HPE

Alphabet's Q1 2026 free cash flow collapsed 46% while capex more than doubled, and Meta's 2025 FCF dropped 19% despite 22% revenue growth. HPE is up 73% YTD and Caterpillar now trades at 48x earnings, meaning the value stock rotation Hough recommended is largely already priced in. At 32x projected free cash flow versus 22x earnings, the S&P 500 leaves little margin for error when AI capex distorts reported profits. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today. On a recent episode of Barron's Streetwise, host Jack Hough answered a listener named William who was nervous about how much money he had made in AI-adjacent names like Dell (NYSE:DELL) and HPE (NYSE:HPE). Hough's answer had a number in it that should probably make everyone else nervous too. "You can look at the S&P 500 right now and you can say, okay, it trades at 22 times projected 2026 earnings. That's kind of expensive. But it trades at 32 times projected free cash flow. That's extraordinarily expensive." The index is up 9.22% year to date, and the gap between what companies are earning on paper and what they are actually converting into cash is now the most important argument on Wall Street. Hough's explanation is worth understanding because it is not complicated. When a hyperscaler spends billions on GPUs and data centers, that capex gets depreciated over years, so only a sliver hits the income statement each quarter. Meanwhile, the companies selling picks and shovels (servers, switches, generators) book the corresponding revenue immediately. So the whole ecosystem's reported earnings look terrific, while the cash actually leaving the building tells a different story. Hough cited Google's projected 2025 profit of $173 billion against free cash flow of only $19 billion, and Meta's $84 billion in earnings against roughly $400 million in cash burn as the shape of the problem. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today. Those specific figures are directional, and the actual reports rhyme with them. Alphabet (NASDAQ:GOOGL) posted FY2025 free cash flow of $73.3 billion, up just 0.7% year over year, even as capex jumped 74% to $91.4 billion. In Q1 2026 it got worse. FCF collapsed 46.63% to $10.12 billion while capex...

It has been about a month since the last earnings report for Hewlett Packard Enterprise (HPE). Shares have lost about 19.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hewlett Packard Enterprise due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Hewlett Packard Enterprise Company before we dive into how investors and analysts have reacted as of late. Hewlett Packard Enterprise reported better-than-expected results for second-quarter fiscal 2026. HPE’s non-GAAP earnings of 79 cents per share beat the Zacks Consensus Estimate by 46.3% and increased 107.9% year over year. HPE posted revenues of $10.7 billion for the quarter, beating the Zacks Consensus Estimate by 8.7%. The company’s revenues increased 40.0% year over year. HPE’s quarterly performance was supported by strong demand across the portfolio, with orders more than doubling year over year and driving a record backlog. Management also highlighted progress in Juniper integration and the Catalyst initiative, which remained ahead of schedule. Hewlett Packard’s Networking segment generated $2.7 billion in revenues in the second quarter of fiscal 2026, up 148.2% year over year. The segment’s operating profit margin was 21.6%, down from 25.0% in the year-ago quarter. Within Networking, Campus & Branch revenues were $1.3 billion, up 50.2% year over year. Data Center Networking revenues were $320 million, up 233.3%, and Security revenues were $273 million, up 155.1%. Routing revenues were $775 million compared with $1 million in the year-ago quarter. The Cloud & AI segment reported $7.7 billion in revenues, up 22.9% year over year, with an operating profit margin of 12.4%, up from 6.6% in the prior-year period. Within Cloud & AI, Server revenues were $5.5 billion, up 32.7% year over year. Storage revenues totaled $1.2 billion, up 2.4%, while Financial Services contributed $0.9 billion, up 5.6% year over year. HPE’s Corporate Investments and Other revenues came in at $281 million, up 3.3% from the prior-year period. Hewlett Packard’s non-GAAP gross profit for the second quarter of fiscal 2026 was $3.94 billion compared with $2.24 billion in the year-ago quarter, while the non-GAAP gross...

