HP grows revenue as AI PCs gain share, but memory costs pressure margins

Transcript intelligence

What changed

Revenue growth accelerated to 4% year over year in the supplied analysis, AI PC penetration exceeded 30% of shipments, and management emphasized memory-cost pressure in the second half. The call also highlighted $2.2 billion of cumulative Future Ready savings, a new approximately $1 billion run-rate savings target, and a raised dividend.

Guidance delta

Guidance sentiment was maintained; management highlighted H2 margin pressure from memory costs and mitigation actions, while targeting approximately $1 billion of run-rate savings over three years.

Key takeaways

• Revenue increased 4% year over year, extending the growth streak to six consecutive quarters.
• AI PCs exceeded 30% of shipments, with management targeting 40%–50% penetration in FY26.
• Memory-cost inflation is expected to pressure margins in the second half; mitigation actions are in place.
• Future Ready has delivered $2.2 billion in cumulative gross annualized savings, while management targets approximately $1 billion of run-rate savings over three years.
• Print remained soft, leaving pricing, elasticity and the durability of premium-PC share gains as key watchpoints.

Management priorities

• Embed AI across the product portfolio and launch AI-driven devices
• Expand big-tank and industrial printing offerings
• Scale the Workforce Experience Platform in key verticals
• Continue cost mitigation and pursue approximately $1 billion of gross run-rate savings over three years
• Use Investor Day to detail the AI transformation roadmap