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HPE Posts Blockbuster Quarter and Pulls Forward Financial Targets

Enterprise adoption of agentic AI fuels sustained server plus networking demand.

Overview

  • Hewlett Packard Enterprise reported a record Q2 on Monday, June 1, with revenue of $10.68 billion and adjusted EPS of $0.79, well ahead of analyst estimates.
  • Management sharply raised fiscal 2026 guidance to 29%–33% revenue growth and $3.35–$3.45 adjusted EPS, saying the company is now tracking about two years ahead of its prior long‑term plan.
  • HPE disclosed a roughly $5.9 billion AI systems backlog after booking about $1.8 billion in new AI orders, driven largely by enterprise demand for inference and agentic AI workloads that favor CPU servers.
  • The integration of Juniper has transformed HPE's mix with networking revenue jumping about 148% to $2.69 billion and contributing meaningfully to margins and operating profit.
  • Investors reacted with a roughly 30% surge in HPE shares and sympathy gains for server and networking peers, though management warned that memory and NAND supply constraints remain a key risk to shipments.