Core Viewpoint - HP Inc. anticipates continued volatility in memory chips into next year, predicting a significant decline in personal computer shipments, which led to a roughly 6% drop in its stock price in after-hours trading [1] Group 1: Financial Performance - For the fiscal year ending October 31, 2026, HP expects adjusted earnings per share to be at the lower end of the previously forecasted range of $2.90 to $3.20 [1] - In the first quarter, HP reported a revenue increase of 6.9% to $14.44 billion, surpassing the previous expectation of $13.94 billion [2] - The adjusted earnings per share for the first quarter were $0.81, exceeding the prior expectation of $0.76 [2] Group 2: Market Trends and Challenges - HP forecasts a double-digit decline in personal computer shipments, aligning with industry trends, due to significant capacity consumption by AI data center construction leading to memory chip shortages [1] - The company has taken measures to mitigate rising costs, including supply chain adjustments and price increases to offset the impact of tariffs [1] - Despite challenges, HP noted positive demand in Europe and Asia, driven by the ongoing Windows 11 upgrade cycle, with a 16% growth in its consumer business [1] Group 3: Product Segmentation - The personal systems segment, which includes consumer and commercial PCs, saw an 11% revenue growth in the quarter, reaching $10.25 billion [2] - The printing segment, which includes office printers and services, experienced a 2% revenue decline, totaling $4.19 billion [2] Group 4: Future Outlook - HP predicts adjusted earnings per share for the second quarter to be between $0.70 and $0.76, compared to the previous expectation of $0.74 [2] - The company is assessing the impact of newly announced tariffs but does not expect immediate effects on its business [2]