Shares of HP Inc. gained on Tuesday after the computer and printer manufacturer reported stronger-than-expected quarterly results and raised its full-year outlook, citing improving demand across its core markets.
The Palo Alto, California-based company posted adjusted earnings of 92 cents per share for the quarter ended April 30, exceeding the 88 cents per share expected by analysts surveyed by Refinitiv. Revenue totaled $13.8 billion, above the $13.6 billion forecast, driven by growth in both the personal systems and printing segments.
HP raised its fiscal 2025 guidance, projecting adjusted earnings of $3.50 to $3.70 per share, up from its prior range of $3.30 to $3.50. The company also increased its full-year revenue outlook to $56 billion to $58 billion, from $54 billion to $56 billion previously.
Chief Executive Enrique Lores attributed the better-than-expected performance to resilient demand for PCs and printers, as well as cost discipline. "Our teams executed well in a dynamic environment, delivering strong operational results and reaffirming our confidence in the business," Lores said in a statement.
The company’s personal systems segment, which includes laptops and desktops, reported revenue of $9.1 billion, up 11% year-over-year, while the printing segment generated $4.7 billion, an increase of 3% from the same period last year.
Analysts noted that HP’s results reflect broader trends in the PC market, where demand has stabilized after a period of post-pandemic normalization. "The company is benefiting from a more balanced inventory environment and steady commercial demand," said an analyst at a major brokerage firm.
HP’s stock climbed 3.5% in premarket trading following the earnings release, extending gains from Monday’s close of $32.10. The shares have risen about 12% over the past three months, outperforming the S&P 500 Information Technology sector index.
Investors will be watching for further updates on HP’s strategy to drive growth in higher-margin segments such as managed print services and hybrid work solutions.
