HPE lifts networking growth outlook and secures $1.2 billion AI rack deal with Vultr

Hewlett Packard Enterprise used its networking investor day to boost its long-term outlook, projecting a compound annual growth rate in the high teens for the networking unit from fiscal 2026 to 2029, up from a prior 5-7% forecast. The firm also revealed a $1.2 billion deal to provide AMD Helios AI racks, equipped with HPE switches and software, to cloud operator Vultr for its U.S. data-center footprint. The networking segment’s fiscal 2027 growth target was lifted to the high-teens to low-20s range, and the company raised its Juniper Networks cost-saving target to $800 million in annual run-rate by fiscal 2028.

HPE’s networking head Rami Rahim said AI is making networks more strategic, driving new demand from enterprises and service providers. Shares rose nearly 6 % in pre-market trading following the announcements.