HP (NYSE:HPQ) reported fiscal first-quarter results on Tuesday that exceeded Wall Street’s expectations, fueled by a resurgence in personal computing and the early rollout of AI-enabled devices.
Despite the beat, shares fell 3.4% in extended trading as management warned of intensifying "industry-wide headwinds," specifically soaring component costs.
The company posted revenue of $14.44 billion for the period ending Jan. 31, a 6.9% increase year-over-year that beat the analyst consensus of $14.26 billion.
Adjusted earnings per share reached $0.81, surpassing the $0.77 anticipated by the market.
The growth was led by the Personal Systems unit, which saw an 11% revenue jump to $10.25 billion, bolstered by the "continued momentum of AI PCs" and a refresh cycle in the commercial sector.
In contrast, the Printing segment remained a drag on the top line, with revenue falling 2.2% to $4.19 billion as hardware demand continued to soften.
While the quarterly performance was strong, CFO Karen Parkhill noted that "increasing memory costs" are putting pressure on margins.
Meanwhile, HP maintained its full-year 2026 adjusted EPS guidance of $2.90 to $3.20 but cautioned that it now expects results to land at the "lower end" of that range.
For the current quarter ending in April, the company expects adjusted earnings of $0.70 to $0.76 per share, the midpoint of which slightly trailed the $0.74 analyst consensus.