Hewlett Packard Enterprise (HPE) is tumbling 16% after the tech firm reported slightly lower-than-expected fiscal first-quarter earnings per share and in-line revenue. HPE's Q2 revenue guidance also came in below analysts' average estimate.

Also importantly, HPE's cash flow from operations sunk sharply last quarter.

HPE provides servers and other computer hardware products.

The Highlights of HPE's Q1 Results

The company's revenue jumped 16% versus the same period a year earlier to $7.85 billion, roughly in-line with analysts' average estimate. Its EPS, excluding certain items, came in at 49 cents, versus analysts' average estimate of 50 cents.

Moreover, its operations burned $390 million of cash, versus $64 million of cash flow from operations during the same period a year earlier.

HPE's Comments

"We intend to leverage our global supply chain to mitigate aspects of the expected impact (of tariff increases) with pricing adjustments also expected," CEO Antonio Neri said on the company's earnings call.

"We delivered against our commitments for the quarter including achieving strong double-digit year-over-year revenue growth. However, we could have executed better," Neri stated, explaining that price cuts on its servers and "higher-than-normal AI inventory" caused by the transition to new AI chips had pressured its profitability.

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Disclosure: None. This article is originally published at Insider Monkey.