Hewlett Packard Enterprise Stock Drops 17% After Weak Earnings Guidance and Planned Layoffs

The company announced cost-cutting measures and issued disappointing forecasts for the second quarter and full fiscal year, prompting investor concern.

Hewlett Packard Enterprise (HPE) reported $7.85 billion in first-quarter revenue, slightly surpassing analyst expectations but with tighter profit margins year-over-year.
The company projected second-quarter earnings of $0.28 to $0.34 per share and revenue of $7.2 billion to $7.6 billion, both below analyst estimates.
For the 2025 fiscal year, HPE forecasted adjusted earnings of $1.70 to $1.90 per share, falling short of market expectations of $2.12 per share.
HPE announced a cost reduction program, including workforce cuts, aiming to save $350 million annually by fiscal year 2027.
The Justice Department has filed a lawsuit to block HPE's $14 billion acquisition of Juniper Networks, citing concerns over reduced competition in the enterprise wireless equipment market.