HPE has raised its fiscal 2027 revenue growth outlook for its Networking business, saying it expects the segment to grow in the high-teens to low-20s percentage range, with operating margins in the mid-to-high 20s.

The company set out its plans at HPE Networking Investor Day. It also lifted its cost-saving target from the Juniper Networks deal to US$800 million in annual run-rate savings by the end of fiscal 2028, up from at least US$600 million, and announced a US$1.2 billion order from cloud provider Vultr.

Growth forecasts by product line

HPE expects Networking revenue to grow at a high-teens compound annual rate from fiscal 2026 to fiscal 2029. By product line, it forecasts the following through fiscal 2029:

• Data Center Networking: low-to-high 50s percent CAGR
• Routing: low-to-high 20s percent CAGR
• Campus & Branch: high single-digit percent CAGR
• Security: high single-digit percent CAGR

The company says it expects to outgrow the market and gain share over the next three years in data centre networking, routing, and campus and branch. In campus and branch, it points to a multi-year modernisation cycle tied to Wi-Fi 7 refreshes.

First AMD Helios order

The Vultr order is HPE’s first for the AMD Helios AI Rack by HPE, which uses purpose-built HPE Networking hardware and software. HPE describes Vultr as the world’s largest privately held cloud infrastructure company.

Rami Rahim, executive vice president, president and general manager of Networking at HPE, said AI is lifting demand from enterprises and service providers. “AI is reshaping the technology stack, making the network more strategic,” he said.

To support demand and ease supply constraints heading into fiscal 2027, HPE said it doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of fiscal 2026. The projections are forward-looking and subject to the risks HPE sets out in its filings with the US Securities and Exchange Commission.