Hewlett Packard Enterprise (HPE) shares dropped after the company released its outlook for fiscal year 2026, which did not meet Wall Street expectations. The company said it expects its revenue to grow between 5% and 10% in 2026, while analysts were anticipating about 17% growth.
HPE also forecasted its adjusted earnings per share for 2026 to be between $2.20 and $2.40, slightly below analyst estimates of $2.40. This news led to the company's stock falling by about 8–10%.
The company is shifting its focus towards artificial intelligence and networking, especially after acquiring Juniper Networks. Despite the weaker forecast, HPE announced it is raising its dividend by 10%.
Why did HPE's stock drop?
HPE's stock dropped because its financial forecast for 2026 was lower than what investors and analysts expected.
What did HPE predict for its 2026 earnings?
HPE expects adjusted earnings per share of $2.20 to $2.40 in 2026, which is below what analysts were predicting.
How is HPE changing its business?
HPE is shifting more toward artificial intelligence and networking, especially after acquiring Juniper Networks.
Did HPE make any changes to its dividend?
Yes, HPE announced it is increasing its dividend by 10%.
Sources
HPE forecasts fiscal 2026 results below estimates, shares fall
Reuters
Reuters
Hewlett Packard Enterprise forecast annual profit and revenue below Wall Street expectations on Wednesday, as it shifts its server business toward artificial intelligence and networking following its Juniper Networks acquisition.
HPE stock sinks 10% on weak guidance for fiscal 2026
CNBC
CNBC
At a meeting with analysts, Hewlett Packard Enterprise issued disappointing guidance for its fiscal 2026. The company said adjusted earnings per share in fiscal 2026 will be $2.20 to $2.40, while analysts were expecting $2.40, according to LSEG.
HPE Expects Revenue Growth to Slow in Next Fiscal Year
WSJ
WSJ
The technology company expects revenue to grow between 5% to 10% for fiscal 2026 as it targets higher-growth businesses to improve profit.
HPE Surprises Wall Street With 2026 Forecast. Stock Falls.
Barrons
Barrons
The server maker, focused on new AI opportunities, forecast weaker-than-expected revenue growth for the coming year. It also boosted its dividend by10%.
HPE shares drop on disappointing near-term guidance
Proactive Investors
Proactive Investors
Hewlett Packard Enterprise Co (NYSE:HPE, ETR:2HP) shares fell 8% on Thursday morning following the company's release of its fiscal year 2026 financial guidance, which fell short of Wall Street expectations. For fiscal 2026, HPE projected revenue growth of 5% to 10%, significantly below analysts' con...
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