HP Enterprise's AI Server Sales Surge Past Forecasts, Stock Hits Record High
HP Enterprise shares jumped nearly 20% to close above $56 on Tuesday after the company reported quarterly earnings that beat analyst expectations and raised its full-year outlook. The stock was the best performer in the S&P 500 that day.
The server maker posted adjusted earnings per share of 79 cents on $10.68 billion in revenue for its fiscal second quarter, both figures ahead of estimates. Revenue from its cloud and AI segment climbed 32.7% year-over-year to $5.5 billion.
CEO Antonio Neri said traditional server orders grew triple digits as customers modernized infrastructure and invested in AI inferencing.
What's Changed for the Full Year
HP Enterprise raised its full-year sales growth forecast to 29% to 33%, up from a previous range of 17% to 22%. For the third quarter, the company projects $11.5 billion to $12.1 billion in sales and adjusted earnings per share of 88 cents to 93 cents, both well ahead of analyst estimates.
The stronger outlook prompted multiple analysts to raise price targets. JPMorgan lifted its target to $68, Morgan Stanley to $71, and UBS nearly tripled its target to $65. The mean price target across analysts surveyed by Visible Alpha sits just above $71.
Stock Performance
HP Enterprise shares have more than doubled since the start of 2026 and tripled from the same period a year ago.
Why This Matters for Sales Teams
Enterprise hardware demand is directly tied to how companies allocate budgets for AI infrastructure. Understanding where customers are investing-and why-gives sales professionals insight into market direction.
For those selling into enterprise accounts, HP Enterprise's results signal sustained customer spending on server modernization and AI deployment. This trend affects purchasing decisions across the entire technology stack.
Learn more about AI for Sales and explore the AI Learning Path for Sales Representatives to understand how AI is reshaping enterprise buying patterns.
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