Archive · 27 Aug 2026
HP Strong Results Overshadowed by Falling PC Shipments
HP sold fewer computers during its latest quarter.
The number of PCs shipped fell by 16%, but the company made more money from its PC business because prices and demand for AI-focused computers increased.
HP’s total revenue and profit were also better than analysts expected.
However, investors worried about the decline in shipments, so HP’s shares fell 10% after trading hours.
HP said higher memory-chip costs had pushed device prices up.
The company also included expected tariff refunds in its profit forecasts.
It raised its full-year earnings forecast.
Its printing business made slightly less revenue than a year earlier.
HP’s total PC shipments fell 16% in the third quarter ended July 31, while PC revenue rose 18%.
The company reported quarterly revenue of $15.7 billion, up 12.5% year over year and above analysts’ $14.38 billion estimate.
Adjusted profit reached 83 cents per share, beating the 69-cent estimate and including an 11-cent-per-share tariff-refund benefit.
HP forecast fourth-quarter adjusted earnings of 69 to 79 cents per share, above the 67-cent analyst estimate.
HP shares fell 10% in extended trading, while printing revenue declined 2% to $3.9 billion.
- Who
- HP Inc., its investors, analysts, and competing computer makers including Dell Technologies, Apple, and Lenovo Group.
- What
- HP reported strong quarterly revenue and profit but disclosed a 16% decline in total PC shipments, sending its shares down 10% in extended trading.
- When
- The results covered the quarter ended July 31 and were reported on Aug. 26.
- Where
- The report concerns HP’s global personal-computer business; the articles do not specify a single location for the results.
- Why
- The shipment decline overshadowed stronger-than-expected financial results, while memory-chip shortages and tariffs affected pricing and earnings forecasts.
Positive Results
Shipment Concerns
Financial performance
Positive Results
HP’s $15.7 billion quarterly revenue and 83-cent adjusted earnings per share exceeded analysts’ estimates, and the company raised its annual earnings forecast.
Shipment Concerns
The earnings included benefits from tariff refunds, including 11 cents per share in the quarter and an estimated 19 cents for the full year.
PC business outlook
Positive Results
PC revenue increased 18%, helped by demand for AI-optimized PCs, and HP expects fourth-quarter adjusted earnings above the analyst estimate.
Shipment Concerns
Total PC shipments declined 16%, indicating weaker unit volume; that decline overshadowed the strong results and contributed to the share-price drop.
Pricing and costs
Positive Results
Higher device prices helped HP and other manufacturers manage rising costs from a global memory-chip shortage.
Shipment Concerns
The memory-chip shortage drove up costs and contributed to higher device prices, while printing revenue fell 2%.
- Quarterly revenue
- $15.7 billion, up 12.5% from a year earlier
- PC shipments
- Down 16% in the quarter ended July 31
- PC division revenue
- Up 18%
- Printing revenue
- $3.9 billion, down 2%
- Adjusted quarterly EPS
- 83 cents, including an 11-cent tariff-refund benefit
- Fourth-quarter adjusted EPS forecast
- 69 to 79 cents, including an estimated 8-cent tariff-refund benefit
- Annual adjusted EPS forecast
- Raised to $3.19 to $3.29, including an estimated $0.19 tariff-refund benefit
- Share reaction
- HP shares fell 10% in extended trading