06:38 AM EDT, 06/04/2025 (MT Newswires) -- Hewlett Packard Enterprise ( HPE ) shares rose early Wednesday as the information technology firm raised its full-year earnings outlook at the midpoint and reported stronger-than-expected fiscal second-quarter results.

Per-share adjusted earnings are now set to come in between $1.78 and $1.90 for fiscal 2025, the company said late Tuesday, reflecting a higher bottom end than its prior estimate of $1.70. The consensus on FactSet is for non-GAAP EPS of $1.84. The stock inclined 5.5% in the most recent premarket activity.

"Our initial full-year guidance of a $0.07 impact to earnings reflected our best estimate based on tariffs in place on March 4, net of our mitigation efforts," Chief Financial Officer Marie Myers said during an earnings call, according to a FactSet transcript. "We absorbed $0.02 in the second quarter."

For the second half of the fiscal year, Hewlett Packard ( HPE ) reduced its tariff impact by $0.01 to $0.02 with the 90-day pause in effect for most duties set to expire on July 9, according to Myers. "We are tightening our guidance due to improved visibility into the second half of the year," the CFO added.

After announcing sweeping new reciprocal tariffs on several countries in early April, President Donald Trump declared a 90-day pause on certain duties for non-retaliating countries. Global trade tensions were recently renewed after China and the US accused each other of violating a preliminary deal reached between the two countries last month.

Revenue is anticipated to grow by 7% to 9% on a constant-currency basis for the ongoing fiscal year, according to Hewlett Packard ( HPE ). It previously forecast the top line to rise by 7% to 11% in constant-currency terms. The Street is looking for revenue of about $32.6 billion.

For the three-month period ended April, Hewlett Packard ( HPE ) reported adjusted EPS of $0.38, down from $0.42 the year before, but ahead of average analyst estimate of $0.35. Revenue advanced 6% to $7.63 billion, topping the Street's view for $7.49 billion. In constant currency terms, revenue gained 7%.

Revenue in the server segment grew to $4.06 billion from $3.84 billion in the prior-year period, but fell 5% on a sequential basis amid lower traditional compute volumes due to the company's corrective pricing actions at the end of the first quarter, Myers said on the call. Artificial intelligence systems revenue increased by more than 10% quarter over quarter, "due to improved customer readiness," Myers told analysts.

Intelligent edge division revenue inclined 7% to $1.16 billion while hybrid solutions climbed 13% to $1.45 billion. Financial services revenue ticked down 1% to $856 million.

The company anticipates adjusted EPS to be in a range of $0.40 to $0.45 and revenue of $8.2 billion to $8.5 billion for the ongoing quarter. Analysts are currently estimating non-GAAP EPS of $0.42 and sales of $8.34 billion.