Memory Chip Volatility Forces HP to Trim Fiscal 2026 Forecast Despite Q1 Revenue Beat

is anticipating its fiscal year 2026 results to be at the lower end of its previously issued forecast, citing persistent volatility in memory chip costs and potential PC sales slumps. The company reported Q1 revenue growth of 6.9% to $14.44 billion with an EPS of $0.81, exceeding analyst estimates, driven by an 11% increase in PC shipments and a 16% rise in consumer business.

However, the printing segment saw a 2% decline. HP expects PC unit shipments to decrease in the double digits, aligning with industry trends.

The company is also navigating increased costs due to memory chip shortages, exacerbated by AI data center buildouts, and is adjusting its supply chain and prices to offset the impact of U.S. tariffs. Despite these headwinds, HP noted positive demand from Europe and Asia, boosted by the Windows 11 upgrade cycle and a shift towards premium devices.

AI PCs now constitute over 35% of total PC shipments.