HPE hybrid IT revenue falls 11% triggering share slump

HPE missed analyst estimates in its fourth-quarter earnings report on Monday, largely driven by slowing demand for core products and wider economic uncertainty. Shares slumped 4% in after-hours trading, prompted by a drop of 11% in the company's Hybrid IT division, by far HPE's largest unit comprising its servers, storage and data centre products. Revenue for the unit came in at $5.67 billion, just short of the $5.74 billion expected by analysts. The company's Intelligence Edge unit, a field that HPE has aggressively targeted, also saw revenue slump by 6.5%, falling from $773 million to $723 million year over year. In September, HPE CEO Antonio Neri warned that turbulent economic factors, including trade tensions, were creating "uneven demand" and would rattle customer confidence for some time to come.