HPE Raises Networking Outlook, Lands $1.2B Vultr Order for AMD Helios AI Rack
HPE now projects high-10% networking revenue CAGR through fiscal 2029 and lifted its Juniper cost-synergy target to $800 million in annualized savings.
HPE used a Networking Investor Day to raise its growth outlooks for its networking business and announce a $1.2 billion order from Vultr for the AMD Helios AI Rack by HPE system, the first order for the new product, according to datanet.co.kr.
The company forecast data center networking revenue CAGR in the early-to-high 50% range through fiscal 2029, and routing revenue CAGR in the early-to-high 20% range over the same period. It expects campus and branch, as well as security, revenue CAGR in the high single digits through fiscal 2029.
HPE raised its networking segment revenue CAGR outlook to the high 10% range for fiscal 2026 to fiscal 2029. For fiscal 2027, it lifted networking segment revenue growth guidance to the low 20% range and said it expects the segment's operating margin in the mid-to-high 20% range.
Juniper cost synergies raised
On the integration side, HPE raised its Juniper Networks cost synergy target to $800 million in annualized cost savings by the end of fiscal 2028, up from a prior minimum of $600 million.
The strategy spans data center networking, routing, campus and branch, and security, the company said. In the third quarter of fiscal 2026, HPE increased its networking-related supply purchase commitments twofold quarter-over-quarter to meet high demand and ease supply constraints ahead of fiscal 2027.
Quick answers
What did HPE raise at its Networking Investor Day?
HPE raised its networking segment revenue CAGR outlook to the high 10% range for fiscal 2026 to fiscal 2029, lifted fiscal 2027 networking revenue growth to the low 20% range, and increased its Juniper Networks cost synergy target to $800 million in annualized savings by the end of fiscal 2028.
How large is the Vultr order for the AMD Helios AI Rack by HPE?
Vultr placed a $1.2 billion order, the first for the AMD Helios AI Rack by HPE system.
What growth does HPE forecast for its networking segments?
Through fiscal 2029, HPE forecasts early-to-high 50% data center networking revenue CAGR, early-to-high 20% routing revenue CAGR, and high single-digit campus and branch and security revenue CAGR.