New york: ?HP Inc exceeded Wall Street’s projections for its third-quarter revenue, fueled by the rising demand for personal computers enhanced with artificial intelligence and the ongoing Windows 11 upgrade cycle.
According to Radio Television Brunei, a significant PC refresh is anticipated following Microsoft’s decision to terminate Windows 10 support in October. This move is prompting both individual users and organizations to upgrade in order to maintain security and access to new features, thereby benefiting PC manufacturers like HP and Dell.
CFO Karen Parkhill expressed confidence in the PC market’s potential, citing expected continued momentum from Windows 11 updates and the adoption of AI PCs. However, evolving U.S. trade policies are compelling PC makers to adjust supply chains, which leads to increased costs for customers and pricing uncertainties.
CEO Enrique Lores revealed in an interview that HP has largely transferred its North America-bound production away from China, relocating it to Southeast Asia, Mexico, and some sites in the U.S. Only a few low-volume items remain in China.
HP’s third-quarter revenue rose by approximately 3% to $13.93 billion, surpassing analysts’ average expectation of $13.70 billion, as per data compiled by LSEG. For the fourth quarter, HP forecasts an adjusted profit per share between 87 cents and 97 cents, aligning closely with analysts’ predictions of 92 cents. Despite these positive results, HP’s shares fell by about 2% in extended trading.
The company noted that its fourth-quarter profit forecast excludes about 12 cents per share for restructuring, deal-related costs, intangible amortization, and tax items. HP’s adjusted profit per share for the quarter ending July 31 matched estimates at 75 cents.
In the third quarter, the personal systems unit, which includes consumer and commercial PCs, saw a revenue increase of 6% to $9.93 billion. Conversely, revenue from the printing segment, encompassing office printers and related services, decreased by 4% to $4 billion.