Goldman Sachs Raises PT on Hewlett Packard Enterprise (HPE)
Key takeaways
- Recently, on June 3, Goldman Sachs raised the price target on the stock from $32 to $79 and maintained a Buy rating on the shares.
- The increased price target comes after Hewlett Packard Enterprise Company (NYSE:HPE) posted strong earnings for its fiscal second quarter of 2026.
- The revenue was driven by the networking segment, which grew 148% year-over-year to $2.7 billion.
Goldman Sachs Raises PT on Hewlett Packard Enterprise (HPE) Talha Qureshi Sun, June 7, 2026 at 12:15 AM GMT+7 2 min read HPE Hewlett Packard Enterprise Company (NYSE:HPE) has gained more than 60% during the last month, making it one of the Best Performing Stocks in May. Recently, on June 3, Goldman Sachs raised the price target on the stock from $32 to $79 and maintained a Buy rating on the shares.
The increased price target comes after Hewlett Packard Enterprise Company (NYSE:HPE) posted strong earnings for its fiscal second quarter of 2026. During the quarter, the company posted record revenue of $10.7 billion, reflecting 40% year-over-year increase and ahead of the consensus of $9.76 billion. Hewlett also posted all-time highs in gross margin, non-GAAP EPS, and free cash flow for the second quarter. Management highlighted profitability as GAAP gross margins reached 36.5% after increasing 810 basis points year-over-year.
The revenue was driven by the networking segment, which grew 148% year-over-year to $2.7 billion. The growth in this segment was aided by Juniper Networks’ acquisition. Moreover, the data center networking alone skyrocketed 233%, and the cloud & AI segment grew 23% to $7.7 billion, with server revenue up 33%. Based on the strong momentum, HPE raised its full-year fiscal 2026 guidance and now projects revenue growth of 29% to 33% and free cash flow of at least $3.5 billion.