HPE Faces Revenue Decline and Networking Demand Weakening

HPE has revamped its financial reporting structure, causing storage results to vanish into a new hybrid cloud category. The company's first fiscal quarter revenues were lower than expected, with a $387 million profit, 23 percent less than last year. HPE's new organizational structure includes segments such as Server, Hybrid Cloud, and Intelligent Edge. The company's CFO cited softening demand in the Intelligent Edge segment, while the CEO expressed confidence in the future, particularly in AI systems and GPU-enhanced servers. HPE's next quarter outlook anticipates a 2.5 percent annual decrease in revenues at the midpoint.