Hewlett Packard Enterprise (HPE) continued its meteoric march, with soaring revenues buoyed by impressive growth from its networking portfolio.

Overall revenues for the second quarter ending April 30, 2026, were $10.7 billion, up 40% year over year. But the leading growth driver was HPE’s networking business, which delivered revenue of $2.7 billion, up 148.2%.

CEO Antonio Neri told investors that networking orders were “ growing significantly faster than revenue,” with orders more than doubling. Neri put its Juniper Networks acquisition down as one of the leading drivers, with integration of the firm following the $14 billion deal ahead of “milestones and synergies commitments.”

“The unified portfolio and sales force are already strengthening our market position and growth momentum,” the CEO told investors. “Our combined networking portfolio and vision for self-driving networks is resonating with customers, and that enthusiasm, together with strong go-to-market execution, is reflected in our results.”

HPE saw increased demand in campus and branch, network for AI, and security offerings in Q2, with Neri revealing campus and branch orders alone reached a record high, growing in the upper 20% range on a normalized basis. Wi-Fi 7 access points sales, meanwhile, increased more than 7x, with the CEO suggesting the rise reflected “a clear shift toward network modernization.”

“Creating meaningful value from the Juniper acquisition and strengthening our position at the intersection of networking, cloud, and AI,” Neri said. “With the combined strength of HPE and Juniper, we have the portfolio, the talent, and the go-to-market scale to lead in the market.”

Beyond networking, HPE saw its Cloud & AI segment report double-digit revenue growth year-over-year, driven by exceptional demand for traditional servers, AI systems, and GreenLake software and services.

Cloud & AI revenue was $7.7 billion, up 22.9%, with server revenues soaring by 32.7% to $5.5 billion, owing to triple-digit order growth for traditional servers. Storage also saw a jump to $1.2 billion, up 2.4% from the prior-year period.

For all its successes this past quarter, Neri revealed HPE is facing a “record company backlog,” with customer investments in agentic AI, inferencing, and compute infrastructure modernization behind the intense demand.

He told investors the firm faces a $5.9 billion backlog, which is “primarily composed of enterprise and sovereign orders.”

Vendors across the digital infrastructure landscape are having to marry intense customer demand with supply chain conundrums brought on by component shortages in segments like memory, or geopolitical-induced issues like the blockade of the Strait of Hormuz.

Neri previously said HPE expects the memory supply chain bottleneck to continue into 2027 but that the firm had already taken steps to deal with the lingering supply chain concern.

“Unlike COVID, where people were also doing double booking, we do not see that at all. And we have no cancellations,” Neri said during its latest investor call. “We feel confident about the durability of that demand, which will drive this sustained momentum.”

“We have not seen any pull in, we do not see a cliff, and in many ways, I think customers are prioritizing getting access to technology now faster than ever before,” the CEO added. “Because nobody wants to be left behind when it comes down to deploying AI.”

Neto confirmed to investors it was “working closely” with its silicon and memory partners to secure supply, while also engaging with customers and channel partners on lead times and configuration options to “help them plan effectively.”

Guidance for the Q3 sees HPE project revenues of $11.5 billion to $12.1 billion, while it anticipates networking revenue to grow yet again, projecting 73%-78% on a reported basis or near 10% normalized.

To further fortify its network market push, HPE announced plans for a dedicated network and investor day to take place in the fall.

“We expect demand strength to continue into fiscal 27 and beyond, which will accelerate durable shareholder value as we continue to scale profitably. We are executing with strong discipline,” Neri told investors.