Hewlett Packard Enterprise Company Investor Day 2026

Good morning everyone, and welcome to HPE Networking Investor Day. Thank you for joining us both here in person and on the webcast. I am Shannon Cross, Chief Strategy Officer at HPE. As you all know, we posted record Q3 results earlier this month. in networking, for example, we reported both record revenue and orders. Today, we will take a closer look at the business and the strategy we have in place to capture new opportunities we see for the future. Over the next few hours, you will hear from Rami Rahim, Executive Vice President, and General Manager of HPE Networking, about how AI is reshaping the networking market and why networking is considered critical infrastructure in the AI era. We will also talk about how the combination of HPE and Juniper Networks strengthens our ability to compete and win in this increasingly important market.

We will discuss our integration progress and the financial benefits we are already seeing. We will then invite the leaders of our networking business to join me for a panel, and finally, Rami and I will host a Q&A session. Before we begin, I would like to introduce and welcome Dave Rubin, who recently joined HPE as our new Head of Investor Relations. Many of you already know Dave from his time at Flex, and we are very happy to have him on our team. Let me cover our safe harbor statement. This event may include forward-looking statements involving risks, uncertainties, estimates, and assumptions. If the risks and uncertainties ever materialize and the estimates or assumptions prove incorrect, our results may differ, perhaps materially, from those expressed or implied by such forward-looking statements. HPE assumes no obligation to update such statements.

Please find more information regarding our forward-looking statements on our website at investors.hpe.com. This event also includes certain non-GAAP financial information. Such non-GAAP financial measures may have limitations as analytical tools. Please note that these measures should not be considered in isolation or as a substitute for analyzing HPE financial measures as reported under GAAP. Certain financial information featured in the presentation today has been normalized to include Juniper Networks results as of the beginning of HPE's fiscal year 2024. With that, let's get started. Please welcome Rami. Thanks, Shannon.

Yep. Welcome everyone, and thank you all for investing your time with us today.

My objective for today is to demonstrate how our new combined HPE Networking segment will accelerate shareholder value for years to come. We are going to talk about a few critical things today, the AI market opportunity and why networking today is more important than ever in the new AI era, how our new combined HPE Networking portfolio and innovation are perfectly suited to capture the large AI opportunity, the significant strides we have made with the integration of Juniper and HPE, the strong financial progress made against our commitments, and finally, I am going to share a new financial guide later in my remarks.

The core message I want you to take away is that HPE Networking segment is a key driver of our long-term strategy to create shareholder value through durable revenue growth, margin expansion, and strong cash generation. We are executing ahead of plan, with the integration delivering greater than expected synergies and expanding into new addressable markets. Our HPE Networking portfolio is not just larger, it is more complete, more integrated, and better positioned to compete at scale in large markets benefiting from strong secular growth drivers. And finally, we are seeing that progress reflected in our results and in our outlook. Let us just get started. As you know, the AI market is driving major technology transitions, and it is reshaping the technology stack. It has become a strategic core element for how organizations architect and operate their IT to enable scale and competitiveness.

That is why every customer segment is treating the network as core strategic infrastructure. As you can see on this slide, the expected market growth opportunities across networking are significant. And with the combination of Juniper and Aruba, we are positioned to win. We look at our opportunities across the four product categories you see here and our two customer segments, enterprise and service provider, which includes cloud service providers, or CSPs, such as hyperscalers and Neoclouds. Data center is our fastest growing market, largely driven by CSPs. And here, we are expanding our addressable market opportunity as AI drives increasing demand for both high-performance scale-out and scale-up solutions. In routing, we are seeing the opportunity broaden as AI moves beyond training and into large-scale inferencing environment. And that is creating demand across both service provider and enterprise networks.

This is also an area where we have a long history of innovation and deep incumbency, which is a significant competitive advantage for us. Campus and branch is currently our largest product category. The combination of Juniper and Aruba further strengthens our competitive positioning from both a technology and a go-to-market standpoint. And finally, we cannot talk about the evolution of AI infrastructure without addressing the increasing convergence between networking and security, where HPE has a unique approach through the combination of silicon, software, and agentic operations. The opportunity for HPE is clear. We have the right to win in every networking product category, and we are now even more confident because of the successful integration of Juniper into HPE. How is the integration going? In short, it has been a tremendous success. We are moving faster than expected and delivering greater than expected cost synergies.

