Hewlett Packard Enterprise (HPE) unveiled its long-term financial outlook for fiscal years 2025 through 2028, projecting sustained revenue and profit growth driven by its expanding leadership in networking, cloud, and AI infrastructure.
During its Securities Analyst Meeting at the New York Stock Exchange, HPE President and CEO Antonio Neri, CFO Marie Myers, and HPE Networking President Rami Rahim outlined strategic priorities aimed at accelerating innovation, boosting free cash flow, and enhancing shareholder returns.
HP CEO Antonio Neri said: “By aligning our investments and innovation to address the IT industry’s most promising opportunities in networking, cloud, and AI, we’re poised to gain share in the markets that matter most to our customers.”
HPE Projects Up to 7 percent Annual Revenue Growth Through FY2028
HPE expects a compounded annual revenue growth rate (CAGR) of 5 percent to 7 percent and operating profit growth of 11 percent to 17 percent through fiscal 2028.
HPE also anticipates generating more than $3.5 billion in free cash flow by FY2028. The company’s long-term financial framework focuses on free cash flow generation, net leverage reduction, and capital returns through dividend growth and share repurchases.
FY2026 Outlook: Continued Momentum Across Business Segments
For fiscal year 2026, HPE forecasts:
Revenue growth: 5 percent–10 percent year-over-year
Non-GAAP operating profit growth: 10 percent–18 percent
GAAP operating profit growth: 435 percent–445 percent
Free cash flow for FY2026 is expected between $1.5 billion and $2.0 billion.
HPE Strengthens Networking Leadership with Juniper Integration
Networking is emerging as a foundational pillar of HPE’s strategy. With the acquisition of Juniper Networks, HPE is positioned to disrupt the traditional networking industry through its AI-native networking portfolio spanning campus, data center, and wide-area routing infrastructure.
HPE CEO emphasized that networking innovation “with AI and for AI” will be a core growth driver, giving HPE scale and differentiation in a $30+ billion addressable market.
Capturing Profitable Growth in AI Infrastructure
HPE aims to capitalize on AI infrastructure growth by serving sovereign and enterprise customers. Its portfolio positions it to compete in AI model building, data processing, and sovereign AI environments, areas experiencing rapid global expansion.
The company plans to leverage its compute and networking expertise to deliver high-performance, secure, and scalable AI infrastructure solutions.
Accelerating Growth with HPE GreenLake
HPE continues to expand its GreenLake cloud platform, offering enterprises a unified hybrid cloud experience that simplifies IT operations and reduces costs.
Through software and services cross-sell opportunities, HPE expects high-margin growth from GreenLake, driven by increased enterprise adoption and the expansion of its as-a-service offerings.
Capitalizing on Data Growth with HPE Alletra MP
With AI driving exponential data growth, HPE’s Alletra MP platform enables enterprises to manage unstructured data efficiently. The company is shifting from third-party to HPE-developed storage solutions, enhancing profitability and control over its IP stack.
Transitioning Customers to Next-Generation Servers
HPE plans to sustain long-term cash flow by transitioning customers to HPE ProLiant Gen11 and Gen12 servers, which offer richer configurations and higher performance. The company will focus on balancing profitability and unit growth, supported by service attachment opportunities.
Optimizing Cost Structure for Sustainable Profitability
Through its Catalyst initiative, HPE aims to deliver at least $350 million in gross savings by FY2028, enhancing operational efficiency and profitability. Additionally, $600 million in cost synergies are expected from the Juniper integration, improving non-GAAP operating profit and free cash flow.
Rajani Baburajan
