HP Enterprise (NYSE:HPE) saw its shares increase by 8% in after-hours trading following the release of its fiscal second-quarter results, which exceeded expectations. The company reported earnings of $0.42 per share on revenue of $7.2 billion, representing a 3% year-over-year increase. The servers segment, the company’s largest, experienced an 18% revenue growth to $3.9 billion, with AI revenue doubling sequentially, surpassing the company’s previous guidance. However, Intelligent Edge revenue dropped by 19% to $1.1 billion, and hybrid cloud revenue fell by 8% to $1.3 billion. Financial services revenue increased by 1% to $867 million compared to the same period last year. Analysts had anticipated earnings of $0.39 per share on $6.83 billion in revenue. For the fiscal third quarter, HP Enterprise anticipates earnings between $0.43 and $0.48 per share, with revenues falling between $7.4 billion and $7.8 billion, surpassing analyst expectations of $0.46 per share and $7.45 billion in sales. The company also revised its full-year guidance to expect revenue growth between 1% and 3% in constant currency, compared to the previous forecast of stable 2% growth. Adjusted earnings are projected to be between $1.85 and $1.95 per share, with the midpoint exceeding the estimate of $1.88. HP Enterprise continues to predict full-year free cash flow of $1.99 billion, in alignment with estimates. A conference call will be held at 5:30 pm EST to discuss the results.
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HPE is lifted by AI in Q2 as results and guidance surpass expectations
