Hewlett Packard Enterprise Co (NYSE:HPE) reported Q4 2025 results showing an adjusted EPS of US$0.62 per share, surpassing analyst expectations. Revenue totaled approximately US$9.7 billion, falling short of forecasts. The decline in stock price during after-hours trading was attributed to weak guidance for Q1 and diminished demand for servers and hybrid-cloud solutions, highlighted by delays in AI-server orders from significant clients.
However, networking revenue experienced growth following HPE's acquisition of Juniper Networks, and the company raised its full-year EPS guidance. Investor sentiment remains cautious due to concerns over near-term demand despite the company's strategic shifts towards networking and cloud infrastructure.
#Investor Takeaway
Investor caution may influence HPE's share performance in the near term.
#Market Impact
The disappointing revenue guidance and reduced demand may pressure HPE shares in the short term. Investors will likely monitor future earnings calls for updates on demand trends in networking and cloud services.
#What’s Next
Investors should track HPE's Q1 earnings report and any updates on AI-server order fulfillment.