Integrating two large businesses into a single networking powerhouse, while also delivering strong order growth, is hard to do. We are doing it and delivering quarter after quarter. The success is driven by the thoughtful integration we have done and the amazing execution by the combined team. Not only have we set a clear strategy, but we onboarded all Juniper employees, combined our sales teams, and never stopped innovating. This has given us tremendous confidence and excitement for what comes next, an acceleration of profitable growth. One of the strategic opportunities in bringing HPE and Juniper together was to combine decades of innovation and differentiated IP, while accelerating product development and time to market that will result in market share gains. We are already seeing the benefits.

For example, we rapidly advanced our self-driving network capabilities, cross-pollinating the best of HPE Aruba Networking Central and Juniper Mist, supported by a new set of campus and branch wireless access points, as well as access switches. We also grew our addressable market by expanding our innovation into the AI data center scale-up market. We introduced a new data center scale-up switch, leveraging HPE's decades of experience in rack scale architecture and liquid cooling technology. I will talk more about these products later, but the key takeaway is that we were able to accelerate our innovation through the integration process, leveraging unique IP and expertise. We have accomplished all of this in just over a year, and these are only a few examples. The second major element of the integration was bringing our sales organizations together. Here again, speed mattered. We called this Sales Day 1, and it was completed globally in about six months after we closed.

We made it a deliberate decision to move early, and it is paying off, with our teams bringing Juniper into Aruba accounts and Aruba into Juniper accounts. One catalog, one compensation plan, one set of account rules, all of the sellers carrying a full combined networking portfolio. In a minute, I will talk about the channel opportunity and what comes next in our integration process. First, let us turn to results, and particularly cost synergies. As you may recall, when we closed the transaction in July of 2025, we raised our original cost synergy target from $450 million to at least $600 million in annual run rate savings by fiscal 2028. Those savings come from several areas, which include things like SGA, go-to-market harmonization, and the elimination of R&D duplicate costs.

We are running ahead of our cost synergy plan, while also spending less on integration through fiscal discipline. Given our progress, we are increasing our fiscal 2028 annual run rate cost synergy target to $800 million. Let us talk about what comes next. We have two major integration priorities remaining, bringing our partner ecosystems together and completing our commercial systems integration. The key milestone for the first one is called Partner Day 1. Partners drive most of our networking business, and this milestone will enable all 60,000 HPE partners to sell the full networking portfolio through one unified partner program. Before the acquisition, only around 10% of HPE Aruba Networking and Juniper partners overlapped. This creates a significant cross-selling opportunity as we bring the combined HPE Networking portfolio to a much broader set of sellers and customers. Partner Day 1 is planned for November 1st.

On that date, we will converge the Juniper and Aruba programs under one unified partner program, HPE Partner Ready Vantage. The next priority is a little less visible, but equally important. It's completing our lead-to-cash processes and systems. We're building a modern single quote-to-cash foundation that will make it easier for customers and partners to do business with us while allowing us to launch new products and operate more efficiently. The first phase launches in November with integrated quoting and ordering, and we expect to unify our supply chain processes by the end of 2027, with continued improvements coming throughout 2028. While there's still work ahead, we have made tremendous progress, giving us confidence in accelerating profitable growth in fiscal 2027 and beyond.

As you've seen, the combination is already creating strong shareholder value through accelerated innovation, new expanded market opportunities, and our scaled go-to-market reach and higher cost synergies. Now let's shift to our HPE Networking strategy. At HPE Discover back in June, we introduced our vision for the self-driving network. We discussed how we're bringing networking, compute, cloud management together to simplify increasingly complex IT infrastructure. Today, I want to focus on how we are winning in the market and achieving growth by leveraging the power of the combined HPE and Juniper networking portfolios. We've organized our opportunity around four focused strategic plays. The first go-to-market play is pretty straightforward. By bringing Juniper Mist and Aruba Central together, we now have a much larger combined campus and branch cloud-native and AI-driven portfolio.