BusinessNews

Hewlett Packard Enterprise reports strong Q4 results, focusing on AI market expansion

1 Mins read
Hewlett Packard Enterprise

On Tuesday, Hewlett Packard Enterprise (HPE) witnessed a decline in extended trading after the release of the fourth-quarter results of the fiscal year. This decline was expected by analysts. The computing giant reported net earnings of $642 million, a significant improvement from a net loss of $304 million in the same quarter a year ago. While the company’s adjusted earnings remained at 52 cents per share, its net revenue declined by 7%, in which fell from $7.87 billion to $7.35 billion. 

On the other hand, the company’s High Performance Computing & Artificial Intelligence (HPC & AI) revenue grew 37% to $1.2 billion from last year’s fourth quarter, which was above analysts’ expectations, positioning HPE as a key player in the AI market. 

According to FactSet analysts’ projection, the expected adjusted net earnings for HPE were 50 cents per share on revenue of $7.4 billion. HPE’s actual results aligned with these estimates. The company offered a firstquarter revenue guidance ranging between $6.9 billion and $7.3 billion, while FactSet analysts projected $7.23 billion. 

The board of HPE announced a standard cash dividend of 13 cents per share for the company’s common stock, with the payment scheduled for January 11, 2024. 

HPE is strategically targeting three key areas in the AI market: supercomputing, AI infrastructure, and AI software platform. The company aims to leverage its global delivery footprint to continue capturing share in the market’s anticipated double-digit growth. 

By 2026, projections indicate that the AI infrastructure market will surpass the core supercomputing market by sevenfold, reaching an estimated value of $86 billion. HPE expresses confidence in its distinctive ability to provide customers with specialized solutions. This confidence stems from leveraging the company’s intellectual property in areas such as management software, networking and liquid cooling. HPE positions itself uniquely to meet the evolving needs of the expanding AI infrastructure market. 

To accelerate its strategy and enhance capabilities, HPE has acquired five businesses in the current year including Axis Security, OpsRamp and Athonet.  

Image credit: Freepik

Read Next: nLighten acquires Proximity Data Centres

Leave a Reply

Your email address will not be published. Required fields are marked *

÷ three = three