Hewlett Packard Enterprise Raises Fiscal 2026 Revenue Forecast Due to Strong AI Server Demand
Hewlett Packard Enterprise (HPE) raised its fiscal 2026 revenue growth forecast from a range of 29% to 33% to between 34% and 37%, following record quarterly sales driven by strong demand for artificial intelligence servers and networking equipment. Third-quarter revenue increased 34% year-over-year to $12.2 billion, with server revenue climbing 35% to $6.8 billion and networking revenue surging 75% to $2.9 billion. Despite the positive results, HPE's stock fell more than 5% in extended trading after missing investor expectations for stronger performance. The company cited supply chain constraints as a limiting factor but is working with partners on multiyear agreements to secure critical components like memory and CPUs. HPE also announced an expanded partnership with Juniper Networks to deploy equipment at Oracle’s AI data centers, along with granting Oracle warrants to acquire shares.
Tickers: $HPE
Topics: AI servers inventory buildup networking equipment supply chain constraints