Dell, HP shares rise after Lenovo’s strong quarterly results

Shares of Dell Technologies and HP Inc. advanced on Tuesday after Lenovo Group reported stronger-than-expected quarterly results, suggesting sustained demand for personal computers.

Lenovo’s earnings report, released after markets closed on Monday, showed a 12% year-over-year increase in net profit for the quarter ended June 30. Revenue rose 9% to $21.9 billion, exceeding analyst expectations. The company cited robust demand for laptops and enterprise servers, particularly in Asia and emerging markets.

The positive outlook from Lenovo, the world’s largest PC maker by shipments, lifted sentiment across the broader technology hardware sector. Dell Technologies, which competes directly with Lenovo in enterprise and consumer PCs, rose 2.1% in premarket trading. HP Inc. also gained 1.8% in early trading.

Analysts attributed the gains to Lenovo’s improved margins and guidance for continued growth in the second half of the year. Lenovo’s management highlighted strong demand for its higher-margin ThinkPad and Yoga laptop lines, as well as steady sales in its data center and infrastructure segment.

The broader tech sector has faced volatility in recent months amid concerns over global economic growth and supply chain disruptions. However, PC sales have remained resilient, supported by hybrid work trends and education sector demand. Lenovo’s results reinforce expectations that the PC market may avoid a sharp downturn this year.

Investors will monitor upcoming earnings from Dell and HP for confirmation of similar trends. Dell is scheduled to report its quarterly results on August 22, while HP’s earnings are due on August 29.