HP Inc reported better-than-expected fiscal second-quarter financials despite the continued pressure from rising memory costs.
HP posted adjusted earnings for the quarter ended on April 30 of 86 cents per share, well above Wall Street estimates of 71 cents per share, according to FactSet. Revenue for the quarter of $14.4 billion also came in higher than analyst estimates of $14 billion.
Personal Systems revenue was $10.2 billion, up 13% from the prior year and ahead of the $10 billion analysts expected. Printing revenue was $4.2 billion, flat compared with the previous year and above Wall Street estimates of $4.1 billion.
Shares initially jumped following the report, but were flat shortly after.
HP said it now expects fiscal 2026 adjusted earnings to be between $2.90 per share and $3.10 per share. This comes after the company said in February that it expected earnings for the fiscal year to come in at the lower end of its guidance, which was between $2.90 a share and $3.20 a share at the time.
“With two solid quarters behind us, we are executing with discipline in a dynamic environment and are strengthening our outlook for the fiscal year to reflect this,” CFO Karen Parkhill said in the earnings release.
The soaring cost of memory has been a problem for HP and the entire tech hardware space. Memory is a component used to help power artificial intelligence. As more companies rush to build out the infrastructure needed to power AI, memory demand is far outpacing supply. As a result, costs have soared, impacting the margins of equipment manufacturers everywhere.
HP and other tech hardware companies have been trying to offset these rising costs by raising prices for consumers.
