Hewlett Packard Enterprise reports strong sales growth on boost from AI, servers
HEWLETT Packard Enterprise (HPE) reported better-than-expected quarterly revenue and a jump in sales of servers to power artificial intelligence (AI) work.
Fiscal fourth-quarter revenue increased 15 per cent to US$8.5 billion, the company said on Thursday (Dec 5). Analysts, on average, estimated US$8.3 billion. Profit, excluding some items, was 58 US cents per share, ahead of the average of 56 US cents expected by Wall Street.
Demand for high-powered computing to run AI workloads has led to a boom for hardware makers, including HPE, Dell Technologies and Super Micro Computer. HPE reported that revenue from AI systems increased 16 per cent to US$1.5 billion in the quarter. Server unit sales jumped 32 per cent to US$4.7 billion.
The shares increased about 2 per cent in extended trading after closing at US$21.65 in New York. The stock has gained 28 per cent this year to Thursday’s close.
In January, the Texas-based hardware company announced plans to acquire Juniper Networks and orient the combined business around networking. The proposed US$14 billion deal has caught the attention of US competition regulators, who have made their concerns known to the company, Bloomberg has reported.
HPE said it expects the deal to close in the “early part” of 2025. “We are working very collaboratively with the DOJ,” chief executive officer Antonio Neri said, referring to the US Department of Justice. “We have received unconditional approval from pretty much all the jurisdictions around the world including the European Union, UK, Australia, South Korea – you name it.”
Revenue in Intelligent Edge, HPE’s business unit which includes networking, declined 20 per cent to US$1.1 billion in the period ended Oct 31, in line with estimates.
In the quarter ending in January, HPE expects sales growth in the “mid teens”, compared with an average analyst estimate of 15 per cent. Earnings, excluding some items, will be 47 US cents a share to 52 US cents a share. Analysts, on average, estimated 48 US cents. BLOOMBERG
Share with us your feedback on BT's products and services
