HPE Catches Its First GenAI Wave With Enterprises, Sovereigns, And Neoclouds
The Next Platform, Thursday, June 4th, 2026
HPE posts strong quarterly results driven by AI and traditional server sales, but remains far behind Dell in the GenAI market.
Hewlett Packard Enterprise delivered its best quarter in years with $10.68 billion in sales, up 40 percent, bolstered by AI system sales and traditional server demand. The company's Cloud & AI group grew 22.9 percent with operating income up 2.3X, while traditional server sales rose 25 percent and AI system sales surged 66 percent.
However, HPE's AI business remains roughly one-tenth the size of Dell's, and the company faces intense competition from Supermicro and Lenovo. Looking forward, HPE projects full-year growth of 29-33 percent and expects its Cloud & AI group to grow in the low 20 percents, positioning it as a potential barometer for GenAI adoption among enterprises, sovereigns, and neoclouds.