Hewlett Packard Enterprise Company Citi’s 2026 Global TMT Conference

We're good? I think we're good.

Yeah. No, first of all, thank you for having me at the conference. As you just said, we posted, frankly, one of the best quarters I've ever had in my career, so I was delighted to have to present a set of numbers like that, and we did actually a beat and a raise, and we guided up our 2027 numbers as well. In terms of the demand profile and what gives us confidence, we are in an environment where demand is just outstripping supply at levels that were probably unprecedented in the industry. As we reported, our order book on networking was actually up 36% year-on-year. We're seeing a very durable sort of super cycle going on in networking with its refresh of networking, combined with new momentum, particularly since we closed the deal with Juniper around areas like data center.

On the cloud and AI space, our orders were up over 70%, almost 75%, 76% on a year-on-year basis. What we're seeing in that side of the house is just really strong demand in terms of data center modernization and refresh. I think what's really interesting is the whole conversation around the data center has moved from just the pure refresh. Folks have got pressure on power, cooling, and the economics are pushing really hard on, how do I really manage this environment? You've also got new workloads like AI coming into the data center. We did disclose in the quarter a very large enterprise customer where we saw very significant inference investments. We're starting to see these inference investments really pick up pace in the enterprise.

That's what gives us the confidence, and that's why we felt really it was the right time to go ahead and re-guide the framework, which we guided for 13%-17% on revenue, and EPS actually growing faster than revenue at 16%-20% and at least $5 billion cash flow, which was, I think, a really great number for us.

Well, I'd say the guide that we actually gave was really anchored around the supply that we have confidence in getting for 2027. So that's why we felt it was opportune to come out with a revised framework because we knew we could see line of sight to the supply for the guide that we gave. Now, we did also disclose, in fact, we just filed our Q the day after earnings. Our purchase commitment level is at an all-time high, actually over $30 billion. So purchase commitments are up both on the networking side and on the cloud and the AI side of the house. And those are multi-year, what we call long-term arrangements, LTAs. So that really gives you assurance over supply, not necessarily price, but at least gives us the confidence that we can see supply.

Now, obviously, the more supply, given the order demand, then if the strength was there in terms of continuous supply, then that would help us translate a lot more of that order book into revenue.