By Angela Palumbo

Hewlett Packard Enterprise reported better-than-expected quarterly financial results in its first earnings report since it completed the highly anticipated acquisition of Juniper Networks.

HPE reported fiscal third-quarter adjusted earnings of 44 cents a share from revenue of $9.14 billion. Analysts surveyed by FactSet were expecting earnings of 42 cents a share and revenue of $8.84 billion.

"It's been a great quarter on a number of dimensions," CEO Antonio Neri told Barron's. Demand was particularly strong in the company's server and networking segments, he said.

HPE makes most of its revenue from its server business. At $4.94 billion, server revenue for the quarter beat the Wall Street consensus call of $4.72 billion.

HPE said it expects fourth-quarter adjusted earnings to be between 56 cents and 60 cents a share, which compares with a consensus analyst estimate of 56 cents. Management's forecast that revenue will be between $9.7 billion and $10.1 billion compares with Wall Street expectations of $10.11 billion.

For the year, HPE now expects earnings to be between $1.88 and $1.92 a share, and for revenue to grow by between 14% and 16%. It had previously predicted earnings of $1.78 to $1.90 a share, with revenue growth of 7% to 9%.

"We are raising guidance because we are consolidating the Juniper results into our numbers," Neri said.

HPE closed its acquisition of Juniper on July 2, a deal that was meant to create a new networking beast that could compete with companies such as Cisco Systems. Wednesday's results include the consolidation of Juniper's financial results from the period between July 2 and July 31.

HPE's better-than-expected quarterly results come as Wall Street still faces uncertainties due to consistently evolving tariff policies.

Some tech hardware is temporarily exempt from the most hefty tariffs as so-called Section 232 investigations into electronic products, such as semiconductors, continue. The probes are meant to allow the U.S. government to look into whether imports of certain products are a threat to national security.

"Right now, I think we are quite a bit aways to come to a definite conclusion," Neri said when asked about what he thinks a possible timeline for the Section 232 investigation might look like. "In the context of the next quarter, which is really the next two months, we see no impact."

Shares of HPE rose 5.1% in premarket Thursday trading. As of Wednesday's close, the stock has gained 7.1% this year.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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September 04, 2025 08:54 ET (12:54 GMT)

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