HPE Raises Outlooks as AI Server Demand Drives Revenue Surge
Hewlett Packard Enterprise is benefiting from a broad corporate push into artificial intelligence infrastructure, which requires both high-performance servers and faster data-center networks. Its roughly $14 billion acquisition of Juniper Networks, completed in July 2025, expanded HPE’s networking business and strengthened its ability to sell integrated computing and connectivity systems. The results offer a key test of whether surging AI infrastructure orders can translate into sustained revenue and profit growth.
HPE said on September 2 that revenue for its fiscal third quarter ended July 31, 2026 rose 33.7% to $12.21 billion, beating analysts’ $11.91 billion estimate. Adjusted earnings of $1.11 a share also topped the 93-cent consensus. The company lifted fiscal 2026 revenue-growth guidance to 34%-37% and its fiscal 2027 range to 13%-17%. Still, tight supplies of memory, NAND flash, CPUs and hard drives raised execution concerns, sending the shares down 5.29% after hours.
All Coverage
1 original reportsThe Backstory
The history behind this eventHPE Raises Outlook After Earnings Beat as AI Server Demand Sends Shares Soaring
Hewlett Packard Enterprise, or HPE, supplies enterprise servers, networking products and hybrid-cloud equipment. As cloud providers and companies worldwide accelerate construction of AI data centers, demand is rising for high-performance servers and networking equipment. HPE's orders and pricing power have therefore become an important gauge of whether AI infrastructure spending can be sustained.
On June 1, HPE reported second-quarter results for the period ended April 30, 2026. Revenue rose 40% year on year to $10.7 billion, while server revenue increased 33% to $5.5 billion. Adjusted earnings were $0.79 per share, and the backlog for AI systems reached $5.9 billion. HPE raised its full-year revenue growth forecast to 29%–33%, and its shares surged more than 30% at one point in after-hours trading.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →