Hewlett Packard Enterprise’s stock surged over 15% in early U.S. trading after announcing stronger-than-expected quarterly results. The company reported earnings per share of $0.42 for the second quarter, surpassing projections of $0.39, with revenue hitting $7.2 billion, beating estimates of $6.83 billion.
AI server sales for HPE more than doubled from the previous quarter, exceeding $900 million, reflecting growing interest in this emerging technology. Total server sales rose by 17.6% to $3.87 billion.
JPMorgan analysts described HPE’s quarter as unexpectedly positive, highlighting the company’s strong performance and exciting AI growth. They noted the surprising $900 million in AI revenue, suggesting that investors believe the company’s forecasts are conservative.
Stifel analysts also raised their price target for HPE shares to $22 from $18 in response to the encouraging quarterly results.
Looking ahead, HPE anticipates annual earnings per share in the range of $1.85 to $1.95, compared to Wall Street’s estimate of $1.88. For the fiscal third quarter, the company forecasts earnings per share of $0.43 to $0.48 and revenue of $7.4 billion to $7.8 billion.
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