HP’s quarterly results were buoyed by AI-driven demand despite a sharp decline in personal computer shipments. The U.S. technology group reported a 16% drop in PC deliveries for the three months ended July 31, yet total revenue rose 12.5% to $15.7 billion, exceeding analyst expectations of $14.38 billion.
Adjusted earnings per share reached 83 cents, surpassing the 69-cent forecast. The company’s AI-optimized devices contributed to the revenue growth, offsetting weaker unit sales. HP also raised its full-year adjusted EPS guidance to a range of 69 to 79 cents, up from the prior outlook and above the average LSEG estimate of 67 cents.
The quarter benefited from $0.11 per share in tariff refunds following a U.S. Supreme Court ruling that invalidated certain duties, with the government returning approximately $100 billion in tariffs. HP joins peers including Dell, Apple and Lenovo in raising device prices amid a global shortage of memory chips, which has driven up production costs.
Lenovo, HP’s Chinese rival, reported a 43% revenue surge in early August, attributed to AI demand and price increases. HP’s stock fell 10% in extended trading after the results were released.
