HPE Unveils Strategic Roadmap to Boost Shareholder Value with AI, Networking Growth and Enhanced Capital Returns

HPE (NYSE: HPE) outlined its strategic and execution priorities at the 2025 Securities Analyst Meeting held at the New York Stock Exchange, emphasizing a clear path to enhance shareholder value through long-term growth, profitability, and capital return. Antonio Neri, President and CEO, along with CFO Marie Myers and Rami Rahim, President and General Manager of HPE Networking, presented a comprehensive vision for the company’s future through fiscal year 2028. Neri highlighted HPE’s transformation into a higher-growth, higher-margin business, driven by leadership in networking, cloud, and AI infrastructure. The company is leveraging its expanded portfolio—particularly following the acquisition of Juniper Networks—to capture market share in critical areas. HPE’s strategy focuses on delivering profitable growth by investing in AI-ready infrastructure, accelerating high-margin software and services through GreenLake, and advancing its proprietary data management solutions. A key component of HPE’s strategy is building a new industry leader in networking. With Juniper’s technology and scale, HPE is developing an AI-native networking portfolio across campus, branch, data center, and wide-area routing. This foundation enables innovation tailored for AI workloads and positions HPE to disrupt traditional networking markets. In the AI infrastructure space, HPE is targeting sovereign and enterprise customers, offering differentiated solutions that support secure, scalable AI deployment. The company is also expanding its GreenLake platform, which provides a unified cloud experience that simplifies IT operations, reduces costs, and drives faster transformation. GreenLake’s growing suite of high-margin software and services is expected to fuel cross-selling and revenue growth. HPE is also capitalizing on the rising demand for unstructured data management through its Alletra MP platform. By transitioning customers to HPE-developed storage solutions, the company aims to reduce reliance on third-party vendors and improve margins. To support long-term profitability, HPE is driving customer adoption of next-generation ProLiant Gen 11 and Gen 12 servers, which offer higher average selling prices and stronger service attachment. The company is also optimizing its cost structure through Catalyst, a set of initiatives designed to improve efficiency and deliver at least $350 million in gross savings by fiscal year 2028. Additionally, HPE expects $600 million in Juniper-related synergies during the same period, reducing both cost of sales and operating expenses. Financially, HPE projects a compounded revenue growth rate of 5% to 7% and non-GAAP operating profit growth of 11% to 17% through 2028. The company aims to achieve non-GAAP diluted net EPS of at least $3.00 by 2028 and generate over $3.5 billion in free cash flow. For fiscal year 2026, HPE forecasts revenue growth of 5% to 10%, non-GAAP operating profit growth of 10% to 18%, and GAAP operating profit growth of 435% to 445%. Free cash flow is expected to reach $1.5 billion to $2.0 billion. To return value to shareholders, HPE announced a 10% increase in its annual dividend for fiscal year 2026, pending Board approval, and authorized an additional $3 billion in share repurchases, raising its total authorization to $3.7 billion. HPE reaffirmed its commitment to generating strong free cash flow, reducing net debt leverage, and delivering consistent capital returns through dividends and buybacks. The company emphasized that its financial outlook reflects disciplined execution, strategic investments, and a clear focus on long-term shareholder value.