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HP beats quarterly revenue estimates on steady PC market recovery
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HP beats quarterly revenue estimates on steady PC market recovery
Feb 27, 2025 1:38 PM

Feb 27 (Reuters) - HP Inc ( HPQ ) beat Wall Street

estimates for first-quarter revenue on Thursday, driven by

strength in its personal systems segment and growing demand for

artificial intelligence-capable systems.

PC market growth is expected to accelerate this year as the

Windows 10 end-of-support deadline in October pushes hundreds of

millions of PC users to refresh their devices.

Demand is also expected to surge as companies launch

AI-capable PCs equipped with advanced and powerful processors

designed for AI tasks.

U.S. President Donald Trump said on Thursday he would impose

an additional 10% duty on Chinese goods on March 4 - on top of

the 10% tariff that he levied on February 4 on imports from

China.

HP has been diversifying its supply chain, and by the end of

October expects more than 90% of HP products sold in North

America to be built outside of China, CEO Enrique Lores said in

an interview.

The PC market achieved its fifth consecutive quarter of

growth in the fourth quarter, with total shipments of desktops,

notebooks and workstations rising 5% to 67.9 million units,

Canalys data showed in January.

HP reported revenue of $13.5 billion for the first quarter

ended January 31, above the average analyst estimate of $13.36

billion, according to data compiled by LSEG.

Net revenue for HP's Personal Systems segment, home to its

desktop and notebook PCs, rose 5% to $9.2 billion. Its

commercial PS net revenue grew 10%.

The PC maker forecast second-quarter adjusted profit per

share to be between 75 cents and 85 cents, compared with

estimates of 86 cents.

HP reiterated its fiscal 2025 adjusted profit forecast of

between $3.45 and $3.75 per share.

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