Hewlett Packard beats Q2 revenue estimates on AI demand; records $1.36 billion charge
(Reuters)impairment charge of $1.36 billion -Hewlett Packard Enterprise beat Wall Street revenue estimates for the second quarter on Tuesday, driven by demand for its artificial-intelligence servers and hybrid cloud segment.
Shares of the server-maker, which also recorded an impairment charge of $1.36 billion in the reported quarter, were up 3.2% in extended trading.
HPE has benefited from a surge in spending on advanced data center architecture, designed to support the complex processing needs of generative AI.
The boom in GenAI has bumped up demand for HPE's AI-optimized servers, which are powered by Nvidia processors and can run complex applications.
"In a very dynamic macro environment, we executed our strategy with discipline," CEO Antonio Neri said.
HPE was focusing on achieving efficiencies and streamlining operations across its businesses, said CFO Marie Myers.
For the quarter ended April 30, HPE posted revenue of $7.63 billion, ahead of analysts' average estimate of $7.45 billion, according to data compiled by LSEG.
Adjusted profit per share came in at 38 cents, beating an estimate of 32 cents per share.
It forecast third-quarter revenue between $8.2 billion and $8.5 billion, compared to an estimate of $8.17 billion.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
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