HPE Cuts FY26 Profit Outlook; Stock Drops Over 10%

Hewlett Packard Enterprise (HPE) shares fell sharply, closing down 10.14% at $22.50, after the company issued disappointing fiscal 2026 guidance during its analyst meeting.

The company projected adjusted EPS of $2.20–$2.40, below Wall Street’s consensus of $2.40, sparking a broad selloff. The outlook reflects slower growth expectations and ongoing margin pressures in key segments as enterprise IT spending softens.

Technically, the stock broke below its 50-day moving average ($23.47) on heavy volume, indicating strong institutional selling. While it remains above its 200-day moving average ($19.95), suggesting potential support near that level, momentum has weakened with RSI near 36, showing oversold but still bearish conditions.

Unless HPE can regain traction above $23.50 with improving momentum, the near-term outlook remains bearish, with further downside risk toward the $20 support area.

Disclaimer: This analysis is AI-generated and for informational purposes only. It is not investment advice.