HPE expects to achieve 2028 financial targets this year after record quarter on AI boom

June 2, 2026 - 05:00

Hewlett Packard Enterprise reported record revenue for its second fiscal quarter on Monday, driven by surging demand for AI data center infrastructure. The strong performance has led the company to move up its long-term financial goals by two years, now expecting to achieve its 2028 targets by the end of this fiscal year.

Shares of HPE jumped 30% in extended trading following the announcement. The company also revealed that it has appointed Christopher Hsu, a partner at Elliott Investment Management, to its board of directors as part of a cooperation agreement with the activist investor.

HPE is competing directly with Dell Technologies and Super Micro Computer in the race to supply servers and networking gear for artificial intelligence applications. The company is benefiting as businesses rush to buy data center equipment to support AI models like ChatGPT, even as the industry faces a tight supply of memory chips.

The record quarter underscores how the AI boom is reshaping the hardware market. HPE's server and networking segments saw a sharp increase in orders from cloud providers and large enterprises scaling up their AI capabilities. The company's revised outlook suggests that management expects the demand surge to continue, allowing it to hit its 2028 profitability and revenue targets much sooner than originally planned.