"HP's finance chief warned that memory cost volatility is expected to persist even into next year, with no near-term relief for a cost that now dominates the bill of materials."
"Printing revenue fell 2% year over year in Q1, with consumer printing down 8%, removing a historically stable margin contributor."
"Management guided PC unit shipments to a double-digit percentage decline for 2026, meaning AI PC mix gains must offset the overall downturn."
HP Inc reported Q1 revenue of $14.44 billion, a 6.9% increase year over year, and non-GAAP EPS of $0.81, surpassing estimates. Despite this, shares have dropped 31% over the past year. AI PCs now make up over 35% of shipments, but memory costs are impacting margins. Management anticipates a decline in PC unit shipments for 2026 and noted a 2% drop in printing revenue. Reddit sentiment remains bearish, with concerns about translating unit growth into margin recovery amidst high memory prices.
Read at 24/7 Wall St.
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