Hewlett Packard Enterprise (HPE) faces strong demand but is constrained by supply, with the company expected to deliver a fiscal Q3 beat and slightly raise its fiscal 2026 guidance, BofA Securities said in a Monday note.

BofA expects strength in storage and industry-standard servers, while AI systems revenue, ex-Networking, is projected to rise to $2 billion in fiscal Q3 from $900 million in fiscal Q2, according to the note.

The company is scheduled to report its quarterly results on Sept. 2.

The firm said it expects the company to report fiscal Q3 revenue of $12.3 billion and earnings per share of $0.95, above Street estimates of $12 billion and $0.93, respectively, and raise the low end of its fiscal 2026 revenue growth guidance range while increasing EPS guidance by about $0.05 from the current $3.35 to $3.45 range.

For fiscal Q4, BofA expects revenue of $13 billion and EPS of $1.08, with management likely to guide revenue to $12.7 billion to $13.3 billion and EPS to $1.05 to $1.10, according to the report.

BofA maintained its buy rating on the stock and raised its price target to $82 from $80.

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