HPE lifts multi‑year outlook on AI demand

Hewlett Packard Enterprise (HPE) has increased its revenue growth forecast for fiscal 2026, now expecting growth of 34% to 37%. The company linked the stronger outlook to rising artificial-intelligence workloads that are lifting demand for its servers and networking equipment. The revised guidance reflects expectations for higher sales as enterprises and cloud providers invest in infrastructure to support AI applications.

HPE also updated its view for the following fiscal year, saying revenue in fiscal 2027 is expected to grow about 15% at the midpoint of its guided range. The company indicated that both the 2026 and 2027 projections are higher than analysts’ average expectations for those periods. The multi-year guidance signals confidence in the durability of demand tied to AI infrastructure.

Management highlighted artificial-intelligence workloads as a central factor behind the outlook revisions. These workloads require high-performance servers and advanced networking gear to move and process large volumes of data. HPE said this demand environment is underpinning stronger sales prospects for its core infrastructure offerings.

The focus on AI workloads spans both enterprise and large-scale cloud customers. As organizations scale up AI deployments, they need more powerful hardware and networking platforms, supporting HPE’s expectations for elevated growth in its server and networking segments. This trend is reflected in the company’s raised revenue targets for the next two fiscal years.

Alongside the guidance update, HPE expanded its collaboration with Oracle (ORCL) focused on AI data centers. Under this agreement, HPE will deploy HPE/Juniper networking equipment across Oracle’s AI data center infrastructure. The deployment positions HPE’s networking technology within large-scale environments dedicated to AI workloads.

As part of the expanded collaboration, HPE issued warrants to Oracle. The warrant issuance is tied to the broader relationship that centers on supplying networking platforms for Oracle’s AI data centers. The agreement reinforces HPE’s role as a key supplier of networking solutions in AI-oriented infrastructure projects and supports the company’s more optimistic growth outlook.