HPEHewlett Packard Enterprise Company

“Driven by a strong order demand momentum in data center switching and routing products, we are now targeting $1.7 billion to $1.9 billion in cumulative networks for AI orders by the end of fiscal '26.”

“We entered Q2 with a record AI Systems backlog of $5 billion, primarily composed of enterprise and sovereign orders, and our sales pipeline remains multiples of our backlog.”

“AI Systems orders of $1.2 billion were largely enterprise-driven.”

“we are leveraging AI-optimized recommendations to simplify configuration workflows and improve accuracy. We are targeting 30% faster quote cycles, enabling customers to move from design to order with less friction.”

“Q1 server orders grew low double digits, driven by higher demand for traditional servers as customers expand AI deployments, modernize infrastructure and accelerate orders due to industry supply challenges.”

“we are using generative AI to surface technical insights targeting a 90% reduction in search time for engineers and enabling faster, higher-quality service resolution.”

“In data center switching, orders increased mid-40% on a normalized basis, driven by strong momentum in AI data centers and ongoing data center modernization efforts.”

“In campus and branch, customers are adopting our self-driving AIOps networking strategy and solutions. Normalized orders increased by high single digits.”

“data center networking and routing delivered 31% and 10% normalized growth, respectively, reflecting strong networks for AI demand.”

“Our demand for our routing products was very strong, with orders increasing mid-20% on a normalized basis.”

“devices connected to both our Mist and Aruba Central cloud platforms up 28%.”

“I look at 2 key metrics in enterprise, particularly. One is adoption of AI in the business workflow. We see the adoption of agentic AI. Many European customers want to do that on-prem, very clear. And GreenLake disconnected is a big, big differentiator for us. And number two is the growth in inferencing. The inferencing portion of AI is growing very, very rapidly, and that aligns really nice with our portfolio, particularly with Juniper and servers.”

“It's a combination of existing customer buying more but then also gaining new customers on our footprint. And so it's a combination of service providers, neoclouds. And also now we start seeing the benefits of getting access to our server go-to-market because we are actually making entrances or introductions to those customers and be able to have those conversations in a more integrated way.”

“I saw that at the Olympics. I have to tell you, it was very impressive to see how the teams were operating using AI to manage a very complex network over multiple locations in Italy with different events taking place in a massive amount of scale. But the CIO told me, I'm doing this with less than 20 people, which was remarkable, remarkable.”

“We also announced new server innovations to speed 5G and AI deployments, enhance security and streamline automation from the Edge through the core network. These solutions enable telecom operators to manage twice the amount of network traffic on a single server with the latest network security innovations.”

“We showcased our leading networking capabilities last month at the Milano Cortina 2026 Winter Olympic Games, delivering the connectivity and security for athletes to access real-time performance data, for broadcasters to stream video and for fans to connect with the Olympic application.”

“Siemens Energy, one of the world's leading global energy technology companies, has recently selected HPE to provide infrastructure services to help engineers design and service gas turbines, which include AI inferencing.”

“Strength in service provider customers reflects investments in high-performance data center fabrics, routing capacity and interconnect to support both AI training and inference.”

“Consistent with our strategy to focus on higher profitability, the mix of enterprise and sovereign has increased as a percentage of our cumulative orders since Q1 '23.”

“Demand is very strong. Demand is very, very, very strong. There is no pushout. Last week, I was in Europe where I met with many customers at Mobile World Congress. Then I went to the U.K., and all of them understand the environment related to inflationary cost and all of them ask how we can get the product faster. So reality is that demand is strong, whether it's driven by the projects or deploying AI, obviously concerned about the costs -- inflationary costs, but 0 impact on demand at this point in time.”

“we continue to make excellent progress in our Catalyst modernization and cost programs. We see great returns in deploying AI across our enterprise and remain on track to deliver our committed fiscal '26 savings targets.”

“Across our global operations, we are aggressively deploying AI at scale to improve speed, cost and customer experience, driving measurable and accelerating results as we continue to expand deployment.”

“HPE now has the most competitive routing portfolio spanning data center interconnect, AI on-ramp and Edge use cases.”

“we introduced also new AI agentic approaches to both platforms as a part of the combined innovation.”

“We are seeing more enterprises adopting agentic AI into their company's business workflows.”