Hewlett Packard Enterprise Company (HPE) updated its financial outlook for its Networking business segment during its 2026 Networking Investor Day on September 30, 2026. The company announced an increase to its fiscal 2027 revenue growth expectations and revised its targets for cost synergies related to the integration of Juniper Networks.
For fiscal year 2027, HPE raised its Networking segment revenue growth outlook to a range of high teens to low-20s percent. The company also expects the segment to achieve an operating margin in the mid-to-high 20s percent range during the same period.
Looking toward the long term, HPE projects its Networking segment revenue to grow at a high-teens percent compound annual growth rate (CAGR) from fiscal 2026 through fiscal 2029. The company stated its intention to maintain an operating margin target of mid-to-high 20s percent for the Networking segment from fiscal 2027 through fiscal 2029.
Specific product categories within the Networking portfolio are expected to drive growth through fiscal 2029. HPE forecasts Data Center Networking revenue to grow at a low-to-high 50s percent CAGR, Routing revenue at a low-to-high 20s percent CAGR, and Campus & Branch revenue at a high single-digit percent CAGR. Additionally, the company expects Security revenue to grow at a high single-digit percent CAGR.
In terms of operational efficiency, HPE is raising its target for Juniper Networks-related cost synergies. The company now expects to achieve $800 million in annual run-rate savings by the end of fiscal 2028, up from a previously announced target of at least $600 million.
The company also highlighted a significant order from Vultr, the world’s largest privately-held cloud infrastructure company. HPE secured a $1.2 billion order to deploy AMD Helios AI Rack by HPE systems, marking the first order for the new system, which includes purpose-built HPE Networking hardware and software.
