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HPE Misses on Revenue, Lifts EPS Outlook as Shares Slide on Soft Q1 Guidance

Management says delayed AI server deals weighed on results.

Overview

  • Fourth-quarter revenue came in at $9.68 billion versus the $9.94 billion LSEG consensus, while adjusted EPS of $0.62 topped the $0.58 estimate.
  • HPE guided fiscal Q1 sales to $9.0 billion–$9.4 billion, below Street expectations, and projected adjusted EPS of $0.57–$0.61.
  • Server revenue fell about 5% to roughly $4.5 billion and hybrid cloud declined around 12% to about $1.4 billion as networking surged with help from the Juniper acquisition.
  • Shares fell following the release, with declines of roughly 5% to 9% reported across after-hours and premarket trading.
  • The company raised its FY26 adjusted EPS outlook to $2.25–$2.45 and reported about $1.9 billion in free cash flow, ending the quarter with $5.77 billion in cash.