Hewlett Packard Enterprise Sees AI, Networking Demand Outrun Supply as 2027 Targets Rise

Hewlett Packard Enterprise Sees AI, Networking Demand Outrun Supply as 2027 Targets Rise Written by MarketBeat September 13, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points Demand is outpacing supply across networking, cloud and AI infrastructure, with networking orders up 36% and cloud/AI orders up roughly 75% year over year. HPE expects this demand to support fiscal 2027 revenue growth of 13%–17%, EPS growth of 16%–20% and at least $5 billion in cash flow. HPE’s Juniper acquisition is progressing ahead of expectations, with the company targeting $600 million in synergies by fiscal 2028. Networking revenue growth is projected to accelerate to 14%–17% in fiscal 2027, while margins are expected to reach the mid- to high-20% range. HPE plans to accelerate share repurchases in the fiscal fourth quarter after reaching its below-2-times leverage target early, and intends to return at least 75% of free cash flow to shareholders through buybacks and dividends. Five stocks we like better than Hewlett Packard Enterprise . How 4 Million Hewlett Packard Shares Bought an AI Network Hewlett Packard Enterprise NYSE: HPE CFO Marie Myers said the company’s recent quarterly results and revised fiscal 2027 framework reflect demand that continues to exceed available supply across networking, cloud and AI infrastructure. Speaking at Citi’s technology conference, Myers said HPE reported one of its strongest quarters, including a “beat and raise” and higher fiscal 2027 targets. The company is forecasting fiscal 2027 revenue growth of 13% to 17%, earnings-per-share growth of 16% to 20%, and at least $5 billion in cash flow. Get HPE alerts: Sign Up Networking and AI Orders Support Outlook Why Hewlett Packard Enterprise’s Sell-Off May Not Last Myers said networking orders increased 36% year over year, supported by a networking refresh cycle and momentum in data-center deployments following HPE’s acquisition of Juniper Networks. Cloud and AI orders rose roughly 75% from the prior year, she said, as customers invest in data-center modernization, power and cooling improvements, and AI workloads. “Demand is just outstripping supply at levels that were probably unprecedented in the industry,” Myers said. The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future HPE cited a large enterprise inference deployment disclosed during its quarterly report as evidence that enterprise AI investments are gaining momentum. Myers said the company reviews its backlog for signs of double booking or potential cancellations and remains confident in the quality of its orders. The company’s fiscal 2027 forecast is based on supply HPE expects to obtain, Myers said. HPE disclosed purchase commitments exceeding $30 billion, including multiyear long-term arrangements for networking as well as cloud and AI products. The commitments provide supply visibility, though they do not necessarily lock in prices. Myers said additional supply would allow HPE to convert more of its existing order book into revenue. Juniper Integration and Oracle Agreement HPE expects the Juniper acquisition to support both revenue growth and margin improvement in networking. Myers said HPE is ahead of expectations in delivering cost synergies and remains on track to achieve $600 million in synergies by the end of fiscal 2028. The company reported 10% year-over-year networking revenue growth and a 22% operating margin during its fiscal third quarter. HPE expects networking revenue growth to improve from 12% in fiscal fourth-quarter guidance to a range of 14% to 17% in fiscal 2027. Operating margins are projected to reach the mid- to high-20% range in 2027, aided by a full year of Juniper-related synergies. Myers said the integration of sales organizations, account coverage and product roadmaps has proceeded more smoothly than anticipated. The next phase of the integration will focus heavily on IT systems, including financial systems, during fiscal 2027. She also highlighted HPE’s recently announced multiyear, gigawatt-scale agreement with Oracle as a proof point for the combined networking portfolio. The agreement includes routing, switching, software, AIOps, services and financing, according to Myers. HPE expects fiscal 2027 to represent the early stages of the revenue ramp and said it plans to provide additional detail at its Sept. 30 Networking Investor Day and during its fourth-quarter earnings report. Myers said HPE’s liquid-cooling capabilities helped it bring a liquid-cooled Juniper QFX switch to market ahead of competitors. She said the company believes its combined portfolio can help it pursue more large data-center opportunities with cloud providers, sovereign cloud customers and others. Margins, Helios and Enterprise AI HPE posted a record 40% gross margin in the fiscal third quarter. Myers attributed the result to pricing discipline, favorable deal mix, lower AI shipment