Hewlett Packard Enterprise (HPE) is set to announce its fourth-quarter fiscal 2025 results on Dec. 4, 2025, with anticipated revenues between $9.7-$10.1 billion. Non-GAAP earnings are expected to be 56-60 cents per share, reflecting a 1.72% increase year over year. HPE’s earnings have surpassed estimates in three of the last four quarters.

However, HPE’s AI Systems revenues may have declined due to a large deal in the previous quarter. The company’s bottom line could be impacted by a higher mix of lower-margin AI systems and integration expenses. Macroeconomic challenges such as tariff issues and geopolitical uncertainty may have affected HPE’s financial performance.

HPE’s stock has gained 2.9% year-to-date, trading at a discounted price compared to the industry. The company is poised to benefit from the global server refresh cycle and its cloud business growth. Challenges include increased leverage, lower margins in networking, and constraints in AI systems’ profitability.

Despite long-term prospects, HPE faces near-term challenges and competition from major players in the cloud and server space. Investors are advised to avoid HPE stock for now. The company’s stock is currently rated a Zacks Rank #4 (Sell).

Zacks Investment Research has identified a top stock pick with the potential to double in value, targeting millennial and Gen Z audiences. The company generated nearly $1 billion in revenue in the last quarter. With a recent pullback, now may be an ideal time to consider this stock.

Read more at Nasdaq: HPE to Post Q4 Earnings: Time to Buy, Sell or Hold the Stock?