HPE's Cloud and AI Margins Growth Should Be Investors' Focus -- Market Talk

Dow Jones16:59

0859 GMT - HPE's near-doubling of its operating profit margin in its Cloud and AI division is the proof that the group is growing profitability, Moor Insights & Strategy's Patrick Moorhead writes in a post on X. Investors should look past the more than two-fold jump in net revenue for the group's Networking division, as growth in the segment was primarily driven by the integration of Juniper Networks. HPE bought Juniper in 2025. Instead, the rise in Cloud and AI operating profit margins to 12.4% for the second quarter--up from prior-year figure of 6.6%--shows HPE can meaningfully convert revenue into profits. HPE shares rise 25% premarket. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

June 02, 2026 04:59 ET (08:59 GMT)

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Investors should look past the more than two-fold jump in net revenue for the group's Networking division, as growth in the segment was primarily driven by the integration of Juniper Networks. HPE bought Juniper in 2025. Instead, the rise in Cloud and AI operating profit margins to 12.4% for the second quarter--up from prior-year figure of 6.6%--shows HPE can meaningfully convert revenue into profits. HPE shares rise 25% premarket. 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