Hewlett Packard Stock Climbs After Raising Guidance, Landing $1.2 Billion Vultr Order
Hewlett Packard Enterprise Company (NYSE: HPE ) shares are trading higher Thursday on possible continued momentum after the company raised its fiscal-year 2027 Networking segment revenue growth outlook on Wednesday, alongside a $1.2 billion order from Vultr. Raised Networking Guidance HPE raised its fiscal 2027 Networking segment revenue growth outlook to the high-teens to low-20% range and expects segment operating margins in the mid-to-high 20% range. To support robust demand and address supply constraints ahead of fiscal 2027, the company previously doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of fiscal 2026. Networking Growth Framework Through FY29 HPE raised its Networking segment outlook, projecting revenue to grow at high teens compound annual growth rate (CAGR) from fiscal 2026 through fiscal 2029. The company also introduced a target for the segment to maintain operating margins in the mid-to-high 20% range from fiscal 2027 through fiscal 2029. HPE Bags $1.2B AMD Helios AI Rack Order From Vultr Separately, HPE announced a $1.2 billion order from Vultr, the world’s largest privately-held cloud infrastructure company, to deploy
2 billion order from Vultr. Raised Networking Guidance HPE raised its fiscal 2027 Networking segment revenue growth outlook to the high-teens to low-20% range and expects segment operating margins in the mid-to-high 20% range. To support robust demand and address supply constraints ahead of fiscal 2027, the company previously doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of fiscal 2026. Networking Growth Framework Through FY29 HPE raised its Networking segment outlook, projecting revenue to grow at high teens compound annual growth rate (CAGR) from fiscal 2026 through fiscal 2029.
The company also introduced a target for the segment to maintain operating margins in the mid-to-high 20% range from fiscal 2027 through fiscal 2029. S. data centers — HPE’s first order for the new AMD Helios system. Each rack integrates 72 AMD Instinct MI455X GPUs with AMD EPYC “Venice” CPUs, AMD Pensando Vulcano AI NICs networking, and AMD ROCm software, paired with six HPE Juniper Networking QFX5252 scale-up Ethernet switch trays connecting all 72 GPUs through high-bandwidth, low-latency Ethernet.
The order builds on nearly three years of collaboration between Vultr and Juniper Networks, now part of HPE. “AI is driving the largest infrastructure buildout in history and together with AMD and Vultr, we are building an open foundation to accelerate the next phase of AI,” said Antonio Neri, President and CEO of HPE. 75, according to data Pro. Image