HP Inc. reported fiscal 2026 first‑quarter results that surpassed expectations, with net revenue reaching $14.44 billion—up 6.9% year‑over‑year—and non‑GAAP earnings per share of $0.81, a $0.04 beat over the consensus estimate of $0.77. The revenue gain was driven by a 11% increase in Personal Systems revenue to $10.25 billion, largely fueled by a 12% rise in AI‑enabled PC shipments that now account for more than 35% of the company’s PC shipments. Printing revenue declined 2% to $4.19 billion, reflecting the ongoing structural shift away from legacy printers.
Management attributed the earnings beat to strong demand in the Personal Systems segment and disciplined cost management, but noted that rising memory and NAND prices have pushed component costs from 15‑18% to roughly 35% of the PC bill of materials. This cost pressure has compressed operating margins, prompting the company to maintain its fiscal 2026 guidance—non‑GAAP EPS of $2.90‑$3.20 and free‑cash‑flow of $2.8‑$3.0 billion—while cautioning that results are likely to trend toward the lower end of the range.
"We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs. Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry‑wide headwinds," said Interim CEO Bruce Broussard.
"We are pleased with our execution in Q1, driving better than expected revenue growth and non‑GAAP EPS above consensus. With just one quarter behind us in a dynamic environment marked by increasing memory costs, we are holding our outlook for the year yet currently anticipate results to be closer to the low end of our range. We are well practiced at managing through headwinds and remain focused on executing our mitigation plans," added CFO Karen Parkhill.
Investors focused on the company’s guidance, noting that the shift toward the lower end of the full‑year range reflects the impact of memory cost headwinds and U.S. trade regulations. The guidance adjustment signals management’s concern about sustained margin compression, even as AI PC demand continues to grow.
The earnings beat and revenue growth underscore HP’s ability to capture demand in high‑margin AI‑enabled PCs, but the company’s cautious outlook highlights the vulnerability of its PC business to component cost volatility and regulatory uncertainty. The combination of strong short‑term performance and headwinds to future profitability will be a key consideration for investors evaluating HP’s long‑term trajectory.
revised_sentiment_rating":0}{
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
is_material
disqualifying_factors
revised_title
revised_content_paragraphs
revised_sentiment_rating
importance
should_publish
explanation
is_new_event
...
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.