Overview
- HP reported Q1 revenue of $14.44 billion and adjusted EPS of $0.81, topping LSEG estimates as Personal Systems revenue rose 11% and Printing fell 2%.
- Memory now accounts for about 35% of HP’s PC bill of materials, roughly double last year’s 15–18%, and the company expects further pressure.
- HP is securing long‑term supply, qualifying new suppliers, building strategic inventory, expanding lower‑cost sourcing, adjusting configurations, and taking targeted pricing actions.
- Management said full‑year results are likely near the low end of guidance and forecast Q2 adjusted EPS of $0.70–$0.76 versus a $0.74 consensus.
- IDC projects a low double‑digit decline in 2026 smartphone and PC shipments as the memory squeeze persists, U.S. trade policy remains volatile, and tech press flag potential consumer price increases of about 20%.