Hewlett Packard Enterprise (HPE) reported its financial results for the fourth quarter of fiscal 2025, ending October 31. The company delivered profitable growth and completed its acquisition of Juniper Networks during the year. HPE also continued to develop its Artificial Intelligence (AI) and Cloud businesses.
Despite beating earnings expectations, HPE's shares fell almost 5% after the earnings release. Server revenue for the quarter came in at $4.5 billion, down 5% compared to the same period last year, and the operating profit margin decreased from 11.6% to 9.8%.
HPE's revenue for the quarter was lower than anticipated, mainly due to customers delaying their AI-related projects and purchases. The company also issued a revenue forecast for the next quarter that was below Wall Street estimates, pointing to weaker demand and slow enterprise spending.
Why did HPE's stock fall after the earnings report?
HPE's stock dropped because its server revenue decreased and its outlook for the next quarter was weaker than investors expected, even though its profits were strong.
What is causing the slowdown in HPE's sales?
The slowdown is mainly due to customers delaying the start or implementation of their AI projects, which affects HPE's sales of servers and related equipment.
What is the significance of HPE acquiring Juniper Networks?
The acquisition of Juniper Networks is part of HPE's strategy to expand its business in networking and related technologies.
Sources
HPE Reports Fiscal 2025 Fourth Quarter Results
Business Wire
Business Wire
HOUSTON--(BUSINESS WIRE)--HPE (NYSE: HPE) today announced financial results for the fourth quarter ended October 31, 2025. “HPE finished a transformative year with a strong fourth quarter of profitable growth and disciplined execution,” said Antonio Neri, president and CEO of HPE. “During the year,...
HPE shares slide on drop in server revenue despite earnings beat
Proactive Investors
Proactive Investors
Hewlett Packard Enterprise Co (NYSE:HPE, XETRA:2HP) shares moved almost 5% lower afterhours as a decline in server revenue weighed on an otherwise strong report for the fiscal fourth quarter. For the quarter ended October 31, server revenue was $4.5 billion, down 5% year-over-year, with an operating...
HPE forecasts weak quarterly revenue
Reuters
Reuters
Hewlett Packard Enterprise forecast first-quarter revenue below Wall Street estimates on Thursday, signaling cautious enterprise spending.
HPE Says Customers' AI Delays Weighing on Sales
WSJ
WSJ
The company logged lower-than-expected revenue in the fiscal fourth quarter because customers are hitting delays in the development of their AI products, Chief Financial Officer Marie Myers said.
HPE Fiscal Q4 Revenue Light Amid Weak Guidance On Delayed Server Deals
Investors Business Daily
Investors Business Daily
HPE stock fell amid January-ending quarterly sales guidance that came in well below expectations.
Hewlett Packard Enterprise (HPE) Q4 Earnings Top Estimates
Zacks Investment Research
Zacks Investment Research
Hewlett Packard Enterprise (HPE) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.58 per share a year ago.
Hewlett Packard Enterprise Company (HPE) Q4 2025 Earnings Call Transcript
Seeking Alpha
Seeking Alpha
Hewlett Packard Enterprise Company (HPE) Q4 2025 Earnings Call Transcript
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