Hewlett Packard Enterprise delivered quarterly adjusted earnings that exceeded analyst expectations, reporting an increase over consensus forecasts. The company highlighted margin improvements and efficiency gains that supported the overall profitability beat.

Sales in the networking division grew significantly, outpacing declines in the cloud services segment. Management noted that enterprise customers continued to invest in on-premise infrastructure even as demand for public cloud offerings softened.

Shares of Hewlett Packard Enterprise jumped in early trading following the earnings release. Investors welcomed the stronger-than-expected results and the company’s ability to balance growth in networking with headwinds in cloud services.