPS of $0.79 crushing guidance of $0.51-$0.55, portion raising FY26 non-GAAP EPS guidance to $3.35-$3.45 (ahead of archetypal FY28 targets). Juniper Networks acquisition drove networking gross up 148.2% to $2.69B, with information halfway networking surging 233.3%, and servers roseate 32.7% to $5.45B.
HPE pulled guardant its multi-year fiscal roadmap by 2 years arsenic AI infrastructure and information halfway modernization investments accelerate, though insider selling astatine little prices and a 4.18x leverage ratio awesome caution connected sustainability.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Hewlett Packard Enterprise wasn't 1 of them. Get them present FREE.

Hewlett Packard Enterprise (NYSE:HPE) is the loudest banal connected Wall Street this morning. Shares are up 25% successful aboriginal trading to $58.75 aft the institution posted a 4th that pulled its multi-year roadmap guardant by 2 afloat years. The rally extends a stunning run: HPE is up 96.84% twelvemonth to day and 178.65% implicit the past year.

The Quarter That Reset the Model

Q2 FY26 gross deed $10.68 billion, up 40% twelvemonth implicit year, with non-GAAP EPS of $0.79 blowing past the company's ain $0.51 to $0.55 guide. Net income swung to a $595 cardinal nett from a $1.08 cardinal nonaccomplishment a twelvemonth ago. Non-GAAP operating borderline expanded to 13.3% from 8.0%, and escaped currency travel landed astatine $915 million.

CEO Antonio Neri framed the results directly:

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Hewlett Packard Enterprise wasn't 1 of them. Get them present FREE.

"HPE delivered an exceptional 4th with record-breaking revenue, higher-than-anticipated profitability, and accrued escaped currency flow, reflecting beardown execution and steadfast request crossed the business."

2028 Targets, Reached successful 2026

The header daze is the guide. HPE raised FY26 non-GAAP EPS to $3.35 to $3.45, gross maturation to 29% to 33%, and escaped currency travel to astatine slightest $3.5 billion. Those FY26 numbers already transcend the semipermanent FY28 targets HPE laid retired astatine its October 2025 Security Analysts Meeting. Management besides introduced an FY27 model calling for 12% to 16% non-GAAP EPS maturation and escaped currency travel of astatine slightest $4.5 billion.

Juniper Is the Engine

Networking revenue, supercharged by the Juniper Networks acquisition, exploded 148.2% to $2.69 billion, with information halfway networking up 233.3% and routing contributing $775 cardinal from a near-zero base. Servers, the AI infrastructure proxy, roseate 32.7% to $5.45 billion. Neri tied it together:

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