HPE Annual Profit Forecast Misses Estimate on Margin Crunch

Shares of Hewlett Packard Enterprise Co. fell the most in six months after the company gave an outlook for profit and cash flow for its upcoming fiscal year that missed analysts’ estimates, reflecting a margin crunch in the AI era.

Earnings, excluding some items, will be $2.20 to $2.40 a share in the year ending in October 2026. Free cash flow will be $1.5 billion to $2 billion, HPE said Wednesday in a statement. Analysts, on average, projected profit of $2.41 and free cash flow of $2.41 billion, according to data compiled by Bloomberg.