Hewlett Packard Enterprise raised its fiscal 2026 revenue-growth and adjusted earnings outlook on September 2, citing AI demand, but its shares fell more than 3% in extended trading as component supply constraints remained a concern. CFO Marie Myers identified memory as the main bottleneck, followed by NAND, CPUs and drives, according to Reuters via CNA.
HPE lifts FY2026 targets after Q3 growth
HPE lifted its fiscal 2026 revenue-growth outlook to 34%–37% and its non-GAAP earnings-per-share outlook to $3.75–$3.85. It also introduced a fiscal 2027 revenue-growth framework of 13%–17%, according to HPE Investor Relations.
The revised targets followed third-quarter revenue of $12.2 billion, up 34% from a year earlier, and non-GAAP diluted EPS of $1.11. Revenue in Cloud & AI reached $9.0 billion, a 25% year-on-year increase, HPE said in its third-quarter earnings presentation.
AI Systems orders and backlog
AI Systems orders reached $2.4 billion during the quarter, while HPE put its AI backlog at $6.8 billion.
HPE cited inferencing and agentic-AI workloads as drivers of demand. The figures provide an operational basis for the higher outlook, reflecting AI-related business yet to convert into reported revenue.
Investors were also weighing whether HPE could secure enough critical components to fulfil that demand, as reflected in the extended-trading response.
Memory shortages overshadow raised outlook
HPE’s AI backlog reached $6.8 billion. The figure makes execution an important issue alongside continued demand.
Shares fell more than 3% in extended trading despite raised guidance and quarterly growth.
CFO Marie Myers said component supply remained constrained, with memory the main bottleneck, followed by NAND, CPUs and drives, according to a Reuters report.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
