markets

Tom Jones10/16/25

Hewlett Packard sinks on disappointing revenue, profit, and free cash flow guidance for fiscal 2026

Hewlett Packard Enterprise is down about 9% in premarket trading after revealing an outlook at its analyst meeting that came in well below Wall Street’s expectations.

At its Securities Analyst Meeting in New York yesterday, the company revealed that it expected revenue growth of 5% to 10% next year — analysts were expecting ~18%, per Bloomberg data.

HPE also said that earnings per share for FY2026, which runs from next month until October next year, will be $2.20 to $2.40, below analysts’ estimates of $2.41 per share, according to Bloomberg. Meanwhile, it announced that free cash flow for the year would be between $1.5 billion and $2 billion, again falling short of the $2.41 billion that was expected, per Bloomberg’s data.

The company also said it would be increasing its annual dividend for the year ahead by 10% and added that it’s expecting the free cash flow figure to rise to $3.5 billion by FY2028 — news that failed to drown out the negatives.

As a key player in the computing equipment industry, the company’s tighter-than-expected financials reflect the impact the booming AI industry is having on its margins, as HPE and peers source more expensive AI chips for their servers.

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What Wall Street’s saying about Nvidia’s Q1 results

A makeover beautifies the growth outlook; so does the CPU opportunity.

Jensen Huang in front of Vera Rubin at CES 2026

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SoftBank rallies on OpenAI and SB Energy IPO plans; its Japanese-traded stock notches best day since 2000

SoftBank shares skyrocketed in Tokyo trading, notching their biggest daily gain since 2000, boosted by news about planned IPOs at OpenAI, in which SoftBank has a sizable stake, and SoftBank’s own SB Energy unit. ADRs of SoftBank traded in the US rallied, too.

OpenAI is accelerating the timeline to its public debut, preparing to confidentially file its IPO prospectus with regulators as early as Friday, according to The Wall Street Journal. That could set the stage for a highly anticipated public listing as early as September.

SoftBank has systematically expanded its financial exposure to OpenAI, securing a highly valuable stake in the company. As of the fiscal year-end, SoftBank’s cumulative investment in OpenAI totaled $34.6 billion, with a fair value of $79.6 billion, and cumulative investment gains totaled $45 billion, according to a SoftBank filing.

For SoftBank, a successful public debut is critical to demonstrating that OpenAI can protect its market position amid intense industry pressure. Investors have grown increasingly anxious that OpenAI is losing ground to competitors like Anthropic, which is currently in talks for a funding round that could push its own valuation past that of OpenAI.

Adding to the upward momentum, SB Energy, the digital infrastructure and clean energy development firm co-owned by SoftBank and Ares Management, confirmed its own confidential draft registration filing for a major US public listing.

This multipronged IPO pipeline has boosted investors’ confidence in billionaire founder Masayoshi Son’s high-conviction AI thesis, showcasing a road map for SoftBank to transition its paper gains into potential liquidity. SoftBank’s stock is up 37% so far this year.

Maybe we should all agree to not talk about Nvidia’s stock after earnings

It’s probably making people dumber.

Nvidia conference with Jensen Huang

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Max Knoblauch5h

Nio posts better-than-expected first-quarter earnings and forecasts strong Q2 sales

Chinese EV maker Nio posted Q1 results before markets opened on Thursday, reporting earnings that beat expectations and strong sales guidance for the second quarter. Shares of the company climbed more than 4% in premarket trading.

For the first quarter, Nio reported:

Adjusted earnings of $0.00 per share, compared to the $0.05 loss per share that Wall Street analysts polled by FactSet had expected.
$3.7 billion in revenue, compared to the $3.74 billion consensus estimate.
83,465 vehicle deliveries, slightly exceeding its own forecast of between 80,000 and 83,000.

For Q2, Nio guided for deliveries of between 110,000 and 115,000, compared to estimates of 113,807. The company expects second-quarter revenues to come in between $4.75 billion and $4.99 billion, while analysts are forecasting $4.6 billion.

The Chinese auto industry has seen a surge in exports so far this year, as companies make efforts to combat declining domestic sales. Nio, which is still relatively new to overseas operations, has plans to ship “several thousand” EVs overseas this year.

J. Edward Moreno

Walmart gives disappointing Q2 guidance, warns about stress among low-income consumers

The retailer reported earnings before the bell on Thursday.

Walmart Store

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