Despite a mostly positive revenue report for the first quarter of its fiscal 2025, HPE executives detailed a number of challenges the company will face in the coming months, including layoffs, a court case over its proposed buy of Juniper Networks, and the U.S. government’s tariff plan.

Hewlett Packard Enterprise forecast quarterly revenue growth below estimates, which triggered a near 20% drop in its shares in after hours trading, and said the U.S.' tariff war had created uncertainty that affected its server business.

Thousands brace for layoffs as shares slide 20% HPE is feeling the effects of the Trump administration's gamesmanship, seeing shares slide after lowering earnings expectations due to uncertainty over how tariffs may affect the cost of imported parts.