06:20 AM EDT, 06/05/2024 (MT Newswires) -- Hewlett Packard Enterprise ( HPE ) shares spiked early Wednesday after lifting its full-year outlook amid robust demand for its artificial intelligence systems, while the information technology company's fiscal second-quarter results topped market expectations.

Per-share adjusted earnings are now set to come in between $1.85 and $1.95 for fiscal 2024, the company said late Tuesday, up from its prior projections of $1.82 to $1.92. The consensus on Capital IQ is for normalized EPS of $1.91. The stock jumped 15% in premarket activity.

Revenue is anticipated to grow by 1% to 3% on a constant currency basis for the ongoing fiscal year, according to the company. It previously forecast the top line to be flat to up 2%. The Street is looking for revenue of $29.57 billion.

"Because of our robust AI systems order momentum and disciplined execution across our entire portfolio, we are raising our revenue and non-GAAP EPS guidance for the full year," Chief Financial Officer Marie Myers said in a statement. "We are driving profitable growth as we convert customer demand to revenue, particularly for HPE's AI systems."

For the three-month period ended April, Hewlett Packard ( HPE ) reported adjusted EPS of $0.42, down from $0.52 the year before, but ahead of the Street's view for $0.39. Revenue increased 3% to $7.2 billion, topping analysts' $6.83 billion estimate. In constant currency terms, revenue gained 4%.

Server revenue climbed 18% to $3.87 billion driven by "strengths in both AI systems and traditional servers," Myers said during an earnings call, according to a Capital IQ transcript. "AI system product revenue more than doubled sequentially to over $900 million," Myers told analysts.

Revenue in the intelligent edge division slumped 19% to $1.09 billion as "backlog consumption created difficult compares with both prior periods," the CFO added. Hybrid cloud segment revenue fell to $1.26 billion from $1.37 billion in the 2023 quarter. Financial services revenue ticked up 1% to $867 million.

For the third quarter, Hewlett Packard ( HPE ) anticipates adjusted EPS to be in a range of $0.43 to $0.48 and revenue of $7.4 billion to $7.8 billion. Analysts are currently estimating normalized EPS of $0.46 and revenue of $7.58 billion for the quarter.

Price: 20.15, Change: +2.55, Percent Change: +14.49