HP Enterprise Surges with AI-Driven Server Sales, Exceeding Market Expectations
Discover how Hewlett Packard Enterprise's robust AI demand propelled its server sales, leading to record-breaking earnings and promising future growth.
Highlights
- Hewlett Packard Enterprise (HPE) surpassed fiscal Q4 earnings forecasts, fueled by a significant rise in AI-related server sales.
- HPE achieved record revenue of $8.5 billion, marking a 15% increase year-over-year, while net income nearly doubled to $1.34 billion.
- The company projects mid-teens revenue growth for the upcoming quarter, aligning with analyst predictions.
In the latest fiscal quarter, Hewlett Packard Enterprise outperformed analyst expectations, largely driven by surging server revenue linked to artificial intelligence applications.
HPE reported a record-breaking revenue of $8.5 billion, reflecting a 15% increase compared to the previous year. Net income soared to $1.34 billion, or 99 cents per share, up from $642 million, or 49 cents per share, in the same period last year.
Server revenue surged 32% to $4.7 billion, surpassing analyst estimates. In October, HPE introduced new servers equipped with Advanced Micro Devices (AMD) processors, specifically engineered to support AI clusters for complex tasks like training large language models.
While the Intelligent Edge segment saw a 20% decline to $1.1 billion, the cloud segment experienced an 18% increase, reaching $1.6 billion in revenue.
Looking forward, HPE anticipates revenue growth in the mid-teens percentage range for the first quarter, consistent with the 14% growth forecast by analysts.
Following the earnings announcement, HP Enterprise shares experienced a modest rise in after-hours trading. Year-to-date, the stock has gained approximately 27%, mirroring the performance of the S&P 500 index.
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