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 profit of 9.8%, compared to 11.6% from the year-ago period.
Total revenue was $9.7 billion, up 14% year-over-year and in line with Wall Street estimates.
Adjusted earnings per share were $0.62, above the company’s guidance of $0.56 to $0.60. This beat estimates of $0.59.
“HPE finished a transformative year with a strong fourth quarter of profitable growth and disciplined execution,” CEO Antonio Neri said in a statement.
HPE also raised its adjusted EPS forecast for 2026, now expecting this to fall in the range of $2.25 to $2.45. The firm continues to expect revenue growth between 17% and 22%.
“Our focus on disciplined spending, portfolio simplification, and ongoing structural cost management initiatives gives us the confidence to raise our FY26 diluted net earnings per share guidance and the midpoint of our FY26 free cash flow guidance,” HPE CFO Marie Myers said.