Goldman Sachs Raises PT on ​Hewlett Packard Enterprise (HPE)

Goldman Sachs Raises PT on ​Hewlett Packard Enterprise (HPE) Talha Qureshi Sat, June 6, 2026 at 7:15 PM GMT+2 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. ​Goldman Sachs noted that they have increased confidence in the company’s differentiated position in the AI infrastructure buildout, following the Q2 results. ​Hewlett Packard Enterprise Company (NYSE:HPE) operates as a global technology provider focused on intelligent solutions.

Its platforms help customers capture, analyze, and act on data from edge to cloud. The customer base ranges from small and medium-sized businesses to large enterprises and government organizations. While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.

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