HPE lifts fiscal 2027 networking outlook and raises Juniper savings target to $800 million

Vultr places a $1.2 billion order for the new AMD Helios rack system, the first customer commitment for the product

Hewlett Packard Enterprise raised its fiscal 2027 outlook for its Networking segment, now expecting revenue growth in the high teens to low-20s percent range, with operating margin in the mid-to-high 20s percent range. The company also lifted its cost synergy target tied to Juniper Networks to $800 million in annual run-rate savings by the end of fiscal 2028, up from at least $600 million.

Hewlett Packard Enterprise disclosed a $1.2 billion order from Vultr to deploy the AMD Helios rack system built with HPE hardware, the first order placed for the new system.

The new targets extend a trajectory that started with the company's third-quarter results two weeks ago, when it had already lifted Networking growth guidance to 73-74% and pointed to a pipeline several times larger than its backlog. The fiscal 2027 targets and the larger Juniper synergy goal turn that single quarter's beat into a multi-year plan.

The Vultr order gives the Helios rack system its first confirmed customer, arriving after the CEO had said demand for the new system would keep outpacing the company's ability to fulfil it. Paired with an earlier expansion of networking business with Oracle, the order suggests that converting existing backlog into revenue, rather than a shortage of demand, is what will determine how quickly Hewlett Packard Enterprise's growth shows up in its results.