Hewlett Packard Enterprise reports record revenue on AI demand

Hewlett Packard Enterprise (HPE) reported record revenue of $12.2 billion for its third fiscal quarter of 2026, a 34% increase year-over-year. The growth was primarily driven by surging demand for artificial intelligence (AI) infrastructure, specifically in the Cloud & AI and networking segments. The company’s networking revenue rose 75% to $2.9 billion, bolstered by the acquisition of Juniper Networks and an extended collaboration with Oracle to deploy networking solutions in Oracle’s AI data centers.

Driven by these results, HPE raised its full-year fiscal 2026 revenue growth forecast to a range of 34% to 37%. The company also reported record orders and a significant increase in profitability, with adjusted earnings per share reaching $1.11.

Despite the strong performance, HPE shares experienced volatility in after-hours trading. Investors expressed concerns regarding supply chain constraints, specifically the availability of memory, NAND, processors, and disks, which could limit the company’s ability to meet high demand. Management noted that while demand is accelerating, the company is working to secure long-term supply agreements to mitigate these bottlenecks.