Hewlett Packard Enterprise: After Q2 Earnings, Stock Is Still A Buy

2025-06-04 08:15:00 ET

Summary

• Hewlett Packard Enterprise delivered strong Q2 results with revenue up 6% and ARR up 46%, driven by server and intelligent edge demand.
• Despite margin pressure and a goodwill impairment, HPE maintains a 3% dividend yield with a sustainable payout ratio and improved valuation grade.
• The company issued a strong outlook, expecting up to 9% revenue growth in FY25, supported by AI-driven storage and enterprise demand.
• Given compelling valuation, profitability, and growth prospects, HPE shares are a compelling buy for investors seeking enterprise market exposure.
• Comparative peer stock grades support reasons to buy HPE.

Having last provided coverage on Hewlett Packard Enterprise ( HPE ) in 2020, the company’s latest quarterly results are worth a review. The company posted second-quarter earnings and revenue that beat expectations ....

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