HPE projects revenue above estimates, focuses on higher-margin networking orders

Hewlett Packard Enterprise forecast second-quarter revenue above Wall Street estimates on Monday, betting on growing demand for its networking equipment as the company prioritizes more higher-margin orders.

The company, which also provides artificial intelligence-optimized servers equipped with Nvidia’s chips, raised its fiscal 2026 forecasts for adjusted earnings per share and networking segment ‌revenue growth.

The companies ⁠that develop ⁠AI servers such as HPE, Dell and Super Micro Computer, typically face margin pressures due to costly production and a quick transition to more powerful chips in a highly competitive market.