Overview
- CFO Karen Parkhill said RAM and storage jumped from roughly 15–18% of PC bills of materials last quarter to about 35% for the year after a roughly 100% sequential price surge.
- HP kept its full‑year guidance range but now expects results near the low end and projects double‑digit declines in PC unit shipments.
- Management said the largest financial pressure from DRAM and NAND will land in the second half of fiscal 2026 with volatility likely extending into fiscal 2027.
- To blunt costs, HP has secured long‑term supply deals, qualified new vendors, built strategic inventory, accelerated material qualification, and implemented targeted price increases.
- First‑quarter results beat estimates with revenue of $14.44 billion and adjusted EPS of $0.81 as Windows 11 upgrades and AI PCs lifted mix, with AI models comprising about 35% of shipments.