Micron Technology MU reported third-quarter fiscal 2026 non-GAAP earnings of $25.11 per share, beating the Zacks Consensus Estimate by 17.39%. The company reported earnings of $1.91 per share in the year-ago quarter.Revenues soared 345.7% year over year to $41.46 billion and surpassed the Zacks Consensus Estimate by 12.91%. Revenues jumped 73.7% sequentially. The upside was driven by robust AI-led memory demand, with data center revenues exceeding $25 billion, an annualized run rate of more than $100 billion.Micron announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the reported quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period. Micron Technology, Inc. price-consensus-eps-surprise-chart | Micron Technology, Inc. Quote The company expects approximately half or more of its revenues to eventually be under SCAs. Under the agreements signed so far, Micron projects $22 billion in cash deposits and related financial commitments, supporting longer-term supply visibility and financial predictability. Micron’s top-line growth benefited from tight DRAM and NAND supply, stronger pricing and accelerating demand tied to AI infrastructure. MU noted that industry demand for both DRAM and NAND continues to significantly exceed supply.DRAM revenues were $31.3 billion, accounting for 76% of total revenues in the fiscal third quarter. DRAM revenues increased 67% sequentially, helped by low-single-digit bit shipment growth and a low-60s percentage increase in average selling price (ASP).NAND revenues were $9.9 billion, representing 24% of total revenues. NAND revenues increased 99% sequentially, driven by a mid-single-digit increase in bit shipments and a mid-80s percentage rise in ASP. Cloud Memory Business Unit revenues were a record $13.77 billion, up 77.7% sequentially and 306.6% year over year. Core Data Center Business Unit revenues were a record $11.52 billion, up 103% sequentially and 653.2% year over year.Mobile and Client Business Unit revenues were a record $11.52 billion, up 49.4% sequentially and 254% year over year. The sequential revenue growth was driven by higher pricing.Automotive and Embedded Business Unit revenues were a record $4.63 billion, up 71.1% sequentially and 311.2% year over year. The improvement reflected higher pricing and higher bit sh...

Spending on artificial intelligence (AI) is not slowing down. Companies that are addressing the growing demand for computing hardware and software are reporting strong revenue and earnings. Three companies that recently delivered strong earnings results -- Hewlett Packard Enterprise (NYSE: HPE), Micron Technology (NASDAQ: MU), and Palantir Technologies (NASDAQ: PLTR) -- all exceeded Wall Street expectations. Let's take a look at what is driving their growth and whether the momentum makes them solid buys for a long-term investor. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Investment is pouring into AI-optimized data centers to support mission-critical workloads across training and inferencing. These data centers need fast networking equipment to connect and transmit data between thousands of chips. This is opening up a new growth avenue for HPE, one of the leaders in enterprise services and technology infrastructure. Its latest quarter showed accelerating demand. Revenue grew 40% year over year, up from 18% in the previous quarter. Strong revenue drove a massive earnings beat, with adjusted earnings per share of $0.79 -- above analyst estimates of $0.53. After orders more than doubled, management now expects to hit its 2028 earnings target two years early. HPE's recent acquisition of Juniper Networks strengthens its competitive position. Juniper's advanced networking and AI-driven automation capabilities will complement HPE's servers and storage business, creating a full-stack AI infrastructure offering. Management indicated that cross-selling products is already leading to larger deals. Given these trends and management's raised outlook for the year, HPE stock may have room to run. It trades at a forward price-to-earnings multiple of 14, which looks cheap relative to analysts' estimates calling for earnings to grow at an annualized rate of 29% over the next several years. Micron has been one of the hottest stocks in the market this year, driven by a severe memory bottleneck for AI workloads. Memory demand has historically been highly cyclical, but investors are betting that AI is creating a more sustainable long-term growth trajecto...

