HPE’s second-quarter revenue rose 3.3% to $7.2 billion, beating Wall Street’s projection of a 2% decline to $6.82 billion. The company attributed most of its strong performance to its server business, which generated $3.87 billion in sales, surpassing analysts’ estimate of $3.45 billion. Sales of AI-oriented systems doubled to over $900 million compared to the previous quarter, driven by increased demand and improved availability of high-powered semiconductors from Nvidia Corp.
HPE forecasts sales of $7.4 billion to $7.8 billion for the next quarter, exceeding analysts’ average projection of $7.45 billion. Profit, excluding certain items, is expected to be between 43 and 48 cents per share, compared to an estimate of 46 cents. For the fiscal year, HPE raised its revenue outlook to a gain of 1% to 3% from a previous forecast of flat to 2%. The company anticipates a profit of approximately $1
