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HPE Guides First-Quarter Revenue Below Estimates as Shares Drop

Enterprise cost-cutting, tougher server competition, selective AI spending pressure sales.

Overview

  • Hewlett Packard Enterprise projected first-quarter revenue of $9.0 billion to $9.4 billion versus the $9.90 billion Wall Street consensus, according to LSEG.
  • Revenue for the quarter ended Oct. 31 totaled $9.68 billion, missing estimates of $9.94 billion.
  • Server sales declined 5% to $4.5 billion, while hybrid-cloud revenue fell 12% to $1.41 billion.
  • Shares fell about 5% in extended trading following the weaker near-term outlook.
  • HPE raised its full-year adjusted earnings guidance to $2.25 to $2.45 per share from $2.20 to $2.40.