NYSEInformation TechnologyCommunication EquipmentSnapshot 2026-07-07
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Track HPE free→Intact: The reason to own it still holds.
HPE is growing fast with networking revenue up 148% year over year. Free cash flow is improving, targeting at least $3.5 billion in FY26. The company benefits from strong AI-driven demand and pricing power. Earnings per share are expected to rise steadily next year.
The recent sharp selloff shows investor concerns. Growth may slow below the 72% to 75% target for networking revenue. Free cash flow might not reach $3.5 billion. Management volatility could hurt execution.
The price is about 10% below our fair value near $48. Analysts expect 21% revenue growth, which is below HPE's current strong growth. Our fair value is 28% below the Street median, reflecting cautious optimism.
Breaks if: EPS falls below $3.0 in FY26 or $3.5 in FY27
Breaks if: Free cash flow falls below $3.0 billion in FY26
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
HPE aims to generate at least $3.5 billion in free cash flow for fiscal year 2026.
Stated in 3 of last 3 quarters. Free cash flow was $0.9 billion, an increase of $1.8 billion from the prior-year period, showing significant progress towards the $3.5 billion target. The trajectory is delivering on management's stated priority.
“HPE is raising its free cash flow guidance and now expects free cash flow to be at least $3.5 billion.”
“HPE is also raising its free cash flow guidance and now expects free cash flow to be at least $2.0 billion.”
“HPE expects fiscal year 2026 free cash flow to be $1.5 billion to $2.0 billion.”
Breaks if: Networking revenue growth falls below 60% in FY26
HPE aims to increase its Networking segment revenue by 72% to 75% for FY26.
Stated in 3 of last 3 quarters. Networking revenue was $2.7 billion, up 148.2% from the prior-year period, indicating strong progress towards the 72% to 75% growth target. The trajectory is delivering on management's stated priority.
“HPE is raising revenue growth expectations for the Networking segment to 72% to 75%.”
“HPE is raising revenue growth expectations for the Networking segment to 68% to 73%.”
“HPE is reaffirming its FY26 revenue growth outlook range of 17% to 22%.”
Breaks if: Total revenue growth falls below 7% in FY27
HPE aims to increase its Networking segment revenue by 72% to 75% for FY26.
Stated in 3 of last 3 quarters. Networking revenue was $2.7 billion, up 148.2% from the prior-year period, indicating strong progress towards the 72% to 75% growth target. The trajectory is delivering on management's stated priority.
“HPE is raising revenue growth expectations for the Networking segment to 72% to 75%.”
“HPE is raising revenue growth expectations for the Networking segment to 68% to 73%.”
“HPE is reaffirming its FY26 revenue growth outlook range of 17% to 22%.”
