Hewlett Packard Enterprise (NYSE:HPE) reported quarterly revenue and earnings above expectations on Wednesday and raised its full-year guidance for both 2026 and 2027. Separately, the company expanded its collaboration with Oracle and issued warrants allowing Oracle to purchase HPE common shares.
HPE shares fell nearly 5% in premarket trading on Thursday, with the source citing continuing supply constraints.
The company operates across enterprise hardware, software and cloud services, including servers, cloud infrastructure, networking and data storage. HPE became a standalone company in November 2015 following the separation of the original Hewlett-Packard Company into HPE and HP.
HPE expanded its networking operations through its $14 billion acquisition of Juniper Networks in 2025.
HPE Expands Oracle Collaboration
HPE said it is expanding its collaboration with Oracle to provide Juniper networking services across Oracle’s data centres.
The agreement provides for the potential multi-year deployment of HPE Juniper routing and switching platforms across Oracle data centres globally, together with networking support services.
As part of the agreement, HPE has issued warrants to Oracle that provide the company with an option to purchase HPE shares.
“Together, we are advancing a high-performance networking architecture that helps Oracle address the traffic management, power, space, and operational requirements of increasingly large AI environments,” HPE executive Rami Rahim said in a statement.
Raymond James Raises HPE Price Target
Raymond James analyst Simon Leopold raised his price target on HPE to $86 from $74 following the company’s quarterly update.
“Similar to Dell’s report, the better guidance reflects continued momentum from AI servers, with traditional servers and storage now also contributing to the better top-line growth,” Leopold said.
According to Leopold, average selling price remained the main contributor to third-quarter growth, while unit sales were approximately unchanged.
Management expects unit growth to improve over the next several quarters, “supported by an underlying inflection in agentic AI and inferencing growth,” according to Leopold.
He added that the sustainability of cloud and AI growth is likely to remain a subject of investor debate.
Hewlett Packard Enterprise stock price