Hewlett Packard Enterprise (HPE) delivered fiscal fourth-quarter earnings that beat analysts’ expectations, driven by growth in server revenue.
The server maker posted record revenue of $8.5 billion, up 15% year-over-year and above the analyst consensus compiled by Visible Alpha. Net income was $1.34 billion, or 99 cents per share, up from $642 million, or 49 cents per share, a year earlier.
HP Enterprise server revenue jumped 32% to $4.7 billion, above analysts’ estimates. In October, the company unveiled new servers powered by Advanced Micro Devices (AMD) chips and designed to support artificial intelligence (AI) clusters for tasks like training large language models.
Revenue from the company’s Intelligent Edge segment fell 20% year-over-year to $1.1 billion, while revenue in its cloud segment rose 18% to $1.6 billion.
Looking ahead, HP Enterprise expects first-quarter revenue growth in the mid-teens. The analyst consensus is 14% growth.
Shares of HP Enterprise rose slightly in recent after-hours …