Hewlett Packard Enterprise raises fiscal 2027 networking revenue outlook to high teens and low 20s percent
HPE also secured a $1.2 billion order from Vultr for AMD Helios AI Rack systems and increased Juniper cost synergy targets.
Hewlett Packard Enterprise Company (HPE) said Tuesday in a regulatory filing that it is raising its fiscal 2027 networking segment revenue growth outlook to between high teens and low 20s percent.
The company announced the updates at its 2026 Networking Investor Day.
HPE raised its target for Juniper Networks-related cost synergies. The company now expects $800 million in annual run-rate savings by the end of fiscal 2028, up from its previously announced target of at least $600 million.
"AI is reshaping the technology stack, making the network more strategic and driving significant new demand from enterprises and service providers," Rami Rahim, executive vice president, president and general manager, Networking, HPE, said in a press release.
The company is raising its projections for networking segment revenue to grow at a high-teens percent compound annual growth rate from fiscal 2026 through fiscal 2029.
HPE expects the networking segment to maintain an operating margin target of mid-to-high 20s percent from fiscal 2027 through fiscal 2029.
The company expects its data center networking revenue to grow at a low-to-high 50s percent compound annual growth rate through fiscal 2029.
HPE expects routing revenue to grow at a low-to-high 20s percent compound annual growth rate through fiscal 2029.
The company expects campus and branch revenue to grow at a high single-digit percent compound annual growth rate through fiscal 2029.
HPE expects security revenue to grow at a high single-digit percent compound annual growth rate through fiscal 2029.
The company secured a $1.2 billion order from Vultr for AMD Helios AI Rack by HPE systems. It is the first order for the new system, which features purpose-built HPE networking hardware and software.