NEW YORK, May 27, 2026, 18:04 (EDT)
HP Inc. shares swung late Wednesday after the company topped quarterly revenue and profit forecasts, with demand for AI PCs and a shift to Windows 11 giving results a lift. The stock finished regular trading up 4.4% at $25.49, then spiked as much as 15% after hours before giving up most of that move, according to Reuters.
Timing is in play. PC makers have seen orders improve as companies retire old machines, after Microsoft ended Windows 10 support last year. Meanwhile, the AI data center buildout is making memory chips scarce and pricier, cutting into margins for HP, Dell Technologies and Lenovo.
HP reported fiscal second-quarter net revenue up 9% at $14.4 billion, using Reuters’ figure, $14.41 billion, for the period ended April 30. Adjusted earnings landed at 86 cents per share, ahead of the 71 cent estimate from LSEG analysts. HP strips out items like restructuring from this non-GAAP number.
HP’s Personal Systems unit drove the quarter, with PC revenue up 13% to $10.2 billion. Total PC units shipped dropped 7%, so better pricing, mix, or currency probably made up the difference. Printing revenue didn’t move, steady at $4.2 billion and an 18.3% operating margin.
Interim CEO Bruce Broussard said HP is moving into “intelligent devices, edge AI, and connected experiences” as it manages “rising commodity costs.” CFO Karen Parkhill said the company is “executing with discipline in a dynamic environment.” HP
HP is guiding for third-quarter adjusted earnings between 61 cents and 71 cents per share. For the full year, HP’s adjusted earnings outlook stays at $2.90 to $3.10 a share, with free cash flow forecast between $2.8 billion and $3.0 billion.
HP posted a beat, but it wasn’t all good news. GAAP earnings came in at 49 cents a share, missing the second-quarter range it had set before. HP also cut the top end of its full-year adjusted profit target, below the old $3.20. Margin recovery could get shaky if memory and storage costs keep rising, or if buyers push back against higher prices.
Competition is messy, too. Lenovo last week posted a 27% rise in quarterly revenue, ahead of forecasts, citing PC demand as customers look to buy before prices go up. Dell also faces AI-led component headwinds affecting margins.
HP shares moved more than the rest of the market. The S&P 500 finished up 0.02% and the Dow gained 0.36%, MarketWatch said. Dell was little changed.
HPQ beat the low bar this quarter. Now the issue is if AI PCs and the Windows 11 upgrade cycle can push revenue higher as component inflation takes a bigger bite.
HP is set to report Q2 results on Wednesday afternoon Pacific time, according to its investor calendar. The company is also scheduled for an appearance at the Evercore TMT conference on June 2.
