On September 3, Hewlett Packard Enterprise fell 6.14% in pre-market trading, trading at $48.76/share, with turnover of $1.0459 million. Despite reporting fiscal Q3 results that significantly exceeded expectations, the stock extended its post-earnings selloff driven by dual headwinds.

The company reported fiscal Q3 adjusted EPS of $1.11, beating the consensus estimate of $0.93 by 19.4% and surging 152% year-over-year. Revenue came in at $12.213 billion, topping the $11.908 billion estimate. Full-year adjusted EPS guidance was raised to $3.75–$3.85, well above the prior range of $3.35–$3.45 and the Street estimate of $3.44. AI systems revenue, excluding networking, reportedly jumped to $2 billion from $900 million in the prior quarter. The CFO also disclosed a multi-billion-dollar hyperscale server deal secured after quarter-end.

However, the CEO warned during the earnings call that supply chain limitations continue to constrain the company's ability to fulfill surging customer demand. Simultaneously, the announcement of a multi-year AI infrastructure networking partnership with Oracle included the issuance of warrants to purchase HPE common stock, sparking market concerns over equity dilution.

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