HP(US:HPQ) Zhi Tong Cai Jing·2026-02-24 23:48Core Viewpoint - HP Inc. reported its Q1 FY2026 earnings, indicating a cautious outlook for the upcoming quarters due to rising memory costs and U.S. tariff policies, projecting full-year earnings at the lower end of previous guidance [1] Financial Performance - For Q1 FY2026, HP's revenue increased by 6.9% year-over-year to $14.4 billion, with adjusted earnings per share (EPS) of $0.81, both exceeding market expectations [1] - The company anticipates Q2 adjusted EPS to be between $0.70 and $0.76, slightly below the analyst average estimate of $0.75 [1] Challenges and Cost Pressures - HP faces multiple challenges, including the impact of U.S. tariffs and rising memory chip prices, which have doubled compared to the previous quarter [2] - Memory and storage costs are projected to rise from 15%-18% of the PC material cost list to 35% in the current fiscal year [2] - The adjusted operating margin for Q1 was 6.9%, below the analyst average expectation of 7.4% [2] Strategic Initiatives - HP has initiated a multi-year cost reduction plan aimed at saving $1 billion annually by 2028, which includes restructuring-related expenses [3] Business Segment Performance - The personal systems segment, which includes consumer and commercial PCs, saw revenue growth of 11% to $10.25 billion, driven by a 16% increase in consumer PC sales attributed to the growth of AI PCs [4] - The printing segment experienced a revenue decline of 2% to $4.19 billion [4] Management Changes and Market Outlook - Following the appointment of HP's CEO Enrique Lores to PayPal, Bruce Broussard has been named interim leader while the company searches for a successor [5] - Market research indicates a projected low double-digit decline in shipments of smartphones and PCs in 2026, with demand for consumer electronics potentially impacted by the rapid construction of AI infrastructure consuming global memory chip supplies [5]