HP Inc. The report said fiscal third-quarter sales increased 2.4% to $13.5 billion, the first increase since 2022 and exceeded analysts ‘expectations of $13.4 billion. The increase was attributed to increased corporate computer purchases as companies upgraded older equipment before Windows 10 ended support. Although consumer PC sales fell 1%, the decline was smaller than expected.
This marks the company’s first revenue growth after eight consecutive quarters of decline, driven by a recovery in the personal computer market and increased demand for systems with artificial intelligence capabilities. Global PC shipments rose 3% in the quarter to 64.9 million units, showing a recovery after two years of sluggish demand after the epidemic.
CEO Enrique Lores emphasized that innovations such as their new AI PC product line are important factors in this shift. Despite the positive results, HP expects fourth-quarter adjusted profit per share to be between 89 cents and 99 cents-slightly below analyst expectations, and tightened its fiscal year adjusted profit forecast to between $3.35 and $3.45 per share.
Profit per share (excluding certain items) was 83 cents, slightly below the forecast of 86 cents, but HP expects adjusted profit to be between 89 and 99 cents for the next quarter ending in October.
The overall PC market is showing signs of recovery, with shipments increasing 3% in the second quarter, according to a recent IDC report-the second increase since late 2021. However, revenue from HP’s printing division fell 3% to $4.14 billion due to a lack of incentives for companies to upgrade printers.
In addition, as part of its future strategy, HP announced an increase in its share repurchase authorization to $10 billion. — This is the first time since February 2020, while continuing to promote new “AI PCs” that incorporate artificial intelligence capabilities into their designs.
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Original text:https://www.reuters.com/technology/hp-returns-revenue-growth-driven-by-pc-market-recovery-ai-demand-2024-08-28/
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