Antonio Neri, President and CEO, Hewlett Packard Enterprise
Anjali Sundaram | CNBC
hewlett packard enterprise Shares fell 7% in after-hours trading Wednesday after the company issued disappointing guidance for fiscal 2026.
HPE said in a meeting with analysts that adjusted earnings per share this year will be in the range of $2.20 to $2.40. Analysts had expected earnings of $2.40 per share, according to LSEG.
Meanwhile, sales growth is expected to be between 5% and 10%, far below the 17% expected by Wall Street.
HPE, which sells data center equipment, said it plans to focus on several “strategic priorities” aimed at improving its overall business. This includes focusing on networking technology as part of its recent acquisition of Juniper Networks, as well as marketing various artificial intelligence-related technology products to both the “sovereign and enterprise segments.”
“In this new chapter for HPE, our strengthened portfolio will generate more profitable growth, increase opportunities for capital return, and create even greater value for our shareholders,” HPE CEO Antonio Neri said in a statement.
The company’s board of directors also approved an additional $3 billion in stock repurchases, bringing the total stock repurchase plan to $3.7 billion.
When HPE announced its first quarter results in March, it announced that it would reduce its workforce by 5%, or approximately 2,500 jobs.
Remember: Big AI companies “complement” AI startups.
