Hewlett Packard Enterprise (HPE) Stock Drops After Record Earnings as Supply Crunch Weighs

TLDR

• HPE reported record fiscal Q3 adjusted EPS of $1.11, beating estimates of $0.93, with revenue of $12.2 billion, up 34% year over year
• Cloud and AI revenue hit $9 billion, up 25%, while networking revenue surged 75% to $2.9 billion
• HPE raised its fiscal 2026 revenue growth forecast to 34%-37% and lifted its fiscal 2027 outlook to 13%-17% growth
• Stock fell over 5% in after-hours trading despite the beat, as investors worried about margin pressure and supply constraints
• CEO Antonio Neri warned supply availability will remain “very constrained” through 2028, with memory the biggest bottleneck

HPE stock was down more than 5% in after-hours trading on Wednesday after the company posted record earnings and revenue for its fiscal third quarter. The stock had gained 116% this year heading into the report.

Hewlett Packard Enterprise Company, HPE

Adjusted EPS came in at $1.11, up from $0.44 a year ago and well ahead of the $0.93 analyst consensus. Revenue of $12.2 billion rose 34% year over year and topped the $12 billion Wall Street expected.

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