HP Inc
BMV:HPQ
HP Inc
HP Inc., a stalwart in the realm of personal computing and printing, traces its origin to the legendary Hewlett-Packard Company. Its journey began as a widely diversified technology enterprise, but in 2015, a strategic bifurcation gave birth to HP Inc. and Hewlett Packard Enterprise. HP Inc., based in Palo Alto, California, took the mantle of personal systems and printing, carving out a niche as a leader in these sectors. The company's business model centers around the production and sale of a wide array of personal computers and printers, targeting both consumers and enterprises. Its portfolio includes laptops, desktops, and workstations that cater to a broad spectrum of users, from everyday consumers to high-end professionals.
Central to HP Inc.'s success is its ability to continuously innovate while operating at scale. The company thrives on a dual-income model, generating revenue not just through selling hardware but also through a stream of recurring income from supplies like ink and toner. This supplies segment, often viewed as the razor-and-blades model, contributes to steady cash flow. The firm's ingrained focus on sustainability and design also adds a competitive edge, as evidenced by its efforts in innovating eco-friendly products and solutions. Moreover, HP Inc. strategically expands its market footprint via acquisitions and strategic partnerships, ensuring that it remains at the forefront of the ever-evolving technology landscape. This adaptability is what keeps HP Inc. not only surviving but thriving in the competitive tech arena.
HP Inc., a stalwart in the realm of personal computing and printing, traces its origin to the legendary Hewlett-Packard Company. Its journey began as a widely diversified technology enterprise, but in 2015, a strategic bifurcation gave birth to HP Inc. and Hewlett Packard Enterprise. HP Inc., based in Palo Alto, California, took the mantle of personal systems and printing, carving out a niche as a leader in these sectors. The company's business model centers around the production and sale of a wide array of personal computers and printers, targeting both consumers and enterprises. Its portfolio includes laptops, desktops, and workstations that cater to a broad spectrum of users, from everyday consumers to high-end professionals.
Central to HP Inc.'s success is its ability to continuously innovate while operating at scale. The company thrives on a dual-income model, generating revenue not just through selling hardware but also through a stream of recurring income from supplies like ink and toner. This supplies segment, often viewed as the razor-and-blades model, contributes to steady cash flow. The firm's ingrained focus on sustainability and design also adds a competitive edge, as evidenced by its efforts in innovating eco-friendly products and solutions. Moreover, HP Inc. strategically expands its market footprint via acquisitions and strategic partnerships, ensuring that it remains at the forefront of the ever-evolving technology landscape. This adaptability is what keeps HP Inc. not only surviving but thriving in the competitive tech arena.
Revenue Growth: HP reported Q1 revenue of $14.4 billion, up 7% year-over-year, driven by strong performance in Personal Systems and momentum from Windows 11 refresh and AI PCs.
EPS & Guidance: Non-GAAP EPS was $0.81, up 9% YoY and at the top of the guidance range. Full-year non-GAAP EPS guidance of $2.90–$3.20 was maintained, but management expects results near the lower end due to ongoing cost pressures.
Memory Cost Headwinds: Memory prices (DRAM and NAND) rose sharply, now making up 35% of PC bill of materials, up from 15–18%, and are expected to increase further through fiscal '26, pressuring Personal Systems margins.
Mitigation Actions: HP is securing supply through long-term agreements, qualifying new suppliers, implementing cost cuts, and taking targeted pricing actions to offset rising input costs.
Print Margins: Print segment performed in line and is expected to deliver operating margins near the top end of the long-term range for both Q2 and full year.
Market Outlook: HP expects the PC unit market to decline double digits in calendar '26, but aims to grow revenue through premium category share gains and higher-margin offerings.
Capital Returns: HP remains committed to returning about 100% of free cash flow to shareholders, with $600 million returned in Q1 through dividends and buybacks.
CEO Search: The CEO search process is underway, seeking leaders with multi-segment global business experience. The planned Investor Day has been delayed due to the transition.
