New York, May 29, 2026, 10:04 AM EDT
HP Inc. shares gained in early New York trading Friday after the company topped quarterly revenue and profit forecasts. The PC and printer maker delivered a more straightforward AI-PC pitch, though rising memory-chip costs still cloud the company’s path forward.
The stock was last at $26.98, up $1.97, after reaching $27.45 earlier. That move was stronger than the big tech indexes. S&P 500 and Nasdaq-100 ETFs each gained under 1%.
Timing is key. HP is riding a wave of corporate upgrades as buyers shift to Windows 11 and look at PCs ready for AI workloads. AI PCs—devices that can handle some AI work locally instead of just on the cloud—accounted for 44% of HP’s shipments last quarter. That was up from over 35% the quarter before, according to Reuters.
HP reported fiscal Q2 net revenue up 9% to $14.4 billion. Non-GAAP diluted EPS came in at 86 cents. Non-GAAP earnings remove items like restructuring, litigation, and amortization.
HP interim CEO Bruce Broussard said the company is sticking to its future-of-work plans and dealing with higher commodity costs. CFO Karen Parkhill called it a “strong second quarter” and said HP is executing with discipline as the business landscape shifts. HP
Personal Systems was the main driver, with HP’s PC business revenue up 13% to $10.2 billion. Printing came in flat at $4.2 billion—still making money, but not moving the stock much. Operating margin in Personal Systems was 5.2%, while Printing posted 18.3%.
HP cut its fiscal 2026 adjusted EPS forecast to $2.90 to $3.10, down from a prior top end of $3.20. It now sees third-quarter adjusted EPS at 61 to 71 cents. Reuters said the guidance midpoint is just above the 64-cent estimate from analysts.
Memory is the issue. Parkhill told analysts HP still sees “input costs to rise in the back half” and said Personal Systems margins will remain below their long-term range. He flagged the fourth quarter as a “low point” but said things should get better heading into fiscal 2027. The Motley Fool
HP says it’s got some supply protection. Ketan Patel, Personal Systems head, said the company has “secured the memory and storage” it needs for the fiscal year, thanks to deals with suppliers and long-term contracts. Parkhill added that some commercial PC demand showed up earlier, pushing up revenue by about 2% to 3% in the quarter. The Motley Fool
Dell Technologies jumped about 40% premarket after boosting its outlook on stronger Nvidia AI server demand, a sign investors are chasing hardware firms seen as winners in data center spending. HP isn’t on its own here. HP, Dell, and Lenovo all face tight memory-chip supply, though they serve different markets.
Next up for HP is proving it can keep pushing up prices and steer buyers to pricier PCs, all without squashing demand. Patel said about 30% of existing machines still need a Windows 11 upgrade. That provides a tailwind, but it’s not without risk.
HP is still seen by the market as a PC refresh play with an AI spin. That works as long as upgrade demand holds up. It gets tough if tight memory supplies stick around and buyers resist higher prices.
