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HPE raises 2024 outlook as AI demand drives 40% revenue jump and strong margins.

Company Fundamentals
02 Jun 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Hewlett Packard Enterprise (HPE) reported a 40% revenue increase to $10.7 billion in Q2, fueled by surging AI infrastructure demand that nearly doubled AI-related orders and boosted gross margins to 36.9%. The company’s backlog reached $6.3 billion, prompting management to sharply raise its 2024 guidance to 29–33% revenue growth, $3.35–$3.45 earnings per share, and at least $3.5 billion in free cash flow. With declining leverage, strong cash flow, and activist investor involvement, HPE is positioned for accelerated share buybacks and sustained margin expansion through 2027.

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