HP Inc surpassed Wall Street estimates for second-quarter revenue, indicating a resurgence in the personal computer (PC) market as consumers upgrade their systems. The company experienced a surge in sales during the pandemic, followed by a two-year sales decline that is now beginning to ease.
CEO Enrique Lores highlighted the significance of AI features introduced by Microsoft (MSFT.O), expecting around 10% of HP’s PC sales to stem from “AI PCs” in the latter half of fiscal 2024. Lores emphasized that the impact of AI PCs would be more substantial in 2025.
Lores attributed the second-quarter sales boost to education customers, particularly schools upgrading their systems after a prolonged demand slump following COVID-19.
In Q2, HP reported revenue of $12.8 billion, surpassing analysts’ average estimate of $12.6 billion. Sales of HP’s personal systems segment, housing desktop and notebook PCs, rose 3% year-over-year, while the printing segment experienced an 8% decline.
For fiscal 2024, HP adjusted its profit forecast to be in the range of $3.30 to $3.60 per share, compared to the previous outlook of $3.25 to $3.65 per share. The midpoint of the full-year range exceeded analyst estimates.
HP expects adjusted profit per share of 85 cents in the third quarter ending in July, aligning with analysts’ average estimate.
The company remains optimistic about the PC market’s recovery and the potential for growth driven by advancements in AI technology.
