HPE Price Target Lowered to $23 on Cyclical Concerns

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On February 18, Morgan Stanley analyst Erik Woodring lowered the firm’s price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $23 from $25 and maintained an Equal Weight rating. While the firm anticipates “a solid, if not good,” January quarter and April quarter outlook from off-cycle hardware names, it is increasingly cautious on the memory backdrop, reflecting concerns around potential cyclical moderation within certain IT hardware segments.

On February 4, 2026, HPE’s board declared a $0.953125 per-share dividend on its 7.625% Series C Mandatory Convertible Preferred Stock, payable March 1 to shareholders of record on February 15, underscoring its commitment to returning capital to preferred investors.

In addition, Hewlett Packard Enterprise Company (NYSE:HPE) reported fourth-quarter revenue of $9.7 billion, representing 14% year-over-year growth, with non-GAAP operating income increasing 26% and operating margin reaching a record 12.2%. AI system orders totaled $6.8 billion for the fiscal year, with sovereign and enterprise customers accounting for more than 60% of cumulative bookings since 2023. The successful integration of Juniper Networks further strengthened HPE’s networking portfolio and contributed meaningfully to revenue. Strong AI-driven demand, expanding margins, and disciplined capital returns reinforce the company’s positioning for sustained earnings growth despite near-term industry caution.

Hewlett Packard Enterprise Company (NYSE:HPE), headquartered in Spring, Texas, is a global enterprise IT provider focused on servers, storage, networking, containerization software, and consulting and support services for business and government customers.

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