Hewlett Packard Enterprise (HPE) is making waves in the stock market after reporting impressive second quarter results and a promising outlook for the third quarter. The Texas-based company saw its shares surge more than 12 per cent in the morning session on Wednesday, adding over $2 billion to its market capitalization.
HPE’s strong performance is attributed to growing demand for its AI-servers, with the company forecasting third quarter revenue between $7.4 billion to $7.8 billion. Additionally, HPE raised its full year adjusted earnings per share forecast to a range of $1.85 to $1.95, showcasing confidence in its continued success.
In the second quarter, HPE reported revenue of $7.20 billion, with server revenue jumping 18 per cent year-over-year to $3.9 billion. The company’s AI-server revenue more than doubled sequentially to $900 million, with an order backlog of $3.1 billion.
HPE’s CEO Antonio Neri highlighted the company’s strong performance in AI systems, stating that revenue more than doubled from the prior quarter. CFO Marie Myers also expressed optimism for the future, citing long-term trends in hybrid cloud and networking.
While HPE is thriving, its rival Dell Technologies forecasted current quarter profit below Wall Street estimates, further solidifying HPE’s position as a leader in the industry.
Investors are keeping a close eye on HPE as it continues to innovate and capitalize on the growing demand for AI-servers. With a strong outlook and impressive second quarter results, HPE is proving to be a force to be reckoned with in the tech industry.
