HP Inc. Faces Forecast Lows Amid Chip Crisis, Tariffs

HP Inc. is bracing for fiscal 2026 results to land at the lower end of its projections, citing the impact of U.S. trade regulations and escalating costs attributed to the global memory chip crisis. The personal computer maker has implemented strategies such as supply chain adjustments and price hikes to counteract volatile tariffs and rising memory chip expenses. These measures contributed to HP surpassing Wall Street's revenue and profit expectations for the first quarter.

The company's first-quarter revenue climbed 6.9% to $14.44 billion, surpassing the $13.94 billion estimated by analysts. Adjusted profit per share for the quarter ended January 31 was 81 cents, exceeding the anticipated 76 cents. The personal systems unit, encompassing both consumer and commercial PCs, saw an 11% revenue increase, reaching $10.25 billion. Conversely, the printing segment experienced a 2% revenue dip to $4.19 billion.

Looking ahead, HP has forecasted second-quarter adjusted profit per share to be between 70 cents and 76 cents, falling slightly below the consensus estimate of 74 cents. Analysts warn that the ongoing memory chip shortage could dampen worldwide demand for consumer electronics, including smartphones and PCs, as intense demand from AI infrastructure development has significantly depleted global memory chip supplies.