Core Viewpoint - HPE's stock dropped 9% in pre-market trading following its earnings announcement, which revealed revenue guidance below Wall Street expectations [1] Group 1: Earnings Announcement - HPE projected revenue for Q1 of fiscal year 2026 to be between $9 billion and $9.4 billion, which is lower than the average analyst expectation of approximately $9.88 billion [1] - The adjusted earnings per share (EPS) is expected to be in the range of $0.57 to $0.61, compared to analysts' forecast of about $0.53 [1] Group 2: Revenue Guidance - For the fiscal year 2026, HPE reaffirmed its revenue guidance range of 17% to 22% growth [1]

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]

Core Viewpoint - HPE's stock dropped 9% in pre-market trading following its earnings announcement, which revealed revenue guidance below analyst expectations for Q1 of fiscal year 2026 [1] Financial Performance - HPE expects revenue for Q1 of fiscal year 2026 to be between $9 billion and $9.4 billion, which is lower than the Wall Street analysts' average expectation of approximately $9.88 billion [1] - The adjusted earnings per share (EPS) is projected to be in the range of $0.57 to $0.61, compared to analysts' expectations of about $0.53 [1] Future Guidance - For the fiscal year 2026, HPE reaffirmed its revenue guidance range of 17% to 22% growth [1]

Market Overview - U.S. stock futures are showing a positive trend, with S&P 500 futures up around 0.2% to 0.3% and Nasdaq 100 futures gaining approximately 0.3% to 0.4% [2] - Major tech stocks like Nvidia, Microsoft, Amazon, Alphabet, and Meta Platforms are experiencing premarket strength, while Apple and Tesla are trading near flat [3] Major Index Performance - The S&P 500 closed with a modest gain of 0.11%, reaching a three-week high, while the Nasdaq Composite edged up by 0.22% [4] - The Dow Jones Industrial Average dipped slightly by 0.07%, influenced by higher bond yields, with the 10-year U.S. Treasury yield rising to 4.11% [4] Upcoming Economic Events - The Federal Reserve's monetary policy meeting on December 9-10 is highly anticipated, with an estimated 86% to 87% probability of a 25-basis-point interest rate cut [6] - Today's trading will be influenced by the delayed September Personal Consumption Expenditures (PCE) price index, with expectations of a 0.4% month-over-month increase in personal income and outlays [7] Company News - Netflix shares are down approximately 1.9% to 2% following the announcement of its acquisition of Warner Bros. Discovery for an enterprise value of $82.7 billion [8] - SoFi Technologies experienced a significant premarket drop of around 7.30% due to a $1.5 billion common stock offering, raising concerns about share dilution [13] - Cloudflare's stock dipped following its second major outage in two weeks, impacting several high-profile websites [13] - Hewlett Packard Enterprise reported lower sales and profits than expected, leading to a negative market reaction [13] - Nvidia's sentiment improved after strong sales reported by its partner, but new legislation may restrict its ability to ship advanced AI chips to China [13]

Core Viewpoint - Hewlett Packard Enterprise (HPE) stock fell by 9% following the announcement of challenges in its AI server segment, indicating potential issues in its growth narrative [1] Financial Performance - HPE reported its Q4 earnings, which may have contributed to the stock decline, highlighting the impact of financial results on investor sentiment [1] Market Reaction - The 9% drop in HPE's stock price reflects investor concerns regarding the company's ability to maintain momentum in the AI server market, suggesting a reevaluation of growth expectations [1]

Group 1 - U.S. stock futures were mostly higher, with Nasdaq futures gaining around 100 points [1] - Domo Inc reported quarterly earnings of 1 cent per share, beating the analyst consensus estimate of a loss of 5 cents per share [2] - Domo's quarterly sales were $79.400 million, exceeding the analyst consensus estimate of $78.967 million [2] Group 2 - Domo shares fell 14.2% to $9.93 in pre-market trading following the earnings report and weak fourth-quarter sales guidance [2] - Sportsman's Warehouse Holdings Inc tumbled 18.8% to $1.99 in pre-market trading after reporting third-quarter results [4] - Argan Inc fell 11.6% to $315.00 in pre-market trading due to worse-than-expected third-quarter sales results [4] - Hewlett Packard Enterprise Co shares dipped 9.2% to $20.80 after mixed fourth-quarter financial results and weak first-quarter sales guidance [4] - SentinelOne Inc declined 8% to $15.61 after narrowing its FY26 sales guidance below estimates [4] - SoFi Technologies Inc fell 7.5% to $27.39 as the company announced pricing of a public offering of common stock [4] - Oklo Inc fell 6.6% to $104.30 after entering into an equity distribution agreement to offer up to $1.5 billion of common stock [4] - Docusign Inc fell 5.5% to $67.21 following third-quarter results [4] - Parsons Corp fell 5.3% to $80.00 in pre-market trading [4] - Chatham Lodging Trust fell 4.3% to $6.24 in pre-market trading [4]

