HPE Surges 26% in 3 Months: Is it the Right Time to Buy the Stock?

Hewlett Packard Enterprise (HPE) has outperformed its industry with a 25.9% gain over three months, driven by strong AI infrastructure demand. The company reported $2.4 billion in AI Systems orders and a record $7.6 billion total AI backlog in Q3 fiscal 2026. Cloud & AI revenues rose 25% with server revenues jumping 35%, while gross margins expanded to 40.4% and operating profit grew 155%. Despite the stock appreciation, HPE trades at a discount with a forward P/S ratio of 1.5 versus the industry average of 4.81, prompting analysts to recommend accumulation.