Hewlett Packard Enterprise’s (HPE) first quarter was marked by robust demand across AI, networking, and cloud infrastructure, helping the company deliver results well above Wall Street’s expectations. Management pointed to a surge in orders—outpacing even the strong 40% revenue growth—as evidence of broad customer investment in modernizing IT environments. CEO Antonio Neri highlighted rapid progress integrating Juniper Networks and noted that the combined networking portfolio’s traction, especially in campus, branch, and AI-driven networks, was a key driver of performance. Product innovations, such as self-driving network capabilities and momentum in AI systems, were also cited as core contributors. Is now the time to buy HPE? Find out in our full research report (it’s free). Revenue: $10.68 billion vs analyst estimates of $9.78 billion (40% year-on-year growth, 9.2% beat) Adjusted EPS: $0.79 vs analyst estimates of $0.53 (48% beat) Revenue Guidance for Q2 CY2026 is $11.8 billion at the midpoint, above analyst estimates of $10.85 billion Management raised its full-year Adjusted EPS guidance to $3.40 at the midpoint, a 41.7% increase Operating Margin: 7%, up from -14.5% in the same quarter last year Annual Recurring Revenue: $3.18 billion (42.8% year-on-year growth, beat) Market Capitalization: $65.15 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Asiya Merchant (Citi) asked about the durability of enterprise demand amid price inflation and concerns of a future demand cliff. CEO Antonio Neri responded that customer urgency to adopt AI and modernize technology remains strong, with no evidence of order pull-ins or cancellations. Wamsi Mohan (Bank of America) requested a breakdown of growth drivers across networking segments and free cash flow outlook. Neri described balanced momentum in campus, branch, and data center networking, while CFO Marie E. Myers attributed free cash flow strength to operating profit growth and reduced synergy charges next year. Amit Daryanani (Evercore) questioned whether supply or demand is the bigger constraint for future growth. Neri stated that supply availability, not demand, is t...

Interested in Dell Technologies Inc.? Here are five stocks we like better. Dell Technologies posted the strongest quarterly results among the three, with revenue rising 88% year-over-year and AI server sales surging over 700% year-over-year. Super Micro Computer, Dell, and Hewlett Packard Enterprise all reported significant earnings beats, with each stock posting double-digit gains following their reports. Analysts see the most upside potential in HPE, with a consensus price target near $65 implying almost 20% gains from current levels. AI server stocks are no longer moving on hype alone. Three of the most well-known artificial intelligence (AI) server companies reported earnings reports within the last month—Super Micro Computer (NASDAQ: SMCI), Dell Technologies (NYSE: DELL), and Hewlett Packard Enterprise (NYSE: HPE)—and the market’s reaction was anything but muted, with each company seeing massive up moves after their latest reports were released. → Buy the Dip? Broadcom's AI Moat Is Wider Than Ever The rally across these three names shows that Wall Street is still willing to chase the AI infrastructure trade, but the biggest upside may belong to the companies turning AI demand into measurable earnings momentum. Supermicro shares surging over 24.5% afterward they reported fiscal Q3 2026 earnings on May 5 , despite a big-time sales miss. → Rocket Lab Is Down 24% From Its 52-Week High—Pullback or Problem? Revenue came in at $10.24 billion, skyrocketing by more than 123% year-over-year (YOY). However, this was far below Supermicro’s own estimates of at least $12.3 billion. Meanwhile, its adjusted earnings per share (EPS) of 84 cents smashed expectations of 63 cents. Overall, investors seemed to look very favorably on SMCI’s improved bottom line. → From Runway to Riches: Victoria's Secret's New Look The company continued to show a trade-off between revenue growth and its very low adjusted gross margin. While sales fell short of expectations, adjusted gross margin improved by 370 basis points to 10.1%. This improvement was good to see, but whether its will hold up consistently over time remains questionable. Later in May and in early June, SMCI rode the wave of other AI server stocks that posted extremely strong results. SMCI shares surged by approximately 68% in May, marking the stock’s best monthly return since February 2024, when shares rose over 63%. Despi...

Broadcom (AVGO) stock sinks further in Thursday trading despite topping estimates for fiscal second quarter earnings and revenue, while also outpacing forecasts on third quarter guidance. Northwestern Mutual Wealth Management Company CIO Brent Schutte joins Yahoo Finance Senior Reporters Ines Ferré and Brooke DiPalma in assessing Broadcom's post-earnings stock reaction compared to other AI players.

