HP warns US trade regulations, memory chip costs to weigh on annual forecasts

Core Viewpoint - HP Inc. anticipates fiscal 2026 results to be at the low end of its forecasts due to U.S. trade regulations and rising memory chip costs, leading to a 3.6% decline in its shares during extended trading [1] Financial Performance - HP's first-quarter revenue increased by 6.9% to $14.44 billion, surpassing analysts' average estimate of $13.94 billion [1] - The adjusted profit per share for the quarter ended January 31 was 81 cents, exceeding estimates of 76 cents [1] - Revenue from the personal systems unit, which includes consumer and commercial PCs, grew by 11% to $10.25 billion [1] - Revenue in the printing segment fell by 2% to $4.19 billion [1] Market Outlook - HP's CFO indicated that the company expects results to be closer to the low end of its range due to increasing memory costs [1] - Preliminary data from IDC suggests a low double-digit decline in unit shipments for smartphones and personal computers in 2026 [1] - Global PC spending is projected to rise to $219.57 billion by 2027 [1] Strategic Adjustments - HP, similar to peers like Dell, has implemented supply chain adjustments and price increases to mitigate the impact of fluctuating tariffs and rising memory chip prices [1] - The company is benefiting from the growing adoption of AI-powered personal computers and the ongoing Windows 11 upgrade cycle [1]