HPE warns of rising server and storage prices

The company is preparing to navigate commodity shortages in 2026 and anticipates higher prices to continue into 2027.

Dive Brief: 

• Hewlett Packard Enterprise’s networking revenue jumped 151.5% year over year to $2.7 billion in its first quarter of 2026 amid a surge in enterprise AI adoption. The company’s networking segment — representing nearly 30% of HPE’s total revenues — includes HPE’s former Intelligent Edge segment and Juniper Networks, which HPE acquired in July 2025. The company’s total Q1 revenue reached $9.3 billion, up 18% year over year. 
• HPE’s overall cloud and AI revenue, a new segment for fiscal year 2026 that includes its server, storage and financial services businesses, was down 2.7% year over year. But the company also reported a push in agentic AI investments and entered Q2 with an AI systems backlog of $5 billion, including enterprise orders ...