Hewlett Packard Enterprise Stock Tumbles After-Hours On Mixed Q4 Earnings, Weak Quarterly Revenue Forecast

• The company reported Q4 revenue of $9.7 billion, below analyst estimates, as server and hybrid cloud revenue took a dip. 
• Adjusted earnings per share for Q4, however, came in at $0.62, above the company’s outlook range of $0.56 - $0.60, and beat Wall Street expectations of $0.58. 
• For the first quarter of fiscal 2026, the company expects revenue to be in the range of $9 billion to $9.4 billion, below an analyst estimate of $9.9 billion. 

Shares of Hewlett Packard Enterprise Co (HPE) fell 8% after-hours on Thursday after the information technology company reported mixed fourth quarter (Q4) earnings and provided fiscal 2026 first quarter (Q1) revenue guidance that disappointed investors.

The stock closed 3% higher on Thursday.

Q4 Earnings

The company reported Q4 revenue of $9.7 billion, marking a growth of 14% year-on-year in dollars, but below an analyst estimate of $9.91 billion, according to data from Fiscal AI. This was primarily due to a 5% drop in the company’s server revenue to $4.5 billion, and a 12% drop in hybrid cloud revenue to $1.4 billion which was partially offset by a 150% jump in networking revenue to $2.8 billion.

Adjusted earnings per share, however, came in at $0.62, above the company’s outlook range of $0.56 - $0.60, and beat Wall Street expectations of $0.58.

Outlook

For the first quarter of fiscal 2026, the company expects revenue to be in the range of $9 billion to $9.4 billion, below an analyst estimate of $9.9 billion. Adjusted earnings is expected to be in the range of $0.57 to $0.61, above an estimated $0.54.

The company also hiked its fiscal 2026 adjusted earnings outlook to a range of $2.25 to $2.45 per share and raised the midpoint of free cash flow guidance, now expected to be in the range of $1.7 billion to $2 billion. HPE also affirmed its revenue growth estimate of 17% to 22%.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around HPE jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

According to a Stocktwits user, the earnings are a reminder that AI server boom doesn’t imply straight line revenue growth. “Our model shows the market had started to price HPE as a clean AI-infrastructure winner; today’s print says it’s really a networking-centric, project-driven story with lumpy recognition and execution risk,” they said.

Another user opined that the stock is due for a “big drop” on the earnings.

HPE stock has gained 7% this year and about 5% over the past 12 months. 

Also See: US Senators Seek To Block China’s Access To Nvidia’s H200 AI Chips With New Bill: Report

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