HP Enterprise Surges with AI-Driven Server Sales, Exceeding Revenue Expectations
Discover how HP Enterprise's latest fiscal quarter outperformed market forecasts, fueled by a remarkable increase in AI-related server demand, highlighting its strategic edge-to-cloud growth.
Highlights
- HP Enterprise surpasses revenue forecasts with a 10% year-over-year increase, driven by AI-powered server sales.
- Adjusted earnings per share outperform projections despite diluted EPS slightly missing estimates.
- Company upgrades full-year earnings forecast while sustaining revenue growth targets.
HP Enterprise (HPE) reported a strong fiscal third quarter, with sales climbing to $7.7 billion, exceeding analyst predictions thanks to a 35% surge in server revenue reaching $4.3 billion. This growth was primarily propelled by escalating demand for artificial intelligence solutions.
While revenue from Intelligent Edge and cloud segments experienced a decline compared to the previous year, the financial services division saw a modest 1% increase.
Adjusted earnings per share stood at 50 cents, surpassing expectations, although diluted EPS was 38 cents, slightly below estimates.
Antonio Neri, CEO of HP Enterprise, emphasized the company's progress in executing its edge-to-cloud strategy encompassing networking, hybrid cloud, and AI technologies.
Reflecting confidence in ongoing growth, HP Enterprise raised its full-year EPS guidance to a range of $1.68 to $1.73, up from the prior $1.61 to $1.71, while maintaining a revenue increase forecast between 1% and 3%.
Following the earnings announcement, HP Enterprise's stock experienced a minor dip of approximately 1.9%, trading at $18.42 in after-hours markets.
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