HPE lifts networking revenue outlook and raises Juniper cost‑savings target

Hewlett Packard Enterprise raised its fiscal 2027 networking revenue growth outlook to the high‑teens to low‑20s percent range and expects operating margins in the mid‑to‑high 20s percent. The company also increased its Juniper‑related cost‑synergies target to $800 million of annual run‑rate savings by the end of fiscal 2028. In addition, HPE disclosed a $1.2 billion order from cloud provider Vultr for AMD Helios AI Rack systems that include HPE networking hardware and software.

The higher outlook signals stronger demand for HPE networking products, which could boost the segment’s contribution to overall earnings. The $800 million Juniper savings target should improve operating margins if achieved, according to the company’s guidance.

  • 1Networking revenue growth outlook for fiscal 2027 is now high‑teens to low‑20s percent.
  • 2Operating margin outlook for the networking unit is mid‑to‑high 20s percent.
  • 3Annual run‑rate cost‑savings target from Juniper integration is $800 million by fiscal 2028.
  • 4HPE disclosed a $1.2 billion order from Vultr for AMD Helios AI Rack systems.

Sources