HPE CEO Neri says AI demand to stay strong through next decade

September 3, 2026 at 09:48 PM2 min

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Hewlett Packard Enterprise CEO Antonio Neri said demand for AI servers and networking gear is strong and likely to persist through the next decade. The company reported fiscal third-quarter revenue of $12.21 billion, up 34% year over year, and raised its full-year revenue growth outlook to as high as 37%. HPE shares dipped despite the raised guidance as investors took profits after a 109% run-up this year.

Key Facts

HPE reported fiscal third-quarter revenue of $12.21 billion, up 34% year over year.
Adjusted earnings per share climbed over 30% to $1.11, surpassing Wall Street consensus estimates.
The company raised its full-year revenue growth outlook to as high as 37% and set fiscal 2027 revenue growth guidance at 13% to 17%.
HPE stock had surged about 109% year-to-date before the report, driven by optimism on the Juniper acquisition and AI equipment demand.
KeyBanc analyst Brandon Nispel maintained a sector weight rating but said guidance looks conservative and cited catalysts including Oracle contribution and AMD Helios.

AI Demand Outlook

CEO Antonio Neri told Yahoo Finance that customers are buying everything, pointing to brisk demand for routers and servers in the most recent quarter. Neri said demand for the company's products looks strong through the next decade. The strong outperformance was propelled by booming enterprise appetite for AI servers and high-performance networking infrastructure, lifting orders and expanding the company's backlog to record levels.

Financial Results

HPE generated revenue of $12.21 billion in its fiscal third quarter, reported late Wednesday, up 34% year over year. Adjusted earnings per share climbed over 30% to $1.11, comfortably surpassing Wall Street consensus estimates. The company raised its revenue growth outlook for fiscal year 2027 to a range of 13% to 17%, with earnings expected to increase by 16%.

Market Reaction

Despite raising its full-year revenue growth outlook to as high as 37%, HPE shares dipped as investors took profits following the stock's strong run-up into the report. HPE stock had surged about 109% on the year in the lead-up to the report amid optimism on the Juniper acquisition and strong demand for AI-related equipment. KeyBanc analyst Brandon Nispel said the firm remains sector weight on HPE but is increasingly becoming more constructive, citing accelerating networking, Oracle contribution, and AMD Helios as catalysts.