Key Highlights
- HP Enterprise stock soared more than 16% while Dell climbed 10.6% following Oracle’s fiscal year 2027 capital expenditure confirmation
- Oracle’s CFO disclosed that investments will target AI infrastructure vendors, specifically highlighting HPE and Dell for racks, cooling systems, and networking equipment
- HPE delivered unprecedented Q3 FY2026 results with $12.2 billion in revenue, representing a 34% annual increase
- Dell received an Outperform rating from RBC Capital Markets with a $640 target, backed by a massive $95 billion AI server order backlog
- HP gained more than 8% after RBC launched coverage with a Sector Perform rating and $33 price target
Shares of HP Enterprise and Dell Technologies experienced substantial gains Friday following Oracle’s reconfirmation of its capital spending blueprint for fiscal 2027. Oracle CFO Hilary Maxson explicitly stated that the company’s investments would be channeled to vendors providing AI racks, cooling infrastructure, and networking solutions, with both HP Enterprise and Dell positioned as primary recipients.
HP Enterprise stock surged over 16% during trading, while Dell Technologies posted gains of approximately 10.6%. HP Inc. also benefited from the positive sentiment, climbing more than 8%.
HP Enterprise Delivers Breakthrough Quarterly Performance
HP Enterprise’s Friday surge built upon already impressive quarterly results released earlier. The technology company announced Q3 FY2026 revenue reaching $12.2 billion, reflecting a robust 34% increase compared to the same period last year. Non-GAAP earnings per share totaled $1.11, marking a historic milestone as the company exceeded the $1.00 threshold for the first time.
The quarter also saw free cash flow approach the $1 billion mark. Company leadership increased full-year free cash flow projections to a minimum of $3.75 billion and established an ambitious FY2027 goal exceeding $5 billion.
Purchase commitments experienced dramatic expansion, climbing to $30 billion from just $6 billion in the previous quarter. Networking-related commitments specifically doubled on a sequential basis.
A strategic partnership between HP Enterprise and Oracle was unveiled earlier this month. The agreement calls for Oracle to implement HPE’s routing and switching technology throughout its entire data center footprint as the cloud giant expands its global AI infrastructure capabilities.
Oracle’s remaining performance obligations increased by $209 billion during Q1, reaching a total of $664 billion. This figure includes over $30 billion in newly signed AI cloud agreements, underscoring sustained demand for the hardware infrastructure that HP Enterprise provides.
Wall Street Analysts Express Strong Support for Dell and HP
RBC Capital Markets launched coverage of Dell with an Outperform recommendation and established a $640 price objective. Analyst David Paige highlighted that Dell concluded Q2 FY2027 carrying a $95 billion AI server backlog, with the order pipeline showing continued expansion.
Paige emphasized that current market conditions reflect supply constraints rather than demand weakness, with memory component availability representing the primary bottleneck. He projects the substantial backlog will extend throughout FY27, providing revenue visibility into FY28.
RBC additionally identified agentic AI as a catalyst for increased CPU and conventional server demand. Other growth catalysts mentioned include enterprise server replacement cycles, PC refresh momentum, and AI inference workload migration.
According to RBC, major enterprises are executing multi-year supply agreements spanning three to five years to guarantee hardware access.
For HP Inc., RBC established a Sector Perform rating alongside a $33 price objective. The firm noted HP’s favorable positioning to capitalize on AI-enabled PC adoption and edge computing expansion. HP management targets AI PC shipments representing 60 to 70% of total volume by FY27, up from approximately 45% during Q3 FY2026.
Multiple analysts revised HP Enterprise price targets upward following the earnings announcement. Bank of America elevated its target to $88, Truist increased its objective to $70, and Evercore ISI reaffirmed its Outperform stance.
HP Enterprise also unveiled plans for a Networking Investor Day scheduled for September 30, 2026 in Sunnyvale, California. Market observers view this event as a potential positive catalyst for the stock.
HP Enterprise shares closed Friday trading at $61.43, nearing but still trailing the 52-week peak of $64.25.
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