Market Movements - US stock index futures are all up, with Dow futures rising by 0.05%, S&P 500 futures by 0.17%, and Nasdaq futures by 0.36% [1] - European indices also show positive movement, with Germany's DAX up by 0.52%, UK's FTSE 100 up by 0.07%, France's CAC40 up by 0.28%, and the Euro Stoxx 50 up by 0.39% [2][3] Commodity Prices - WTI crude oil has decreased by 0.12%, trading at $59.60 per barrel, while Brent crude oil has fallen by 0.06%, trading at $63.22 per barrel [4] Economic Data and Events - The market is focused on the upcoming release of the September Personal Consumption Expenditures (PCE) price index, which is considered a key inflation indicator by the Federal Reserve. The overall PCE index is expected to show a year-over-year increase of 2.8% and a month-over-month increase of 0.3%, while the core PCE index is anticipated to rise by 2.9% year-over-year and 0.2% month-over-month [5] Company News - Apple is facing a wave of executive departures, including its General Counsel and Policy Chief, as well as a top designer who has joined Meta. This trend of talent loss is seen as a potential risk to Apple's innovation capabilities [9][10] - Hewlett Packard Enterprise (HPE) reported a 14% year-over-year revenue increase to $9.7 billion, but fell short of market expectations. The company anticipates revenue for the first fiscal quarter to be between $9 billion and $9.4 billion, which is below market expectations [11] - DocuSign reported better-than-expected Q3 earnings, with adjusted EPS of $1.01 and revenue growth of 8.4% to $818.35 million. The company has raised its full-year revenue guidance [12] - Warner Bros. Discovery is reportedly in exclusive negotiations to sell its film and TV studio and HBO Max streaming service to Netflix, with a potential $5 billion breakup fee if the deal does not receive regulatory approval [13] - SoFi Technologies is seeking to raise $1.5 billion through a discounted stock offering, leading to a pre-market drop of over 7% in its stock price [13]

Core Viewpoint - Hewlett Packard Enterprise Co (HPE) has provided a sales outlook for the current quarter that falls short of market expectations for its AI server business, resulting in a stock price drop of over 9% in pre-market trading [1][4]. Financial Performance - For the fourth fiscal quarter ending October 31, 2025, HPE reported total revenue of $9.7 billion, a year-over-year increase of 14%, but below the average analyst expectation of approximately $9.9 billion [5][6]. - The adjusted earnings per share for the fourth fiscal quarter reached $0.62, exceeding analyst expectations and significantly higher than the previous year's $0.04 [5][6]. - Free cash flow for the fourth fiscal quarter was approximately $1.9 billion, a substantial increase from $420 million in the same period last year [5]. Margin Improvement - HPE's GAAP gross margin was reported at 33.5%, an increase of 270 basis points year-over-year and 430 basis points quarter-over-quarter [6]. - The Non-GAAP gross margin was 36.4%, reflecting a year-over-year increase of 550 basis points and a quarter-over-quarter increase of 650 basis points [6]. Sales Outlook - HPE expects revenue for the upcoming quarter to be between $9 billion and $9.4 billion, which is below the Wall Street analyst average expectation of approximately $9.88 billion [4]. - The company reaffirmed its revenue guidance for fiscal year 2026, projecting a growth range of 17% to 22% [4]. AI Server Demand - Despite the current sales outlook, HPE continues to see strong demand for AI servers, particularly from sovereign government agencies and large cloud computing clients [6][7]. - Some large AI server orders have been delayed until the 2026 calendar year, impacting the current quarter's sales forecast [4][5]. Strategic Partnerships - HPE is collaborating with AMD and Broadcom to enhance its AI server offerings, which are expected to drive significant revenue growth [8][9]. - The partnership aims to integrate AMD's "Helios" rack-level AI computing architecture and a specialized HPE Juniper Networking high-performance switch, providing a cost-effective and efficient AI computing solution [8][9]. Future Growth Potential - HPE's acquisition of Juniper Networks for approximately $13 billion is expected to bolster its network business, which is seen as a key pillar for future growth [7]. - The company is positioning itself as a central player in the AI server market, leveraging its partnerships and acquisitions to enhance its product offerings and market reach [7][9].

