Barclays Increases PT on HP Enterprise (HPE) Following Robust Q2 Results

On June 4, Barclays increased the price target on Hewlett Packard Enterprise Company (NYSE:HPE) from $20 to $24, while maintaining its Overweight rating on the stock.

Barclays analyst Tim Long raised the price target on HPE following robust Q2 2025 results. Hewlett Packard posted $7.63 billion in revenues, exceeding consensus by $129.67 million and growing 7% year-over-year. The adjusted earnings came in at $0.38, up from the estimated $0.33. The company experienced revenue growth in every product segment, with robust performance in AI systems, Intelligent Edge, and Hybrid Cloud. The Server segment revenue contributed the most with $4.1 billion, up by 7% year-over-year. HPE’s GreenLake Cloud subscription services made notable progress, contributing to a 47% increase in annualized revenue run rate.

Barclays Increases PT on HP Enterprise (HPE) Following Robust Q2 Results

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Long pointed out that Hewlett Packard’s Q1 results exceeded the upside after two challenging quarters. HPE’s AI systems revenue was much higher than expected, and margins are expected to improve in the second half of 2025 as the company manages costs and overcomes past execution issues, the analyst cited. The company posted $1 billion in AI systems revenue in Q2, up from $900 million in the previous quarter.

Hewlett Packard Enterprise Company (NYSE:HPE) is a global edge-to-cloud company. The company’s offerings include cloud services, compute, high-performance computing & AI, intelligent edge, software, and storage.

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Disclosure. None.