HPE Lifts Full-Year EPS Outlook, Cautions Memory Shortage to Persist into 2027
Summary
Hewlett Packard Enterprise raised its full-year adjusted earnings per share outlook by 5 cents to a range of $2.30 to $2.50, while also increasing its networking revenue growth forecast to 68%-73%. This update accompanies the company's strong fiscal Q1 2026 results, which saw adjusted EPS of $0.65, exceeding analyst expectations. The raised outlook reflects robust demand, particularly from AI and data center developers, signaling continued strength in its core markets. However, management warned that a critical memory supply shortage is expected to persist well into 2027, leading to soaring component prices and necessitating pricing adjustments across HPE's portfolio to protect margins. Investors will monitor HPE's ability to secure long-term supply agreements and effectively manage pricing to mitigate the impact of elevated memory costs on profitability.
At the time of this announcement, HPE was trading at $22.09 on NYSE in the Technology sector, with a market capitalization of approximately $29B. The 52-week trading range was $11.97 to $26.44. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.