For questions about this article or underlying research, email help@trefis.com.
Shares of Hewlett Packard Enterprise (HPE) fell 18.5% in the week ending October 20, 2026, far more than a 1.2% slip in the S&P 500. The decline leaves the shares 23.6% below their October 9 high. The company has navigated nine market shocks since it began trading in November 2015. So how far did HPE stock fall in those shocks, and how long did it stay down?
How Far Has HPE Stock Fallen In Market Shocks?
During those nine shocks, HPE stock fell 23.6% on average, compared to a 15.1% decline for the S&P 500 over the same dates. HPE was hit hardest in the 2020 COVID-19 crash, when the stock lost 45% while the broader index fell 34%. The 2025 US tariff shock followed closely, with HPE down 42% alongside a 19% slide for the index. The 2022 inflation shock remains the only event where HPE fell no further than the market, with both losing 24%.
Following every event, the stock got back to its high from before the fall. Measured from the lowest close, the median wait was 4.2 months. The longest recovery took 10.6 months after the COVID-19 crash.
HPE Is Bigger And More Profitable Than Last Year
HPE reported $41.9 billion of revenue over the four quarters ending July 31, 2026, representing a 26.6% increase from the year before. Sales accelerated from the 14.0% growth posted a year earlier. Server was the largest business segment in fiscal 2025, generating $17.7 billion of revenue. Networking revenue climbed 51.1% that year, a figure that includes Juniper Networks, which HPE bought.
The company is also retaining more of each dollar in sales than it did a year ago. Operating margin hit 7.8% over the past four quarters, rising from 6.2% in the previous year. For fiscal Q3 2026 alone, the operating margin expanded to 12.0%, up from 4.7% during the same quarter of 2025.
The balance sheet holds $20.2 billion of debt alongside $6.22 billion of cash and short-term investments. That debt amounts to 27.0% of the company’s market value, compared to 19.7% for the S&P 500.
What Risks Has HPE’s Management Flagged?
During the September 2, 2026 call, management said that supply constraints continue to limit how much customer demand HPE can fill, naming memory such as DDR5, DDR4, and NAND. Management expects the shortages to last longer than previously anticipated and said the situation will have consequences for cost and pricing. To meet its orders, HPE more than doubled its networking purchase commitments from the prior quarter. Inventory finished fiscal Q3 at $11.8 billion, landing higher than both a year earlier and the quarter before.