Shares of Hewlett Packard Enterprise (NYSE: HPE) have been on a tear. The enterprise-hardware company's stock has nearly doubled over the past month and is up roughly 130% year to date as of this writing, far outpacing the S&P 500. A record quarter reported on June 1 only fueled the bull case for the stock: revenue jumped 40% year over year to $10.7 billion, and non-GAAP (adjusted) earnings per share more than doubled. Management also lifted its full-year forecast so much that its new fiscal 2026 targets now top what it had previously projected for fiscal 2028. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » With the stock surging and the artificial intelligence (AI) build-out front and center, the question is whether HPE's results signal that the AI server trade is heating up or it's become overhyped. HPE's server revenue rose 33% year over year to $5.5 billion in its fiscal second quarter of 2026 (the period ended April 30, 2026), up 29% from the prior quarter. That came alongside $1.8 billion in new AI systems orders during the quarter, which lifted the company's AI systems backlog to $5.9 billion heading into fiscal Q3 -- orders management importantly said skew toward enterprise and sovereign customers rather than just a handful of large cloud deals. And the demand is broadening even further. HPE said its AI momentum is no longer concentrated in model-training clusters; inference and agentic workloads are now driving traditional server sales alongside purpose-built AI systems. Indeed, at its COMPUTEX showcase, the company rolled out a new ProLiant server built around Nvidia's latest Vera CPU, aimed at exactly those jobs. But the 40% top-line growth needs context. A large chunk of its strong top-line growth came from HPE's acquisition of Juniper Networks, which closed last July. Networking revenue surged 148% year over year to $2.7 billion, but when you strip out the deal, networking grew about 10%. Management's own full-year guidance shows the clear difference in reported revenue growth and HPE's normalized revenue growth. The company guided for revenue to be up 29% to 33% as reported, but only at a high-teens rate on a comparable ba...

Dell Technologies DELL shares have jumped 37.3% post the first quarter fiscal 2027 results, which the company reported on May 28. Non-GAAP earnings of $4.86 per share comfortably beat the Zacks Consensus Estimate by 59.9% and surged from $1.55 reported in the year-ago quarter. Revenues jumped 88% year over year to $43.84 billion and topped the consensus mark by 23.62%. Quarterly results reflected broad-based demand across the portfolio, with AI infrastructure remaining the standout. In the reported quarter, Dell Technologies booked $24.4 billion in AI orders, highlighting customers’ urgency to secure supply for large-scale deployments.The company generated a record $4.1 billion of operating cash flow and returned $2.1 billion to shareholders through buybacks and dividends. Dell Technologies ended the fiscal first quarter with $14.1 billion in cash and investments. DELL management now expects fiscal 2027 guidance between $165 billion and $169 billion (up 47% year over year at the mid-point) and guided to non-GAAP earnings of $17.90 per share (plus or minus 25 cents). The company also increased its fiscal 2027 AI-optimized server revenue expectation to roughly $60 billion, signaling confidence in continued AI infrastructure momentum through the year. Is that enough for investors to accumulate DELL Shares? Let’s find out. Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote Dell Technologies’ prospects ride on strong AI infrastructure demand, broad-based growth beyond AI servers, enterprise refresh cycles and data-center modernization. Year to date (YTD), DELL shares have outperformed the broader Zacks Computer and Technology sector, as well as peers like Apple AAPL, Super Micro Computer SMCI and Hewlett Packard Enterprise HPE. The DELL stock has jumped 245.8% YTD, while shares of Hewlett Packard Enterprise, Apple and Super Micro Computer have returned 133.7%, 71.4% and 15.9%, respectively. Image Source: Zacks Investment Research Dell Technologies is benefiting from accelerating AI infrastructure demand. The company booked $24.4 billion of AI orders in the fiscal first quarter and generated $16.1 billion of AI server revenue. The company exited the quarter with a record $51.3 billion AI backlog. Management noted that demand continues to exceed supply and that its AI pipeline remains multiples of backlog, providing significant revenue visi...

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Hewlett Packard Enterprise (NYSE:HPE) reported a blowout quarter with record AI driven growth and its strongest performance since the company was formed. Networking revenue was supported by the Juniper acquisition, while HPE launched the AI focused ProLiant Compute DL394 Gen12 server at COMPUTEX. The company raised its full year revenue and earnings guidance and highlighted adoption of its new AI platform by institutions such as the New York Stock Exchange. HPE also agreed to sell its remaining stake in H3C for US$3.5b and appointed a private equity executive with deep technology experience to its board. Hewlett Packard Enterprise, listed as NYSE:HPE, sits at the center of enterprise IT, with exposure to compute, storage, networking and now higher profile AI infrastructure. The latest quarter underlines how AI driven server demand and the integration of Juniper Networks are reshaping the business mix toward higher profile networking and specialized compute. For investors tracking the broader AI hardware theme, HPE is positioning its portfolio to serve data center and institutional workloads that require significant computing power. The launch of the ProLiant Compute DL394 Gen12 server and institutional uptake of its AI platform give HPE more ways to participate in AI infrastructure spending. At the same time, the H3C stake sale and new board appointment signal a tighter focus on core platforms and governance as the company leans into this phase of AI related demand. Stay updated on the most important news stories for Hewlett Packard Enterprise by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Hewlett Packard Enterprise. 📰 Beyond the headline: 3 risks and 1 thing going right for Hewlett Packard Enterprise that every investor should see. For HPE, this earnings beat is more than a one quarter story. It reshapes how the business is positioned across AI, networking, and balance sheet flexibility. The Juniper acquisition is already visible in the 148% networking revenue jump, meaning HPE is now competing more directly with Cisco and Arista in high performance data center and AI networking. The launch of the ProLiant Compute DL394 Gen12 server, tied to NVIDIA’s Vera CPU and early adoption...

