HPE Shares Jump 37% After Lifting 2026 Sales Growth Outlook to 29%-33%
Updated
Updated · Financial Times · Jun 1
HPE Shares Jump 37% After Lifting 2026 Sales Growth Outlook to 29%-33%
4 articles · Updated · Financial Times · Jun 1
HPE surged to a record $64.64 in post-market trading after raising its 2026 revenue growth forecast to 29%-33%, up from 17%-22% in March, and said it could hit 2028 targets two years early.
Quarterly revenue rose 40% to $10.7 billion, beating the $9.8 billion consensus, while current-quarter guidance of $11.5 billion-$12.1 billion also topped analysts' $10.9 billion estimate.
Networking revenue jumped 148% to $2.7 billion and server sales climbed 32.7% to $5.5 billion as AI-related orders more than doubled, building a record backlog; net income swung to $595 million from a $1.1 billion loss.
The results add to signs of an AI infrastructure spending boom after Dell's recent server-driven beat, with Google, Amazon, Meta and Microsoft together on track to spend more than $725 billion on AI infrastructure this year.
With memory costs soaring and integration facing legal risks, can HPE's AI-fueled stock surge truly last?
As HPE targets the sovereign AI market, can it win the race against growing tech nationalism and data laws?
As HPE merges Juniper and Aruba, will its dual-platform strategy create seamless AI networks or customer chaos?