HPE CEO on AI boom: 'Customers are buying everything'
Hewlett Packard Enterprise (HPE) CEO Antonio Neri revealed that customers are purchasing a wide range of products, thanks to strong demand in the most recent quarter for routers and servers. Neri expressed confidence in HPE's product demand for the next decade, stating that the company's revenue grew by 34% year-over-year and its adjusted earnings per share increased by over 30%, surpassing Wall Street expectations.
The strong performance was attributed to the rising demand for AI servers and high-performance networking infrastructure, leading to record backlog levels. Despite raising its full-year revenue growth outlook to 37%, HPE's shares fell as investors took profits on the stock's impressive performance. HPE has also raised its revenue growth outlook for fiscal year 2027 to 13% to 17%, with earnings expected to grow by 16%.
Analysts are generally optimistic about HPE's prospects, citing factors such as the accelerating networking sector, Oracle's contribution, and AMD Helios' impact.
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