Technology giant HP exceeded Wall Street projections for quarterly earnings and revenue on Wednesday, powered by robust sales of artificial intelligence-enhanced computers and ongoing Windows 11 system upgrades.
Computer manufacturers like HP, Dell Technologies and China’s Lenovo Group are dealing with a memory chip shortage as data center construction absorbs available supply and drives up costs for smartphones and computers.
This supply shortage is encouraging some businesses to purchase higher-profit premium equipment during the Windows 11 upgrade period, following Microsoft’s decision to discontinue Windows 10 support in October of last year.
A week ago, competitor Lenovo announced an unexpected 27% increase in fourth-quarter revenue, as robust consumer interest in computers ahead of possible price increases helped the world’s top computer manufacturer grow its market position.
HP’s quarterly revenue increased 9% to $14.41 billion compared to the same period last year, surpassing the LSEG-compiled analyst consensus of $14.07 billion. The company’s adjusted earnings per share of 86 cents also exceeded projections of 71 cents for the quarter that concluded April 30.
Company stock climbed as high as 15% in after-hours trading following the announcement. The shares were most recently trading up approximately 1%.
“During the second quarter, we continued executing our future of work strategy through intelligent devices, edge AI, and connected experiences while navigating rising commodity costs,” HP interim CEO Bruce Broussard said in a statement.
The corporation’s “future of work” approach emphasizes AI-enhanced computers, hybrid workplace tools and office software.
HP announced it now anticipates fiscal 2026 adjusted EPS of $2.90 to $3.10, compared with previous projections of $2.90 to $3.20.
The company forecasts third-quarter adjusted EPS between 61 cents and 71 cents, with the midpoint slightly exceeding analyst expectations of 64 cents.
