Hewlett Packard Enterprise shares sank 7% in extended trading on Wednesday after the company issued disappointing guidance for its fiscal 2026.
At a meeting with analysts, HPE said its adjusted earnings per share for the year would be in the range of $2.20 to $2.40. Analysts were expecting earnings per share of $2.40, according to LSEG.
Revenue growth, meanwhile, will be between 5% and 10%, far lower far lower than Wall Street estimates of 17%.
HPE, which sells data center equipment, said it plans to focus on several "strategic priorities" aimed to improve the company's overall business. That includes focusing on networking technology as part of its recent acquisition of Juniper Networks as well as pitching its various artificial intelligence-related technology offerings to both the "sovereign and enterprise segments."
"In HPE's new chapter, our strengthened portfolio will create more profitable growth, increasing capital return opportunities that deliver even greater value to our shareholders," HPE CEO Antonio Neri said in a statement.
The company's board also approved an additional $3 billion in share buybacks, bringing the total share repurchase plan to $3.7 billion.
HPE said in March, when it reported fiscal first quarter earnings, that it would cut its employee headcount by 5%, eliminating roughly 2,500 jobs.
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