HPE stock sinks 9% on revenue miss and weak server numbers

Core Viewpoint - Hewlett Packard Enterprise (HPE) shares declined by 5% following a fourth-quarter revenue report that did not meet analyst expectations, with reported revenue of $9.68 billion, a 14% increase year-over-year, but below the anticipated $9.94 billion [1] Revenue Performance - HPE's server segment revenue was reported at $4.46 billion, representing a 5% decrease from $4.68 billion in the same quarter last year, and fell short of the StreetAccount analyst expectations of $4.58 billion [2] - The server revenue also saw a decline of 10% compared to the previous third quarter [3] Management Commentary - CFO Marie Myers attributed the revenue shortfall to the timing of artificial intelligence service shipments and lower-than-expected government spending during the analyst call [2] - Despite the challenges, there was notable growth in server orders for both traditional and AI offerings, indicating that demand significantly outpaced revenue during this period [3]