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HP Slashes Jobs Amid AI Push
26 Nov
Summary
- HP plans 10% workforce reduction to save $1 billion.
- Urban Outfitters stock surged 17% on strong sales.
- Dell forecasts better Q4 driven by AI demand.
Technology and retail companies experienced varied outcomes in after-hours trading. HP Inc. is cutting 10% of its workforce, approximately 6,000 jobs, to achieve an estimated $1 billion in annualized gross savings over three years. This move aligns with its increased adoption of artificial intelligence, despite reporting stronger-than-expected fiscal fourth-quarter results.
In contrast, Urban Outfitters shares soared by 17% following robust third-quarter financial performance, surpassing both earnings per share and revenue estimates. Dell Technologies also saw a nearly 3% increase in its stock price, with a more optimistic outlook for the fourth quarter primarily driven by anticipated AI sales, even though its third-quarter revenue fell short of expectations.
Other companies reported mixed results. PagerDuty trimmed its annual revenue forecast but raised its earnings outlook for fiscal 2026. Workday's shares dipped despite beating third-quarter earnings and revenue targets. NetApp shares rose on higher-than-expected financial results and guidance, while Zscaler faced pressure despite positive earnings and revenue, due to its operating loss. Ambarella's shares fell despite exceeding third-quarter estimates, with its chief technology officer resigning.
