# HPE just posted 148% networking growth — ride the catch-up trade into Cisco and Arista

_AI-generated trading idea · LONG · ANET, CSCO, HPE_

> Canonical page: https://commonquant.ai/research/for-you/hpe-just-posted-148-networking-growth-ride-the-catch-up-trad--1d0f1b80-07d8-4c02-bdc5-78c2cf3a87c1

Hewlett Packard Enterprise just reported its biggest earnings beat since 2018, sending the stock up 30%. The standout number was a 148% surge in networking revenue, signaling that companies are spending heavily on network upgrades.

## Idea

HPE's 148% jump in networking revenue tells us something bigger is happening — enterprise demand for networking gear is exploding, likely tied to AI data-center buildouts. When one company in a sector posts that kind of number, its direct competitors often get re-priced higher too as investors realize the tailwind isn't company-specific. Cisco and Arista Networks are the two largest pure-play networking vendors that stand to benefit from the same spending cycle. Both have lagged HPE's move today, creating a window to buy before the market re-rates them.

## Key details

- Symbols: ANET, CSCO, HPE
- Timeframes: D1
- Tags: \#earnings, \#momentum, \#networking, \#catch\_up

## Community

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## News sources

- [HPE skyrockets 30% on biggest earnings beat since 2018](https://www.cnbc.com/2026/06/01/hpe-stock-earnings-q2.html) — CNBC
- [HPE's stock soars toward record gain as earnings show a networking bonanza](https://www.marketwatch.com/story/hpes-stock-soars-toward-record-gain-as-earnings-show-a-networking-bonanza-2bde2d3a?mod=mw_rss_topstories) — MarketWatch

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