HPE stock sinks 10% on weak guidance for fiscal 2026
Antonio Neri is President and CEO of Hewlett Packard Enterprise.
Anjali Sundaram | CNBC
Hewlett Packard Enterprise Shares tumbled 7% in extended trading Wednesday after the company issued a disappointing forecast for fiscal 2026.
In a meeting with analysts, HPE said its adjusted earnings per share for the year would be in the range of $2.20 to $2.40. Analysts expected earnings per share of $2.40, according to LSEG.
Revenue growth, meanwhile, will be between 5% and 10%, well below Wall Street’s forecasts of 17%.
HPE, which sells data center equipment, said the company plans to focus on several “strategic priorities” aimed at improving its overall business. This includes a recent focus on networking technology as part of win Alongside Juniper Networks, it offers a variety of AI-related technology offerings to both “sovereign and enterprise segments.”
“In HPE’s next chapter, our strengthened portfolio will create more profitable growth, increasing capital return opportunities that deliver even greater value to our shareholders,” HPE CEO Antonio Neri said in a speech. expression.
The company’s board of directors also approved an additional $3 billion in share buybacks, bringing the total share repurchase plan to $3.7 billion.
When HPE announced its earnings for the first quarter of the fiscal year in March, it announced that it would reduce its headcount by 5% and lay off approximately 2,500 people.
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