Hewlett Packard Enterprise (HPE)

AI servers + networking + hybrid cloud (HPE) — enterprise infra incl. Juniper/Cray

AI exposure 35% — derived from reported segment revenue, not asserted.

Where it sits

Physical Infrastructure → Storage & Server Systems · figures rebased to Q3 FY2026, reported 2026-09-02

ProLiant + AI servers (incl. NVIDIA-based AI systems), HPC leads 2 businesses in this sub-tier that together are 68% of revenue and the largest business on the map, which is what Storage & Server Systems holds. The rest is tagged separately: Network Switching & Hardware at 20%.

Also tagged: secondary in Connectivity → Network Switching & Hardware.

Reported segments

Server — 55.4% of revenue
Networking — 23.7% of revenue
Storage — 10.6% of revenue
Financial Services — 7.2% of revenue
Corporate Investments & Other — 3.1% of revenue

HPE ($12,213M Q3 FY2026, +33.7% YoY; non-GAAP operating profit about $2B, more than double a year ago; EPS $1.11 against $0.93 expected). FIVE reported lines, where the Atlas previously modelled three: Server 55.4% ($6,766M, +35.3%), Networking 23.7% ($2,893M, +74.9% at a 22.0% operating margin), Storage 10.6% ($1,291M, +10.2%), Financial Services 7.2% ($883M, -0.3% and the only line not growing) and corporate/other 3.1%. The Networking detail is where the AI signal is sharpest — inside it, Data Center Networking grew 112.2% to $382M while Campus Branch grew 31.0% to $1.4B. Juniper is doing…

How the 35% is built

Server — 55.4% of revenue × 50% AI-driven (estimate). AI systems sit inside the Server line and are its growth engine, but HPE does not break them out and the segment still carries a large general-purpose enterprise server book
Networking — 23.7% of revenue × 20% AI-driven (disclosed). Data Center Networking grew 112.2% to $382M and is genuinely AI-driven, but it is only 13% of the segment — Campus Branch at $1.4B is enterprise wireless and switching with no AI linkage
Storage — 10.6% of revenue × 20% AI-driven (estimate). Alletra and enterprise storage attach to AI deployments but grew only 10.2%, well below the AI-driven lines, which is itself the evidence that most of it is not AI
Financial Services — 7.2% of revenue × 10% AI-driven (estimate). Leasing and asset lifecycle management against an installed base, shrinking 0.3% — a financing book, not a technology line
Corporate Investments & Other — 3.1% of revenue × 0% AI-driven (estimate). Corporate investments and eliminations

Investment read

Moat. Enterprise server and HPC (Cray) franchise plus a networking business transformed by the completed $14B Juniper acquisition — Networking revenue +148% YoY to $2.7B in Q2 FY2026 at a 21.6% operating margin, guided to the mid-to-high 20s in FY2027. Real IP and installed base, but Dell, Supermicro and the ODMs remain ready substitutes on the server side.

Bottleneck / pricing power. Thin hardware pricing power offset by mix — blended non-GAAP gross margin of 36.9% in Q2 FY2026 (+750bps YoY) is Juniper and Networking doing the work, not server pricing. DRAM and NAND inflation is a live cost pressure HPE cannot fully pass through.

Role in the AI stack. The enterprise server + AI-networking + HPC vendor.

Connected companies

NVIDIA (NVDA) — HPE is supplied by: GPUs for HPE AI servers (Cray/ProLiant)
Advanced Micro Devices (AMD) — HPE is supplied by: EPYC CPUs + Instinct GPUs for HPE servers
Intel (INTC) — HPE is supplied by: Xeon CPUs for HPE server platforms
Microsoft (MSFT) — HPE supplies: HPE Cray EX supercomputers deployed inside Azure (Met Office et al.) + long-standing partnership
Equinix (EQIX) — HPE supplies: servers + networking deployed in colocation
Dell Technologies (DELL) — HPE competes with: AI servers + storage — HPE vs Dell
Cisco Systems (CSCO) — HPE competes with: enterprise/data-center networking — HPE (Juniper) vs Cisco
Arista Networks (ANET) — HPE competes with: AI-native data-center switching — Juniper vs Arista
Super Micro Computer (SMCI) — HPE competes with: AI rack/server systems head-to-head
Ubiquiti (UI) — HPE competes with: enterprise WLAN — Ubiquiti vs HPE Aruba
Sandisk (SNDK) — HPE is supplied by: enterprise SSDs into HPE servers/storage systems
Meta Platforms (META) — HPE supplies: AI servers/networking; Meta not a publicly documented HPE customer (Meta buys ODM-direct)
Oracle (ORCL) — HPE supplies: AI server and networking systems for cloud operators (no public Oracle supply evidence)
CoreWeave (CRWV) — HPE supplies: possible AI server supply to CRWV; CoreWeave's publicly named server OEM is Dell

Others in Storage & Server Systems

All 174 companies · What moved this quarter · How the map is built