Overview
- HP reported fiscal Q2 revenue of $14.4 billion and non‑GAAP EPS of $0.86, with operating cash flow of $0.9 billion and free cash flow of $0.8 billion following its May 27 earnings release.
- Personal Systems drove the quarter with revenue up 13% even as total PC unit volumes fell about 7%, showing that higher prices and a premium product mix, not unit growth, produced the gains.
- AI‑capable PCs rose to 44% of shipments in the quarter and management projects 60%–70% penetration next fiscal year, a trend the company says supports higher average selling prices.
- HP narrowed its full‑year non‑GAAP EPS range to $2.90–$3.10 and warned that memory and storage cost inflation will pressure margins through the second half with a peak expected in Q4.
- Investors responded with mixed signals as analysts raised price targets and the stock rallied while some firms, including Bank of America, stayed cautious and flagged questions about demand sustainability and margin recovery.