Hewlett Packard Enterprise reported a $7.6 billion AI backlog at the end of fiscal Q3 2026, marking a 14% increase from the previous quarter. The company's quarterly revenue reached $12.2 billion, representing a 34% year-over-year growth.
The primary constraint on fulfilling orders is the limited supply of DDR5 DRAM and NAND flash memory. HPE expects these component shortages to continue through 2027. To mitigate this, the company has increased its inventory to $11.82 billion and signed multi-year supply agreements.
AI systems orders totaled $2.4 billion in the quarter, a 30% sequential increase. Additionally, AI-specific networking orders reached $700 million, supported by the acquisition of Juniper Networks. Cumulative AI systems bookings exceeded $16 billion by mid-2026.
Over 60% of cumulative AI orders originate from enterprise and sovereign clients rather than hyperscale cloud providers. Following a new $3.5 billion inferencing agreement with a hyperscaler, the company raised its full-year revenue growth guidance.
