Hewlett Packard Enterprise (NYSE: HPE) raised its fiscal year 2027 Networking segment revenue growth outlook to a range of high-teens to low-20s percent, and lifted its long-term Juniper Networks cost synergy target to $800 million in annual run-rate savings by the end of fiscal 2028, up from a prior target of at least $600 million.

The company hosted an HPE Networking Investor Day where executives outlined growth targets across four product categories: Data Center Networking, Routing, Campus & Branch, and Security. HPE said it expects its Networking segment revenue to grow at a high-teens percent compound annual growth rate from fiscal 2026 through fiscal 2029, with an operating margin target in the mid-to-high 20s percent range from fiscal 2027 through fiscal 2029.

By product category, HPE projects Data Center Networking revenue to grow at a low-to-high 50s percent CAGR through fiscal 2029, Routing at a low-to-high 20s percent CAGR, and both Campus & Branch and Security at a high single-digit percent CAGR through the same period.

HPE also announced a $1.2 billion order from Vultr, described in the press release as the world's largest privately held cloud infrastructure company, for AMD Helios AI Rack by HPE systems. The company said this is its first order for the new system, which incorporates purpose-built HPE networking hardware and software.

"AI is reshaping the technology stack, making the network more strategic and driving significant new demand from enterprises and service providers," said Rami Rahim, executive vice president, president and general manager, Networking, HPE.

HPE said it expects to gain market share over the next three years in Data Center Networking, Routing, and Campus & Branch. The company noted it doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of fiscal 2026 to address anticipated demand and supply constraints entering fiscal 2027.