June S&P 500 E-Mini futures (ESM26) are trending down -0.05% this morning as oil prices and bond yields climbed after the U.S. and Iran exchanged heavy fire in the Persian Gulf. The price of WTI crude climbed over +2% on Wednesday amid skepticism over the prospects of a U.S.-Iran peace deal and as renewed fighting erupted in the Middle East. The U.S. Central Command said in a post on X that American forces successfully intercepted Iranian ballistic missiles and drones, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East. Iran’s attacks followed a U.S. strike on an empty oil tanker that the U.S. said was attempting to breach its blockade. Meanwhile, the Trump administration said the ceasefire between the U.S. and Iran remains in place. Investors Bearish on Oracle Ahead of Earnings - Unusually Heavy ORCL Put Options Trading Salesforce vs. ServiceNow: 1 AI Giant Is Leaving the Other Behind Microsoft Stock Is Up Nearly 30% From Its March Lows, But You Shouldn’t Sell MSFT Just Yet Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Treasuries fell across the curve as higher oil prices fueled worries about inflationary pressures, with the benchmark 10-year yield rising four basis points to 4.49%. “Market pessimism once again grows over the prospects of a U.S.-Iran deal that could pave the way for a reopening of the Strait of Hormuz,” according to Saxo Bank analysts. Still, “for now, the risk premium continues to be partly offset by President Trump’s repeated insistence that an interim agreement remains within reach.” The Organisation for Economic Co-operation and Development said on Wednesday that the global economy is poised for a marked slowdown this year as higher energy costs weigh on consumer spending and business investment, but it could worsen significantly if the Middle East conflict extends into 2027. Investors are now awaiting a fresh batch of U.S. economic data, with particular attention on the ADP employment report, and an earnings report from semiconductor giant Broadcom. In yesterday’s trading session, Wall Street’s major indexes ended in the green, with the S&P 500, Dow, and Nasdaq 100 posting new record highs. Hewlett Packard Enterprise (HPE) surged over +19% and was the top percentage gai...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Hewlett Packard Enterprise Co will release its second quarter results after market close on Monday, June 1. Analysts expect the company to report quarterly earnings of $0.54 per share, up 42.11% year-n-year. The consensus estimate for Hewlett Packard's quarterly revenue is $9.82 billion, representing growth if about 28.7% from the year-ago quarter, according to Benzinga Pro. Ahead of quarterly earnings, Citigroup analyst Asiya Merchant maintained Hewlett Packard with a Buy rating while raising the price target from $27 to $39. Don't Miss: Think Your ‘Safe' Stocks Protect You? You're Ignoring the Real Growth Triggers — Here's What to Add Now Caught With Nothing Saved for Retirement? These 5 Game‑Changing Tips Could Still Save You The multinational information technology giant HPE paid $0.1425 per share on April 23, 2026, with an ex-dividend date of March 24, 2026. The company's current The current Trailing Twelve Months dividend payout for Hewlett Packard stands at $0.57, with a dividend of is 2.29%. So, how can investors exploit its dividend yield to pocket a regular $500 monthly? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $4,53,082 or around 10,527 shares. For a more modest $100 per month or $1,200 per year, you would need about $90,642 or around 2,106 shares. See Also: Think you're saving enough for your kids? You might be dangerously off — see why To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.57 in this case). So, $6,000 / $0.57 = 10,527 ($500 per month), and $1,200 / $0.50 = 2,106 shares ($100 per month). Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time. How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price. For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40). Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield...