Hewlett Packard Enterprise raised its fiscal 2026 revenue growth forecast to a range of 34% to 37%, up from a prior range of 29% to 33%, after reporting record quarterly sales driven by demand for AI servers and networking equipment.
Third-quarter revenue rose 34% from a year earlier to $12.2 billion, the company said. HPE also raised its adjusted earnings per share forecast for the full year to between $3.75 and $3.85, up from a prior range of $3.35 to $3.45.
HPE stock fell more than 5% in extended trading after the results were released. Although revenue beat the consensus ******* yst estimate, it missed the mark for investors who had anticipated even stronger results, according to Bloomberg.
Server revenue climbed 35% to $6.8 billion in the quarter. Networking revenue jumped 75% to $2.9 billion, driven by data center networking that more than doubled and a 270% surge in routing revenue, the company said.
Supply constraints remain a limiting factor. Chief Executive Officer Antonio Neri said on a conference call that HPE is working with partners to secure additional multiyear supply agreements, according to Bloomberg. Chief Financial Officer Marie Myers told Reuters that memory tops the list of constrained components, with NAND, CPUs, and drives also creating shortfalls, and that the company has entered into extended supply agreements to shore up access to critical parts. "Demand is far outstripping supply," Myers said.
#Networking #range
Third-quarter revenue rose 34% from a year earlier to $12.2 billion, the company said. HPE also raised its adjusted earnings per share forecast for the full year to between $3.75 and $3.85, up from a prior range of $3.35 to $3.45.
HPE stock fell more than 5% in extended trading after the results were released. Although revenue beat the consensus ******* yst estimate, it missed the mark for investors who had anticipated even stronger results, according to Bloomberg.
Server revenue climbed 35% to $6.8 billion in the quarter. Networking revenue jumped 75% to $2.9 billion, driven by data center networking that more than doubled and a 270% surge in routing revenue, the company said.
Supply constraints remain a limiting factor. Chief Executive Officer Antonio Neri said on a conference call that HPE is working with partners to secure additional multiyear supply agreements, according to Bloomberg. Chief Financial Officer Marie Myers told Reuters that memory tops the list of constrained components, with NAND, CPUs, and drives also creating shortfalls, and that the company has entered into extended supply agreements to shore up access to critical parts. "Demand is far outstripping supply," Myers said.
#Networking #range
15 hours ago
