Let’s dig into the relative performance of Hewlett Packard Enterprise (NYSE: HPE) and its peers as we unravel the now-completed Q1 hardware & infrastructure earnings season.
The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.
The 9 hardware & infrastructure stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 7.3% while next quarter’s revenue guidance was 12.9% above.
Luckily, hardware & infrastructure stocks have performed well with share prices up 12.6% on average since the latest earnings results.
Hewlett Packard Enterprise (NYSE: HPE)
Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.
Hewlett Packard Enterprise reported revenues of $10.68 billion, up 40% year on year. This print exceeded analysts’ expectations by 9.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ ARR and EPS estimates.
“HPE delivered an exceptional quarter with record-breaking revenue, higher-than-anticipated profitability, and increased free cash flow, reflecting strong execution and healthy demand across the business,” said Antonio Neri, president and CEO of HPE.
Interestingly, the stock is up 6% since reporting and currently trades at $49.83.
Dell (NYSE: DELL)
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Dell reported revenues of $43.84 billion, up 87.5% year on year, outperforming analysts’ expectations by 21.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
Dell scored the highest guidance raise and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 44.8% since reporting. It currently trades at $459.07.
Is now the time to buy Dell? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Xerox (NASDAQ: XRX)
Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.
Xerox reported revenues of $1.85 billion, up 26.7% year on year, exceeding analysts’ expectations by 6.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
Interestingly, the stock is up 75.2% since the results and currently trades at $2.75.
Read our full analysis of Xerox’s results here.
Everpure (NYSE: P)
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Everpure (NYSE: P) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Everpure reported revenues of $1.05 billion, up 35.2% year on year. This print topped analysts’ expectations by 5%. It was a stunning quarter as it also recorded an impressive beat of analysts’ billings estimates and a beat of analysts’ EPS estimates.
Everpure had the weakest guidance update among its peers. The stock is down 10.2% since reporting and currently trades at $77.00.
Read our full, actionable report on Everpure here, it’s free.
Super Micro (NASDAQ: SMCI)
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Super Micro reported revenues of $10.24 billion, up 123% year on year. This number came in 17.3% below analysts’ expectations. Zooming out, it was actually a strong quarter as it logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.
Super Micro had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is flat since reporting and currently trades at $27.77.
Read our full, actionable report on Super Micro here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
