HPE Stock Plummets 17% Amid Weak Outlook, Job Cuts Planned

Hewlett Packard Enterprise (HPE) experienced a significant stock decline of approximately 17% in after-hours trading following the release of its fiscal first-quarter results and disappointing future guidance. The company reported a revenue of $7.85 billion, slightly exceeding expectations, but adjusted earnings per share of $0.49 fell short of the anticipated $0.50. For the second quarter, HPE forecasted adjusted earnings between $0.28 to $0.34 per share and revenue between $7.2 billion and $7.6 billion, both below analyst expectations. CEO Antonio Neri acknowledged execution challenges, particularly in the server segment, which contributed to tighter margins. Additionally, HPE plans to cut about 3,000 jobs as part of a cost-reduction strategy aimed at saving approximately $350 million by fiscal 2027. This combination of factors has raised concerns among investors, leading to the substantial drop in share value.