Hewlett Packard Enterprise shares surge 28% on strong AI demand
HPE's fiscal Q2 revenue jumped 40% year-over-year to $10.68 billion, obliterating Wall Street estimates and adding roughly $17 billion to the company's market cap in a single session.
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Add us on Google by Editorial Team Jun. 2, 2026Hewlett Packard Enterprise just delivered the kind of earnings report that makes analysts spill their coffee. The company posted fiscal Q2 2026 revenue of $10.68 billion, a 40% increase year-over-year that blew past the consensus estimate of $9.79 billion by nearly a billion dollars. Shares responded accordingly, surging approximately 28% on June 2, with premarket trading seeing peaks as high as 36-38%.
The adjusted earnings per share came in at $0.79, compared to the $0.53 that analysts had penciled in.
AdvertisementAI demand is rewriting HPE’s entire growth trajectory
CEO Antonio Neri pointed to robust growth in AI-related orders, with the company’s AI backlog having doubled in recent quarters. Traditional server orders also saw triple-digit growth as companies modernize their computing environments to support AI workloads.
The results were strong enough to force HPE to rip up its own playbook. The company raised its full-year revenue growth outlook for FY2026 to a range of 29-33%, up from previous guidance of 17-22%. HPE said it has achieved its 2028 financial targets two years ahead of schedule.
The networking segment got its own upgrade as well, with HPE lifting its outlook to 72-75% growth for FY2026.
The bigger picture: $700 billion in AI spending
Big Tech companies are projected to spend roughly $700 billion on AI infrastructure in 2026. Dell reported its own strong results on May 29, just days before HPE’s announcement.
HPE’s single-day move added approximately $17 billion to its market capitalization, which had previously sat around $62.36 billion. It marks one of the largest percentage gains for HPE shares in several years.
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