From Financial Modeling Prep: 2025-03-07 11:36:00

Hewlett Packard Enterprise (HPE) shares plummeted over 15% after reporting mixed Q1 results and issuing weak guidance. Q1 revenue was $7.85 billion, beating estimates, but adjusted EPS of $0.49 fell short. CEO Antonio Neri noted revenue growth but a 680 basis point drop in gross margin to 29.4%.

HPE’s Q2 guidance of $0.28-$0.34 EPS and $7.2-$7.6 billion revenue missed estimates. Full-year 2025 EPS forecast of $1.70-$1.90 fell short of the $2.13 projection. Revenue growth of 7-11% and non-GAAP operating profit growth of -10% to 0% were also below expectations.

Operating margin forecast of 9% at the midpoint for HPE was lower than the 10.7% consensus. Disappointing earnings projections and margin compression led to a sharp sell-off in HPE shares, with investors concerned about the company’s future performance.



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