Hewlett Packard Enterprise Sentiment Hurt by Slowing AI Revenue Growth Forecast

Dow Jones
45 mins ago

0907 GMT - Hewlett Packard Enterprise investors will be disheartened by its guidance for a normalization of AI revenue growth and margins, JPMorgan analysts write. The technology company raised its outlook for both 2026 and 2027 in earnings released after the closing bell Wednesday on strong demand across the group's AI and traditional hardware businesses. However, "investor sentiment will likely be tempered" by the guide for decelerating revenue growth in the group's cloud and AI division, as well as tighter margins in 2027. Still, the group's networking outlook points to steepening growth acceleration that will help offset margin compression in its AI business. Shares fall 3.3% premarket.

 

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