By Juby Babu
(Reuters) – HP Inc beat Wall Street estimates for first-quarter revenue on Thursday, driven by strength in its personal systems segment and growing demand for artificial intelligence-capable systems.
PC market growth is expected to accelerate this year as the Windows 10 end-of-support deadline in October pushes hundreds of millions of PC users to refresh their devices.
Demand is also expected to surge as companies launch AI-capable PCs equipped with advanced and powerful processors designed for AI tasks.
U.S. President Donald Trump said on Thursday he would impose an additional 10% duty on Chinese goods on March 4 – on top of the 10% tariff that he levied on February 4 on imports from China.
HP has been diversifying its supply chain, and by the end of October expects more than 90% of HP products sold in North America to be built outside of China, CEO Enrique Lores said in an interview.
The PC market achieved its fifth consecutive quarter of growth in the fourth quarter, with total shipments of desktops, notebooks and workstations rising 5% to 67.9 million units, Canalys data showed in January.
HP reported revenue of $13.5 billion for the first quarter ended January 31, above the average analyst estimate of $13.36 billion, according to data compiled by LSEG.
Net revenue for HP’s Personal Systems segment, home to its desktop and notebook PCs, rose 5% to $9.2 billion. Its commercial PS net revenue grew 10%.
The PC maker forecast second-quarter adjusted profit per share to be between 75 cents and 85 cents, compared with estimates of 86 cents.
HP reiterated its fiscal 2025 adjusted profit forecast of between $3.45 and $3.75 per share.
(Reporting by Juby Babu in Mexico City; Editing by Shounak Dasgupta)
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