By Reuters
Publication Date: 2025-12-04 21:10:00
Dec 4 (Reuters) – Hewlett Packard Enterprise on Thursday forecast first-quarter revenue below Wall Street estimates, due to cautious business spending amid economic uncertainty.
The company’s shares fell more than 3.5% in extended trading.
Business customer spending has remained weak due to cost optimization efforts in the wake of economic uncertainty and high interest rates, which impact companies like HPE.
While companies are investing heavily to develop AI capabilities, they are also trying to optimize the costs of existing hardware, putting pressure on vendors like HPE and rival Dell Technologies.
The company expects revenue in the range of $9 billion to $9.4 billion for the first quarter, compared with analysts’ average estimate of $9.90 billion, according to data compiled by LSEG.
HPE’s server revenue for the fourth quarter, ended Oct. 31, fell 5% to $4.5 billion.
Total revenue for the quarter amounted to $9.68 billion,…
