The Bull Case For Hewlett Packard Enterprise (HPE) Could Change Following $931 Million DISA Cloud Contract - Learn Why

• In late November 2025, the Defense Information Systems Agency awarded Hewlett Packard Enterprise a US$931 million, 10-year contract to modernize DISA’s data centers using HPE’s hybrid multi-cloud GreenLake solution.
• This contract highlights HPE’s expanding capabilities in secure, compliant cloud environments for mission-critical government operations, building on a successful initial prototype phase.
• We’ll explore how this major federal contract validates HPE’s GreenLake platform and impacts its growth narrative in government cloud solutions.

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Hewlett Packard Enterprise Investment Narrative Recap

To be a shareholder in Hewlett Packard Enterprise, you need to believe in HPE’s ability to scale its higher-margin cloud and services business, especially as enterprise clients move more workloads to hybrid and multi-cloud platforms. The recent US$931 million DISA contract is a high-visibility win for GreenLake, supporting the government cloud narrative, but it does not alter the short-term catalyst that hinges on integrating Juniper post-acquisition and achieving cost synergies; the largest near-term risk remains execution on this front.

Among recent announcements, the expanded partnership with Deloitte to accelerate generative AI solutions using HPE Private Cloud AI closely parallels the DISA deal, highlighting growing adoption for GreenLake in demanding, regulated environments. This supports HPE’s push for more recurring, higher-margin service revenues, an essential catalyst as traditional hardware business faces industry headwinds.

By contrast, investors should be aware of the integration risk around Juniper, which, if mismanaged, could...

Read the full narrative on Hewlett Packard Enterprise (it's free!)

Hewlett Packard Enterprise's outlook anticipates $44.4 billion in revenue and $2.7 billion in earnings by 2028. This hinges on a 10.3% annual revenue growth rate and an earnings increase of $1.6 billion from the current $1.1 billion.

Uncover how Hewlett Packard Enterprise's forecasts yield a $26.50 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community estimate HPE’s fair value to range between US$17.90 and US$33.89. These varied outlooks reflect both optimism around HPE’s cloud growth and persistent concerns about executing large acquisitions, so be sure to check out multiple viewpoints before deciding your next step.

Explore 5 other fair value estimates on Hewlett Packard Enterprise - why the stock might be worth 18% less than the current price!

Build Your Own Hewlett Packard Enterprise Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hewlett Packard Enterprise research is our analysis highlighting 3 key rewards and 5 important warning signs that could impact your investment decision.
• Our free Hewlett Packard Enterprise research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hewlett Packard Enterprise's overall financial health at a glance.

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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.

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