HP Enterprise and Dell Technologies shares rose sharply on Friday after Oracle reaffirmed its capital expenditure plans for fiscal year 2027, directing attention to suppliers that support the expansion of artificial intelligence infrastructure.

Oracle Chief Financial Officer Hilary Maxson said the spending would flow directly to vendors providing AI racks, cooling systems and networking equipment, naming HP Enterprise and Dell among the beneficiaries. HP Enterprise shares climbed more than 16%, while Dell Technologies rose about 10.6%. HP also gained more than 8% during the session.

HPE Posts Record Results

HP Enterprise had already reported strong results before Friday’s market move. The company recorded Q3 FY2026 revenue of $12.2 billion, a 34% increase from the same period a year earlier. Non-GAAP earnings per share reached $1.11, marking the first time the company exceeded $1.00.

Quarterly free cash flow was nearly $1 billion. Management raised its full-year free cash flow guidance to at least $3.75 billion and established a FY2027 target of more than $5 billion.

Purchase commitments increased sharply to $30 billion from $6 billion in the previous quarter, while networking commitments doubled quarter over quarter.

Earlier this month, HP Enterprise and Oracle announced a partnership under which Oracle plans to deploy HPE’s routing and switching platforms across all of its data centers as it expands its AI infrastructure globally.

Oracle’s remaining performance obligations increased by $209 billion in Q1 to $664 billion. That total included more than $30 billion in new AI cloud contracts and indicated continued demand for the hardware supplied by HP Enterprise.

Analysts Assess Dell and HP

RBC Capital Markets initiated coverage of Dell with an Outperform rating and a $640 price target. Analyst David Paige said Dell exited Q2 FY2027 with an AI server backlog of $95 billion, and that the pipeline continued to grow.

Paige described the current environment as supply-constrained rather than demand-limited, primarily because of memory availability. He expects the backlog to continue through FY27, providing visibility into FY28.

RBC also identified agentic AI as a source of additional demand for CPUs and traditional servers. Enterprise server refreshes, PC refreshes and the migration of AI inference workloads were cited as further growth drivers. According to RBC, large enterprises are signing multiyear agreements lasting three to five years to secure access to supply.

For HP, RBC assigned a Sector Perform rating and a $33 price target. The firm said HP was positioned to benefit from adoption of AI-enabled PCs and demand for edge computing. HP is targeting AI PC shipments of 60% to 70% by FY27, compared with about 45% in Q3 FY2026.

Several analysts raised their price targets for HP Enterprise after its earnings report. Bank of America increased its target to $88, Truist raised its target to $70, and Evercore ISI maintained an Outperform rating.

HP Enterprise also announced that it will hold a Networking Investor Day on September 30, 2026, in Sunnyvale, California. The event is being monitored as a potential catalyst for the stock.

HP Enterprise shares traded at $61.43 on Friday, near but below the 52-week high of $64.25.

Source: CoinCentral