Ericsson vs Hewlett Packard Enterprise

Ericsson and Hewlett Packard Enterprise are presented here in a neutral comparison. This page examines their business models, financial performance, and market context to help readers understand how each company positions itself. Educational content, not financial advice.

Ericsson and Hewlett Packard Enterprise are presented here in a neutral comparison. This page examines their business models, financial performance, and market context to help readers understand how e...

Comparison Snapshot

Key Financial Metrics

ERIC

Metric

HPE

$35.89B

Market Cap

$28.52B

-22.70%

Potential Profit

19.32%

Hold

Analyst Rating

Buy

Why It's Moving

Ericsson surges to 3-year high on Q4 earnings beat and landmark share buyback.

Q4 net profit soared 76% to SEK 8.6 billion, driven by tight cost controls and strong Europe, Middle East, Africa performance that offset 5G slowdowns.
Launched SEK 15 billion buyback through 2027, powered by robust cash from asset sales, alongside a bumped-up dividend to reward shareholders.
Full-year net income exploded over 7,000% to SEK 28.7 billion, underscoring improved profitability and reduced reliance on risky suppliers via European shifts.

Sentiment:

🐃Bullish

HPE Charges into FY2026 with AI Innovations and Retail Network Overhaul.

Record Q4 results and full-year performance highlight surging demand for HPE's AI and hybrid cloud solutions, positioning the company for accelerated growth.
Major HPE Discover unveils, including AMD Helios AI architecture and NVIDIA partnerships, empower faster AI scaling from edge to data center.
NRF 2026 launches feature AI-native Aruba CX switches, Nonstop Compute upgrades, and Juniper Mist integration for resilient, insight-driven retail networks.

Sentiment:

🐃Bullish

Ericsson surges to 3-year high on Q4 earnings beat and landmark share buyback.

Q4 net profit soared 76% to SEK 8.6 billion, driven by tight cost controls and strong Europe, Middle East, Africa performance that offset 5G slowdowns.
Launched SEK 15 billion buyback through 2027, powered by robust cash from asset sales, alongside a bumped-up dividend to reward shareholders.
Full-year net income exploded over 7,000% to SEK 28.7 billion, underscoring improved profitability and reduced reliance on risky suppliers via European shifts.

Sentiment:

🐃Bullish

HPE Charges into FY2026 with AI Innovations and Retail Network Overhaul.

Record Q4 results and full-year performance highlight surging demand for HPE's AI and hybrid cloud solutions, positioning the company for accelerated growth.
Major HPE Discover unveils, including AMD Helios AI architecture and NVIDIA partnerships, empower faster AI scaling from edge to data center.
NRF 2026 launches feature AI-native Aruba CX switches, Nonstop Compute upgrades, and Juniper Mist integration for resilient, insight-driven retail networks.

Sentiment:

🐃Bullish

Investment Analysis

Ericsson

ERIC

Pros

Ericsson is a global leader in telecommunications with a broad geographic presence including Europe, North America, Asia, and Latin America, supporting resilience and growth.
The company has strong revenue generation with over $23 billion in 2024 and a positive net income, reflecting profitability and operational efficiency.
Ericsson is well-positioned in the 5G and network virtualization markets, driving digital transformation with advanced hardware, software, and managed services.

Considerations

Ericsson faces significant competition in the telecom infrastructure market, requiring continuous innovation and investment to maintain market share.
The company operates in a highly cyclical and capital-intensive industry subject to regulatory risks and geopolitical tensions in key regions.
Despite recent profitability, Ericsson's EBIT margins have shown variability, indicating potential operational execution risks and cost pressures.

Hewlett Packard Enterprise

HPE

Pros

Hewlett Packard Enterprise has an enterprise value around $51 billion, indicating a large scale and significant market presence in IT infrastructure and services.
The company benefits from a focus on hybrid cloud, edge computing and services, which are growing segments in enterprise IT spending.
Strategic partnerships like the joint validation lab with Ericsson for multi-vendor 5G solutions signal HPE’s engagement in emerging technology platforms.

Considerations

HPE faces intense competition in IT hardware and cloud services, pressuring margins and requiring ongoing innovation and differentiation.
The company's exposure to cyclical IT spending and macroeconomic uncertainty could affect revenue and profitability volatility.
HPE’s transition towards software and services business segments poses execution challenges while maintaining traditional hardware sales.

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