Hewlett Packard Enterprise Beats Q2 Revenue Estimates on AI Demand, Raises 2025 Earnings Outlook

Hewlett Packard Enterprise (HPE) reported better-than-expected Q2 earnings, with revenue of $7.63 billion and adjusted earnings per share of $0.38, surpassing analyst estimates. The company’s growth was notably driven by increased demand for AI-optimized servers and hybrid cloud solutions, fueled by the surge in generative AI applications. In response to these strong results, multiple Wall Street firms raised their price targets for HPE’s stock, reflecting optimism about its profitability and refined FY25 outlook. Despite ongoing China-US trade tensions and a $1.36 billion impairment charge, HPE demonstrated resilience by cutting costs and improving execution, raising its full-year EPS forecast to as high as $1.90. The company also provided a positive outlook for Q3 2025 revenue between $8.2 billion and $8.5 billion, exceeding consensus estimates. Investors view HPE’s strategic focus on AI and operational efficiency as key drivers positioning it well amid macroeconomic uncertainties.