Hewlett Packard Enterprise Stock Drops Despite Raised Guidance Amid Supply Constraints
Despite raising its fiscal 2026 revenue guidance to a range of 34% to 37%, Hewlett Packard Enterprise (NYSE:HPE) stock fell by 5%. The decline was attributed to ongoing supply constraints affecting memory, CPUs, and drives that are limiting HPE's ability to fulfill orders. In contrast, Dell Technologies maintained steady pricing after reporting strong AI infrastructure results with a $95 billion backlog. Hewlett Packard Enterprise reported Q3 revenue of $12.2 billion, up 34% year-over-year, along with adjusted earnings per share (EPS) of $1.11. The company's Cloud & AI segment saw significant growth and its networking business surged by 75%. However, supply limitations are preventing HPE from converting demand into immediate revenue. Hewlett Packard Enterprise also announced a new Oracle networking deal and set fiscal 2027 targets of $5 billion in free cash flow and EPS growth between 16% to 20%, which supports the long-term bullish outlook for the company.
Topics: AI demand Dell Technologies Hewlett Packard Enterprise revenue growth Super Micro Computer