HPE’s record Q3: AI infrastructure, networking demand drives growth, but supply constraints tap the brakes
Demand for AI, networking, and servers drove HPE to a record quarter, the company reported during its third-quarter earnings call with financial analysts.
Demand for AI, networking, and servers drove HPE to a record quarter, the company reported during its third-quarter earnings call with financial analysts.
The short version
- “AI has become a multi-year growth driver, expanding demand across our HPE portfolio,” HPE CEO Antonio Neri said during the call.
- “We booked more orders than any prior quarter in our history, resulting in a record-breaking backlog for the company.
- We expect to convert more orders into revenue in Q4, which give us even greater confidence in sustaining our networking growth in fiscal 2027.” HPE revenue for the quarter was $12.2 billion, a 34% increase from the prior-year period.
What happened
Bookings and revenue for networking products also reached record levels, Neri said. Looking ahead to fiscal year 2027, CFO Marie Myers said HPE expects networking revenue to grow 13%-17%, and cloud and AI revenue to grow 14%-18%.
Why it matters
“Campus and branch networking had record revenue as customers modernize aging edge infrastructure and deploy AI-driven network operations,” Neri said.
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