Hewlett Packard Enterprise (HPE) Q1 2025

Hewlett Pckard Enterprise The actions fell 19% in the negotiation extended on Thursday when the team manufacturer of the data center issued a quarterly guide and all year that reached below the consensus.

This is how the company did in the first fiscal quarter compared to the consensus of LSE:

• Profit per action: 49 tight cents compared to 49 expected cents
• Revenue: $ 7.85 billion compared to $ 7.82 billion expected

HPE income increased 16% year after year in the quarter that ended on January 31, according to a statement. The company stayed with profits of $ 598 million, or 44 cents per share, compared to $ 387 million, or 29 cents per share, in the same quarter of the previous year. Action -adjusted profits exclude shares -based compensation.

“We could have executed better,” said Antonio Neri CEO at a telephone conference with analysts. The company had a higher than normal inventory for artificial intelligence servers due to a change to the next -generation Blackwell graphics processing units of Nvidia.

The accumulation of AI systems increased by 29% quarter to quarter to $ 3.1 billion. Total server revenues totaled $ 4.29 billion.

HPE dealt with extensive market discounts while selling traditional servers during the quarter, said Finance Chief Marie Myers. As the room progressed, HPE moved to limit trips and discretionary spending, he said.

“We hope that price settings can negatively affect firstline growth in the short term,” said Myers.

The company said it would implement a cost reduction program that involves dismissals during the next 18 months that will lead to $ 350 million in gross savings for fiscal year 2027. Around 2,500 employees will be affected, said a spokesman, who represents about 5% of the workforce when he also invoices in the expected wear. At the end of October, HPE used 61,000 people, according to their most recent annual report.

In January, the United States Department of Justice presented at a Federal District Court to prevent HPE from acquiring Juniper networks. HPE announced The proposed agreement of $ 14 billion in January 2024. The court hopes that a trial will begin in July, according to the statement. The agreement must close in October 2025, HPE said. In December, the company He had said The transaction would be carried out in early 2025.

HPE requested 28 cents to 34 cents in Action -adjusted profits for the second fiscal quarter, with revenues between $ 7.2 billion and $ 7.6 billion. Analysts surveyed by LSE had searched 50 cents per share with $ 7.93 billion in revenues.

For fiscal year 2025, HPE sees $ 1.70 to $ 1.90 in Action -adjusted profits. The analysts surveyed by LSE had predicted $ 2.13 per share.

HPE expects to update its prices to reflect greater expenses of American tariffs, said Neri, adding that he has not received any commercial deterioration of the so -called Efficiency Department of President Donald Trump’s government.

At the end of Thursday, HPE shares increased approximately 2% until now in 2025, while the S&P 500 index fell 2%.

LOOK: HPE actions fall more than 10% after mixed profits, dismissal plans, dismissal plans