The Hewlett Packard Enterprise AI deal added a major new order to Hewlett Packard Enterprise’s growing artificial intelligence pipeline as the company reported better-than-expected quarterly results and raised its full-year forecast.
Hewlett Packard Enterprise (NYSE: HPE) said it was awarded a $3.5 billion AI inferencing agreement with an unnamed hyperscale customer after the close of its third quarter. The disclosure appeared in the company’s official earnings presentation.
HPE reported adjusted earnings of $1.11 per share, above the 94-cent analyst consensus, on revenue of $12.2 billion compared with the $11.99 billion estimate. The company described AI as a multi-year growth driver and said quarterly revenue, orders and profitability reached records.
Hewlett Packard Enterprise AI Deal Strengthens a Higher Growth Forecast
For the fourth quarter, HPE projected adjusted earnings of $1.20 to $1.30 per share and revenue of $13.9 billion to $14.8 billion. Both ranges were above the corresponding analyst estimates of $1.07 per share and $13.04 billion in revenue.
The company raised its fiscal 2026 adjusted earnings forecast to $3.75 to $3.85 per share from $3.35 to $3.45. It also lifted its full-year revenue growth outlook to 34% to 37% from 29% to 33%, while increasing its fiscal 2027 revenue growth framework to 13% to 17% and forecasting free cash flow of at least $5 billion.
HPE shares initially fell about 5% after the release despite the earnings beat and stronger guidance. The mixed reaction may reflect elevated expectations following the company’s recent gains, but the size of the new hyperscaler contract provides a concrete indicator of demand for HPE’s inferencing infrastructure and expanded networking portfolio.
