Hewlett Packard Enterprise (HPE) has reported strong quarterly results, exceeding Wall Street expectations as demand for its servers used in artificial intelligence applications drives revenue and profit growth. The company’s shares rose 1.5% in extended trading.
Demand for HPE’s servers equipped with Nvidia processors remains healthy, with enterprises investing heavily in hardware to support AI model training. Despite a weaker performance in its Intelligent Edge business, which provides networking equipment, the company has seen an improvement in this area.
Intelligent Edge revenue fell 20% to $1.12 billion in the fourth quarter, but HPE’s overall revenue of $8.46 billion beat estimates of $8.26 billion. Server revenue rose 32% to $4.71 billion, driven by strong AI server demand.
HPE also expects its first-quarter revenue to grow in the mid-teens percent, roughly in line with analysts’ estimates. The company’s adjusted earnings per share came in at 58 cents, beating expectations of 56 cents apiece.
Source: https://www.reuters.com/technology/hewlett-packard-enterprise-beats-quarterly-results-estimates-strong-ai-server-2024-12-05