HPE skyrockets 30% on biggest earnings beat since 2018

Here’s how the company did compared to LSEG estimates:

• Earnings per share: 79 cents adj. vs. 53 cents expected
• Revenue: $10.68 billion vs. $9.79 billion expected

It was the company’s biggest EPS beat since February 2018.

Revenue was up 40% over a year ago.

Overall Cloud & AI revenue came in at $7.71 billion, topping the StreetAccount estimate of $6.87 billion, but it was the company’s server unit that really impressed. Server revenue, which is a sub-division of the Cloud & AI unit, came in at $5.45 billion, blowing away the $4.66 billion expected by analysts.

HPE bumped its full-year EPS guidance by a full dollar, projecting fiscal year 2026 EPS of $3.35 to $3.45, up from $2.30 to $2.50. The company said it is now tracking two years ahead of its own long-term financial plan.

CEO Antonio Neri told CNBC that traditional server bookings are up triple digits, and it is the biggest backlog the company has ever seen.

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