Hewlett Packard Enterprise Raises Forecasts on AI Demand

Hewlett Packard Enterprise Co. raised its sales forecasts for the current fiscal year and the year ending October 2027, citing strong demand for networking equipment and servers driven by artificial intelligence workloads. The company expects revenue to grow by 34% to 37% in the current year and 15% at the midpoint for the following year, both of which exceed analyst expectations.

For the quarter ending July 31, revenue rose 34% to $12.2 billion. This growth was supported by a 75% jump in networking revenue to $2.89 billion and a 35% increase in server revenue to $6.77 billion. The company's AI servers utilize hardware from Nvidia Inc.

Chief Executive Officer Antonio Neri reported that the company recently secured a $3.5 billion deal with a major cloud-computing firm to provide servers for internal AI model operations. This growth follows the July 2025 acquisition of networking rival Juniper Networks.