Hewlett Packard Enterprise Company (NYSE:HPE) shares are trading higher Thursday on possible continued momentum after the company raised its fiscal-year 2027 Networking segment revenue growth outlook on Wednesday, alongside a $1.2 billion order from Vultr.

Raised Networking Guidance

HPE raised its fiscal 2027 Networking segment revenue growth outlook to the high-teens to low-20% range and expects segment operating margins in the mid-to-high 20% range. To support robust demand and address supply constraints ahead of fiscal 2027, the company previously doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of fiscal 2026.

Networking Growth Framework Through FY29

HPE raised its Networking segment outlook, projecting revenue to grow at high teens compound annual growth rate (CAGR) from fiscal 2026 through fiscal 2029. The company also introduced a target for the segment to maintain operating margins in the mid-to-high 20% range from fiscal 2027 through fiscal 2029.

HPE Bags $1.2B AMD Helios AI Rack Order From Vultr

Separately, HPE announced a $1.2 billion order from Vultr, the world’s largest privately-held cloud infrastructure company, to deploy AMD Helios AI Rack by HPE systems at Vultr’s U.S. data centers — HPE’s first order for the new AMD Helios system. Each rack integrates 72 AMD Instinct MI455X GPUs with AMD EPYC “Venice” CPUs, AMD Pensando Vulcano AI NICs networking, and AMD ROCm software, paired with six HPE Juniper Networking QFX5252 scale-up Ethernet switch trays connecting all 72 GPUs through high-bandwidth, low-latency Ethernet. The order builds on nearly three years of collaboration between Vultr and Juniper Networks, now part of HPE.

“AI is driving the largest infrastructure buildout in history and together with AMD and Vultr, we are building an open foundation to accelerate the next phase of AI,” said Antonio Neri, President and CEO of HPE. “AMD Helios by HPE demonstrates HPE’s unique ability to engineer the complete AI architecture with rack-scale compute, scale-up networking, and direct liquid cooling, all delivered by our global services.”

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Hewlett Packard Shares Edge Higher

HPE Price Action: At the time of publication, Hewlett Packard shares are trading 1.35% higher at $64.75, according to data from Benzinga Pro.

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