Hewlett Packard Enterprise surged after reporting $10.7B revenue, 40% YoY growth, and raised fiscal 2026 guidance.
Goldman Sachs raised its price target on Hewlett Packard Enterprise (HPE) to $79 from $32, maintaining a Buy rating after the company posted record fiscal Q2 2026 results. Revenue hit $10.7 billion, up 40% year-over-year and exceeding consensus estimates of $9.76 billion, driven by a 148% surge in networking segment revenue to $2.7 billion.
HPE also reported all-time highs in gross margin (36.5%, up 810 basis points YoY), non-GAAP EPS, and free cash flow. The AI and cloud segment grew 23% to $7.7 billion, with server revenue climbing 33%. Management raised full-year guidance, projecting 29%-33% revenue growth and at least $3.5 billion in free cash flow.
Goldman cited HPE’s strong position in AI infrastructure as a key driver for the revised target, following the Juniper Networks acquisition and robust demand in data center networking, which soared 233% YoY.