The Point for North America

Research evidence excerpt

The Point for North America

Hewlett Packard Enterprise (HPE.N) - Investor Meeting Takeaways: Durable

Demand Drivers With Share Gain Opportunity, Margin Expansion and Capital

Returns Ahead

We hosted investor meetings with Guillaume Gerardin (CFO, Networking

segment), and IR. Management sounded bullish on recent performance while still

in early stages of the Juniper integration with strong order momentum (+20% yy in

the most recent quarter) far outpacing revenues, cumulative order growth of

~$2bln in Networks for AI largely on exploding scale across demand + robust scale

out performance while burgeoning scale up opportunities (AMD Helios rack) offers

upside potential ahead. Cloud and AI demand remain robust, despite memflation,

as enterprises move from evaluation towards deployment, while supply remains a

gating factor. We remain constructive on HPE shares on attractive valuation levels,

stronger positioning across enterprise AI infrastructure, durable demand drivers,

margin expansion and improving shareholder returns ahead.

Asiya Merchant, CFA

FY26 and Initial FY27 Outlook (provided at earnings)/

North America Transportation - 2Q26 Transports Earnings Preview: Favorable

2Q earnings setup, but upside likely modest; upgrade on recent pull-back

Transports 2Q earnings are likely to be among the strongest in years, as companies

benefit from significantly tighter capacity conditions coupled with moderately

improving demand. We expect solid y-y EPS gains reflecting higher truckload rates

and margin recovery with robust outlooks signaling continued strength over the

coming quarters. Last month we downgraded a number of trucking stocks given

extended valuations, as we felt the improved supply-demand backdrop was well-

understood (and largely priced-in) by investors.