Core Insights - Hewlett Packard Enterprise (HPE) reported a revenue of $9.7 billion for Q4 2025, marking a 14% increase from $8.4 billion in the same quarter last year [1] - The annualized revenue run-rate (ARR) increased to $3.2 billion, reflecting a 63% year-on-year growth in actual dollars and 62% in constant currency [1] - HPE experienced a loss from operations of $8 million in Q4 2025, contrasting with earnings of $693 million in the same quarter a year ago [1] Financial Performance - Cash flow from operations was $2.465 billion, an increase of $435 million year-on-year, while free cash flow totaled $1.92 billion, up $420 million compared to last year [2] - The company returned $271 million to common shareholders through dividends and share repurchases [2] - HPE's president and CEO, Antonio Neri, highlighted a strong fourth quarter of profitable growth and disciplined execution [2] Segment Performance - Server revenue was $4.5 billion, down 5% from the same period last year, with an operating profit margin of 9.8%, down from 11.6% [3] - Networking revenue surged to $2.8 billion, up 150%, with an operating profit margin of 23%, slightly down from 24.4% [3] - Hybrid Cloud revenue decreased to $1.4 billion, down 12%, with an operating profit margin of 5%, compared to 7.8% last year [4] - Financial Services revenue remained steady at $889 million, down 2% in constant currency, with an operating profit margin rising to 11.5% from 9.2% [4] Future Outlook - For Q1 of fiscal year 2026, HPE expects revenue between $9 billion and $9.4 billion [5] - HPE's executive vice president and chief financial officer, Marie Myers, noted operational discipline in Q4, resulting in record gross profit and robust non-GAAP operating profit [5] - The company is confident in raising its FY26 diluted net earnings per share guidance and the midpoint of its FY26 free cash flow guidance due to disciplined spending and ongoing cost management initiatives [6]

Market Overview - U.S. stock futures showed mixed performance after a mixed close on Thursday, with major indices fluctuating [1] - Investors are awaiting the September PCE price index, a key inflation measure delayed by a government shutdown [1] Employment Data - U.S. job cuts decreased by 53% month-over-month in November, totaling 71,321, which is still 24% higher than the previous year, indicating a cautious labor market [2] - The 10-year Treasury bond yield is at 4.11%, while the two-year bond yield is at 3.53%, with an 87% likelihood of a Federal Reserve interest rate cut in December [2] Stock Performance - Netflix Inc. (NASDAQ:NFLX) fell 0.52% in premarket trading despite winning a bidding war, with a weaker price trend noted [6] - Hewlett Packard Enterprise Co. (NYSE:HPE) dropped 9.17% after mixed Q4 results and weak Q1 guidance, with revenue at $9.68 billion, below estimates [6] - Cooper Companies Inc. (NASDAQ:COO) rose 12.94% after exceeding Q4 expectations and providing strong FY26 guidance, maintaining a stronger price trend [6] - Zumiez Inc. (NASDAQ:ZUMZ) increased by 14.09% after reporting strong Q3 results and a positive Q4 outlook, showing a stronger price trend [14] - SMX (Security Matters) PLC (NASDAQ:SMX) surged 43.52% after approving all proposals at its annual general meeting, although it has a weaker price trend in the medium and long term [14] Sector Performance - Industrials and information technology sectors closed higher, while consumer staples, healthcare, and consumer discretionary sectors faced significant losses [8] - The Nasdaq Composite gained around 50 points ahead of the anticipated Federal Reserve rate cut [8] Economic Indicators - Upcoming economic data includes September's personal income, spending, and PCE Index, with releases scheduled for 8:30 a.m. ET [13] - December's preliminary consumer sentiment data will be available at 10:00 a.m., and consumer credit data for October will be released at 3:00 p.m. ET [15] Commodities and Global Markets - Crude oil futures increased by 0.08% to approximately $59.72 per barrel, while gold prices rose by 0.36% to around $4,224.10 per ounce [16] - Asian markets closed higher, except for Japan's Nikkei 225, with European markets also showing gains in early trade [17]