Hewlett Packard Enterprise lifts 2026 outlook as AI infrastructure demand drives shares higher

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HPE raises 2026 outlook

Highlights

Hewlett Packard Enterprise raises 2026 revenue growth outlook to 29–33 percent from 17–22 percent, driving shares up 37 percent post-market to $64.64.
HPE's April quarter sales surge 40 percent to $10.7 billion, surpassing the $9.8 billion forecast, with current quarter guidance of $11.5–12.1 billion above analysts' $10.9 billion estimate.
Networking division revenue jumps 148 percent to $2.7 billion and server revenue increases 32.7 percent to $5.5 billion, fueled by AI infrastructure demand and Juniper Networks integration.

Raised guidance and quarterly sales momentum

As reported by Financial Times, Hewlett Packard Enterprise says it now expects revenue growth of 29 per cent to 33 per cent in its 2026 financial year, up from the 17 per cent to 22 per cent range it gave in March. The company says its shares jump 37 per cent in post-market trading on Monday to a record high of $64.64 after the updated outlook.

HPE says sales rise 40 per cent in the quarter to April 30 to $10.7 billion, ahead of Wall Street forecasts of $9.8 billion compiled by Visible Alpha. It adds that revenue in the current quarter is expected at $11.5 billion to $12.1 billion, also above the $10.9 billion forecast by analysts.

Net income swings to $595 million in the April quarter from a loss of $1.1 billion a year earlier. Antonio Neri, HPE's chief executive, says customers continue to invest in modernising their infrastructure and scaling AI, while orders more than double and lift the company's backlog to a record level.

AI spending wave boosts networking and server businesses

HPE says revenue from its networking division climbs 148 per cent to $2.7 billion in the April quarter, helped by demand for systems that connect servers used to train and run AI models. Neri also points to the rapid integration of Juniper Networks, which HPE acquired last year for $14 billion, as a contributor to the strong performance.

Server revenue reaches $5.5 billion, up 32.7 per cent, including systems that package advanced AI chips such as Nvidia's Blackwell. The latest results follow strong numbers from Dell last week and add to signs that investment in AI infrastructure remains a major force across the technology sector.

Four Big Tech groups, Google, Amazon, Meta and Microsoft, are on track to spend more than $725 billion on AI infrastructure this year. The broader rally also continues across U.S. markets, with semiconductor, memory and software stocks posting sharp gains as investors bet that AI deployment will keep driving demand for computing equipment.

In our earlier article on Micron Technology’s rally to a $1 trillion market capitalization, we highlighted how surging demand for AI memory and hardware helped power strong profitability and sustained buying interest in MU shares. We also noted that bullish technical signals, alongside speculation about potential CHIPS Act support, were reinforcing momentum, though overbought indicators pointed to heightened volatility and a possible near-term consolidation range.

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