Hewlett Packard Enterprise HPE

Hewlett Packard Enterprise (HPE) is grappling with financial difficulties as it reported a 5.5% decline in earnings per share and negative GAAP operating margins. Despite a modest 1.9% year-over-year revenue increase to $6.961 billion in early 2022, the company has faced ongoing supply chain challenges and a significant drop in free cash flow margin. The revenue growth over five years has been lackluster at 4.9%, driven partially by diminished AI server shipments and weakened storage demand amid a U.S. government shutdown. Consequently, HPE's stock value has seen a 9.6% decline in 2026, reflecting these market pressures and operational setbacks.