Hewlett Packard Enterprise (HPE) Stock Rises 5% Before Q3 Earnings as Dell Fuels AI Optimism

TLDR

• HPE rose 4.7% in premarket to $53.28 on Wednesday ahead of its fiscal Q3 earnings report due after market close
• Dell’s record $95 billion AI server backlog and blowout Q2 results boosted sentiment across AI hardware names including HPE
• Deutsche Bank initiated HPE with a Buy rating and $62 price target; Bank of America raised its target to $82 from $80
• Analysts expect HPE to report roughly 32% year-over-year revenue growth and EPS more than double year-over-year
• HPE’s own AI server backlog stands at $6.3 billion, with around two-thirds tied to enterprise and sovereign deployments

Hewlett Packard Enterprise (HPE) was trading at $53.28 in premarket on Wednesday, up 4.7% from Tuesday’s close of $50.87, as investors positioned ahead of the company’s fiscal third-quarter 2026 earnings report due after the bell.

Hewlett Packard Enterprise Company, HPE

The move built on a 3.99% after-hours gain Tuesday night that pushed the stock to $52.90, a rally that came in the wake of Dell Technologies posting blowout Q2 results.

Dell reported $46.97 billion in revenue and a record $95 billion AI server backlog, while also raising full-year guidance. That combination lifted confidence across the AI infrastructure space, where HPE competes directly.

HPE closed the regular Tuesday session at $50.87, down 2.62% on the day, before the after-hours surge reversed much of that decline.

Analyst Actions Ahead of Print

Two analyst moves added to the positive tone heading into earnings. Deutsche Bank initiated coverage on September 1 with a Buy rating and a $62 price target. Bank of America separately raised its target on HPE to $82 from $80, pointing to the company’s position in AI infrastructure.

These price targets reflect analyst opinion and are not guaranteed future prices.

What the Street Is Expecting

Consensus estimates point to roughly 32% year-over-year revenue growth for the fiscal third quarter.

Analysts also expect earnings per share to more than double compared to the same period a year ago.

HPE has beaten consensus EPS estimates in each of its last four quarters, with an average beat of around 16%. Past performance does not guarantee a repeat.

HPE’s AI server backlog currently sits at $6.3 billion. Around two-thirds of that is tied to enterprise and sovereign deployments, giving a sense of where the demand is coming from.

The company also announced a new “Saudi Made, Developed, Deployed” program alongside Intel and Saudi Arabia’s Ministry of Communications and Information Technology. HPE also deepened its manufacturing partnership with Saudi firm Alfanar, formalizing local server production and assembly in the Kingdom.

Over the past 12 months, HPE stock has gained 124%, trading between a 52-week low of $19.84 and a high of $64.25. Its market cap sits at roughly $67.36 billion.

Broadcom is also set to report results Wednesday, keeping investor focus firmly on AI infrastructure plays.

HPE’s fiscal Q3 report is due after market close Wednesday.

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