Hewlett Packard Enterprise experienced a significant share price decline of 20% over the last week, primarily due to issuing disappointing earnings guidance for the current quarter and fiscal year, which suggested lower-than-expected earnings per share. This outlook heavily influenced investor sentiment, despite the company's notable revenue growth in Q1 2025. While the broader market ended the week with another decline, with the S&P 500 dropping 3%, HPE's pronounced drop stands out. Amid a volatile trading week where major indexes saw sharp declines, HPE's outlook and cost-cutting measures, alongside a broader lack of investor confidence, further intensified the decline. During this period, the company's notable product announcements and partnerships at the Mobile World Congress did little to alleviate the negative sentiment driven by financial projections. Despite the overall market's reaction to positive economic indications from the Federal Reserve, HPE's challenges contributed distinctly to its decline.

Get an in-depth perspective on Hewlett Packard Enterprise's performance by reading our analysis here.

Over the past five years, Hewlett Packard Enterprise has delivered a total shareholder return of 87.07%, reflecting a blend of stock price appreciation and consistent dividend payouts. This performance is remarkable given the company's recent challenges and provides insights into its longer-term resilience. However, over the last year, HPE has underperformed the broader US Tech industry, which saw a 35.5% return.

Key factors influencing HPE's five-year performance include significant advancements in its GreenLake cloud services, highlighted by the expansion to support Microsoft Azure Stack HCI in June 2021. Additionally, earnings grew substantially over this period, exceeding industry growth rates as of the last fiscal year. Strategic partnerships, such as the collaboration announced in April 2021 with the National Supercomputing Centre in Singapore, enhanced HPE's market presence. Moreover, consistent shareholder returns were bolstered by share buybacks, including a major buyback in June 2021, representing a sizable portion of the company's outstanding shares at that time.

• Discover whether Hewlett Packard Enterprise is fairly priced, undervalued, or overvalued in our comprehensive valuation breakdown.
• Assess the downside scenarios for Hewlett Packard Enterprise with our risk evaluation.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:HPE.

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