HP Exceeds Revenue and Profit Forecasts Thanks to AI PCs and Windows 11 Demand Boost

• Second-quarter revenue rose 9% to $14.41 billion, beating analyst estimates of $14.07 billion
• PC makers face memory chip shortages as data center buildout absorbs capacity, pushing enterprises toward premium devices during the Windows 11 refresh cycle
• HP maintained its fiscal 2026 adjusted EPS outlook of $2.90 to $3.10, while third-quarter guidance midpoint slightly exceeded analyst expectations of 64 cents per share

HP Exceeds Q2 Forecasts on AI PC and Windows 11 Demand

Key Financial Results:

HP reported second-quarter revenue of $14.41 billion, up 9% year-over-year, surpassing analyst estimates of $14.07 billion. Adjusted earnings per share also beat Wall Street expectations, though specific EPS figures were not disclosed in the article.

Main Drivers:

Strong performance was fueled by robust demand for AI-optimized personal computers and the Windows 11 refresh cycle. Microsoft's termination of Windows 10 support in October last year has accelerated enterprise upgrades, with companies favoring higher-margin premium devices during this transition.

Market Challenges:

HP, along with competitors Dell Technologies and Lenovo Group, faces a memory chip shortage driven by data center expansion. This supply crunch is increasing prices for smartphones and PCs, though it's pushing enterprises toward premium product offerings.

Company Strategy:

Interim CEO Bruce Broussard highlighted HP's "future of work" strategy, centered on intelligent devices, edge AI, and connected experiences for hybrid work environments.

Forward Guidance:

HP adjusted its fiscal 2026 earnings outlook to $2.90-$3.10 per share, compared to previous estimates of $2.90-$3.20. Third-quarter adjusted EPS is expected between 61-71 cents, with the midpoint slightly above analyst estimates of 64 cents.

Sector Context:

Competitor Lenovo recently reported a 27% revenue jump, indicating broader industry strength in the PC market driven by similar factors.

Market Implications:

The results confirm sustained PC market recovery driven by AI integration and operating system upgrades, though supply constraints and rising commodity costs present ongoing headwinds for manufacturers.