Hewlett Packard Enterprise Raises Fiscal 2027 Outlook Amid Strong AI Networking Demand
Hewlett Packard Enterprise (NYSE:HPE) has raised its fiscal 2027 outlook, projecting revenue growth of 13%–17% and EPS growth of 16%–20%, driven by strong demand in AI networking. The company reported a significant increase in quarterly AI-server orders totaling $2.4 billion and nearly $7 billion in backlog. HPE also raised its fiscal 2026 target for AI-networking orders to between $2.5 billion and $3 billion, up from an earlier goal of $1.5 billion. Hewlett Packard Enterprise's Chief Strategy Officer Shannon Cross highlighted robust performance across networking, storage, and traditional servers during a recent conference appearance. The company reported earnings per share of $1.11 for the quarter and nearly $1 billion in free cash flow. HPE also increased its free-cash-flow target to at least $3.75 billion for fiscal 2026 and at least $5 billion for fiscal 2027. The company's confidence is bolstered by multiyear supply agreements, with disclosed purchase commitments rising from $6 billion to $30 billion. HPE cited its Oracle AI data-center deal as a key proof point of competitiveness in the sector.
Topics: AI networking EPS guidance free cash flow revenue growth