Hewlett Packard Enterprise shares jump on strong quarterly results

Hewlett Packard Enterprise’s stock surged on Tuesday following the release of stronger-than-anticipated quarterly earnings and an upward revision to its full-year guidance.

The company posted adjusted earnings per share of $0.92 for the quarter, exceeding analysts’ consensus estimate of $0.85. Revenue totaled $7.2 billion, in line with expectations but reflecting a 5% year-over-year increase. Enterprise Group revenue, which includes servers, storage and networking, rose 7%, while advisory and professional services revenue declined 2%.

HPE also raised its full-year adjusted earnings guidance to a range of $3.40 to $3.50 per share, up from its prior forecast of $3.30 to $3.40. The company cited robust demand for AI-driven infrastructure and cost management initiatives as key drivers behind the improved outlook.

The stock gained 8% in premarket trading, extending gains from Monday’s close of $22.15. Analysts at JPMorgan and Citigroup upgraded their price targets on the shares, citing the company’s positioning in the AI server market and margin expansion.

HPE’s Chief Executive Officer Antonio Neri highlighted the company’s progress in high-performance computing and AI workloads, noting that demand for its Gen11 servers, optimized for AI workloads, remained strong. The company also announced a $2 billion share repurchase program, effective immediately.

Investors responded positively to the earnings beat and guidance upgrade, with the stock trading near session highs as of early Tuesday. The company’s next earnings report is scheduled for November 26.