HPE raises networking revenue outlook, reports $1.2B order

Hewlett Packard Enterprise (HPE) has raised its revenue growth outlook for its Networking business segment, projecting between high teens to low-20s percent for fiscal 2027. The company outlined these expectations during its Networking Investor Day, detailing growth projections for its networking portfolio through fiscal 2029. HPE anticipates Data Center Networking revenue to grow at a low-to-high 50s percent compound annual growth rate (CAGR) during this period, while Routing revenue is expected to grow at a low-to-high 20s percent CAGR.

Campus & Branch and Security revenues are also projected to grow at high single-digit and mid-to-high 20s percent CAGR, respectively. HPE aims to gain market share in these areas over the next three years and has increased its target for cost synergies related to its Juniper Networks acquisition to $800 million in annual run-rate savings by the end of fiscal 2028.

The company also announced a $1.2 billion order from Vultr to deploy AMD Helios AI Rack by HPE systems, marking its first order for the new system.

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