Overview
- HPE reported record fiscal third‑quarter results on Wednesday with $12.2 billion in revenue and $1.11 adjusted EPS, topping analyst estimates as AI and cloud demand surged.
- The company said AI and cloud sales reached about $9 billion and networking revenue jumped 75% to $2.9 billion, driven by data‑center networking and routing growth.
- HPE raised its fiscal 2026 revenue growth forecast to 34%–37% and lifted its fiscal 2027 outlook to 13%–17%, and it gave a higher revenue guide for the October quarter.
- Management warned that memory chips are the primary bottleneck and said component shortages could last through 2028, prompting bigger inventory levels of $11.82 billion and longer‑term supply deals to try to protect fulfillment.
- Shares fell more than 5% in after‑hours trading as investors weighed near‑term margin pressure from higher inventory and constrained parts against the company’s revenue momentum and Juniper‑Oracle networking deals.