HP surpasses third-quarter revenue projections, attributing success to rising AI PC adoption and the Windows 11 upgrade
HP Inc. has reported a strong third-quarter performance, with revenue rising by 3% to $13.93 billion, surpassing analysts' average estimate of $13.70 billion. This growth was driven by an increase in demand for artificial intelligence-powered personal computers and the ongoing Windows 11 upgrade cycle.
The company's personal systems unit, which houses both consumer and commercial PCs, saw a 6% increase in revenue, reaching $9.93 billion. The printing segment, which includes office-oriented printers and service offerings, experienced a 4% decrease in revenue, with the third-quarter totalling $4 billion.
HP's CEO, while not explicitly named in the provided search results, expressed confidence in the strength of the PC market and the continued growth in AI-PC adoption. CFO Karen Parkhill reiterated this sentiment, stating that they remain confident in the opportunity presented by the PC market.
In anticipation of a strong PC refresh cycle after Microsoft ends support for Windows 10 in October, HP forecasts fourth-quarter adjusted profit per share between 87 cents and 97 cents. This aligns with analysts' estimates of 92 cents. HP's adjusted profit per share for the quarter ended July 31 was 75 cents, as expected.
The positive results have led to a 4.6% increase in HP Inc's shares in extended trading. The company expects to continue benefiting from the Windows 11 refresh and AI PC adoption, indicating a promising outlook for the future.
Users and organizations are seeking to maintain security and access to the latest features by upgrading to Windows 11, further fuelling the demand for personal computers. HP Inc's third-quarter results demonstrate the company's ability to adapt to market trends and capitalise on opportunities, positioning itself for continued success in the technology industry.
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