Hewlett Packard Enterprise raised its fiscal 2026 revenue growth forecast to 34%-37% and adjusted earnings per share to between $3.75 and $3.85, citing sustained demand for AI-related infrastructure. The company reported third-quarter revenue of $12.21 billion, a 33.6% increase year-over-year and above market expectations of $11.91 billion. Adjusted profit reached $1.11 per share, exceeding estimates of 93 cents.
The upward revision reflects accelerating enterprise adoption of AI systems, particularly in high-power servers used for training and deploying AI models. Chief Financial Officer Marie Myers stated that market conditions in AI infrastructure are consolidating, with demand significantly outstripping supply. HPE anticipates continued growth into fiscal 2027, projecting revenue growth of 13%-17% and adjusted EPS growth of 16%-20%, both higher than previously guided.
Supply constraints remain a key challenge, with memory and NAND chips identified as the primary bottlenecks, followed by CPUs and storage units. To mitigate these pressures, HPE has secured long-term supply agreements to improve component availability. The company’s fiscal 2025 and 2026 were marked by testing and early deployments of AI systems, with customers now reporting productivity gains that are expected to sustain demand.
