Antonio Neri, President and CEO of Hewlett Packard Enterprise.
Anjali Sundaram | CNBC
Hewlett Packard Enterprise shares sank 7% in prolonged trading on Wednesday after the corporate issued disappointing guidance for its fiscal 2026.
At a gathering with analysts, HPE said its adjusted earnings per share for the 12 months can be within the range of $2.20 to $2.40. Analysts were expecting earnings per share of $2.40, in accordance with LSEG.
Revenue growth, meanwhile, can be between 5% and 10%, far lower far lower than Wall Street estimates of 17%.
HPE, which sells data center equipment, said it plans to deal with several “strategic priorities” aimed to enhance the corporate’s overall business. That features specializing in networking technology as a part of its recent acquisition of Juniper Networks in addition to pitching its various artificial intelligence-related technology offerings to each the “sovereign and enterprise segments.”
“In HPE’s recent 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 statement.
The corporate’s board also approved an extra $3 billion in share buybacks, bringing the whole share repurchase plan to $3.7 billion.
HPE said in March, when it reported fiscal first quarter earnings, that it might cut its worker headcount by 5%, eliminating roughly 2,500 jobs.
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