HP Inc. Q1 Revenue Rises 7% to $14.4 B; AI PCs >35% Shipments
HP Inc. posted a 7% year-over-year revenue increase to $14.4 billion in FQ1 2026, led by an 11% Personal Systems revenue jump and over 35% of shipments as AI PCs; non-GAAP EPS reached $0.81 while Print segment sales dipped 2%. Analysts rate the stock at an average “Reduce.”
1. FQ1 2026 Financial Results
HP Inc. reported FQ1 2026 revenue of $14.4 billion, a 7% increase over last year, led by an 11% rise in Personal Systems revenue and 12% unit growth as AI PCs now account for over 35% of shipments. Print segment revenue fell 2% on lower supply volumes.
2. Margin and Cost Pressures
Rising DRAM and NAND memory costs have climbed to roughly 35% of PC bill of materials, up from historical 15–18%, squeezing Personal Systems operating margins and prompting pricing actions and long-term supply agreements. Management maintains full-year non-GAAP EPS guidance at $2.90–$3.20 but expects results at the lower end of the range.
3. Analyst Rating Consensus
Analyst sentiment on the stock remains cautious, with eighteen covering analysts issuing a consensus “Reduce” recommendation. Of these, six rate it sell, ten hold and two strong buy, reflecting concerns over cost pressures and anticipated PC market unit declines in CY2026.