Hewlett Packard Enterprise (NYSE: HPE) shares declined 1.22% to $50.25 on Wednesday, erasing earlier gains sparked by peer Dell Technologies Inc.’s strong quarterly results.

The stock initially rose in sympathy with Dell, which reported adjusted earnings of $7.04 per share and revenue of $46.97 billion, both beating consensus estimates. However, HPE later erased those gains to trade lower.

Post-Quarter Deal Disclosure

Following the close of the fiscal third quarter, HPE’s Chief Financial Officer announced that the company was awarded a multi-billion dollar server deal with a hyperscaler customer.

The CFO also stated that AI Systems revenue is expected to improve sequentially into the fourth quarter, driven by the timing of backlog conversion.

Earnings Due Wednesday

Hewlett Packard Enterprise will report its fiscal third-quarter results after Wednesday’s closing bell. Analysts project earnings of 93 cents per share, up from 44 cents a year earlier. Revenue estimates stand at $11.94 billion, compared with $9.14 billion in the year-ago quarter.

Prediction markets reflect high confidence in the earnings beat. Polymarket prices a 94% chance HPE reports adjusted earnings above $0.93 per share. HPE had guided to revenue between $11.5 billion and $12.1 billion and adjusted EPS of $0.88 to $0.93.

The stock carries a Buy rating with an average price forecast of $69.47. Recent analyst actions include:

• Deutsche Bank: Initiated coverage with a Buy rating and $62 price forecast on Sept. 1.
• Bank of America Securities: Maintained Buy rating; raised forecast to $82 on Aug. 31.
• Morgan Stanley: Upgraded to Overweight; lowered forecast to $69 on Aug. 10.

What Kalshi Predicts HPE Will Say

Kalshi traders are betting on which products and themes CEO Antonio Neri will highlight during the earnings call. "Alletra" leads at 97%. Alletra MP is HPE’s enterprise storage platform, increasingly used alongside private-cloud and AI systems. HPE said orders grew triple digits last quarter for the sixth consecutive quarter, while revenue more than doubled year over year.

"Aruba" trades around 90%, as does "Private Cloud AI." Aruba is HPE’s enterprise networking business, now being combined with Juniper Networks. Private Cloud AI allows companies to run AI on their own infrastructure; orders increased again last quarter.

"Self Driving" also trades near 90%. This refers to HPE using AI agents to automate corporate networks, a strategy Neri said was becoming a reality last quarter. The push matters because Networking carried a 21.6% operating margin last quarter, versus 12.4% for Cloud & AI, making the Juniper-Aruba combination important to HPE’s push for better margins.

"Government" sits at 59%. HPE ended last quarter with more than $6.3 billion in total AI backlog, including $5.9 billion in AI Systems backlog. Sovereign and enterprise customers accounted for 61% of its cumulative AI order mix.

What Kalshi Predicts HPE Will Skip

"Saudi" sits at just 8%, despite HPE announcing new investments and AI initiatives in the kingdom Tuesday. HPE expanded local production to include Alletra storage and announced plans for a Saudi Innovation Center with Intel. Traders may expect Neri to focus the call on broader company-wide themes rather than regional expansion.

"Department of Energy" is at 17%. The DOE tapped HPE in July for several projects under the Genesis Mission, a federal program using AI and supercomputers to accelerate scientific research.

Tottenham Hotspur Partnership Expansion

Separately, Hewlett Packard and Tottenham Hotspur announced an expanded partnership to modernize the club’s stadium technology. HPE will upgrade systems supporting ticketless entry, cashless payments, mobile apps, and digital navigation. The project consolidates eight technology locations into two core environments.

Tottenham will deploy outdoor Wi-Fi 7 and use artificial intelligence to monitor network performance, automate operations, and address technical issues. HPE will provide financing, deployment, and ongoing operational support.

Technical Analysis

HPE’s longer-term uptrend remains intact. The stock trades 1.4% above its 50-day simple moving average of $49.76. It is also 16.6% above its 100-day average of $43.26 and 53.1% above its 200-day average of $32.94.

However, near-term momentum appears weaker as the stock trades 7.1% below its 20-day average of $54.31. The moving average convergence divergence indicator is bearish, with the MACD remaining below its signal line and the histogram negative. Both signals suggest buying momentum has faded.

Resistance sits near $51. Support stands near $43.50, close to the stock’s 100-day moving average.

Fund Exposure

Fund flows could influence additional buying or selling of HPE shares. Key holdings include:

• The Adaptiv Select ETF: 5.72% weighting
• The Nuveen ESG Mid-Cap Value ETF: 3.48% weighting
• The Bancroft Fund Ltd.: 2.66% weighting

Hewlett Packard Enterprise Co. (NYSE: HPE) shares rose 3.99% to $52.90 in after-hours trading on Tuesday. The gain followed robust second-quarter results from rival Dell Technologies Inc. (NYSE: DELL), which reported $46.97 billion in revenue and a record $95 billion AI server backlog.

The positive sentiment in the AI infrastructure sector lifted HPE, which competes directly with Dell in servers, storage, and networking. Dell also raised its full-year guidance, reinforcing confidence in enterprise hardware spending.

Analyst Actions and Strategic Moves

Ahead of HPE's third-quarter earnings report scheduled for Wednesday, Deutsche Bank initiated coverage with a Buy rating and a $62 price target. B of A Securities raised its target from $80 to $82.

HPE also announced a new "Saudi Made, Developed, Deployed" program with Intel Corp. (NASDAQ: INTC) and Saudi Arabia’s Ministry of Communications and Information Technology. This initiative aims to accelerate AI and digital transformation solutions in the Kingdom. Additionally, HPE deepened its manufacturing partnership with Saudi firm Alfanar to formalize local server production and assembly.

Trading Metrics

HPE has a market capitalization of approximately $67.36 billion. The stock traded between a 52-week high of $64.25 and a low of $19.84. Over the past 12 months, shares have gained 124.29%.

Mohammad Alrehaili, HPE’s vice president and managing director for the Middle East, stated that the investments announced at LEAP represent the next phase of the company’s long-term commitment to Saudi Arabia.