HP beats Q2 earnings with 9% revenue growth as AI PC and Windows 11 refresh drive commercial demand

HP beats on Q2 earnings and revenue as commercial PC demand rebounds - SiliconANGLE

HP beats on Q2 earnings and revenue as commercial PC demand rebounds HP Inc. reported revenue and earnings beats in its fiscal 2026 second-quarter results today, with stronger-than-expected demand for commercial PCs driving 9% revenue growth at the personal computer maker. For the quarter ended on April 30, HP reported adjusted earnings per share of 86 cents, up from 71 cents in the same quarter of the previous year, on revenue of $14.4 billion, up 9% year-over-year. Analysts were expecting earnings of 71 cents per share on revenue of $14.07 billion. The adjusted figure topped HP's own forecast of 70 to 76 cents, while unadjusted diluted earnings per share of 49 cents came in below the prior outlook of 52 to 58 cents, weighed down by $365 million in restructuring and other charges that included costs tied to the chief executive transition. Interim Chief Executive Bruce Broussard, who took the role in February after Enrique Lores stepped down, pointed to artificial intelligence hardware as the driver. "During the second quarter, we continued executing our future of work strategy through intelligent devices, edge AI and connected experiences while navigating rising commodity costs," Broussard said in HP's earnings release. "We introduced innovations across AI PCs, Z workstations, AI-powered print, and HP IQ." Personal Systems, the segment that includes HP's PC business, was the standout. Revenue rose 13% year-over-year to $10.2 billion, with commercial PC sales up 14% and consumer up 10%. Operating margin expanded to 5.2% from 4.5% a year earlier. Total unit shipments fell 7%, suggesting the revenue gain came from higher average selling prices rather than volume, a pattern consistent with the industry shift toward AI-capable hardware at premium price points. The Printing segment was flatter. Revenue of $4.2 billion was unchanged year-over-year, with an operating margin of 18.3%, down from 19.2% a year earlier. Consumer printing revenue fell 10% and consumer hardware units dropped 8%. HP also returned $374 million to shareholders during the quarter through dividends and buybacks, repurchasing 5.2 million shares for $100 million and paying out $274 million in dividends. Looking forward, for its fiscal third quarter, HP forecasts adjusted earnings of 61 to 71 cents per share, a range whose midpoint sits below the 71-cent forecast by analysts. For its full fiscal year, HP narrowed its full-year adjusted earnings outlook to $2.90 to $3.10 per share and free cash of $2.8 billion to $3.0 billion.

HP beats revenue, profit estimates as AI PC and Windows 11 refresh boost demand

May 27 (Reuters) - HP beat Wall Street estimates for second-quarter revenue and profit on Wednesday, driven by strong demand for AI-optimized personal computers and the Windows 11 refresh cycle. PC makers including HP, Dell Technologies and China's Lenovo Group are navigating a shortage of memory chips as data center buildout is sucking up capacity and triggering price increases of smartphones and PCs. That supply crunch is pushing some enterprises toward higher-margin premium devices during the Windows 11 upgrade cycle after Microsoft ended support for Windows 10 in October last year. Last week, rival Lenovo reported a better-than-expected 27% jump in fourth-quarter revenue, as strong consumer demand for PCs ahead of potential price hikes helped the world's largest computer maker expand its market share. HP's second-quarter revenue rose 9% to $14.41 billion from a year ago, beating LSEG-compiled analysts' average estimate of $14.07 billion. Its adjusted earnings per share of 86 cents also topped estimates of 71 cents for the quarter ended April 30. "During the second quarter, we continued executing our future of work strategy through intelligent devices, edge AI, and connected experiences while navigating rising commodity costs," HP interim CEO Bruce Broussard said in a statement. The company's "future of work" strategy focuses on AI-powered PCs, hybrid work tools and workplace software. HP said it now expects fiscal 2026 adjusted EPS of $2.90 to $3.10, compared with its prior estimates of $2.90 to $3.20. The company expects third-quarter adjusted EPS between 61 cents and 71 cents, the mid-point of which was slightly above estimates of 64 cents. (Reporting by Jaspreet Singh in Bengaluru; Editing by Shreya Biswas)