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HP Surges on AI PC Demand and Profit Beat
28 May
Summary
- HP exceeded revenue and profit expectations for the second quarter.
- Demand for AI-optimized PCs and Windows 11 upgrades drove growth.
- The company expects fiscal 2026 adjusted EPS between $2.90 and $3.10.
HP exceeded expectations for its second quarter, reporting revenue and profit figures that surpassed Wall Street estimates. This strong performance was significantly boosted by a surge in demand for AI-optimized personal computers and the continuous upgrade cycle to Windows 11.
During the second quarter, HP's revenue saw a 9% increase compared to the previous year, reaching $14.41 billion. The company's adjusted earnings per share also came in higher than anticipated, at 86 cents for the quarter ending April 30. These results led to a notable increase in the company's share price in extended trading.
Navigating supply chain challenges, including a shortage of memory chips, HP is focusing on higher-margin premium devices. The company has reaffirmed its commitment to its 'future of work' strategy, which emphasizes AI-powered PCs and hybrid work solutions. HP now forecasts fiscal 2026 adjusted earnings per share to be between $2.90 and $3.10.
