HP Inc Q1 Revenue Rises 6% to $14.3 B, Costs Jump 8% Pressuring Margins
HP Inc reported Q1 revenue of $14.3 billion, a 6% year-over-year increase, while operating expenses rose 8%, compressing gross margin by 150 basis points. GAAP EPS held at $0.45, with management warning that elevated component costs and supply-chain pressures could persist into the next quarter.
1. Q1 Financial Results
HP Inc delivered Q1 revenue of $14.3 billion, up 6% year-over-year, driven by strength in commercial PCs and print supplies. Operating expenses increased 8% due to higher freight and component costs, resulting in a 150-basis-point decline in gross margin to 21.5%. GAAP earnings per share remained steady at $0.45.
2. Management Commentary
During the earnings call, executives highlighted ongoing supply-chain bottlenecks and elevated semiconductor and material prices as primary drivers of cost inflation. The company signaled that while revenue growth is sustainable, margin recovery will depend on cost-containment measures and easing supplier constraints in coming quarters.