HPE’s Juniper Acquisition Faces Legal Scrutiny as Earnings Date Approaches

HPE US42824C1099

Hewlett Packard Enterprise (HPE) navigates a complex landscape this spring, balancing legal challenges tied to its massive Juniper Networks acquisition with the imminent release of its quarterly financial results. Investors are weighing the potential impact of fresh regulatory probes on the deal's integration timeline.

Amid the legal developments, HPE has confirmed its upcoming earnings release. The company will report results for the first quarter of its fiscal year on Monday, March 9, 2026. This report is anticipated to provide critical insights into HPE's performance trajectory.

• Q1 Forecast: HPE has provided adjusted earnings per share (Non-GAAP EPS) guidance in the range of $0.57 to $0.61.
• Full-Year Target: For the entire 2026 fiscal year, the company aims for earnings per share between $2.25 and $2.45.
• Dividend Stability: The quarterly dividend payment remains unchanged at $0.1425 per share.

Despite ongoing uncertainties, institutional investors have recently increased their stakes. Mutual Advisors LLC and Convergence Investment Partners LLC each boosted their positions by more than 180% last quarter. Overall, institutional holders control approximately 80.78% of the company's shares.

New Legal Hurdles Emerge for Juniper Deal

The planned $14 billion acquisition of Juniper Networks by HPE has encountered a new legal proceeding. A U.S. district judge in San Jose ruled on Tuesday that a coalition of state attorneys general can depose several lawyers and lobbyists under oath.

This investigation examines the circumstances surrounding the antitrust clearance previously granted by the U.S. Department of Justice (DOJ). The probing states are reviewing how the federal-level regulatory approval was secured. While the deal has already passed major regulatory milestones, this procedural development introduces additional complexity to the integration process.

Market Context and Price Action

It is important for market participants to distinguish HPE from HP Inc. (HPQ). The recent management changes at HP Inc., including the departure of CEO Enrique Lores, do not involve HPE, as the two are legally separate entities.

In Tuesday's trading, HPE shares advanced slightly to $21.98. Although the stock trades about 10.6% below its 52-week high from late December, it maintains a position above its 50-day moving average of $21.81. Analyst sentiment remains cautious, with a consensus "Hold" rating. However, the average price target of $25.53 suggests potential upside from current levels.

Market attention is now split between the legal proceedings surrounding the Juniper transaction and the March 9 earnings date. Developments on either front are likely to influence near-term share price direction.