Hewlett Packard Enterprise will report second-quarter fiscal 2026 results after market close on June 1, and Hpe stock heads into the update with investors focused on whether its networking and AI push can keep powering the business. The company is expected to post revenue of $9.6 billion to $10 billion, versus the Zacks Consensus of $9.82 billion.

The revenue outlook points to growth of about 28.7% from the year-ago quarter, while HPE’s non-GAAP earnings forecast of 51 cents to 55 cents a share brackets Wall Street’s estimate of 54 cents. That consensus implies a 42.11% increase from a year earlier, and it has not moved in the past 60 days, leaving little sign of a late-stage reset before the report.

The numbers matter because HPE is trying to show that its business is broadening beyond legacy hardware into networking, AI infrastructure, servers and storage. That effort has been most visible in networking, where the segment has become a major growth engine after the Juniper Networks acquisition. In the first quarter of fiscal 2026, networking revenue surged 152% year over year, driven by strong demand for Juniper QFX switches and PTX/MX routing products, while WiFi 7 access point volumes rose more than 10 times from a year earlier.

HPE has also said it expects cumulative Networks for AI orders to reach $1.7 billion to $1.9 billion by the end of fiscal 2026, a target that underscores how much of the current story is tied to AI-related demand. Devices connected to Aruba Central and Mist cloud platforms are also helping the company build traffic around its networking stack, and traction in Alletra MP storage, Greenlake and VM Essentials virtualization is expected to have held up as customers continue network modernization.

That is the strong side of the ledger. The harder part is that HPE is still exposed to cost pressure and uneven demand in other parts of the business. DRAM and NAND cost inflation, geopolitical headwinds and uneven AI systems revenues are expected to have weighed on the quarter, which means the earnings release will not just be about whether sales grew but whether margins held up while the company pushed into faster-moving product categories.

HPE enters the report with an Earnings ESP of 0.00% and a Zacks Rank #3, a setup that leaves the company without a clear statistical edge going into the print. For investors, the June 1 update should answer one central question: whether the networking and AI momentum that lifted the first quarter is strong enough to absorb the pressure from memory costs and an irregular AI systems business.