:max_bytes(150000):strip_icc()/GettyImages-1166474639-18ade9df9ce54a8499bd6787c7205401.jpg?w=780&resize=780,470&ssl=1 "HP Enterprise Earnings Top Expectations as AI Demand Boosts Server Sales")
Key Takeaways
- Hewlett Packard Enterprise reported better-than-expected fiscal fourth-quarter results, with server sales buoyed by strong artificial intelligence demand.
- HP Enterprise’s revenue rose to a record while its net income more than doubled from the same period last year, the company said Thursday.
- The company forecast revenue would grow in the mid-teens in the current quarter, an outlook consistent with analysts’ expectations.
Hewlett Packard Enterprise (HPE) delivered fiscal fourth-quarter earnings that beat analysts’ expectations, driven by growth in server revenue.
The server maker posted record revenue of $8.5 billion, up 15% year-over-year and above the analyst consensus compiled by Visible Alpha. Net income was $1.34 billion, or 99 cents per share, up from $642 million, or 49 cents per share, a year earlier.
HP Enterprise server revenue jumped 32% to $4.7 billion, above analysts’ estimates. In October, the company unveiled new servers powered by Advanced Micro Devices (AMD) chips and designed to support artificial intelligence (AI) clusters for tasks like training large language models.
Revenue from the company’s Intelligent Edge segment fell 20% year-over-year to $1.1 billion, while revenue in its cloud segment rose 18% to $1.6 billion.
Looking ahead, HP Enterprise expects first-quarter revenue growth in the mid-teens. The analyst consensus is 14% growth.
Shares of HP Enterprise rose slightly in recent after-hours trading. The stock was up about 27% in 2024 through Thursday’s close, in line with the S&P 500’s gain over the period.
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