HP Q3 Revenue Beats Estimates But PC Shipment Drop Drags Shares Down
· Business · Reuters, Yahoo Finance
HP reported third-quarter revenue of $13.26 billion, up 3.1% year-on-year and above analyst estimates of $12.97 billion, driven by growth in its AI server and personal systems businesses. Adjusted EPS of 0.75 also topped expectations of 0.74. Despite the top-line beat, HP's PC shipments fell 6% in the quarter as the company lapsed tougher comparisons from a year ago, and the resulting investor disappointment pushed shares down about 6% in extended trading. The company kept its full-year adjusted EPS guidance of 3 to 3.30 unchanged, even as CFO Karen Parkhill warned that a US tariff surcharge of 5–7% would have to be passed on to customers.
Why it matters
A sustained PC shipment decline signals weak enterprise and consumer demand for personal computers, which matters for the global hardware supply chain including component makers and assemblers based in India. The planned 5–7% tariff pass-through to US customers could also inflate laptop and desktop prices in HP's largest market, affecting buyers and IT spending plans.
Read the original report — Reuters
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