Hewlett Packard Enterprise Forecasts Weak Revenue as Shares Tumble

Mexico City, Mexico – Hewlett Packard Enterprise (HPE) warned on Thursday that its projected first-quarter revenue falls short of Wall Street expectations, leading to a 5% decline in its shares during after-hours trading.

The company anticipates revenue between $9 billion and $9.4 billion, significantly lower than the average analyst forecast of $9.90 billion, according to data from LSEG. The forecast reflects ongoing cautious spending among enterprise customers, driven by economic uncertainties and elevated interest rates.

HPE has observed that while companies are ramping up investments in artificial intelligence, they are also focused on cost-optimizing existing hardware. This dual strategy adds pressure to technology vendors like HPE and Dell Technologies.

Macroeconomic challenges continue to impact the compute, storage, and networking sectors. Compounding these challenges is intensifying competition from other server makers, including Dell Technologies and Super Micro Computer.

HPE’s server revenue for the three months ending October 31 decreased by 5%, totaling $4.5 billion. The company’s hybrid cloud revenue also dropped by 12%, amounting to $1.41 billion. Overall, HPE reported total revenue of $9.68 billion for the quarter, below expectations of $9.94 billion.

In light of these developments, HPE raised its fiscal 2026 adjusted earnings per share guidance to a range of $2.25 to $2.45, up from an earlier projection of $2.20 to $2.40.