Hewlett Packard Enterprise (HPE) said its financial outlook for fiscal 2026 will be weaker than many analysts expected. The company’s forecast came in after a quiet earnings report that showed slower growth in its core businesses, such as servers and cloud infrastructure.
In a conference call with investors, HPE’s CFO explained that revenue for the year will fall short of the 5‑to‑7 percent growth that brokerage firms were projecting. Earnings per share (EPS), too, will be below the consensus estimate. The company cited a dip in demand for traditional data‑center hardware and the ongoing shift toward cloud‑based services as key reasons for the downgrade.
HPE’s shares fell about 5 percent in the after‑hours trading that followed the call, sparking a sharp sell‑off in the tech sector. Market analysts said investors were worried that the company’s core products are slowing, especially as larger competitors like Dell Technologies and Lenovo target similar markets.
While HPE still sees growth in its software and high‑performance computing segments, the company stressed that the market for its high‑end servers will take longer to recover. The CFO also said that the rise of AI workloads could drive new opportunities, but the impact is not yet fully priced into the company’s long‑term plans.
Industry watchers note that HPE’s forecast comes as a broader trend of hardware vendors face tougher revenue conditions. Yet the CFO said the firm is focusing on improving operating margins and investing in emerging tech to stay competitive.
Overall, HPE’s downgrade and the subsequent drop in its stock price has reminded investors that the future of hardware‑centric companies relies on how well they can transition to cloud and AI‑related services while managing rising costs.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
