Technology company HP has beat expectations in its first quarter earnings for 2026.
The company reported a 5.2% year-over-year rise in net revenue to US$14.4 billion, surpassing Wall Street expectations of $13.9 billion.
"We are pleased to report a strong first quarter, highlighted by robust growth in Personal Systems, including the continued momentum in AI PCs,” Interim CEO Bruce Broussard.
“Our performance reflects the strength of our portfolio and our disciplined execution of our Future of Work strategy, even as we navigate industry-wide headwinds.”
HP’s non-GAAP diluted earnings per share also rose from 74 cents in Q1 2025 to 81 cents, beating Wall Street estimates of 77 cents per share.
This was also at the high end of the company’s previously provided outlook of 73 cents per share to 81 cents per share.
In the first quarter, the company also returned $0.6 billion to shareholders in the form of share repurchases and dividends.
This follows a leadership restructure within the company, where Broussard became interim CEO after Enrique Lores stepped down as president and CEO to assume a leadership position at PayPal.
“The transition from Board member to the Interim CEO role has been smooth and well-coordinated, underscoring the depth of our leadership team, the strength of our governance, and the exceptional talent across HP,” Broussard said.
“We remain confident in our strategy and focused on delivering sustainable, long-term value for our customers and shareholders.”
For the second quarter of 2026, the company expects earnings per share to fall between 70 cents and 76 cents.
As for the full year, HP expects earnings per share to be between $2.90 to $3.20.
“With just one quarter behind us in a dynamic environment marked by increasing memory costs, we are holding our outlook for the year yet currently anticipate results to be closer to the low end of our range,” CFO Karen Parkhill said.
“We are well practiced at managing through headwinds and remain focused on executing our mitigation plans.”
HP (NYSE: HPQ) stock finished 0.82% lower at $18.20. In after-market trading, the company’s stock fell a further 6.98% to $16.93.
The company maintains a market cap is $16.71 billion.
