(Reuters) -Hewlett Packard Enterprise forecast annual profit and revenue below Wall Street expectations on Wednesday, as it shifts its server business toward artificial intelligence and networking following its Juniper Networks acquisition.

Shares of the company were down about 8.5% in after-hours trading.

Starting in the first quarter of fiscal 2026, the company will merge its server, hybrid cloud and financial services business segments into a newly created segment: cloud & AI.

HPE is targeting growth in the booming artificial intelligence infrastructure market, as businesses ramp up hardware and software spending to support AI.

“In HPE’s new chapter, our strengthened portfolio will create more profitable growth, increasing capital return opportunities that deliver even greater value

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