AI demand lifts HPE and NetApp to record quarters, but investors sell both
Shares of Hewlett Packard Enterprise Co. and NetApp Inc. both fell in late trading today despite the two compute, storage and networking companies beating Wall Street expectations for their July quarters and raising their full-year outlooks. For its fiscal third quarter, which ended on July 31, HPE reported adjusted earnings of $1.11 per share, up […] The post AI demand lifts HPE and NetApp to…
Hewlett Packard Enterprise (HPE) and NetApp saw their stock prices drop in after-hours trading despite both companies reporting stronger-than-expected earnings and projecting higher full-year revenues. HPE reported adjusted earnings per share of $1.11 in its third fiscal quarter, up from $0.44 a year ago, on revenue of $12.2 billion, up 34% year-over-year.
NetApp posted adjusted earnings of $2.58 per share in its first fiscal quarter, a 30% jump from the previous year, on record revenue of $2.03 billion. The AI segment drove HPE's revenue growth, with $3.1 billion in AI orders, while NetApp saw a record $1.3 billion in all-flash array revenue and $206 million in public cloud revenue.
Despite these impressive numbers, both stocks fell after hours, with HPE shares down more than 8% in extended trading and NetApp slipping over 8% as well.
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