HPE lifts networking growth outlook, cites AI demand and $1.2B Vultr order
Hewlett Packard Enterprise announced at its Networking Investor Day on October 1, 2026 that it is raising its fiscal 2027 networking revenue target to growth in the high‑teens to low‑20s percent range. The company expects data‑center networking revenue to expand at roughly a 50% compound annual growth rate through fiscal 2029 and forecasts cumulative AI network orders of more than $3 billion for fiscal 2026. It also disclosed a $1.2 billion AMD Helios AI rack order from cloud provider Vultr and increased its Juniper Networks cost‑synergy target to $800 million by the end of fiscal 2028.
Why it matters
The company expects higher networking revenue growth and operating margins in the mid‑to‑high 20s percent range, which could boost overall earnings and cash flow (the company says). The $1.2 billion order signals strong demand for HPE’s AI‑focused networking solutions, potentially expanding its market share.
Key facts
- 1Cumulative AI network orders for fiscal 2026 are expected to top $3 billion. networkworld.com
- 2Fiscal 2027 networking revenue target is raised to growth percentages in the high teens to low 20s. networkworld.com
- 3Data center networking revenue is projected to grow at roughly 50% CAGR through fiscal 2029. networkworld.com
- 4HPE secured a $1.2 billion AMD Helios order from cloud provider Vultr. networkworld.com
- 5Juniper Networks cost‑synergy target increased to $800 million by fiscal 2028. dqindia.com
- 6Routing revenue is expected to grow at a low‑to‑high 20s percent CAGR through fiscal 2029. dqindia.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.