Hewlett Packard Enterprise Raises FY27 Outlook Amid Strong Agentic AI Demand
Hewlett Packard Enterprise (NYSE:HPE) reported better-than-expected results for its fiscal third quarter and raised full-year guidance, driven by strong demand in agentic AI. The company cited record orders and a growing backlog as it prepares for increased spending on AI infrastructure. HPE now expects FY27 revenue growth of 13%-17%, operating-profit growth of 14%-18%, EPS between $4.40-$4.60, and free cash flow (FCF) of at least $5 billion. Analysts from BofA Securities reiterated a Buy rating for HPE shares and raised their price target to $88, citing conservative guidance that excludes potential server upside related to agentic AI and AMD Helios technology. Networking revenue grew 10% year-over-year with orders rising sharply at 36%, while Cloud & AI segment revenue increased by 25%. A major $3.5 billion inference-server deal with a hyperscale customer was also announced post-quarter close. Despite the positive outlook, HPE shares fell nearly 5.4% in early trading on Thursday.
Topics: AI Earnings Guidance Orders Revenue Growth