Hewlett Packard Enterprise reports Q2 adjusted EPS of 79 cents and revenue of $10.68 billion, crushing estimates.
Hewlett Packard Enterprise shares surged 25% after reporting second-quarter adjusted earnings per share of 79 cents, far exceeding the 53 cents analysts expected. Revenue climbed to $10.68 billion, topping the $9.79 billion consensus estimate, driven by strong artificial intelligence-related demand in its server unit.
Server revenue reached $5.45 billion, surpassing the $4.66 billion forecast. The results mark the company’s largest earnings beat since 2018 and set the stage for a potential intraday all-time high. Analysts remain divided on whether demand durability or peak earnings risk will dominate the narrative moving forward.
Bernstein raised its price target to $62 from $35, while Morgan Stanley lifted its target to $71 from $33, citing inelastic server demand and pricing power. Both firms noted the stock’s rapid ascent but highlighted ongoing debates over sustainability.