Hewlett Packard Enterprise (HPE) is forecasting second-quarter revenue that surpasses Wall Street estimates, driven by robust demand for its artificial intelligence-powered servers equipped with Nvidia chips.
Shares of the company saw a notable increase following the announcement. Major technology firms are significantly increasing spending on AI infrastructure, creating a substantial boost for server and data center equipment vendors like HPE.
HPE CEO Antonio Neri reported strong year-over-year order growth across all business segments. The company projects quarterly revenue to range between $9.6 billion and $10.0 billion, exceeding the consensus analyst estimate of $9.58 billion.
While first-quarter revenue slightly missed expectations at $9.30 billion, adjusted earnings per share of 65 cents outperformed forecasts. HPE has also raised its fiscal 2026 adjusted EPS outlook, signaling confidence in future growth.