HPE falls as weak AI server demand weighs on revenue outlook
Shares of AI server maker Hewlett Packard Enterprise HPE.N fall 9.7% to $20.67 premarket
Co forecast Q1 revenue below Wall Street estimates
HPE expects revenue in the range of $9 billion-$9.4 billion vs analysts' average estimate of $9.9 billion, according to data compiled by LSEG
Co sees a decline in AI server revenue due to uneven demand as customers delayed orders to H2
"Server saw weakness, due to AI shipment timing and US (federal agency) spend. However, we believe both to be more timing issues," said Barclays analysts in a note
HPE raised fiscal 2026 adjusted EPS forecast to $2.25-$2.45, vs prior projection between $2.20-$2.40.
Median PT of 22 analysts covering the stock is $26, with an avg "hold" rating, as per data compiled by LSEG
As of last close, HPE up 7.1% YTD
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