HPE Accelerates 2028 Targets to 2026 After Record Q2 AI Server Demand, Shares Jump 30%

Hewlett Packard Enterprise (HPE) reported record fiscal second-quarter results on June 1, 2026, and pulled forward its 2028 financial targets by two years, as booming AI data center investments lifted demand for its servers and networking gear. Shares surged 30% in extended trading. Revenue rose 40% to $10.68 billion, beating the $9.79 billion consensus estimate. Adjusted earnings per share reached 79 cents, far above the projected 53 cents. The company now expects fiscal 2026 revenue growth between 29% and 33%, up sharply from its prior 17%-22% outlook, driven by 72%-75% growth in networking. HPE raised its fiscal 2026 adjusted EPS guidance to $3.35-$3.45, surpassing the at least $3.00 it had targeted for 2028. The company also appointed Elliott Investment Management partner Christopher Hsu to its board and introduced a fiscal 2027 framework with 8%-12% revenue growth and free cash flow of at least $4.5 billion.